Markets
Here are my top 3 cryptocurrency investments to buy in bulk before the market improves
If you haven’t noticed, the cryptocurrency market has been going through a challenging period over the past few months. After seemingly rising just to start 2024, it’s now struggling to sustain much, if any, momentum.
However, as history has shown, these corrections are healthy and common in bull markets, and in most scenarios, they provide investors with a valuable opportunity. Here are three crypto investments I’m buying on the dip.
1. Bitcoin
There’s not much to say here. In many ways Bitcoin (CRYPTO: BTC) is the quintessential cryptocurrency. While it may not be as appealing as investing in a new coin with supposed hype and potential, Bitcoin’s core characteristics have stood the test of time more than any other cryptocurrency, making it the safest crypto investment today and one that will likely continue to be so for decades to come.
Bitcoin is the most decentralized, secure, and battle-tested cryptocurrency. Its finite supply of 21 million coins gives it a scarcity that makes it a reliable store of value. Not to mention, the demand for those 21 million coins is only growing as institutional investors begin to enter the market and broader adoption trends increase around the world.
The past 15 years have been nothing short of remarkable for Bitcoin. Just as we now look back with regret at Bitcoin trading at less than $10,000, history is likely to repeat itself. In a few years, we could see its current price drop below $10,000. $100,000 with a similar hindsight, making this correction even more attractive.
2. Ethereum
Bitcoin takes the crown in many ways when it comes to being the epitome of a cryptocurrency, but Ethereum (CRYPTO: ETH) is in second place. Furthermore, Ethereum has something that Bitcoin does not have — smart contracts.
Launched in 2015, these smart contracts give developers the unique ability to build innovative blockchain-based applications. While most other cryptocurrencies today have smart contracts, Ethereum is the undisputed leader thanks to its track record of functionality and reliability.
As a result, Ethereum has risen to become the leading blockchain in one of the most promising and high-potential sectors in crypto — decentralized finance (DeFi). Valued at over $90 billion today, nearly 60% of the DeFi economy operates on Ethereum. With its potential to revolutionize traditional finance, DeFi remains in its early stages and continues to be a hub of innovation. Consequently, Ethereum presents an ideal investment for those looking to explore the long-term potential of DeFi.
3. Coinbase
Coinbase Coinbase Inc. (NASDAQ: COIN) isn’t a cryptocurrency, but there’s no other asset on the market that gives investors such comprehensive exposure to the vastness of cryptocurrencies. In other words, when you invest in Coinbase, you can eliminate the hassle of sifting through thousands of cryptocurrencies. Instead of having to put all your eggs in one basket, you spread them out because Coinbase’s business model depends on the success of the cryptocurrency market as a whole.
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Furthermore, Coinbase is a phenomenal company. It has over a decade of experience and continues to refine and improve its business model as the cryptocurrency market evolves. In the past two years alone, it has introduced a suite of new revenue-producing products while its costs continue to fall. It even launched its own blockchain, Base.
As cryptocurrency adoption grows, Coinbase is positioned to become the go-to platform for institutional and retail investors looking to tap into the power of digital assets. While it’s not immune to crypto volatility (its stock has fallen in tandem), Coinbase’s recent dip can be seen as a great proxy for gaining broad exposure to crypto.
Should You Invest $1,000 in Bitcoin Right Now?
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RJ Fulton has positions in Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.
Here are my top 3 cryptocurrency investments to buy in bulk before the market improves was originally published by The Motley Fool