Markets
Here are my top 3 crypto buys in June
With thousands of cryptocurrencies on the market and a bull run driving everything higher, it can be difficult to cut through the noise and identify which cryptocurrencies are most worthy of investment.
Yet, as complicated as cryptography may seem, it’s often best to keep it simple. With a brief exploration, it won’t take much to understand why these three assets are currently the best candidates for giving your portfolio full exposure to the best the crypto market has to offer.
Image source: Getty Images.
1.Bitcoin
Bitcoin (CRYPTO: BTC), the world’s first and best-known cryptocurrency, continues to lead the pack. Recent developments have strengthened its near-term prospects, making it an attractive investment. A notable event is the reduce by half which happened in April. Occurring approximately every four years, the halving halves the reward miners receive for mining new blocks and effectively reduces Bitcoin’s inflation rate. This built-in scarcity mechanism has historically led to substantial price increases post-halving due to reduced supply.
Additionally, the approval of spot Bitcoin ETFs in January is shaping up to be a complete game changer. These ETFs allow investors to gain exposure to Bitcoin through traditional brokerage accounts, bypassing the complexities of crypto exchanges that could have hindered adoption. This ease of access is likely to attract a wider range of investors, including institutional players who were previously hesitant due to regulatory uncertainties and technical barriers to purchasing Bitcoin directly.
We can already see the first institutional participants enter the market, adding significant pressure to Bitcoin’s limited supply. Institutions have significant capital and if even a small amount of that money flows into Bitcoin, it could lead to substantial price appreciation. This institutional interest, combined with Bitcoin’s fundamental strengths, such as its decentralization, security, and fixed supply, gives Bitcoin the clearest and most secure prospects for future growth.
2. Ethereum
The second crypto I recommend is Ethereum (CRYPTO: ETH). In the short term, Ethereum is poised to benefit from the imminent launch of its own spot ETFs. The Securities and Exchange Commission recently gave the green light to eight applicants seeking to sponsor Ethereum ETFs, with negotiations expected to begin this summer.
These ETFs will open the door for more retail and institutional investors to enter the Ethereum market, thereby boosting demand and potentially increasing its price.
The story continues
Beyond the short-term catalysts, Ethereum’s long-term fundamentals are incredibly strong, especially in the area of decentralized finance (DeFi). As one of the most important use cases for blockchain technology, DeFi represents a revolutionary change in the way financial services are delivered. By using smart contracts, common financial practices such as lending, borrowing, trading, etc. can be implemented. can be implemented without intermediaries. Simply put, DeFi is transforming finance and Ethereum is at the forefront of this innovation.
Currently, over 60% of all DeFi value is locked on the Ethereum blockchain. As the DeFi economy continues to grow, the demand for block space on Ethereum will also increase, strengthening its long-term value proposition.
3. Coinbase
Obviously, Global Coinbase (NASDAQ:COIN) is not a cryptocurrency, but it could be the ultimate play to gain broad and maximum exposure to the entire crypto market. As the largest cryptocurrency exchange in the United States, Coinbase offers a wide range of cryptocurrency-related products. So, as the cryptocurrency market grows, Coinbase’s profit potential is expected to grow as well.
Better yet, Coinbase has made significant progress in transforming its business model over the years and now offers several institutional and retail products capable of generating revenue in all market conditions. This includes its international expansion, custody services, staking rewards, interest in stablecoins and even the launch of its own blockchain, Base.
These moves not only demonstrate Coinbase’s resilience and innovative talent, but also position the company for long-term growth. When it comes to crypto, it has more room to grow and as it does so, Coinbase will be right there with it.
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RJ Fulton has positions in Bitcoin, Coinbase Global and Ethereum. The Motley Fool holds positions and recommends Bitcoin, Coinbase Global, and Ethereum. The Mad Motley has a disclosure policy.
Here are my top 3 crypto buys in June was originally published by The Motley Fool