Markets
Here are my top 3 crypto investments to buy big before the market recovers
With the recent slowdown in the cryptocurrency market, now may be the perfect time to capitalize on the long-term growth potential.
If you haven’t noticed, the cryptocurrency market has been going through a bit of a rough patch over the past couple of months. After seemingly only rising in early 2024, it’s now struggling to maintain much, if any, momentum.
However, as history has shown, these corrections are healthy and common in bull markets, and in most scenarios, they present investors with a valuable opportunity. Here are three crypto investments I buy on a dip.
1. Bitcoin
There’s not much to say here. In many ways Bitcoin (Bitcoin 0.56%) is the ultimate cryptocurrency. While it may not be as appealing as investing in a new coin with supposed hype and potential, Bitcoin’s key features have stood the test of time more than any other cryptocurrency, making it the safest crypto investment today and likely to continue to be for decades to come.
Bitcoin is the most decentralized, secure, and proven cryptocurrency. Its limited 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 is only increasing as institutional investors begin to enter the market and broader adoption trends increase around the world.
The last 15 years have been nothing short of remarkable for Bitcoin. Just as we lament today that Bitcoin is trading below $10,000, history is likely to repeat itself. In a few years, we could see its current price below $100,000 with the same hindsight, which makes this correction all the more attractive.
2. Ethereum
Bitcoin takes the cake in many ways when it comes to being the quintessential cryptocurrency, but Ethereum (ETH 2.49%) is a close second. Additionally, Ethereum has something that Bitcoin doesn’t: smart contracts.
Launched in 2015, these smart contracts offer developers the unique ability to create innovative blockchain-based applications. While the majority of other cryptocurrencies today have smart contracts, Ethereum is the undisputed leader thanks to its history of functionality and reliability.
As a result, Ethereum has become the leading blockchain in one of the most promising and high-potential sectors of cryptography – Decentralized Finance (DeFi). Valued at over $90 billion today, nearly 60% of the DeFi economy runs on Ethereum. With its potential to revolutionize traditional finance, DeFi is still in its early stages and continues to be a hub of innovation. Therefore, Ethereum presents an ideal investment for those looking to tap into the long-term potential of DeFi.
3. Coinbase
Coinbase (PIECE OF MONEY -0.56%) is not a cryptocurrency, but there is no other asset on the market that offers investors such comprehensive exposure to the vastness of cryptocurrencies. In other words, by investing in Coinbase, you can eliminate the hassle of combing through thousands of cryptocurrencies. Instead of having to put all your eggs in one basket, they are spread out because Coinbase’s business model is built on the success of the cryptocurrency market as a whole.
Coinbase is also 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 last two years alone, it has launched a series of new revenue-generating products, all while continuing to reduce its costs. It even launched its own blockchain, Base.
As cryptocurrency adoption grows, Coinbase is poised to become the go-to platform for institutional and retail investors looking to explore the power of digital assets. While it’s not immune to cryptocurrency volatility (its stock has declined in tandem), Coinbase’s recent decline could be seen as a great way to gain broad exposure to cryptocurrencies.
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.