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Here are my top 3 cryptocurrency investments to buy in bulk before the market bounces back
If you haven’t noticed, the cryptocurrency market has been in a bit of a rough patch over the past couple of months. After seemingly only surging at the start of 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 cryptocurrency investments I’m buying on the dip.
1. Bitcoin
There’s not much to say here. In many ways Bitcoin (CRYPTO: BTC) is the cryptocurrency par excellence. While not as tempting as investing in a new coin with supposed popularity and potential, Bitcoin’s core features have stood the test of time more than any other cryptocurrency, making it the safest cryptocurrency investment today and likely to remain so 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, demand for those 21 million is only growing 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 extraordinary for Bitcoin. Just as we now look back with regret at the fact that Bitcoin was trading for less than $10,000, history is likely to repeat itself. In a few years, we could see its current price below 100,000 dollars with a similar retrospective view, making this correction even more tempting.
2. Ethereum
Bitcoin takes the crown in many ways when it comes to being the epitome of a cryptocurrency, but Ethereal (CRYPTO: ETH) 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 most other cryptocurrencies today have smart contracts, Ethereum is the clear leader due to its history of functionality and reliability.
As a result, Ethereum has risen to become a leading blockchain in one of the most promising and high-potential sectors in cryptocurrency: decentralized finance (DeFi). Valued at over $90 billion today, nearly 60% of the DeFi economy operates on Ethereum. With the potential to disrupt traditional finance, DeFi remains in its early stages and continues to be a hub of innovation. As a result, Ethereum represents an ideal investment for those looking to leverage the long-term potential of DeFi.
3. Coinbase
Monetary base (NASDAQ: COIN) is not a cryptocurrency, but there is no other asset on the market that provides investors with such comprehensive exposure to the vastness of cryptocurrencies. In other words, by investing in Coinbase, you can eliminate the hassle of sifting 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 based 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 last two years alone, it has introduced a number of new revenue-generating products, while its costs continue to drop. It even launched its own blockchain, Base.
With cryptocurrency adoption on the rise, Coinbase is positioned to become the go-to platform for institutional and retail investors looking to explore the power of digital assets. While it is not immune to cryptocurrency volatility (its stock has fallen in tandem), Coinbase’s recent decline could be seen as a good proxy for broad cryptocurrency exposure.
Should You Invest $1,000 in Bitcoin Now?
Before you buy Bitcoin stocks, consider this:
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Mr. 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 bounces back was originally published by The Motley Fool