Amid the recent crypto market downturn, now might be the perfect time to capitalize on long-term growth potential.
If you haven’t noticed, the crypto market has been going through a bit of a challenging stretch over the last couple months. After seemingly only going up to start off 2024, it is 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 am buying on the dip.
1. Bitcoin
Nothing much needs to be said here. In many ways Bitcoin (BTC 0.17%) is the quintessential cryptocurrency. While it isn’t as alluring as investing in a new coin with supposed hype and potential, Bitcoin’s principle characteristics have stood the test of time more so 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 scarcity that makes it a reliable store of value. Not to mention, demand for that 21 million is only growing as institutional investors begin to enter the market and broader adoption trends climb 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 for less than $10,000, history is likely to repeat itself. In a few years, we may view its current price below $100,000 with similar hindsight, making this correction all the more enticing.
2. Ethereum
Bitcoin takes the crown in many ways when it comes to being the epitome of a cryptocurrency, but Ethereum (ETH 1.94%) is a close second. In addition, Ethereum has something Bitcoin doesn’t — smart contracts.
Launched in 2015, these smart contracts give developers the unique ability to build 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 ascended to become the leading blockchain in one of crypto’s most promising and high-potential sectors — 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 tap into the long-term potential of DeFi.
3. Coinbase
Coinbase (COIN -0.56%) isn’t a cryptocurrency, but there is no other asset on the market that provides investors with such comprehensive exposure to the vastness of crypto. In other words, by investing in Coinbase you can eliminate the hassle of combing through the thousands of cryptocurrencies. Instead of having to put all your eggs in one basket, they are spread out because Coinbase’s business model relies upon the success of the cryptocurrency market as a whole.
Furthermore, Coinbase is a phenomenal company. It has more than a decade worth of experience and keeps on refining and improving its business model as the crypto market evolves. In just the last couple years it introduced a suite of new revenue-producing products all while its costs continue to decline. It even launched its very own blockchain, Base.
As crypto adoption grows, Coinbase is positioned to become the go-to platform for institutional and retail investors looking to explore the power of digital assets. While not immune to the volatility of crypto (its stock has receded in tandem), the recent dip in Coinbase could be seen as a great proxy to gain broad crypto exposure.
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.
