With the recent cryptocurrency market downturn, 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 rocky time in recent months. While it appeared to be on an upward trend at the start of 2024, it is now struggling to maintain momentum.
However, history has shown that such corrections are healthy and common during bull markets and almost always present valuable opportunities for investors. Below are my three cryptocurrency investments to buy on dips.
1. Bitcoin
There is nothing in particular to say here. In many ways. Bitcoin (BTC -0.65%) is a quintessential cryptocurrency. While it may not be as appealing as investing in a new coin with all its promise and potential, Bitcoin’s key characteristics have stood the test of time better 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 battle-tested cryptocurrency. A finite supply of 21 million coins creates scarcity, making it a reliable store of value. Needless to say, the demand for those 21 million coins will only increase as institutional investors begin to enter the market and broader adoption trends grow around the world.
The past 15 years have been nothing short of amazing for Bitcoin. Just as we may now regret seeing Bitcoin trading below $10,000, history may repeat itself. In a few years, we may look back with the same hindsight at the current price being below $100,000, which would make this correction even more fascinating.
2. Ethereum
Bitcoin takes the crown in many ways as the quintessential cryptocurrency, but Ethereum (ETH 0.45%) is a close second. Additionally, Ethereum has smart contracts, which Bitcoin does not have.
Launched in 2015, these smart contracts have given developers the unique ability to build innovative blockchain-based applications, and while the majority of other cryptocurrencies now employ smart contracts, Ethereum is the undisputed leader due to its history of functionality and reliability.
As a result, Ethereum has grown to become the leading blockchain in decentralized finance (DeFi), one of the most promising and high-potential sectors of cryptocurrency. It is currently valued at over $90 billion, with around 60% of the DeFi economy running on Ethereum. With the potential to revolutionize traditional finance, DeFi is still in its early stages and continues to be a hub of innovation. This makes Ethereum an ideal investment for those looking to capitalize on DeFi’s long-term potential.
3. Coinbase
Coinbase (coin -0.56%) Although Coinbase is not a cryptocurrency, there is no other asset on the market that offers investors such comprehensive access to the vastness of cryptocurrencies. In other words, investing in Coinbase saves you the trouble of having to look through thousands of cryptocurrencies. Instead of putting all your eggs in one basket, you invest diversified. This is because Coinbase’s business model depends on the success of the entire cryptocurrency market.
Moreover, Coinbase is an incredible company. With over a decade of experience, they continue to refine their business model as the cryptocurrency market evolves. In the past two years alone, they’ve introduced a series of new products that generate revenue while costs continue to fall. They even launched their own blockchain, Base.
As crypto adoption grows, Coinbase will likely become the go-to platform for institutional and retail investors looking to explore the power of digital assets. While not immune to crypto volatility (with stock prices falling in tandem), Coinbase’s recent decline could be viewed as an excellent opportunity to gain broad crypto exposure.
RJ Fulton has invested in Bitcoin, Coinbase Global and Ethereum. The Motley Fool has invested in and recommends Bitcoin, Coinbase Global and Ethereum. The Motley Fool has a disclosure policy.
