Can Crypto Recover? These 3 stocks and symbols are ready for a bull run

The crypto market has had a wild ride in recent years, with extreme volatility, regulatory uncertainty and an unstable global economy. But despite these challenges, the crypto sector has shown remarkable resilience, and some digital currencies have continued to thrive. Special, Bitcoin (BTC 122.87%), Ethereum (ETH 294.44%)and Coinbase Global (COIN 1.44%) have emerged as top long-term investment ideas in this sector, with the potential to offer market returns for years to come. Here’s why these three assets are worth considering for your portfolio.

Bitcoin: The Future of Money?

The original cryptocurrency and still the biggest in 2023 has turned heads since its creation in 2009. Bitcoin maximalists like Micro strategy founder and chairman Michael Saylor sees it as the ultimate store of value, a digital gold that can serve as a hedge against inflation and a long-term investment for the future. But Bitcoin was also hit hard by scandals and crashes in 2022, leading some to question its suitability as either a currency or an investment.

Despite these challenges, Bitcoin has continued to attract increasing interest from both investors and financial institutions. Its decentralized nature and strictly limited supply make it a unique resource that is not necessarily subject to traditional market forces. Also, this isn’t the venerable cryptocurrency’s first rodeo. Bitcoin has survived several brutal market crashes over the years, only to come back stronger each time.

In the most recent rally – the inflation-plus-interest-rate crisis of 2022 and 2023 – Bitcoin is up 67% year-to-date, while S&P 500 only increased by 7%. It’s a long way back from all-time highs in November 2021, but recent gains are a good start.

So Bitcoin may not be everyone’s favorite place to store cash-like value for the long term, but it does present a unique opportunity if you’re willing to take some risk in the pursuit of sustainable wealth. If you ask Michael Saylor, owning Bitcoin is the only responsible thing to do, and fiat currencies like the US dollar are sure to lose value against the leading crypto over time. I wouldn’t go that far, but a fair serving of Bitcoin looks like a sensible ingredient in any long-term portfolio today.

Ethereum: The rise of smart contracts and DeFi

Often described as the digital silver to Bitcoin’s virtual gold, Ethereum is actually a completely different type of blockchain network that deserves investors’ attention for a completely different set of reasons. Analyzing these two crypto leaders is not like comparing apples and oranges. If Bitcoin is the apple, Ethereum is more like the orchard manager who can put the digital fruit to good use.

The second largest cryptocurrency by market capitalization has become a powerhouse in the crypto industry thanks to its versatile smart contract platform. Thanks to these contracts, Ethereum acts as a leading platform for newfangled ideas such as decentralized applications and non-fungible tokens (NFT). Ethereum’s smart contract functionality has opened up a world of unheard of possibilities for developers and entrepreneurs.

Several alternative smart contract systems have emerged after Ethereum, but the market-defining originator still enjoys the first-mover advantage. Ethereum’s developer community is large, growing and active. If you want to know how to set up and run apps in a smart contract, your first “Hello world” example will probably run on the Ethereum network.

Despite its success, Ethereum is not immune to market volatility, and the regulatory landscape for cryptocurrencies remains uncertain. But Ethereum’s long-term potential as a platform for decentralized applications and a vehicle for financial innovation is hard to ignore. If you believe in the future of decentralized finance and smart contracts, Ethereum is worth considering for the cryptocurrency portion of your own investment portfolio.

Coinbase Global: Making Crypto Ownership Mainstream

Now let’s talk about Coinbase. This is the largest US cryptocurrency exchange (whether you measure them by market capitalization or trading volume) and a major global player, offering a user-friendly platform for buying and selling digital currencies such as Bitcoin and Ethereum. Coinbase’s shares suffered an 86% price drop in 2022, taking the crypto sector’s woes on the chin.

However, Coinbase has made a strong recovery in 2023, up 89% year-to-date as of April 3. The company’s revenue comes mainly from transaction fees and custody services, which should continue to grow as more investors join the crypto market.

In addition, Coinbase wants to expand its offerings beyond just trading. For example, it acquired a company called Bison Trails in 2021. The company provides blockchain infrastructure on which other businesses can build products and services. Moves like that have positioned Coinbase to expand outside of the strict crypto trading market and become a major player in the fast-growing world of decentralized finance.

Coinbase isn’t perfect, of course. The company is heavily dependent on the growth of the crypto market, and any negative regulatory or market news could hurt the bottom line. Additionally, there is competition in the cryptocurrency exchange space, with options such as Kraken and Robinhood Markets fighting for market share.

Risk and Volatility: Proceed with caution

In conclusion, Bitcoin, Ethereum and Coinbase are all strong players in the cryptocurrency market and have the potential to deliver solid returns in the long term. In fact, I see them as the most robust and stable crypto names in the long run, excluding the literal stablecoins that are not supposed to gain or lose value at all.

However, you should only invest money you can afford to lose if worse comes to worse, and diversify your investments across different asset classes. For example, most of my personal portfolio is invested in stocks and exchange-traded funds. Less than 10% of my long-term assets are tied up in cryptocurrencies. Of course you do, but that’s the crypto exposure I’m comfortable with so far. This section is likely to grow larger over time.

And I do my best to give you valuable investment ideas. This is what I do, I’m pretty good at it, and as you can see in the reveal below, I tend to follow my own advice. Still, I’m only human and no one knows your financial needs better than you. Therefore, as with any investment, you need to do your own research before putting your hard-earned money to work in digital investment vehicles.

As investors navigate the blooming meadows of digital currencies, they have to keep an eye out for the occasional smelly bouquet. You will see a lot of volatility and many unimaginable surprises as the crypto sector evolves. This market is still in its early stages, subject to a cacophony of risks and uncertainties.

But for those willing to buckle down and deal with the inevitable risks, Bitcoin, Ethereum and Coinbase offer exciting opportunities for growth and innovation.