Cryptocurrency is a highly lucrative investment and is the currency of the future. On Coinbase, the platform provides more than 50 cryptocurrencies for investors to choose from.
In this article, we discuss what are the best coinbase crypto to buy from and what coins investors should actively follow.
Quicklook: Best Crypto to Buy on Coinbase
- Bitcoin (BTC): Best for Longevity
- Ether (ETH): Best for Complementing Bitcoin
- Polkadot (DOT): Best for Growth Potential
- Dogecoin (DOGE): Best for Day Traders
- Tether (USDT): Best Diversification
Table of Contents:
- Best Cryptocurrencies to Buy on Coinbase
- What Is Cryptocurrency?
- What Is Coinbase?
- How Does Buying Cryptocurrency Work?
- What to Consider With Buying Cryptocurrency
- Is Crypto Right for You?
- Frequently Asked Questions
5 Best Cryptocurrencies to Buy on Coinbase
We discuss the standout features, volatility, market cap, and many more factors that may attract or deter investors from buying certain cryptocurrencies. Keep reading to find which crypto is best for your personal investing needs.
Bitcoin (BTC)
Best for Longevity
Bitcoin is considered as the original cryptocurrency by investors. Since its creation in 2009, the currency has continued to exceed forecasted returns and shows to be a profitable investment. By utilizing blockchain technology, a decentralized system, and exceptionally high returns – its perks have brought in many investors over the years.
Standout Features:
- Reliability since it is the original cryptocurrency
- Potential of high returns
- International transactions and highly liquid
Current Market Price: $61,434
Volatility: High – 52 week high at $64,789.27 to low at $11,228.04
Market Cap: 1.161T
Risks Associated:
- Highly volatile – may not be a good investment for those who are risk averse
- Black market activity involved with those who purchase Bitcoin
- Unregulated and prone to cyber attacks
Learn More: How To Invest in Bitcoin
Ethereum (ETH)
Best for Complementing Bitcoin
Ether is a cryptocurrency sold on Ethereum. Ethereum is a decentralized platform that is the second most popular cryptocurrency (after Bitcoin). This system is a little more complex when it comes to purchasing a token due to its code. In short, Ether is the form of payment those who participate on Ethereum use to do their desired tasks.
Standout Features:
- Total number of Ether coins does not have a cap (unlike other crypto)
- Blockchain has more code within its transactions
- Can purchase other crypto on Ethereum (such as Bitcoin)
Current Market Price: $3,934
Volatility: Low – $3,821.96 to $3,941.61
Market Cap: 463.38B
Risks Associated:
- Complex programming language used
- High transaction fees
- Struggle with the scale size of some transactions
Polkadot (DOT)
Best for Growth potential
This crypto allows developers to create their own chains to utilize the same security system. In addition, its chains can be leveraged as a bridge with other well-established cryptos like Bitcoin and Ethereum.
Investors have speculated that this coin could have great potential for growth due to some of its bearish signals. However, since the coin is relatively new, there are some signals it will stay around the $37 to $49 range until 2025. But, some investors disagree and think that this up and coming coin’s historical data points to a rise to $65 by 2022.
Standout Features:
- Parachains being able to communicate with each other
- Shared security model
- Do not have to worry about miners
Current Market Price: $43.50
Volatility: High – $3.87 to $49.69
Market Cap: 42.65B
Risks Associated:
- Highly competitive industry
- Hackers have exploited code vulnerabilities twice
Dogecoin (DOGE)
Best for Day Traders
Despite this coin starting off as a joke on the internet, this coin has exceeded 11,000% in value in the last year alone. This coin has appealed to younger investors due to its internet attention, however, it is not seen as a long-term investment. Since it is highly volatile, those who wish to invest typically do so for a short time period.
Standout Features:
- High volatility which is a great opportunity for day traders to profit off of
- Big social media impact and audience encouraging the coin
- Allows fast and inexpensive transactions
Current Market Price: $0.2401
Volatility: High – $0.00245 to $0.73576
Market Cap: $31.638B
Risks Associated:
- Trade volumes are increasing at an extremely high rate
- Not a long-term investment due it constantly fluctuating
- Not enough technical support of the coin
Tether (USDT)
Best for Diversification
Tether is a cryptocurrency that is actually backed by the U.S. dollar. What this means is that there are dollars being kept in financial institutions that are used as collateral to support the coin. This is a unique feature of the blockchain cryptocurrency making the coin more stable than its crypto counterparts.
Standout Features:
- No pricing or liquidity restraints
- Easy for non-technical users and exists on the Ethereum Blockchain
- Backed by the U.S. Dollar
Current Market Price: $0.99
Volatility: Low – $0.998 to $1.028
Market Cap: $69.03B
Risks Associated:
- It is a centralized and trust dependent currency
- Unclear audits and the coin is dependent on good financial relationships with authorities
What Is Cryptocurrency?
Cryptocurrency is a digital currency that is used to be exchanged for online goods and services. Additionally, since this currency is digitized, it is decentralized because it is not owned by a government or person. These currencies utilize blockchain technology to operate without the need for a central authority.
What Is Coinbase?
Coinbase is a platform that is specifically designed for trading cryptocurrencies. The platform offers more than 50 cryptocurrencies to choose from and depending on the account’s level it can provide specialized features to enhance trading experience. To learn more about Coinbase’s functionalities and advantages, read more about the platform here.
How Does Buying Cryptocurrency Work?
Purchasing cryptocurrency is no one size fits all process. Some currencies, such as Bitcoin, can be purchased with U.S. Dollars however other cryptocurrencies you will have to purchase through other digitized currencies.
In order to purchase these coins, one would have to have a digital wallet in order to hold the crypto. After creating this wallet, you can transfer your currency to purchase certain crypto.
What to Consider With Buying Cryptocurrency
Prior to investing, one should know the pros and cons associated with purchasing cryptocurrency. Since crypto is forever evolving, understanding its historical context, community, longevity, and other aspects will give investors more insights.
Learn More: Best Performing Cryptocurrency This Week
Historical Context
Cryptocurrency was invented in 2008 by an anonymous person(s) known by the pseudonym, Satoshi Nakamto. In 2009 this person(s) released Bitcoin, the world’s first-ever cryptocurrency.
The concept of this currency is that it was decentralized and could be used internationally without the need of a financial institution’s backing. What drove Satoshi Nakamoto to create this crypto was the 2008 financial crisis and how this economic crisis widely impacted millions of citizens’ financial stability.
Before investing in a specific type of crypto, make sure to research how the security has moved around in the past and how it has evolved. This will help you to make smarter investment decisions and will make clear which type of crypto is best for you.
The Community
The crypto community is evolving as rapidly as these currencies. Since 2009, the community has vastly grown and millions are taking an interest in this new form of currency.
Many crypto communities utilize Telegram to talk about these currencies and where they see the future of crypto going. Others utilize platforms such as BitcoinTalk, Cryptocurrency Talk, and Reddit to discuss certain trends.
Longevity
New cryptocurrencies continuously pop up due to the large audience the crypto community has. More technologically advanced coins have popped up, but how do you know as an investor if these currencies are good long term investments?
Looking at the volatility levels and the news surrounding the coin could be good indicators on how long-term an investment could be. There have been signals that cryptocurrency could be the currency of the future, so investing in these currencies now could be a highly profitable opportunity.
Developments
Since cryptocurrencies are created by code, these coins are being rapidly improved upon. Popular crypto, such as Bitcoin and Ethereum, utilize mining however not every cryptocurrency uses this process. Due to these currencies popularity and continuous improvements, this market size is projected to grow from its current $1.6B to $2.2B in 2026.
Overall Risks Associated
Despite the benefits crypto has, there are some downsides. Due to its decentralized nature, these currencies are highly volatile, exposed to cyber security issues, and do not provide investors with a high level of security.
Additionally, due to its rapid popularity, there are rising regulations on crypto exchanges. For example, these exchanges fall under the surveillance of the Bank Secrecy Act (BSA) and the Financial Crimes Enforcement Network (FinCen).
Is Crypto Right For You?
Cryptocurrency is the future of money and is continuously evolving. Each coin provides a variety of features and new cryptocurrencies are popping up quickly.
However, since this form of currency is still in its early stages, this is a highly profitable option for investors. Consult with your financial advisor to see if investing in cryptocurrency is right for you.
Frequently Asked Questions
Yes, Coinbase is a great option for those who are interested in investing crypto. This platform has a wide variety of coins to choose from in addition to educational resources for those who are new to crypto investing.
Crypto is continuously evolving and many coins are growing in potential. Bitcoin, Ether, Tether, and PolkaDot all have great potential to continue to grow.
