A bear market is roiling cryptocurrencies right now. It’s been a rough run for them since Coinbase (NASDAQ:COIN) went public in April. Over the past couple of months, all sorts of Coinbase cryptos have gotten hammered down from their highs.
Of course, it’s not Coinbase’s fault. The company simply acts as an intermediary between buyers and sellers. However, when it went public, it might have come close to “peak optimism” in the crypto space — in the short term, at least.
However, it’s not as if all cryptocurrencies took a plunge when Coinbase made its debut in public markets. Bitcoin (CCC:BTC-USD) did top out on the day of the initial public offering (IPO). A peak for the biggest of the bunch didn’t set a good tone for other cryptos, even if many continued to move higher into May. Ever since, the market has been painfully reminded of what happens when senseless speculation takes over.
But after the carnage, investors may want to get into the crypto market. If you want to build or add to a portfolio, these seven Coinbase cryptos have the best potential for gains:
Coinbase Cryptos: Bitcoin (BTC)
If we’re creating a portfolio of Coinbase crypto, how can we not include Bitcoin? It’s the top dog when it comes to cryptocurrencies despite being caught in a painful bear market. Bitcoin’s price is down over 40% from its April high. The headlines just keep piling on for this one, but it doesn’t matter. When they come after Bitcoin, 99 out of 100 times, it’s going to hit the entire cryptocurrency market.
While it has been volatile, I can’t imagine constructing a crypto portfolio without including Bitcoin. It would be like not including Apple (NASDAQ:AAPL) in a large-cap technology fund five or 10 years ago.
No matter what happens with crypto, Bitcoin has the best chance at surviving — and hopefully thriving. It has the largest market cap among cryptos and strong name recognition around the world. Tesla (NASDAQ:TSLA) CEO Elon Musk has repeatedly backed Bitcoin, while El Salvador just made Bitcoin legal tender. In fact, the country may offer citizenship to those who own enough Bitcoin.
The more headlines we see like this, the more Bitcoin’s acceptance — and staying power — will increase.
Bitcoin Cash (BCH)
That brings us to the next name on our list: Bitcoin Cash. Whenever we talk about cryptocurrency, this inevitable question comes up: Wait, what’s the difference between Bitcoin and Bitcoin Cash?
Bitcoin is an incredible development within the digital currency world that uses blockchain technology as a digital ledger. It has clearly proven itself as a viable — although volatile — store of value.
However, it’s not exactly convenient for transactions. It can take several minutes just to process or verify a payment. In fact, Bitcoin can only process a few transactions per second. Compared to the thousands of transactions credit card companies can process per second, this is incredibly archaic. It might be okay for sending money, but you won’t easily check out at a store with Bitcoin anytime soon.
Bitcoin Cash is the result of a hard fork that occurred in 2017. While Bitcoin Cash has faster processing potential, users worry that it’s less liquid and less secure than Bitcoin. Both concerns are legitimate. However, should Bitcoin forge its way higher, its “little brother” Bitcoin Cash will likely go along for the ride, too.
Coinbase Cryptos: Ethereum (ETH)
Ethereum is yet another major Coinbase crypto. It, along with Bitcoin, is one of the main horses to watch in the cryptocurrency race.
Despite both cryptocurrencies suffering a major correction, they are easily the most popular in the sector — at least, in terms of market capitalization. While Bitcoin once had a valuation north of $1 trillion, it has dwindled down to $679 billion as of this…