With thousands of cryptocurrencies on the market and a bull run driving everything higher, it can be challenging to cut through the noise and identify the cryptocurrencies most worth investing in.

However, as complicated as encryption may seem, it is often best to keep it simple. With a brief exploration, it won’t take long to see why these three assets are currently prime candidates for giving your portfolio comprehensive exposure to the best the crypto market has to offer.

Image source: Getty Images.

1.Bitcoin

Bitcoin (CRYPTO: BTC), the world’s first and best-known cryptocurrency, continues to lead the pack. Recent developments have strengthened its near-term prospects, making it an attractive investment. A significant event is the reduce by half which occurred in April. Occurring approximately every four years, the halving halves the reward miners receive for mining new blocks and effectively reduces Bitcoin’s inflation rate. This built-in scarcity mechanism has historically led to substantial post-halving price increases due to reduced supply.

Furthermore, the approval of spot Bitcoin ETFs in January appears to be a complete game changer. These ETFs allow investors to gain exposure to Bitcoin through traditional brokerage accounts, bypassing the complexities of cryptocurrency exchanges that may have hampered adoption. This ease of access will likely attract a wider range of investors, including institutional players who were previously hesitant due to regulatory uncertainties and technical barriers to purchasing Bitcoin directly.

We are already seeing the first institutional participants enter the market, adding significant pressure to Bitcoin’s finite supply. Institutions have extensive capital at their disposal, and if even a small amount of that money finds its way into Bitcoin, it could generate substantial price appreciation. This institutional interest, combined with Bitcoin’s fundamental strengths, such as its decentralization, security and fixed supply, give Bitcoin the clearest and most secure prospects for future growth.

2. Ethereum

The second encryption I recommend is Ethereum (CRYPTO: ETH). In the near term, Ethereum is poised to benefit from the pending launch of its own spot ETFs. The Securities and Exchange Commission recently gave the green light to eight applicants wanting to sponsor Ethereum ETFs, with trading expected to begin this summer.

These ETFs will open the door for more institutional and retail investors to enter the Ethereum market, boosting demand and potentially increasing its price.

The story continues

Short-term catalysts aside, Ethereum’s long-term fundamentals are incredibly strong, especially in the decentralized finance (DeFi) space. As one of the most prominent use cases for blockchain technology, DeFi represents a revolutionary shift in the way financial services are delivered. By utilizing smart contracts, common financial practices such as lending, borrowing, trading and more can be carried out without intermediaries. Simply put, DeFi is transforming finance and Ethereum is at the forefront of this innovation.

Currently, more than 60% of all DeFi value is locked on the Ethereum blockchain. As the DeFi economy continues to grow, so will demand for block space on Ethereum, further solidifying its long-term value proposition.

3. Coinbase

Obviously, Coinbase Global (NASDAQ:COIN) is not a cryptocurrency, but it may be the best way to get broad and maximum exposure to the entire crypto market. As the largest cryptocurrency exchange in the US, Coinbase offers a wide range of crypto-related products. Therefore, as the cryptocurrency market grows, so should Coinbase’s profit potential.

Best of all, Coinbase has made significant strides in transforming its business model over the years and now has several institutional and retail products capable of generating revenue in any market condition. This includes its international expansion, custody services, staking rewards, stablecoin interest, and even the launch of its own blockchain, Base.

These moves are not only a testament to Coinbase’s resilience and talent for innovation, but also position the company for long-term growth. As far as crypto is concerned, it has more room to grow, and as it does so, Coinbase will be by its side.

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RJ Fulton has positions in Bitcoin, Coinbase Global and Ethereum. The Motley Fool has positions and recommends Bitcoin, Coinbase Global, and Ethereum. The motley fool has a disclosure policy.

Here are my top three crypto purchases in June was originally published by The Motley Fool

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