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Coinbase cryptos are a great place to seek returns in Q2. These three picks have plenty of upside based on current news.
Coinbase (NASDAQ:COIN) is a strong exchange from which to buy cryptocurrencies in May and any other month.
Tether (USDT-USD): Signals of a strengthening U.S. dollar this month mean USDT-USD should improve.
Ripple (XRP-USD): Ripple looks very likely to be vindicated in its SEC battle and rise in price as a result.
Dogecoin (DOGE-USD): Expect the unexpected with Dogecoin, which will remain volatile.
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Investors have several choices when it comes to which exchange they want to purchase cryptocurrency from. Based on volume, the clear leader is Binance. By that metric, Binance conducts roughly seven times as much business as the next most important exchanges. One of which, Coinbase has come to be well-regarded. It is also the exchange from which the following suggested cryptos can be purchased.
2021 was a boom-year for cryptocurrency. Not only did retail investors flock to the sector, but institutional investors did, as well. Cryptocurrency was seen as something of a hedge against traditional finance, which is part of the greater argument for decentralized finance and cryptocurrency.
2022 hasn’t been as kind. As the Federal Reserve (Fed) continues to hike interest rates, cryptocurrencies haven’t been as strong as some may have expected. In other words, their role as a hedge against fiat currency inflation has proven less strong this year. That said, there are plenty of reasons to invest in cryptocurrency still, including plenty of great projects.
Here are the three best Coinbase cryptos to buy for quick returns:
Coinbase Cryptos to Buy: Tether (USDT-USD)
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Tether (USDT-USD) is the Hong Kong-based company behind USDT. USDT is considered a stablecoin and was designed to mirror the value of the U.S. dollar. Investors can essentially expect USDT to be at or near $1 at all times. Tether maintains a sum of commercial paper, fiduciary deposits, cash, and other assets that mirror the value of the U.S. dollar relative to the number of USDT in circulation.
Given that Tether has set up USDT to function in that way, you may be wondering why I suggest buying it this month. After all, why not just purchase U.S. dollars? The reason to consider USDT instead of USD boils down to stablecoin yields. Owners can lend out their USDT and receive yields between 3% and 20%. Placing your dollars in a bank is unlikely to result in anything similar.
There is reason to believe that the U.S. dollar will perform better in May. The primary catalyst here is the Fed’s May 4 decision to increase interest rates by half a percentage point. That should give investors around the world increased confidence in the strength of the U.S. economy. The results should be improving the U.S. dollar and as a result, improving USDT, as well.
Finder is a finance survey trend platform. If its latest predictions turn out to be correct, then Ripple (XRP-USD) fans should be very excited. Its latest report surveyed 36 industry experts regarding their opinions on where XRP’s price will move if it is successful in its battle with the U.S. Securities and Exchange Commission (SEC).
That news should cause plenty of optimism. That’s because their collective opinion was that XRP will rise to a value of $2.55 if it is successful in its court case against the SEC. As I write this, the value of XRP has dipped below $0.60. Yes, it is speculative to invest in XRP this month or any other month. That’s because the investment is predicated upon that victory and the idea that Ripple will rebound to former highs as a result.
But at the same time, it isn’t difficult to find multiple opinions which all seem to come to the same conclusion: the SEC was overzealous in leveling charges against Ripple. Ripple continues to make progress in court. No one knows exactly when or if a judgment will fall, but the longer time goes on, the more apparent it becomes that Ripple will be vindicated.
Ripple was once more interesting for the fact that it facilitates cross-border transactions and could usurp the Society for Worldwide Interbank Financial Telecommunication in that regard. It will be once again.
Coinbase Cryptos to Buy: Dogecoin (DOGE-USD)
I have long argued that Dogecoin doesn’t make that much sense because of its lack of utility. But that could be changing as a leader in one important industry has agreed to accept Dogecoin, along with other cryptocurrencies, in its stores by the end of summer. That leader is Gucci, the globally famous fashion house. The important thing to note is that Gucci will also accept Bitcoin (BTC-USD) and Shiba Inu (SHIB-USD) within the same time frame.
This suggests that other fashion brands may follow suit. If that happens, it will be a big catalyst for Dogecoin and wider cryptocurrency acceptance. Let’s imagine that the fashion industry accepts cryptocurrency and positive use cases come out of the acceptance. That could provide a springboard for cryptocurrency acceptance across multiple industries. That’s exactly what will propel Dogecoin from a cultural phenomenon and a joke to a legitimate means of payment.
There are a lot of “ifs” that need to occur here, but the fashion industry seems like a logical industry for cryptocurrency acceptance to take root. The fashion industry has always been progressive, so it would make sense that it champions cryptocurrencies, including Dogecoin. This could be the catalyst that changes everything.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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