The crypto craze is in full swing again. This time it’s thanks to Shiba Inu (CCC:SHIB-USD), which has brought some quick profits to a lot of lucky investors and fans. A few friends at the gym had positions that lurched back to life. They were discussing them feverishly this weekend. The point of this story is that the level of interest in crypto rose even among non-investors.
This will eventually mean that there are crypto coins to buy. The cryptocurrency genie is not going back into its bottle.
This is a good step because they will play a large role in our financial future. They are still so many skeptics, which is part of the bullish long-term bullish thesis. They will be latecomers to what is likely to become an electronic financial world. There is a high chance that we will eventually be using less centralized money. While cryptos are not necessarily currency, they are moving financial technology forward at a rapid pace.
Crypto Coins Are Here to Stay
Today I will suggest three ways to participate that makes sense for the long term. But first, readers need to know that what happened with Shiba last week is not the goal today. These are not the kinds of crypto coins that are likely to shape our future. Sure, they are fun and can present lucrative rewards. But in the long run, it is best to find better fundamental use-cases.
Either way, Crypto is crushing the competitive investment thesis. Case in point how Bitcoin (CCC:BTC-USD) has already crushed all other assets for a decade. I doubt we will be talking similarly about Shiba or even Dogecoin (CCC:DOGE-USD) in 2030. Meanwhile, the conversations they generate contribute to the whole cause. Plus, I have even profited in Doge on several runs.
When it comes to the opportunity in crypto investing, it is truly exciting. It brought me a new sense of accomplishment. There is little stress and I feel like I’m blazing new trails.
There’s also an opportunity to earn through staking, which could interest fixed-income seekers. The concept is very similar to the old school CD rewards from banks, but with a small twist. Investors can earn a high percentage reward for locking up assets for a period of time.
High-yield interest from traditional banks currently is 0.6%. I can currently collect 10% more or less on coins I own. That’s just one aspect where crypto is indeed changing lives for the better. The more I learn about them, the more I am confident that this will be the way of the future. Jamie Dimon is flat-out wrong about this.
But enough with the debate — we all have our convictions. Today I will share three ways to profit from crypto coins. No one should claim to be an expert this early in the process. But I do know enough about charts, and that helps a lot with timing. Meanwhile, crypto coins have a rosy future.
Crypto Coins to Buy: Ethereum (ETH)
The first crypto is the king of transactions, and that’s Ethereum. This is the one setting the pace but it has many competitors gunning for it. And it has its critics complaining about clunkiness, slow speeds, and rising costs. Of course these are relative terms because if you compare them to the old ways, Ethereum markets are blazing fast.
The ETH-USD coin has more than doubled this year and these are undeniable facts. When I first looked at it, it was under $1,000 last year. I dragged my feet funding my account and it quickly climbed to $4,000. Since then, I traded it well because I took advantage of the May correction in crypto coins.
That’s the point I am making today — it’s best to act when everyone is afraid. Ironically, that’s the investing mantra that Warren Buffet preaches. He is as old school as they get, yet the idea still applies to crypto. The prices move so fast that investors should not aim to be surgical.
The next time ETH-USD falls to $3,300, it will find support there. If that level fails then strong buyers would step in near $2,600 per coin. If for whatever reason Ethereum revisits $1,800 it would be a gift to investors for the long haul.
Solana (SOL-USD)
My second pick today is a challenger to Ethereum. It is the fast-rising blockchain to host decentralized apps. I am quickly liking it more than Cardano (CCC:ADA-USD), and judging by the price action I am not alone.
SOL-USD broke into new highs recently and has been relentless.
I am not a fan of chasing runaway stocks, and that extends to crypto coins. But I can’t blame investors who buy it even up here as long as they are only buying a small part to accumulate over time. For better timing, I would consider $175 for ETH-USD a great starting point.
If by some miracle it falls below $150, I would renew my last trade in size.
Solana is gaining fans fast and is building a solid reputation. I’ve read experts touting it being much faster, less clunky and cheaper than Ethereum. I am learning the behind the scenes crypto coins, but I have a long way to go. Meanwhile, I will rely on those ahead of me of an opinion.
So far, I have established a rule to book profits over 30% on short-term batches of crypto coins. I also would be accumulating parts for the long haul. They don’t ring bells for entry points, and that’s even more true for crypto coins. Short term, you need a helmet to trade them.
However long term, they have been a slam dunk win for the fans. The SOL levels to note for the next few weeks are at $172, $159, and $144. These should be areas of contention for the active crypto traders.
Crypto Stock to Buy: Coinbase (COIN)
The third pick today isn’t a crypto coin, but it will move along with them. COIN will profit for as long as there are investors seeking to trade crypto. This means that it comes down to timing the price action to find favorable entry points. In the very long run, it won’t matter much how surgical we are now. But most of us will likely seek greens if we had the chance over red.
Sporadically, COIN stock falls in sympathy to crypto coin price action. These are usually opportunities because it’s a strategic mistakes by traders. Coinbase will profit from the trading of coins regardless of direction. As long as interest in Crypto coins is alive, COIN is winning.
It had a shaky start, as it tumbled 50% out of its initial public offering (IPO). It spent most of the year basing and finally came to life in October. COIN stock is currently riding a 40%-plus rally since the end of September so it’s not an ideal spot to jump in. Investors would do well setting alerts on levels that make sense below.
Next time investors lose interest in COIN, it would make for a good entry near $280 per share. At that time it would likely look like a scary falling knife. But if there is no new story behind it, then this opinion will stand. We do the homework now so we can act when the stock is under duress.
On the date of publication, Nicolas Chahine 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.
Nicolas Chahine is the managing director of SellSpreads.com.
