- Personal Finance
How Coinbase Can Make a Crypto Currency Skyrocket in Value and What You Need to Do to Be Part of It
Coinbase is a well respected, well trusted Crypto Currency exchange whose company is based right here in the United States. Today, Coinbase supports the purchase and selling of only 4 different crypto currencies, all of which are well established currencies with high market caps.
Initially, when I started looking into Crypto Currency, only 3 currencies were supported on Coinbase. They were Bitcoin (BTC), Etherium (ETC) and Litecoin (LTC).
Since then, to the surprise of many people, Coinbase added support for Bitcoin Cash (BCH) in late December. What happened to Bitcoin Cash during that first day is why I’m writing this article. Almost immmediately, people starting buying up the BCH currency like it was going out of style.
On December 9, 2017, the price for BCH was roughly $1246.92 per coin. Once Coinbase announced that they have added BCH to their exchange, the price immediately shot up to $4147.46 at one of its highest points that day. Lots of people made a lot of money simply based on Coinbase announcing support for the BCH currency. It has since settled down to a price somewhere around $2474.45 on Jan. 2, 2018, but that’s still a great percentage gain for its investors.
Why Does Coinbase Support for a Currency provide such a huge jump in currency price?
If you look into buying different currencies on the market, you will immediately find out that the process is not necessarily easy and straight forward. For currencies not supported by Coinbase, you will have to first find an exchange that will let you purchase the currency you’re interested in. You will most likely find out that the exchange selected does not except credit card or bank information for the purchase of your currency. Most will only take Bitcoin and once you’ve funded the exchange with Bitcoin, you can then exchange the bitcoin for the currency you desire.
As I stated, the process requires several steps and each step typically adds its own fees along the way. Because of this, a lot of people decide to sit on the sidelines as opposed to go through all these hoops to purchase currency.
Coinbase, on the other hand, makes it very simple and easy for you to purchase crypto currency. The one area which Coinbase provides is a trust factor (see next section).
Because currencies become much easier to purchase once they get supported on Coinbase, the general public now has a means to get into this new investment vehicle in an easy and much more simpler way. Coinbase has become a common supplier of crypto currency the same way that Amazon has become our online source of e-shopping. People know and trust these sites and don’t think twice about providing financial information in exchange for assets.
For those early adapters willing to jump through the hoops and complexities of purchasing these other currencies on other exchanges, the hope is that we will all be rewarded assuming that currency gets listed on Coinbase since we got in on the ground floor. Once on Coinbase, the market opens to a much larger addressable market of investors who like things simple and easy.
Trusting an Exchange
Being new to this field, I was very leery about providing my banking information and/or credit card information to these exchange sites since I wasn’t sure which were legit and which were scams. I was also very leery about providing such personal information to exchanges that were based in foreign countries. Remember, none of this crypto currency is backed by any formal organization or government so if you lose your money to some scam artists, there is nobody to help you get your money back, so it is lost for good.
After doing some research, everything I found out about Coinbase pointed to it being a legitimate site so I finally set up a profile, provided the needed information, and went on to purchase my first Crypto Currency, small amounts of Bitcoin and Etherium. I’m not a person with lots of available money to spend so I just wanted to take alittle bit of money just to get in the game.
I’ve watched so many people get rich in this area so I decided why can’t I give it a try. As I’ve stated in a previous post, you should only invest money in crypto currency that you can afford to lose. Consider this to be an act of gambling. Alot of people are talking about cypto currency being a bubble that will burst sometime in 2018. Since that is a possibility, you don’t want to be risking your retirement money on such risky investments. On the other hand, since the upside potential is so large, it’s worth taking a small gamble on.
What are the Likely Next Currencies to be Added to Coinbase?
Based on the value that Coinbase brings to a new currency listing, the key is to anticipate which currencies will be the next potential currencies to be added to the Coinbase exchange. From what I’ve seen, a minimum jump for a new currency would be in the $100 dollar range and I think that is extremely conservative. We saw Bitcoin Cash jump a few thousand dollars per coin in its debut and we all know the meteoric jumps Bitcoin itself has taken over the past few months.
Given all this information, which coins are being talked about as the next ones to be supported on Coinbase. Being a beginner at this, all I have to go on is what I’ve been reading in articles and in chat groups and blogs. From what I’ve been seeing, the same coins keep getting mentioned.
The most likely candidates for the near future are Ripple (XRP), IOTA (MIOTA), and Monero (XMR). All of these have a strong backing, good market cap numbers, and each serves a purpose that is unique to its own currency.
The other two currencies that are possibilities of being listed on Coinbase are DASH (DASH) and Bytecoin (BCN).
Most people believe that we’ll see additions to Coinbase sometime early in the first quarter of 2018. Remember, the addition of Bitcoin Cash came with no warning, so these additions can happen at any time.
Conclusion: What Can You do to Be Prepared?
You have two approaches in order to take advantage of getting in on a currency that is to be listed on Coinbase. The first is to go through the process required to buy some of the currency on the market today so you’ll already have a stake in it once the currency hits Coinbase. As stated above, this will require you to put in some effort in order to acquire one of these currencies since you’ll have to use some other exchange.
The second thing you can do is to simply set up an account on Coinbase and be ready once a new currency is announced to be supported there. This way you can immediately make a purchase and hopefully ride the wave of the general public purchasing lots of the currency.
Whether you take the first approach or the second approach, they both require you to set up a Coinbase account. That can be easily done by clicking on this Coinbase Registration Link.
Using full disclosure, the link above is a referral link to Coinbase. By using that link to set up your account, Coinbase will reward both you and I with $10 worth of Bitcoin. Once you have an account open, you can also refer friends and family, taking advantage of the same $10 BTC reward.
Why is $10 worth of Bitcoin nothing to sneeze at? Let’s go through a scenario. Using the $10 worth of Bitcoin, you can transfer that to another exchange that supports Bytecoin (BCN). At the time of this writing, BCN is selling for $0.006073 per coin (less than a penny). Not including fees, that $10 can buy you over 1,600 shares of BCN. Now lets assume Coinbase decides to support BCN on their exchange and the public starts buying, driving up the price. Assume the price of a single BCN coin goes up to $1. That small $10 investment is now worth $1600. Now assume it really takes off and goes up to $10 per BCN. Now you very quickly made a cool $16,000 dollars.
The same holds true for all the currencies mentioned. The percentage gains are what you need to look at.
So I hope this article has helped you understand a little more about the power that Coinbase can bring to a particular currency. Nobody knows when and if the next coin will be added to Coinbase, but when it is, you don’t want to be left out. Set up your Coinbase account today and be ready to ride the next wave to riches in the latest Crypto currency frenzy.
What Do You Think?
Which Currency do you think will be the next to be added to Coinbase?
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