As the world’s largest cryptocurrency exchange, Coinbase is often the first stop for investors when they want to enter the digital currency space. The San Francisco-based company has built a reputation as a reliable and easy-to-use platform, and its listing of five coins – Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ethereum Classic – is often seen as a barometer for the wider market.
But with prices fluctuating so wildly, which of these five coins is the most stable? And does stability even matter when you’re investing in such a volatile asset class?
To try and answer these questions, we took a look at the historical price data for each of Coinbase’s five listed coins. We looked at how often each coin had been in positive or negative territory over various time periods, as well as how much their prices had moved up or down when they were in positive or negative territory.
What we found is that there is no one “most stable” coin on Coinbase. While all five coins have experienced periods of high volatility, they have also all had periods of relative stability.
Bitcoin, for example, was the least volatile of the five coins over the past month (-2.85%), but it was also the most volatile over the past year (+116%). Ethereum was the most volatile over the past month (-5.
40%), but it was also the least volatile over the past year (-13.45%).
So, what does this all mean for investors? Should you be looking for stability when investing in cryptocurrencies?
The answer is not necessarily. While stability can be important for some investors, others may be more interested in capitalizing on the volatility of the market.
What’s important is that you understand your own investment goals and objectives before deciding which coin (or coins) to invest in.