Coinbase Users Tend to Move Into Other Assets After Purchasing Bitcoin: Research

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Thu, 05/14/2020 - 07:38
Alex Dovbnya
The lion’s share of Coinbase users tend to diversify their portfolio with altcoins after starting with Bitcoin
Cover image via stock.adobe.com
Contents

In its recently published ‘Around The Block’ newsletter, Coinbase, the leading U.S. exchange, revealed that most of its customers who purchase Bitcoin end up diversifying their portfolios with other cryptocurrencies. 

Its research shows that users tend to show more interest in altcoins during bull markets.

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More flowers are blooming

While Bitcoin is clearly the dominant asset, Coinbase sees bigger-than-expected trading volumes for altcoins when markets become way too volatile.

The exchange first noticed this trend during the 2017 bull market, but it later became more apparent in the following years when it started adding more coins, including Tezos and Chainlink.   

The LINK price exploded 117 percent after being added to Coinbase in June 2019.  

Coinbase’s research shows that 60 percent of its customers choose to buy Bitcoin as their first cryptocurrency, but only for 24 percent of them does it remain the only choice.

image by blog.coinbase.com

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Why Bitcoin is still king 

With that being said, Coinbase predicts that no one will take Bitcoin’s crown anytime soon: 

Bitcoin is king, and likely to remain king for a long time.

While describing the rationale behind Bitcoin maximalism, the exchange mentioned a slew of reasons such as high liquidity, security, and decentralization.

From a purely ideological perspective, Bitcoin is also the world’s first cryptocurrency that has managed to retain its ‘it factor.’   

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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