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This 1 Coinbase Catalyst Could Send Solana Meme Coins to the Sky
This new development will open the doors for casual crypto investors.
Coinbase Global (COIN 1.65%) is the foundation of the cryptocurrency ecosystem, providing investors with an easy path to convert their dollars into a multitude of different tokens. While it is not the only company providing these services, it is clear that with such a privileged position, its offerings are likely to have major impacts for cryptocurrencies, including popular ones like Solana (SUN 4.31%).
Coinbase recently launched a new service that will likely catalyze the growth of Solana, as well as many meme coins that are on the network. See what’s happening and how you can position yourself to profit.
Cryptographic Infrastructure Matters
It is difficult to invest in cryptocurrencies for the first time. Much of blockchain the technology itself is clunkier than typical consumer software applications. Plus, the space has so much technical language to learn, so much slang to know, and a reputation for fraud and risk that’s enough to keep many people away.
Coinbase is working to solve some of these problems by launching a new, highly simplified platform for people to hold and use their coins.
The new “smart” Coinbase portfolio is compatible with Bitcoin, Ethereum, and Solana, as well as all ERC-20 chains. It can interact with decentralized applications (dApps) and decentralized exchanges (DEXes), store non-fungible tokens (NFTs), connect to a user’s bank account, and transact freely with a user’s Coinbase account. Everything people could do with a self-managed wallet, including staking tokens in a liquidity pool, trading token pairs, and borrowing or lending crypto, is possible with the new wallet.
Coinbase expects its innovation to bring up to 1 billion people into the crypto markets because of how easy investing in the space will become compared to how it is now. It’s unclear whether the company will be able to onboard all the users it expects. But if it manages to attract even a fraction of the expected population, the implications for cryptocurrency markets, especially Solana, will likely be gigantic.
Currently, on the Coinbase website, users are limited to transacting in the cryptocurrencies that the company selects as appropriate, which tend to be the most reputable currencies. This means that the biggest meme coinsas Shiba Inu It is Dogecoinare tradable, but emerging currencies are often only available long after an investor would prefer to initiate a position.
With the new wallet there is still the restriction of only being able to transact currencies whose information Coinbase has chosen to list, and it may still take a long time for the company to list promising new issues. But as the wallet allows trading through decentralized exchanges (DEXes), the company does not need to hold the tokens themselves, so the accessible universe of investable projects is much larger. Thus, investors will now have the opportunity to invest in coins much earlier than before and will generally be able to invest in much smaller coins if they choose to do so.
For coins on the Solana chain, where many of the smaller and riskier meme coins reside, the new wallet could drive significant growth across the board. If Coinbase chooses to list projects more flexibly than it currently does for its wallet users, which will be necessary if it is to defend the claim that its wallet allows people to maintain full custody and control of their coin holdings. cryptocurrencies, the impact will be even greater. bigger.
Either way, this is a huge green flag for Solana and meme coin investors alike.
You don’t need to take risks to capture some of the future growth
It is not necessary to start investing in meme coins to take advantage of the capital influx stimulated by the new Coinbase wallet. You don’t even need to download the wallet if you already have a setup that works for you. The safest way to get early upside exposure is to simply buy Solana and hold it for the long term, as anyone trading meme coins on the network will need to purchase its native coin. symbol first.
If you want to get a little more sophisticated when additionally engaging with meme coins, do yourself a favor and stick to the proven winners rather than the supposedly rising contenders. The current champions will still be very risky and volatile.
But they will also be the entry point that most new cryptocurrency investors will have to invest in coins by virtue of their size and proven effectiveness in gaining attention over time. And, at least in the case of Shiba Inu and Dogecoin, they have enough of a track record that it is very unlikely that their prices will drop to zero.
Above all, don’t take risks with money you can’t afford to lose. Play the game long and cautiously. If you haven’t yet diversified your portfolio sufficiently, the best move is to do this before broaching the idea of buying Solana or meme coins, as responsible financial management of your portfolio is a higher priority.
Alex Carchidi has positions in Bitcoin, Ethereum, Shiba Inu and Solana. The Motley Fool has positions and recommends Bitcoin, Coinbase Global, Ethereum, and Solana. The motley fool has a disclosure policy.