Coinbase (listed on Nasdaq under the ticker: COIN) revealed in a report published on August 12 five investment strategies that help investors 'break free from zero' and open up to the cryptocurrency market.
The simplest of these strategies, according to the report, is to add Bitcoin to the investment portfolio, where the company recommended allocating only 5% of assets to Bitcoin, noting that this small percentage can significantly improve returns, especially given the astonishing compound annual growth rate of 73% from January 2017 to June 2025. During the same period, Bitcoin achieved a total return of 14.28%.
Coinbase added that allocating 5% of the portfolio to Bitcoin instead of bonds has outperformed the traditional 60/40 portfolio benchmark (60% stocks, 40% bonds) since 2018.
The report also recommended a second strategy consisting of allocating 10% of the portfolio to invest in both Bitcoin and gold. Coinbase described Bitcoin as 'digital gold' which has become, like traditional gold, a store of value.
With the market value of gold reaching around 20 trillion dollars and Bitcoin around 2 trillion dollars, the report views both as some of the most valuable assets in the world. Coinbase has created what it calls a 'store of value index' that includes gold and Bitcoin, where Bitcoin's share increases as its price volatility decreases.
According to the data provided in the report, this indicator has outperformed the traditional 60/40 benchmark since 2020.
