You Do Not Have to Pick the Next Bitcoin to Profit From Crypto. Here Is the Simpler Play.

One of the hottest asset classes in the last decade is cryptocurrency. While crypto offers significant potential, it also poses a difficult question: Which coin should you buy?

There are thousands of tokens, with new projects emerging continuously. Even well-known names like Bitcoin and Ethereum can see their prices move unpredictably. For many investors, that complexity becomes a massive barrier.

But there's another way to approach the space, one that doesn't require picking individual winners. That's where Coinbase Global (NASDAQ: COIN), the crypto exchange, comes in.

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The difficulty in picking winners

Investing in crypto often feels like trying to pick the next big thing. Some tokens surge, others fade, and the landscape changes quickly. Even experienced investors can struggle to identify which projects will last.

And timing matters. Buying too early or too late can make a big difference in returns. For instance, investors who bought Bitcoin five years ago would be sitting on a return of less than 11% (as of this writing). But if the same person just bought it just three months later, they would be sitting on a return of just under 100%.

That makes crypto investing both unusually complex and uncertain.

A different approach: invest in the whole ecosystem

Instead of choosing individual coins, investors can focus on investing in the growth of the broader system. While there are a few ways to do so, one of the most obvious ways is to invest in the platforms -- places where users trade, store assets, and interact with the ecosystem.

And Coinbase is one of the largest of those platforms, holding about 12% of all crypto in custody globally. That scale explains why it generated about $4.1 billion in transaction revenue in 2025. But beyond transaction revenue, Coinbase also generated $2.8 billion from other subscription and services revenue.

As long as users continue to participate in crypto -- buying, selling, or holding -- platforms like Coinbase remain central to that activity. For investors, the idea is that we don't need to pick the winning coin. We are investing in the system itself.

Why can this approach be simpler?

While investing in the whole market sounds unexciting, it removes one of the hardest parts of crypto investing: selecting the winning coin. Instead of evaluating thousands of tokens, investors can focus on a single business.

Besides, it also fits more naturally into a traditional portfolio. Unlike individual tokens, Coinbase is a publicly traded company with financial statements, earnings reports, and a business model that investors can analyze.

Still, there are risks to consider

Of course, this approach isn't without trade-offs. Coinbase still depends heavily on trading activity, which can fluctuate with market conditions. For instance, if crypto prices collapse, traders may be less inclined to trade.

Besides, it also removes the possibility of making a "home run" -- of picking the right coin that goes up by 20-50 times in price. So yes, the downside and volatility may be more manageable, but the upside becomes capped as well.

What does it mean to investors?

Let's be honest: Crypto can be a difficult asset to own. Too many choices. Too much noise. Too much uncertainty. But stepping back can help. Instead of trying to pick winners, investors can focus on the platform that supports the entire ecosystem.

And that's where Coinbase offers a simpler way to gain exposure -- not to one coin, but to the growth of the whole market.

Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.