1 Top Cryptocurrency to Buy Before It Soars 5,300%, According to Cathie Wood

It's been a great week for cryptocurrency investors. The prices for many major cryptocurrencies have soared in recent days, and many experts are calling for more upside. In fact, Cathie Wood -- an iconic investor known for her aggressive investment style -- believes one legendary cryptocurrency still has more than 5,300% in upside to go.

This famous cryptocurrency remains your best bet

When it comes to crypto markets, no asset has more name recognition than Bitcoin (CRYPTO: BTC). There are plenty of great reasons for this. Bitcoin started the cryptocurrency when it launched in 2009, right around the peak of the financial crisis. Since then, hundreds of additional cryptocurrencies have popped up, with hundreds or even thousands of additional crypto start-ups seeking to contribute to the growing decentralized ecosystem.

The space is clearly still in its infancy, similar to where the internet was in the early 2000s. But innovation continues to mount at an impressive rate, and billions of dollars have been invested in growing crypto's capabilities and value.

Despite the massive proliferation of the crypto ecosystem, one cryptocurrency remains supreme: The original Bitcoin. With a market cap of $1.4 trillion, Bitcoin remains the undisputed leader in the space, with the most name recognition, adoption, and ownership. It's no wonder that tech investors like Cathie Wood -- the CEO of Ark Invest -- are still bullish on this classic cryptocurrency.

Earlier this year, Wood revealed that her company's's long-term price target for Bitcoin is roughly $1.5 million -- significantly higher than today's $65,000 trading range. But there could be even more upside should institutional capital get involved in a bigger way than it is presently. "If institutional investors were to allocate a little more than 5% of their portfolios to bitcoin," Wood explained, "that alone would add $2.3 million to the projection" and bring her long-term price target to $3.8 million -- a price target with more than 5,000% in implied upside potential.

This is the best strategy for investing in Bitcoin today

Like many of her predictions, Wood's Bitcoin price target is extremely optimistic. It should also be stressed that Bitcoin's price is unlikely to reach the $1.5 million mark -- never mind the $3.8 million mark -- anytime soon. But there are plenty of reasons to believe in Bitcoin's long-term price potential, even if the exact magnitude is yet to be seen.

One of the biggest reasons to stick with Bitcoin versus other trendy cryptocurrencies is that it has an advantage that no other cryptocurrency can even match: A history of success. While there have been plenty of bumps along the way, the thesis behind Bitcoin's 2009 launch remains sound. The underlying mechanisms that allow it to function without centralization are, by now, beyond criticism. And Bitcoin's wide ownership across both retail and institutional investors remains unparalleled. At the end of the day, even if other projects like Ethereum are able to layer additional complexity and functionality onto the crypto ecosystem, Bitcoin's place as the original cryptocurrency with the longest track record can never be beaten.

If crypto as a whole succeeds, it's very likely that Bitcoin investors will succeed. But even if the wider crypto universe fails to deliver, Bitcoin's core functionality and promise will remain intact -- a win-win for patient holders.

There are several ways to invest in Bitcoin. But the best strategy is one that many investors use for traditional investments: Dollar-cost averaging. This strategy, which has you regularly buy a set value of the asset -- say, $100 every other month -- is extremely effective for volatile assets like Bitcoin. With dollar-cost averaging, you take an extremely long-term view knowing that you'll be buying at all types of price points, but especially when prices suddenly fall. This way, you are always locking in an attractive average entry point to an asset you believe has massive long-term potential -- all without needing to bet on a single entry point.

Will Bitcoin ever reach Wood's lofty $3.8 million price point? Perhaps a few decades, or even a few centuries, from now. But don't let any specific price targets influence your investing strategy. If you want exposure to Bitcoin, begin investing now, establishing a dollar-cost averaging strategy that will boost your odds of success regardless of where Bitcoin's price swings over the short term.

Should you invest $1,000 in Bitcoin right now?

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Ryan Vanzo has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.