Is Coinbase a Magnificent Crypto Stock to Buy Right Now? The Motley Fool
On the other hand, investors who are bullish on the future of the crypto industry may not find a better way to gain solid exposure to the asset class. Coinbase https://cryptolisting.org/ could essentially be viewed as a bet on the growth of the overall market. But again, it all comes down to your risk tolerance and cryptocurrency conviction.
- That’s why there’s been tremendous focus on bolstering Coinbase’s subscription and services offerings.
- The vast majority of asset managers that launched this product use Coinbase as the custodian (more on this below), indicating its industry position as a trusted partner.
- This should also make the business easier to manage, as executives will have better visibility into the company’s future revenue streams.
- Within subscription and services, one of the ways Coinbase makes money is from custody solutions.
- And the potential for Ethereum spot ETFs to hit the market adds greater financial upside.
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Coinbase Global
Amid all the chaos that took place in the cryptocurrency industry over the past couple of years, Coinbase has been a stalwart. But is Coinbase a magnificent crypto stock that investors should consider buying right now? This has resulted in Coinbase not only surviving the industry’s turmoil but becoming a leading trading platform. According to theblock.co, Coinbase’s trading volume in December was $70 billion.
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Coinbase should be viewed as a high-risk, high-reward stock. The risk comes from the fact that the cryptocurrency market is still in its relative infancy, and there is a lot of uncertainty about what things will look like five to 10 years from now. Should cryptocurrencies fail to gain mainstream adoption, with fewer real use cases than many are hoping for, and a painful regulatory burden, then I don’t think Coinbase will do well at all. In fact, in this scenario, the company might eventually cease to exist. After the stock’s monster performance in 2023, plus a renewed sense of optimism surrounding the cryptocurrency industry, it’s extremely easy for investors to view Coinbase stock as a no-brainer investment.
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In the most recent quarter, sales from subscriptions and services rose by 59% year over year to represent 52% of the overall company’s revenue. These are exactly the trends that management wants to see. Within subscription and services, one of coinabj the ways Coinbase makes money is from custody solutions. This is where the approval of spot Bitcoin ETFs could be a major sales driver going forward. And the potential for Ethereum spot ETFs to hit the market adds greater financial upside.
Is Coinbase a Magnificent Crypto Stock to Buy Right Now?
This should also make the business easier to manage, as executives will have better visibility into the company’s future revenue streams. Of course, focusing extensively on delivering a superior user experience has made Coinbase a top cryptocurrency brokerage and exchange operator among both individuals and institutions. The recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) proves this. The vast majority of asset managers that launched this product use Coinbase as the custodian (more on this below), indicating its industry position as a trusted partner.
Coinbase Global (COIN -1.22%) rode this wave of enthusiasm to new heights. The cryptocurrency stock soared 391% in 2023, a gain that trounced the Nasdaq Composite Index, although it has fallen 26% this year (as of Jan. 22). In 2023, the cryptocurrency market’s value surged from about $800 billion at the start of the year to more than $1.6 trillion at the end. After a terrible 2022, investors appear to be much more optimistic about digital assets. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
On the other hand, investors who are bullish on the future of the crypto industry may not find a better way to gain solid exposure to the asset class. Coinbase https://cryptolisting.org/ could essentially be viewed as a bet on the growth of the overall market. But again, it all comes down to your risk tolerance…