It’s been a wild ride for investors in Coinbase Global (NAsdaQ: COIN), the largest cryptocurrency exchange in the U.S. The stock made its public debut on April 14 at a price of $250 per share, and it has since soared to as high as $429.
54. That’s a gain of over 71% in just a few weeks.
Now that the dust has settled, some investors are wondering if Coinbase is a buy at its current price. Let’s take a look at the case for and against buying Coinbase stock today.
The case for buying Coinbase stock
There are several reasons to be bullish on Coinbase stock. First, the company is benefiting from the growing popularity of cryptocurrencies.
Bitcoin, the largest cryptocurrency by market value, has more than doubled in price this year, and other digital currencies have posted even bigger gains. Ethereum, the second-largest cryptocurrency, is up over 400% year to date.
Coinbase is also benefiting from institutional adoption of cryptocurrencies. In the past few months, we’ve seen several major corporations invest in Bitcoin, including Square (NYSE: SQ), Tesla (NAsdaQ: TSLA), and MassMutual.
We’ve also seen hedge funds launch cryptocurrency funds, and investment firms launch cryptocurrency exchanges. All of this activity is driving more traffic to Coinbase’s platform.
NOTE: Warning: Coinbase stock price predictions should not be taken as advice for investing in Coinbase stock. Predictions are based on historical data and current market conditions and can only provide an estimate of the future performance of Coinbase stock. As such, these predictions should not be used to make decisions regarding the purchase or sale of any security. Additionally, past performance is not a guarantee of future performance and there is no guarantee that any given prediction will prove accurate. Investing in stocks involves risk, including the potential for loss of principal. Please consult a financial advisor before making any investment decisions.
Finally, Coinbase is positioned to benefit from the launch of crypto ETFs in the U.
The first crypto ETF was launched in Canada last month, and there are several more ETFs in registration with the Securities and Exchange Commission. If these ETFs are approved, they will likely drive even more institutional money into cryptocurrencies.
The case against buying Coinbase stock
The biggest risk for Coinbase investors is a sharp drop in cryptocurrency prices. While Bitcoin and Ethereum have been on a tear this year, there’s no guarantee that their prices will continue to rise at such a rapid pace.
In fact, crypto prices are notoriously volatile, and sharp drops are not uncommon. For example, Bitcoin fell by over 50% in 2018 after reaching an all-time high earlier that year.
Another risk for Coinbase is regulatory uncertainty. Cryptocurrencies are not currently regulated at the federal level in the U., though that could change if lawmakers take action on crypto legislation this year.
Additionally, states have begun to crack down on unlicensed crypto exchanges like Coinbase. Earlier this year, New York Attorney General Letitia James filed a lAWSuit against Coinbase alleging that it had engaged in “deceptive practices” and had failed to obtain a license to operate in the state. If other states follow suit, it could create headaches for Coinbase down the road.
Lastly, it’s worth noting that Coinbase is not profitable on an GAAP basis due to the way it records revenue from transactions involving cryptocurrencies that appreciate in value after being purchased on its platform (known as “realized gains”). This accounting treatment could change in the future if cryptocurrencies become more regulated or if accounting standards evolve, but for now it’s something to be aware of when considering an investment in Coinbase stock.
10 Related Question Answers Found
As of late, Coinbase has been one of the hottest stocks in the market. In the past year, its stock price has surged nearly 1,400%. This incredible run-up has made many investors wonder if Coinbase is a good investment and what the Coinbase stock price prediction is.
When it comes to cryptocurrency, there is no company more well-known than Coinbase. Based in San Francisco, Coinbase is a digital asset exchange that allows its users to buy and sell Bitcoin, Ethereum, and Litecoin. In addition to being a popular exchange, Coinbase is also one of the most convenient ways to get started in the cryptocurrency market.
It’s been a roller coaster of a year for Coinbase. The cryptocurrency exchange went public on April 14th, and since then, its stock has seen some wild swings. Some investors are bullish on Coinbase, arguing that it is well-positioned to benefit from the growth of the cryptocurrency market.
The Coinbase stock price is expected to rise in the near future as the company continues to grow. Founded in 2012, Coinbase is a digital asset exchange company headquartered in San Francisco, California. As of 2019, Coinbase had over 30 million customers and operated in over 100 countries.
In the past year, Coinbase has seen unprecedented growth. In May of 2017, Coinbase was handling around $1 billion worth of digital currency trades per month. By December of 2017, that number had exploded to $20 billion.
Coinbase is a digital asset exchange company headquartered in San Francisco, California. They broker exchanges of Bitcoin, Ethereum, Litecoin and other digital assets with fiat currencies in 32 countries, and bitcoin transactions and storage in 190 countries worldwide. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam.
When it comes to Coinbase, one of the most frequently asked questions is whether or not the site tracks gains and losses. The answer to this question is a bit complicated, but in short, the answer is yes and no. On the one hand, Coinbase does track the price of Bitcoin and other cryptocurrencies on its site.
Coinbase, one of the most popular cryptocurrency exchanges, does calculate capital gains for its users. Capital gains are profits realized from the sale of a capital asset, such as a stock, bond or real estate. In the case of Coinbase, users are buying and selling digital currencies, so capital gains would apply.
This is a question that many people are asking lately, given the recent surge in Bitcoin prices. Coinbase is not currently on the stock market, but there is a possibility that it could be in the future. Coinbase is a digital currency exchange that allows users to buy and sell cryptocurrencies.
If you’re new to the cryptocurrency world, you may be wondering if you can set price alerts on Coinbase. The short answer is yes, you can! Here’s how to do it.
