If You Invested $100 in Bitcoin in 2011, This Is How Much You'd Have Now

Business

Motley Fool 12 October, 2021 - 08:45am

Are you ready to start investing in cryptocurrency

A little more than a decade after the first cryptocurrency, Bitcoin, was launched, the industry that's developed around the new technology has seen explosive growth. Today, there aren't just cryptocurrencies available, but a few blockchain-based digital assets, including crypto tokens and NFTs. 

There's several methods for starting your investment journey in crypto. Depending on whether you want help managing your investment or if you want to align with the ethos of the ecosystem and "be your own bank," there are opportunities for those just starting out. 

Keep in mind that investing in cryptocurrency is still risky — you could lose the entire value of your investments —so make sure you're in a financially sound position and take the time to asses your risk appetite before putting money towards the asset class.

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Perhaps the easiest way to buy cryptocurrency is through one of the traditional financial service providers that have recently adopted the technology. 

CashApp, a peer-to-peer payment service owned by Square Inc., allows users to buy bitcoin only. PayPal allows users to purchase four different cryptocurrencies: bitcoin, ethereum, bitcoin cash and litecoin. Users holding crypto on PayPal can then use it to checkout on the app as well. Robinhood, the mobile app for stock investing, supports seven cryptocurrencies for purchase by users, including the popular Dogecoin meme cryptocurrency. And personal finance provider, SoFi, too allows for crypto purchases of 21 different coins and crypto tokens through its app. 

These products are well established in the market and may make new investors feel more at ease with the slick user interfaces. But they have certain limitations that make utilizing cryptocurrencies in any other regards a hassle. PayPal, for instance, does not currently let users send the cryptocurrency they've bought to any other crypto wallet, although the company has said that functionality is coming. Robinhood is also developing its own wallet. On SoFi, crypto tokens, which can typically be put up as collateral — called staking — to earn passive income, cannot be utilized in this way. 

The main utility of purchasing crypto through a traditional finance app is the ability to trade and/or invest for profit in US dollars.

There are thousands of different crypto assets, so the traditional finance apps that support crypto trading offer a very limited selection. Buying cryptocurrency through crypto-first digital wallets and exchange providers will offer users more choice and functionality. 

Which wallets and exchanges are available to you will depend on what area of the world you live in, but there are safe and mature options in most locations.

The providers mentioned below are typically referred to as centralized exchanges, since they're managed by a single company. Centralized exchange providers offer certain protections that some investors might welcome, including insurance in case of cybersecurity breaches, regulatory clarity since they are licensed businesses and help safeguarding assets. Centralized exchanges typically offer more intuitive user interfaces making them more accessible for new cryptocurrency investors. 

But centralized exchanges rely on a central authority or middleman between you and your assets. This means your assets can be frozen or otherwise constrained by the exchange from participating in some actions or types of commerce. Centralized exchanges must also abide by Know Your Customer regulations and so must collect and verify personally identifying information, which makes them less ideal for individuals that want to preserve their privacy. 

Coinbase is the largest crypto exchange in the United States by trading volume and is also one of the longest-running exchange businesses. The exchange was founded in June 2012 and went public on the NASDAQ stock exchange in April 2021 with a nearly $100 billion valuation. It offers buying, selling and trading of 50 different cryptocurrencies and crypto tokens. 

Other U.S.-based exchanges include Gemini and Kraken. All these exchanges allow users to send their crypto off the platforms to third-party wallets and allow for staking to earn interest as well. 

Binance is another popular crypto exchange, although it doesn't operate everywhere in the U.S. (for instance, New Yorkers are unable to use the exchange). The Cayman Islands-based crypto exchange has the largest assortment of crypto available. The exchange supports 500 coins and tokens, including two of which it created itself. Binance has come under fire from regulators for lax anti-money laundering checks and other consumer protections, but still is the largest in the world in terms of trading volume. 

Some investors will prefer to use exchanges that align more strongly with the decentralized ethos of the crypto industry at large. 

Decentralized exchanges, or DEXes, are not run and managed by one single person, company or organization, but instead the code it's built on allows for peer-to-peer crypto transactions without intermediaries. 

Popular DEX options include Uniswap, SushiSwap, dYdX and 1inch. 

There are pros and cons to utilizing a DEX. Because there isn't a single entity involved in managing user assets, decentralized exchanges don't present hackers with a large honey pot of user funds. That said, hackers can and have exploited bugs in the exchange's code to drain money from the protocols. 

Because there's typically not a stringent onboarding process that collects personal information about customers, there isn't much recourse for users who lose funds on these exchanges. And DEXes tend to have more complex user interfaces that aren't always intuitive for those used to traditional and straightforward finance applications. 

NFTs, or non-fungible tokens, have recently garnered significant attention and huge resale figures. These tokens can be used for a wide variety of functions, including digital asset access and ownership, but recently, the hype has focused on NFT-based digital artwork.

For those interested in purchasing NFTs, there are several marketplaces that allow users to pursue NFT collections and purchase artwork. 

OpenSea is perhaps the most popular secondary market for NFTs. On this marketplace, users must already have an Ethereum wallet, such as MetaMask, funded with ether (Ethereum's native cryptocurrency) to purchase NFTs. 

ArtBlocks, SuperRare and Rarible are other popular options for getting access to NFTs. Nifty Gateway, the NFT marketplace owned by crypto exchange Gemini, allows for the purchase of NFTs using traditional payment methods, such as credit cards

This is a personal question based on your interest in the technology and risk appetite. 

Because the technology is so new, there isn't one silver bullet to evaluate these investments, but there are several methods for analyzing whether a project has legs or not, including investigating the team behind the project and inspecting the developer community working on the protocol. 

The longest-standing and most secure cryptocurrency is Bitcoin. Bitcoin was what started it all and has the highest market cap of any other coin, at over $1 trillion as of writing in mid-October 2021. The project has a healthy developer ecosystem constantly working to upgrade the code and has the most users by many metrics. 

Currently, bitcoin is trading around $57,000 a coin, although the price sees massive swings in both directions from time to time. For instance, bitcoin reached an all-time-high price of $63,576 on April 14, 2021, before falling by more than half to $29,971 only a couple months later. 

Most cryptocurrencies and crypto tokens see significant price volatility, which is why it's seen as a risky choice for many retail investors. 

Ethereum is another good bet for investors. Ethereum innovated on Bitcoin by implementing what's called smart contracts that allow for more complex tokens and transactions. While the Ethereum blockchain has dealt with significant scalability issues since it launched at the end of July 2015, it is the most actively used blockchain.  

It's been the blockchain of choice for several innovations, including the crypto fundraising mechanism initial coin offerings (ICOs), NFTs and decentralized finance (DeFi). Ethereum also has the largest developer community of any cryptocurrency project. 

You never have to buy a full unit of a cryptocurrency. Cryptocurrencies are highly divisible. For instance, you can purchase $10, $100, $10,000 of bitcoin, instead of one whole bitcoin.  

The most important thing to remember when participating in crypto is to never give out your private key or recovery phrase that's created when you open a wallet. 

Crypto wallets are used to store your digital assets and some allow you to also buy, sell and transfer crypto. If you start by buying cryptocurrency on a centralized exchange, you might decide later to transfer that cryptocurrency to a wallet with more features. For instance, by transferring ether from Coinbase to a MetaMask browser wallet, you are able to natively interact with a number of decentralized applications (or dapps), such as NFT marketplaces and yield-bearing DeFi platforms (where you can earn interest on your crypto). 

The private key is the alphanumeric string that secures your crypto and proves your ownership. The recovery phrase is a human-readable version of your private key, that is, a 12 to 24-word list of words in a specific order that can help users reclaim custody of their crypto should they forget their wallet password or their computer breaks.

No wallet provider, exchange or company will ever ask you to share these things. If you get an email that looks like it comes from a legitimate provider, but asks you to input your private key, that's a scam. Crypto is rife with this type of fraud, called a phishing attack, because of the lack of recourse users have when a theft happens. 

It's important that you don't lose your recovery phrase. Password managers, such as 1Password and LastPass, offer good solutions for storing and managing your passwords and recovery phrases. These services also offer unique and complex passwords to protect your crypto assets.

Another security measure you should take includes setting up two-factor authentication within your crypto wallets and apps. Two-factor authentication, or 2FA, adds another layer of security to your logins. Two-factor authentication solutions can either be SMS-based, sending a one-time password to you via text message or a one-time password generated within a specific authentication app, such as Google Authenticator or Authy. The latter solutions are more secure than SMS-based methods, since SMS-based 2FA can be utilized by hackers during a SIM swap attack.

Separately, if you've bought large amounts of crypto that you plan to hold long term, hardware wallets, like Ledger and Trezor, offer one of the safest storage solutions. These purpose-built devices remain offline, decreasing the attack vector from hackers. 

As the crypto industry matures, investing in crypto assets becomes both easier and more secure. It's an exciting space that offers you access to a new technology that's shaping innovation in many industries, but it also comes with risks.

Investing in cryptocurrency is still risky — you'll want to be in a financially secure position before you start putting money into crypto assets. Make sure to do your own research and remember that your assets are not FDIC-insured.

Read full article at Motley Fool

Bitcoin Targets $80,000 after Rising 90% Since July Low: Bloomberg

U.Today 13 October, 2021 - 12:07am

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

According to a recent article by Bloomberg that cited Vijay Ayyar, head of the Asia Pacific region at Barry Silbert-affiliated Luno exchange in Singapore. The latter assumed that a rise in the Bitcoin price to $80,000 or even the $85,000 zone is quite possible.

On Oct. 11, the flagship cryptocurrency finally managed to surpass the $57,000 price line, surging to $57,900. By now, however, Bitcoin has rebounded a little, hitting $56,983, according to data provided by CoinMarketCap.

BTC has demonstrated a massive recovery of more than 90% after it hit a low of $29,856 on July 20.

According to Vijay Ayyar from the Luno trading platform purchased by the Digital Currency Group founded by billionaire Barry Silber (also founder of Grayscale), the biggest crypto has good chances of hitting $80,000 or $85,000 provided that BTC remains above $50,000 in the short term.

Bloomberg has shared charts that suggest that the flagship cryptocurrency may significantly surpass its all-time high of $64,800 achieved in May. An inverted Head and Shoulders pattern indicates a possibility of BTC rising to the $79,000 level.

An Ichimoku signal and options market also suggests a potential rise to $80,000 at the end of this year, according to data shared by Bloomberg.

Bitcoin is flirting with a run toward its all-time high after jumping more than 90% since a low in July https://t.co/UHoNx4pXNU pic.twitter.com/tUazOm6ccS

Another Bloomberg expert expects Bitcoin to add significant gains in quarter four this year: chief commodity strategist Mike McGlone. As reported by U.Today on Monday, he tweeted that the growing U.S. debt and tensions over a potential default may help Bitcoin enter a unique price rise phase in Q4.

The likely year-end price target for Bitcoin, which McGlone voiced earlier this year, is a whopping $100,000 per coin.

At press time, Bitcoin has recovered to $57,140. Besides, traders are growing extremely greedy toward BTC as the Fear & Greed Index now shows 78, which stands for "extreme greed."

Bitcoin is growing, despite the recent statement by JPMorgan CEO Jamie Dimon about Bitcoin allegedly being worthless and Chinese authorities seeking ways to legalize the ban on crypto transactions and mining that they announced back in September.

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.

Disclaimer: Any financial and market information given on U.Today is written for informational purpose only. Conduct your own research by contacting financial experts before making any investment decisions.

Bitcoin: Fundamentals And Technicals Tell The Same Story

Seeking Alpha 13 October, 2021 - 12:07am

Anatomy of a cryptocurrency: What more does Bitcoin need to do

AMBCrypto News 12 October, 2021 - 10:00am

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Bitcoin: Quantifying the chances of a run to $100K based on S2F

Now that it is out of the woods, how soon will Bitcoin breach $64,000

Aaryamann is a full-time journalist at AMBCrypto. He is a recent journalism graduate, currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

How Much Crypto Belongs in Your Investment Portfolio?

Lifehacker 12 October, 2021 - 08:00am

Similar to gold, crypto is also seen as a hedge against inflation, and as a way to diversify a portfolio away from stocks. As Barron’s points out, from 2015 through 2020, Bitcoin’s performance was almost entirely uncorrelated to U.S. and international stocks, high-yield bonds, real estate, or gold. For that reason, financial advisors commonly recommend an allocation of 1-5% crypto in your overall investment portfolio, provided that you can afford to lose it all, given that it’s an extremely volatile investment.

“I view it as a valid asset class in a portfolio due to its lack of correlation with the traditional investments of stocks and bonds,” says Michael Kelly, a CFA at Switchback Financial, in an interview for NextAdvisor. “Although it is high volatility, the lack of correlation [to stocks] reduces the overall portfolio volatility and provides the potential to have significant upside for returns. Having just a small allocation in a portfolio can have massive return potential with minimal downside risk.”

While JPMorgan Chase is willing to sell cryptocurrency products, its CEO Jamie Dimon thinks Bitcoin, the most popular cryptocurrency, is “worthless.”

“No matter what anyone in the room thinks, nor what any libertarian thinks, nor what anyone thinks about it, the government’s going to regulate it. They are going to regulate it for [anti-money laundering] purposes, for [Bank Secrecy Act] purposes, for tax,” said Dimon, alluding to uncertainty related to renewed interest in regulation under the Biden administration.

Aside from that, cryptocurrency being a reliable “store of value” that will replace fiat currency is hardly guaranteed. As Eswar Prasad, a trade-policy professor at Cornell University, explains to the Wall Street Journal: “Bitcoin depends on the faith of investors and nothing more. It could equally well go to zero tomorrow if 10% of investors sold.”

It also remains to be seen which cryptocurrencies will be the “winners” in the market years from now (many people who invest in crypto are just holding onto it until it becomes more widely accepted). And while scarcity is a selling point for a given cryptocurrency, there seems to be no scarcity in the number of cryptocurrencies you can bet on. Assuming the average investor has little knowledge of how these currencies work, how can they predict the currencies that will thrive and find wider acceptance?

Bitcoin Regains $1 Trillion Mkt Cap Feat; Investors Bullish on All-Time High

Investing.com India 12 October, 2021 - 12:00am

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Investing.com -- After gaining the approval of the US Securities and Exchange Commission to a cryptocurrency exchange-traded fund, the world’s most renowned cryptocurrency Bitcoin witnessed a massive price surge, the highest in the past five months.

The cryptocurrency’s price touched the $57,000-mark on October 11, the highest since it last garnered a record-high of $65,000 in April this year. Coinmarketcap.com has reported that the crypto’s price has surged by 2.32% in the past 24 hours alone and climbed to $56,796 at 8:18 am on Tuesday.

Furthermore, the burgeoning popularity and adoption of cryptocurrencies across the world is definitely a major factor contributing to increasing Bitcoin valuation.

Speaking of valuation, Bitcoin’s market capitalisation retreated from its $1 trillion market capitalisation feat and increased over 15%.

Market analysts have reported that the crypto’s dominance has spiralled to about 46% now and this rally has provoked confidence and enthusiasm among market participants, with BTC price projections being bullish in the long run too.

Additionally, as the BTC valuation and momentum is going strong, investors bet that the crypto will hit its earliest high numbers soon. In tandem with the same, the current valuation of bitcoin will also almost discard any trace of the impact China’s mining ban had on Bitcoin prices in May, earlier this year.

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Why Coinbase Stock Was Going Up With Popular Cryptocurrencies Today | The Motley Fool

The Motley Fool 11 October, 2021 - 12:30pm

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Shares of cryptocurrency exchange Coinbase Global (NASDAQ:COIN) were rising on Monday. As of 11:20 a.m. EDT, the stock was up over 5%. And this is because popular cryptocurrencies like Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) were rising over the weekend. For its part, Dogecoin (CRYPTO:DOGE) is down, but it still has some news worth reporting that may also have implications for Coinbase.

Last week, the CEO of AMC Entertainment announced that digital gift cards could now be purchased with Dogecoin. In the near future, the company hopes to allow Dogecoin and other cryptocurrencies to be used to purchase tickets directly through its payment system. But for now, gift cards can be bought through a third party.

Trading volume for Dogecoin spiked around the time of this announcement, according to data from CoinMarketCap. And even though the price of Dogecoin is down modestly today, trading volume is still relatively high.

News from AMC is but one factor driving Dogecoin volume these days. But transactions on the Bitcoin and Ethereum blockchains also appear to be increasing lately. Transaction volume varies greatly from day to day, but both Bitcoin and Ethereum volume has recently spiked above their six-month averages, as the chart shows.

Coinbase makes money on cryptocurrency trading volume. In the second quarter of 2021, 88% of the company's revenue was generated from charging transactional fees. And keep in mind that this revenue stream is extremely profitable. It recorded a whopping $1.1 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) on just $2.2 billion in total revenue.

Here's the thing: Coinbase stock actually looks like a deep value stock, trading at just 19 times trailing earnings. The reason it trades at such a cheap valuation is because the market believes cryptocurrency trading volume is going to go down and the company's gravy train will therefore grind to a halt.

However, there are signs that cryptocurrency trading volume is actually holding steady, if not increasing. Because of this, Coinbase stock could surprise investors when the company reports third-quarter financial results in a few weeks.

There's one more thing that could be driving the price of Bitcoin higher in recent days, and it has implications for the future. According to CoinDesk, someone placed a $1.6 billion buy order for bitcoins last week. On the surface, this shouldn't be too big a deal, considering Bitcoin is valued over $1 trillion. However, a buy that big actually clogged down the network temporarily and perhaps contributed to the increasing price in recent days. 

Could we see more big-money players getting into Bitcoin and other cryptocurrencies in time, making more large purchases like what we saw last week? Yes, there's reason to think so. For example, billionaire investor Bill Miller, chief investment officer for Miller Value Partners, recently said that he believes in Bitcoin today like he believed in Amazon.com after the dot-com bubble popped.

Interest from billionaires like Miller could lead to increasing demand. And with many investors and mining companies holding their bitcoins, there may not be enough liquidity in the market to meet this demand. That could send prices higher and sustain buzz for cryptocurrencies among retail investors, which is good for Coinbase's trading revenue stream. 

Of course, it's not a foregone conclusion that trading volume for cryptocurrencies will continue rising, benefiting Coinbase. However, that does appear to be what's happening right now and there are reasons to believe it could continue. This will be something worth watching in coming weeks, especially as Coinbase's Q3 report approaches. 

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Why Coinbase Stock Was Going Up With Popular Cryptocurrencies Today | The Motley Fool

ZyCrypto 11 October, 2021 - 12:30pm

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Shares of cryptocurrency exchange Coinbase Global (NASDAQ:COIN) were rising on Monday. As of 11:20 a.m. EDT, the stock was up over 5%. And this is because popular cryptocurrencies like Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) were rising over the weekend. For its part, Dogecoin (CRYPTO:DOGE) is down, but it still has some news worth reporting that may also have implications for Coinbase.

Last week, the CEO of AMC Entertainment announced that digital gift cards could now be purchased with Dogecoin. In the near future, the company hopes to allow Dogecoin and other cryptocurrencies to be used to purchase tickets directly through its payment system. But for now, gift cards can be bought through a third party.

Trading volume for Dogecoin spiked around the time of this announcement, according to data from CoinMarketCap. And even though the price of Dogecoin is down modestly today, trading volume is still relatively high.

News from AMC is but one factor driving Dogecoin volume these days. But transactions on the Bitcoin and Ethereum blockchains also appear to be increasing lately. Transaction volume varies greatly from day to day, but both Bitcoin and Ethereum volume has recently spiked above their six-month averages, as the chart shows.

Coinbase makes money on cryptocurrency trading volume. In the second quarter of 2021, 88% of the company's revenue was generated from charging transactional fees. And keep in mind that this revenue stream is extremely profitable. It recorded a whopping $1.1 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) on just $2.2 billion in total revenue.

Here's the thing: Coinbase stock actually looks like a deep value stock, trading at just 19 times trailing earnings. The reason it trades at such a cheap valuation is because the market believes cryptocurrency trading volume is going to go down and the company's gravy train will therefore grind to a halt.

However, there are signs that cryptocurrency trading volume is actually holding steady, if not increasing. Because of this, Coinbase stock could surprise investors when the company reports third-quarter financial results in a few weeks.

There's one more thing that could be driving the price of Bitcoin higher in recent days, and it has implications for the future. According to CoinDesk, someone placed a $1.6 billion buy order for bitcoins last week. On the surface, this shouldn't be too big a deal, considering Bitcoin is valued over $1 trillion. However, a buy that big actually clogged down the network temporarily and perhaps contributed to the increasing price in recent days. 

Could we see more big-money players getting into Bitcoin and other cryptocurrencies in time, making more large purchases like what we saw last week? Yes, there's reason to think so. For example, billionaire investor Bill Miller, chief investment officer for Miller Value Partners, recently said that he believes in Bitcoin today like he believed in Amazon.com after the dot-com bubble popped.

Interest from billionaires like Miller could lead to increasing demand. And with many investors and mining companies holding their bitcoins, there may not be enough liquidity in the market to meet this demand. That could send prices higher and sustain buzz for cryptocurrencies among retail investors, which is good for Coinbase's trading revenue stream. 

Of course, it's not a foregone conclusion that trading volume for cryptocurrencies will continue rising, benefiting Coinbase. However, that does appear to be what's happening right now and there are reasons to believe it could continue. This will be something worth watching in coming weeks, especially as Coinbase's Q3 report approaches. 

Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Stock Advisor list price is $199 per year.

Stock Advisor launched in February of 2002. Returns as of 10/13/2021.

Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Making the world smarter, happier, and richer.

Market data powered by Xignite.

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