3 Reasons to Buy Coinbase Shares Like There’s No Tomorrow

It’s not often that a stock up more than 300% since 2023 can still be considered a buy for growth investors. But Coinbase Global (CURRENCY -0.83%) not regular stock.

As a leader in the cryptocurrency space, Coinbase is at the forefront of a financial revolution, offering significant long-term potential. Here are three compelling reasons why every growth-minded investor should consider adding Coinbase to their portfolio today.

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1. The easiest exposure to crypto growth

The cryptocurrency market is both vast and complex. With thousands of cryptocurrencies traded globally, it is a challenge for investors to identify which coins will stand the test of time.

The hard truth is that most cryptocurrencies today, apart from a few established names such as Bitcoin and Ethereumit may not survive long-term or value much in the future. However, this does not mean that the crypto asset class does not have huge growth potential.

There are numerous use cases for blockchain technology and digital assets in the future, from decentralized finance (DeFi) to decentralized physical infrastructure networks (DePIN) and tokenization of real-world assets. Instead of betting on individual winners, Coinbase offers a simpler and more diversified way to gain exposure to the entire crypto industry.

Coinbase’s business model goes beyond just facilitating cryptocurrency transactions. It generates revenue from various crypto-based products and services, giving investors exposure to the entire ecosystem.

Coinbase benefits from trading volume on its exchange, but is also involved in staking, stablecoin interest, custody services and its own blockchain — Base. This diversification allows Coinbase to capture value from multiple aspects of the crypto market, making it a safer and more comprehensive way to invest in the sector’s growth potential.

2. A story of transformation

Speaking of business models, Coinbase’s business model has undergone a significant transformation in recent years. In 2022, the company posted losses of more than $2.6 billion, largely due to its reliance on transaction fees. When prices fell during the crypto winter, trading volumes dried up, leading to substantial declines in revenue. At one point, over 90% of Coinbase’s revenue came from transaction fees.

However, Coinbase took this downturn as an opportunity to evolve. Since then, the company has diversified its revenue streams, making it less dependent on the cyclical nature of crypto trading. Today, transaction fees account for about 65% of Coinbase’s revenue. The company now generates additional revenue from staking services, stablecoin interest, custody fees and blockchain activities through Base.

This strategic pivot has stabilized Coinbase’s revenue and weathered the volatility that naturally occurs in the cryptocurrency market. By reducing its reliance on a single source of revenue and expanding others, Coinbase is a more resilient company and better positioned to capture future market opportunities.

Further exemplifying its transformation, Coinbase streamlined its operations by cutting costs by approximately 40% while expanding these new revenue streams. The result is a leaner, more efficient business that should be able to thrive in both bull and bear markets.

3. A great buying opportunity awaits you

Despite its impressive gains, Coinbase shares have seen a recent decline, creating an excellent buying opportunity for investors. Crypto prices, and by extension Coinbase stock, are known for their volatility, but short-term price swings shouldn’t deter long-term investors. In fact, these dips often present the best opportunities to buy high-quality assets at discounted prices.

Crypto has come a long way since Coinbase hit an all-time high of $342 per share. While the path ahead may include volatility, Coinbase has demonstrated the innovation and resilience needed to capitalize on the continued growth of the cryptocurrency industry. As digital asset adoption continues to grow, Coinbase is poised to benefit, making it a solid long-term option and a stock to buy like there’s no tomorrow.