Cryptocurrencies Embark into a New Frontier
One of the world’s largest crypto exchanges is going public next week.
We’ve talked before about the massive wave of money that has been hitting the market since the start of the pandemic.
With the huge influx of new investors over the last year, cryptocurrencies have gotten an enormous boost as well.
This time last year, Bitcoin was trading at nearly $7,000. Today, it is valued at over $56,000.
As cryptocurrencies gain popularity, the expectation is that they will become more mainstream in the coming years.
While traders are already able to buy various cryptocurrency ETFs on stock exchanges, next week will see the introduction of the first publicly traded cryptocurrency exchange.
With cryptocurrency popularity at all-time highs, many investors are champing at the bit to get in on the action.
Here’s what’s happening…
Where’s the money?
On Wednesday, April 14, cryptocurrency exchange Coinbase will make its IPO under the ticker COIN.
Coinbase makes money from transaction fees it charges its users to trade cryptocurrencies. And with cryptocurrencies and related funds hitting a record of $4.5 billion of in the first quarter, this IPO seems like a great bet.
The offering will be a direct listing, which will allow investors to but the stock on the open market once it goes public.
The number of shares and the price at which COIN will be offered has not yet been released, but many investors are eager to get a piece of one of the world’s most popular crypto exchanges.
Should you be one of them?
How do I get some?
In my mind, the decision on whether or not to jump into Coinbase’s IPO all comes down to this question…
Is it better to play Coinbase stock, or invest an equal dollar amount in Bitcoin?
Until we know more about how the market will react, I think the answer is Bitcoin.
I am actually scared of buying any IPO or SPAC right now, due to incredibly high volatility and typically overpriced initial prices.
I think the Coinbase IPO will be a flop, and with the Robinhood debacle, investors will be scared to buy it.
I’d much rather buy Bitcoin should it fall to the 48,000-52,000 range.
Maximize Your Crypto Profits
There’s more money to be made in cryptocurrency than just buying Bitcoin. A lot more.
In fact, for every $1,000 you could have made during Bitcoin’s incredible run up, my colleague Tom Gentile has uncovered a special trade that could have made you as much as 20 times that amount…within 2 months.
And going forward, he expects the gains to keep on coming fast and furious.
Click here to see exactly how Tom is able to give his followers the chance to cash in some of the most unbelievable profits I’ve ever seen.
In the Spotlight: Don’t Jump the Gun on COVID Recovery
AMC Entertainment Holdings, Inc. (AMC) stock tumbled this week after fresh doubts surfaced about the theater chain’s ability to recover.
Value investors piled into AMC stock recently as COVID-19 recovery hopes soared.
But AMC’s latest fall was a reality check for those that assumed the worst was over. Even if theaters are able to reopen at anything close to capacity, the at-home streaming trend that has strengthened over the last year is here to stay – and will surely siphon revenue away from theaters.
I would advise caution in jumping back into a stock just because it was beaten down by the pandemic. Yes, there’s light at the end of the tunnel, but not every stock will get back to pre-pandemic levels.
Right now, I’m researching the best opportunities in value stocks as we hopefully near the end of the COVID crisis. Keep an eye out next week for some of my favorite recovery plays.