"Should I Buy Coinbase?" We Asked A Top Crypto Expert

Just as U.S. stocks hit a new high this week, we had the debut of the cryptocurrency exchange Coinbase Global Inc. (Nasdaq: COIN).

Coinbase had a reference price of $250, but "shot out of the gate" at about $381 – and briefly traded above $429. After a wild day, it closed its first day at $328.28.

The upshot: You have a company whose market value temporarily exceeded $100 billion on its trading debut… and that was worth just under $86 billion at the market close.

Lotta questions here… both bullish and bearish.

woman wearing white dress shirt

Image Source: Upsplash

But there's really only one that matters: "Should I buy Coinbase?"

For an answer – and all the "background" intelligence you need to make the decision that's right for you – I turned to the best expert I know… my friend, longtime colleague, and Money Map Press cryptocurrency expert David G. Zeiler.

Over the last several years, Dave has shared a series of Bitcoin and cryptocurrency predictions with my Private Briefing readers, many of which we've been able to share with you, too.

For the folks keeping score, virtually every single one of them has been right on the money.

Most recently, Dave told us that Bitcoin would triple in price by the end of 2021. At the time, that crypto bellwether was trading at $31,400.

Here in the middle of April, it's made a new all-time high of $64,829. So it's already halfway to Dave's target.

So let's refine that "obvious question" – refine it a bit – and pose it to Dave, asking: "Would you buy Coinbase?"

Let's drill into this… and get the whys and wherefores… so you can make the best, most profitable move…

What Every Investor Should Know About Coinbase

William Patalon, III (Q): Welcome, Dave.

David Zeiler (A): Thanks, Bill… glad to be here… always glad to be talking with you.

WPIII (Q): So why don't we start with Coinbase itself… how about you give us the "nickel tour" on this crypto-coin player.

DZ (A): (Laughs and shakes his head) That's pretty bad, Bill… pretty bad.

WPIII: Sorry… couldn't resist, man. So… just what is Coinbase? Give us a quick overview of what the company is, what it does, and how it makes money…

DZ (A): Sure. Coinbase is primarily a cryptocurrency exchange. Basically, it's where people can buy and sell cryptocurrencies. It caters to beginners but also has a "pro" version with more sophisticated trading tools. Coinbase also offers custodial services to institutional buyers. It makes most of its money from transaction fees. Coinbase's custodial operation makes up just a small part of its business now, but it's growing rapidly.

WPIII (Q): And with the way, crypto prices have been zooming…

DZ: (A): …all of Coinbase's horses have been at full gallop.

WPIII (Q): So it looks like the company's business is really tied to the price/value of cryptocurrencies – and the health of the crypto market.

DZ (A): Absolutely. When times are good, Coinbase will make money hand over fist. But if we get another "crypto winter" as we had in 2018 and 2019, Coinbase's business will take a hit.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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