In 2017, early bitcoin investors struck it rich by simply BUYING and HOLDING bitcoins. Even a small $1,000 investment at the start of last year grew to $13,180 by New Year’s Eve.
That’s changed in 2018 – with bitcoin dropping 14% year-to-date. Even though bitcoin prices are down, a select group of investors are cashing in with a surprisingly simple investment:
One of these stocks has jumped 197% since Jan. 9. Another is up 748% since mid-December.
Right now, I’m extremely bullish on stocks that can make money from cryptocurrencies – REGARDLESS of what happens to the price of these coins.
In particular, cryptocurrency exchanges can earn healthy profits so long as there is strong trading volume.
One global bitcoin exchange is preparing to go public in February. Go here ASAP for my urgent bitcoin IPO briefing.
One of the best-known exchanges in the U.S. is a company called Coinbase.
Coinbase was founded in San Francisco in 2011 by Brian Armstrong and Fred Ehrsam. Within one year, the company was inducted into the Y Combinator incubator program.
Y Combinator – a startup incubator that helps entrepreneurs develop their businesses, network with tech insiders, and raise cash – is well regarded in tech circles. The program has backed big winners including Dropbox, Airbnb, Stripe, Reddit and Zenefits.
CoinBase’s goal was to make it simple and easy for people to go online and buy cryptocurrencies. By late 2012, Coinbase was allowing people to BUY and SELL bitcoins through its website.
At the time, bitcoin was trading at less than $12. Outside of technology circles, the cryptocurrency was completely unknown.
Bitcoin Exchange: Huge Growth
With its early mover status, Coinbase quickly attracted investments from top-tier venture capital firms. New York-based firm Union Square Ventures invested $5 million in 2013. That investment was followed with equity investments from Andreessen Horowitz, Draper Fisher Jurvetson, the New York Stock Exchange and the Bank of Tokyo.
With bitcoin’s astronomical 1,318% rise in 2017, new investors flooded into the market looking to grab a piece of the action.
For many, Coinbase has become the broker of choice. E*Trade supported the dot-com boom in the late 1990s. And Coinbase is fueling the “dot-coin” boom that’s currently underway.
Just take a look at the massive growth. At the start of 2017, the company had 5.5 million accounts. As of December, that number had surged 142% to 13.3 million.
During the final months of last year, Coinbase saw huge demand for new accounts. In the days following the Thanksgiving holiday, the company reported signing up over 100,000 new customers in a single day!
At that time, Coinbase was among the 10 most downloaded iPhone apps, surpassing Uber and Twitter.
Perhaps the most shocking figure is that Coinbase now has more accounts than Charles Schwab, which reported 10.6 million accounts in October.
Charles Schwab created the discount brokerage firm in 1975. Yet in just five years, a new crypto exchange has enrolled more clients than Schwab.
There’s no doubt that Schwab – with $315 billion in assets under management – has more client capital than Coinbase.
Coinbase appeals to folks who are investing relatively small amounts in cryptocurrencies. In fact, 97% of clients have accounts valued at less than $20k.
In total, Coinbase has raised $225 million from investors. Its latest financing – in August – valued the company at $1.6 billion. Today, the value would certainly be higher.
A New Global Bitcoin Exchange
Unfortunately, investors are unable to invest in Coinbase because it’s a privately held company.
However, one alternative is a global bitcoin exchange that is quietly preparing to go public in February.
Unlike Coinbase – which is focused on the U.S. market – this new exchange is focused on the huge European and Asian markets. The company has already attracted a loyal and growing client base by offering the simplest way to BUY bitcoins.
Right now, regular folks have a shot at buying IPO shares right now for less than $1.