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In this email:

• The Crypto Loophole 🌀

• The Daily Upside 📰

The Crypto Loophole 🌀

Sell the shovels, don’t dig the gold.

Trying to spot the next best meme coin before it takes off? Will Bitcoin stay top dog? Or is it better to load up on alt coins?

Here’s a better question. Why not put your money somewhere that’d benefit from any of the above & more?

Coinbase stock could be your shovel. A way to be exposed to crypto without taking on extra risk.

They’ve just dropped their Q3 earnings & I’m not shocked to see that they’re thriving.

More trading, more revenue, more reasons to care if you’re into crypto.

Let’s take a closer look 🔍️ 

The Big Headlines 📰 

• Coinbase’s Q3 revenue hit $1.2B, up 79% YOY. That’s what happens when Bitcoin starts flirting with $100K & everyone suddenly wants to be a crypto trader again.

• They raked in more cash from transactions (+98%) AND from subscriptions/services (+66%).

• Bitcoin alone drove 37% of trading volume and 35% of transaction revenue. No surprise there. BTC is still the crypto sweetheart.

The Retail Army & Big Money Players

Retail traders. Everyday folk like you & me have been going crazy for crypto on Coinbase. Retail trading volume is up 209% YOY. When Bitcoin pumps, FOMO kicks in. No one wanted bitcoin at $30,000 but it seems like everyone wants it at $90,000. It sounds stupid when you say it out loud but it happens time & time again.

(I want you to remember this if when crypto crashes again. That’ll be the time to load up.)

Institutional investors haven’t been sitting on the sidelines this time around. Their trading volumes jumped 132% YOY. Wanted proof crypto is going mainstream? That’s it right there.

The Bigger Picture 🖼️ 

• Bitcoin Rising Tide 🌊: Bitcoin has a market dominance of 58%. That means when BTC moves, the whole crypto market follows. If BTC smashes through $100K, expect Coinbase to run higher too.

• Pro-Crypto Ahead: With a new U.S. administration that’s more "crypto bro 👊" than "crypto no ❌ " the regulatory landscape could become way friendlier. Less red tape is only good news for a crypto exchange like Coinbase

• Valuation Potential: If Bitcoin moons, Coinbase could earn $15/share in FY 2025, implying 20% upside from today.

The Risks (Because It’s Still Crypto) 🎲

You don’t need me to tell you that any investment related to crypto is going to come with it’s fair share of risks. Coinbase isn’t exempt from that.

The crypto market is still wild.

Lots of FOMO fuel & regulation is a grey area. Any hiccups from the new US administration & we could see trading volumes nosedive.

And because of the space it’s in, Coinbase is a volatile stock. Don’t buy in expecting it to act like Apple or Google. Be prepared to see decent sized moves up and down in the short term.

Why I’m Watching Coinbase 👀

If Bitcoin runs, they win big. If institutions keep diving into crypto, they win big. If the new U.S. administration goes full "crypto capital of the world," they win big. See the pattern here?

Is it risky? Yep. But the upside is hard to ignore.

For context, Bitcoin is up 151% in the past 12 months. Coinbase is up 137%. In my eyes, you’ve paid 14% for the security of being diversified with exposure to the entire crypto ecosystem instead of a single coin. I think that’s a fair trade.

I’ll still be buying into individual coins too but I think Coinbase is a great way to add broad exposure to the crypto market in your portfolio.

The Daily Upside 📰 

Savvy Investors Know Where to Get Their News—Do You?

Here’s the truth: there is no magic formula when it comes to building wealth.

Much of the mainstream financial media is designed to drive traffic, not good decision-making. Whether it’s disingenuous headlines or relentless scare tactics used to generate clicks, modern business news was not built to serve individual investors.

Luckily, we have The Daily Upside. Created by Wall Street insiders and bankers, this fresh, insightful newsletter delivers valuable insights that go beyond the headlines.

And the best part? It’s completely free. Join 1M+ readers and subscribe today.

CONTENT

That’s all! See you same time next week 👋 

P.S Hit reply & let me know what you thought of this weeks newsletter. All feedback is welcomed ❤️