The price of bitcoin skyrocketed in the year 2017. Coinbase, one of the world’s largest cryptocurrency exchanges, was in the right place at the right time to capitalize on the spike in interest. Even so, Coinbase isn’t interested in taking its crypto gains for granted. To stay ahead in a much larger cryptocurrency market, the company is plowing money back into their master plan. Up until 2017, the company’s revenue was reported at $1 billion and over $150 billion of assets were traded across 20 million customers.Coinbase, a San Francisco based company, is known as the leading cryptocurrency trading platform in the United States and with its continued success, landed at the No. 10 spot on the CNBC Disruptor list in 2018 after failing to make the list the previous two years.On their path to success, Coinbase has left no stone unturned in poaching key executives from New York Stock Exchange, Twitter, Facebook, and LinkedIn. In the current year, the size of its full-time engineering team has almost doubled.Earn.com was bought by Coinbase this April for $100 million. This platform allows the users to send and receive digital currency while replying to mass market emails and completing micro tasks. Currently, the company is planning to bring a former Andreessen Horowitz venture capitalist, Earns founder and CEO as its first-ever chief technology officer.According to current valuation, Coinbase valued itself at about $8 billion when it set out to buy Earn.Com. This value is much higher than the valuation of $1.6 billion which was estimated at the last round of venture capital financing in the summer of 2017.Coinbase declines to comment on its valuation despite the fact that it has more than $225 million in funding from top VC’s including Union Square Ventures, Andreessen Horowitz and also from the New York Stock Exchange.To meet the needs of institutional investors, the New York Stock Exchange is planning to start its own cryptocurrency exchange. Nasdaq, a rival of NYSE is also contemplating a similar move.• Competition is ComingAs competing organizations look to take a bite out of the Coinbase’s business, Coinbase is looking to other venture capital opportunities in an attempt to build a moat around the company.Dan Dolev, a Nomura instant analyst, said that Square, a company run by Twitter CEO Jack Dorsey could eat into Coinbase’s exchange business because it started trading cryptocurrency on its Square Cash app in January.According to the estimates by Dolev, Coinbase’s average trading fees were roughly 1.8 percent in 2017. Fees this high could drive the users to other cheaper exchanges.Coinbase is looking to become a one-stop shop for the institutional investors while hedging its exchange business. To lure in that white glove investor class, the company announced a fleet of new products. This class of investors has been especially cautious to dive into the volatile cryptocurrency market.Coinbase Prime, The Coinbase Institutional Coverage Group, Coinbase Custody and Coinbase Markets are the products launched by the company.Coinbase feels that there are billions of dollars in institutional money which can be invested in the digital currency. It already has the custody of $9 billion in customer assets.Institutional investors are concerned about security despite knowing Coinbase has never suffered a hack like some other global cryptocurrency exchanges. Coinbase president and COO said that the impetus of launching the Coinbase custody last November was the lack of trusted custodian to safeguard their crypto assets.• Currently Wall Street Shifts from Bashing Bit to Cryptocurrency BackerAccording to latest data available from Autonomous Next Wall Street’s, interest in cryptocurrency seems to be increasing. At present, there are 287 crypto hedge funds, while in 2016, there were only 20 cryptocurrency hedge funds that existed. Goldman Sachs has even opened a cryptocurrency trading desk.Coinbase has also introduced Coinbase Ventures, which is an incubator fund for early-stage startups working in the cryptocurrency and blockchain space. Coinbase Ventures has already accumulated $15 billion for further investments. Its first investment was announced in a startup called Compound which allows one to borrow or lend cryptocurrency while earning an interest rate.At the beginning of 2018, the company launched Coinbase Commerce, which allows merchants to accept major cryptocurrencies for payment. Another bitcoin startup was BitPlay, which recently raised $40 million in venture money. Last year BitPlay processed more than $1 billion in bitcoin payments.The proponents of blockchain technology believe that in the future, cryptocurrency will be able to eliminate the need for central banking authorities. In the process, it will lower costs and create a decentralized financial solution.• Regulatory Security Remains IntenseTo keep access limited to four cryptocurrencies, Coinbase has drawn a lot of criticism. But they must tread carefully while the U.S. regulators deliberate on how to police certain uses of the technology.For cryptocurrency exchanges like Coinbase, the matter of concern is whether or not cryptocurrencies are securities which would be subject to Securities and Exchange Commission jurisdiction. Coinbase is admittedly slow to add new coins because the SEC announced in March that it would apply security laws to all cryptocurrency exchanges.Wall Street Journal reported that Coinbase met the SEC officials to register itself as a licensed brokerage and electronic trading venue. In such scenario, it would become easier for Coinbase to support more coins and also to comply with security regulations.
Coinbase: A Bitcoin Startup Is Spreading Out to Capture More of the Market
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6 Success Tips You Can Follow If You Are a Cryptocurrency Trader Or Investor
Today, most people know the potential of cryptocurrencies. This industry is going through a revolution in the world of business. This is the reason an increasing number of investors are joining this industry. Although it is easy to be part of this industry, achieving success may not be easy for everyone. Therefore, in this article, we are going to share with you a few success tips. Read on to find out more.1. Research and increase your knowledgeIf you don’t have the basic know-how of something, you cannot put your money into it. Similarly, if you are not familiar with cryptocurrency trades, make sure you get some basic knowledge first.In the beginning, you should get started by learning the basic terms, such as private keys, digital coins, wallets, and public keys, just to name a few.2. Consider Diversifying Your InvestmentsIs important to remember that the value of cryptocurrency units will continue to fluctuate. You cannot predict when the value of a coin will go up or down. So, if you want to be on the safe side, you may consider diversifying your investment.This will help you minimize your risk and increase your likelihood of making a profit. So, you may want to stick to this strategy, especially if you are getting started.3. Invest Steadily & Avoid OvertradingYou should invest a couple of hours on a daily basis to learn how cryptocurrency trading can be done. You should find out how the market works. This will help you get a pretty good idea of the popularity of a specific currency. As a result, you can go for the best investment strategy.4. Be Tech-savvyYou also need to learn how to use the latest technology in your favor. Since cryptocurrencies are a type of digital currencies, you can buy and sell them using technology. Therefore, you need to learn to use crypto ATMs and all of the other things that are involved in this process.5. Be aware of ScamsRegardless of the type of business that you are going to put your money in, you will have to deal with scammers. So, if you know how to use the internet, you can easily identify scams. If you are well informed, no one can take advantage of you.6. Consult Trusted ProfessionalsIt is a great idea to consult trusted professionals in this field. If you follow their advice and take their useful tips, you will be able to take better steps. In this case, you can also watch YouTube videos and join relevant groups on Facebook.You can also consult your friends and family if they have experience trading and investing in cryptocurrencies.Final ThoughtsLong story short, if you want to achieve success after investing your money and cryptocurrency, we suggest that you follow these 6 tips for success. Hopefully, you will be able to achieve success by following the guidelines given in this article.
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Cryptocurrency: The Fintech Disruptor
Blockchains, sidechains, mining – terminologies in the clandestine world of cryptocurrency keep piling up by minutes. Although it sounds unreasonable to introduce new financial terms in an already intricate world of finance, cryptocurrencies offer a much-needed solution to one of the biggest annoyances in today’s money market – security of transaction in a digital world. Cryptocurrency is a defining and disruptive innovation in the fast-moving world of fin-tech, a pertinent response to the need for a secure medium of exchange in the days of virtual transaction. In a time when deals are merely digits and numbers, cryptocurrency proposes to do exactly that!In the most rudimentary form of the term, cryptocurrency is a proof-of-concept for alternative virtual currency that promises secured, anonymous transactions through peer-to-peer online mesh networking. The misnomer is more of a property rather than actual currency. Unlike everyday money, cryptocurrency models operate without a central authority, as a decentralized digital mechanism. In a distributed cryptocurrency mechanism, the money is issued, managed and endorsed by the collective community peer network – the continuous activity of which is known as mining on a peer’s machine. Successful miners receive coins too in appreciation of their time and resources utilized. Once used, the transaction information is broadcasted to a blockchain in the network under a public-key, preventing each coin from being spent twice from the same user. The blockchain can be thought of as the cashier’s register. Coins are secured behind a password-protected digital wallet representing the user.Supply of coins in the digital currency world is pre-decided, free of manipulation, by any individual, organizations, government entities and financial institutions. The cryptocurrency system is known for its speed, as transaction activities over the digital wallets can materialize funds in a matter of minutes, compared to the traditional banking system. It is also largely irreversible by design, further bolstering the idea of anonymity and eliminating any further chances of tracing the money back to its original owner. Unfortunately, the salient features – speed, security, and anonymity – have also made crypto-coins the mode of transaction for numerous illegal trades.Just like the money market in the real world, currency rates fluctuate in the digital coin ecosystem. Owing to the finite amount of coins, as demand for currency increases, coins inflate in value. Bitcoin is the largest and most successful cryptocurrency so far, with a market cap of $15.3 Billion, capturing 37.6% of the market and currently priced at $8,997.31. Bitcoin hit the currency market in December, 2017 by being traded at $19,783.21 per coin, before facing the sudden plunge in 2018. The fall is partly due to rise of alternative digital coins such as Ethereum, NPCcoin, Ripple, EOS, Litecoin and MintChip.Due to hard-coded limits on their supply, cryptocurrencies are considered to follow the same principles of economics as gold – price is determined by the limited supply and the fluctuations of demand. With the constant fluctuations in the exchange rates, their sustainability still remains to be seen. Consequently, the investment in virtual currencies is more speculation at the moment than an everyday money market.In the wake of industrial revolution, this digital currency is an indispensable part of technological disruption. From the point of a casual observer, this rise may look exciting, threatening and mysterious all at once. While some economist remain skeptical, others see it as a lightning revolution of monetary industry. Conservatively, the digital coins are going to displace roughly quarter of national currencies in the developed countries by 2030. This has already created a new asset class alongside the traditional global economy and a new set of investment vehicle will come from cryptofinance in the next years. Recently, Bitcoin may have taken a dip to give spotlight to other cryptocurrencies. But this does not signal any crash of the cryptocurrency itself. While some financial advisors emphasis over governments’ role in cracking down the clandestine world to regulate the central governance mechanism, others insist on continuing the current free-flow. The more popular cryptocurrencies are, the more scrutiny and regulation they attract – a common paradox that bedevils the digital note and erodes the primary objective of its existence. Either way, the lack of intermediaries and oversight is making it remarkably attractive to the investors and causing daily commerce to change drastically. Even the International Monetary Fund (IMF) fears that cryptocurrencies will displace central banks and international banking in the near future. After 2030, regular commerce will be dominated by crypto supply chain which will offer less friction and more economic value between technologically adept buyers and sellers.If cryptocurrency aspires to become an essential part of the existing financial system, it will have to satisfy very divergent financial, regulatory and societal criteria. It will need to be hacker-proof, consumer friendly, and heavily safeguarded to offer its fundamental benefit to the mainstream monetary system. It should preserve user anonymity without being a channel of money laundering, tax evasion and internet fraud. As these are must-haves for the digital system, it will take few more years to comprehend whether cryptocurrency will be able to compete with the real world currency in full swing. While it is likely to happen, cryptocurrency’s success (or lack thereof) of tackling the challenges will determine the fortune of the monetary system in the days ahead.
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