Investors always want to find the ground-floor opportunity that will make them rich. Whenever a well-known, respected privately held company decides to go public, it creates a frenzy of buying interest that often ends up bringing huge first-day pops in the stock price. As we saw in 2020 from…
red-hot IPOs like Snowflake (NYSE:SNOW) and Airbnb (NASDAQ:ABNB), those who are able to get in on IPO shares directly from underwriters make a huge profit. Those left on the outside looking in, however, have to pay premium prices on the open market in order to get shares.
A host of companies are likely to go public in 2021, with many already having filed the necessary paperwork with the U.S. Securities and Exchange Commission. Companies like delivery logistics platform Instacart, pet retailer Petco, and mobile investing app pioneer Robinhood are getting a lot of attention coming into 2021.
But in my mind, there’s one company that stands above the rest. With its unique position in one of the hottest investing areas on the planet right now — cryptocurrency — Coinbase will be the one true must-buy IPO stock for 2021.
How Coinbase is profiting from the cryptocurrency craze
Coinbase runs one of the most popular cryptocurrency exchanges in the U.S. market. It allows people to buy and sell bitcoin and a wide array of other tokens, with a simpler interface for casual investors and a higher-level Pro service for advanced traders.
In addition, Coinbase offers cryptocurrency wallets for those seeking to hold their own cryptocurrency. The wallets allow Coinbase members to send and receive cryptocurrency to each other in an easy and secure way, with a relatively user-friendly interface that simplifies the process of moving crypto assets.
You don’t have to like bitcoin to like Coinbase
If you’re already shaking your head thinking that bitcoin is the most dangerous investment ever, I get it. Plenty of smart investors have gotten onto the cryptocurrency bandwagon in recent months, but there’s still a healthy debate, and many see the entire crypto craze as a bubble that has to pop eventually.
But here’s the thing: You don’t have to invest in crypto to like Coinbase. I’m a longtime Starbucks (NASDAQ:SBUX) investor, but I hate coffee. That hasn’t stopped me from making plenty of money on the coffee-chain giant’s stock — and I can’t help but smile every time I pass a Starbucks cafe with a long line of caffeine addicts waiting to shell out a few bucks for their daily latte.
Coinbase is in the same position . The exchange already has 35 million verified users, with $320 billion in trading volume. Coinbase users have $25 billion in cryptocurrency assets on the platform. Moreover, Coinbase is a…
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