Analysis of Risks in Cryptocurrency Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy COIN?
Source: Fool
- Volatility Risk: One of the biggest risks in cryptocurrency investment is volatility, as Bitcoin experienced a peak-to-trough decline of 70%-80% during the crashes of 2017-2018 and 2021-2022, exposing investors to significant financial loss risks.
- Counterparty Risk: Although cryptocurrencies are marketed as 'decentralized', they actually rely on centralized platforms such as exchanges and custodians, meaning that if these platforms fail, investors could lose access to their tokens even if they continue trading normally on other exchanges.
- Platform Collapse Cases: The collapse of platforms like FTX, BlockFi, and Celsius Network left investors unable to access their tokens, as these platforms diverted customer funds into other risky investments, resulting in customers becoming unsecured creditors and facing substantial financial losses.
- Risk Mitigation Strategies: To mitigate risks, investors should store their tokens in hardware wallets, diversify their assets across multiple platforms, and avoid high-yield staking products that seem too good to be true, thereby protecting their investments.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 211.630
Low
230.00
Averages
361.63
High
440.00
Current: 211.630
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coinbase Outshines Bitcoin as a Superior Investment Opportunity
- Market Dominance: Bitcoin accounts for nearly 60% of the total crypto market cap, remaining a popular choice for institutional and retail investors despite recent losses, highlighting its relatively lower risk profile.
- Stablecoin Revenue Growth: Coinbase generated $1.35 billion in stablecoin revenue in 2025, representing 20% of its annual net revenue of $6.88 billion, indicating strong performance in the stablecoin market that will drive future growth.
- Trading Revenue Potential: As investor confidence returns, Coinbase's trading revenue is expected to rebound, particularly with increased demand for crypto ETFs, further solidifying its leadership position in crypto trading.
- Rise of Decentralized Finance: Coinbase's involvement in decentralized finance (DeFi) and asset tokenization through its Base blockchain has already amassed over $4.5 billion in its ecosystem, showcasing its strategic positioning in the emerging fintech landscape.
See More
Coinbase Benefits from Blockchain Adoption Surge
- Stablecoin Market Growth: Coinbase earned $1.35 billion in stablecoin revenue in 2025, representing 20% of its annual net revenue of $6.88 billion, indicating that the surge in stablecoin adoption significantly boosts the company's earnings and strengthens its position in the cryptocurrency market.
- Bitcoin Market Dominance: Bitcoin accounts for nearly 60% of the total crypto market cap, and despite a 10% decline year-to-date, its recent rise to $77,000 suggests potential recovery, which could enhance investor confidence and drive up Coinbase's trading revenue.
- Rise of Decentralized Finance: Coinbase is actively involved in decentralized finance (DeFi) and asset tokenization through its Base blockchain, which has over $4.5 billion in funds, enhancing its competitive edge and providing new revenue streams for future growth.
- Regulatory and Competitive Challenges: While Coinbase faces regulatory and competitive headwinds, its emerging leadership in the blockchain space could allow it to outperform Bitcoin as the industry matures, potentially leading to higher market returns.
See More
US Stocks Close Lower as Oil Prices Rebound Impact Market
- Market Decline: The S&P 500 index fell by 0.63%, the Dow Jones Industrial Average dropped by 0.59%, and the Nasdaq 100 index decreased by 0.42%, reflecting investor concerns over the uncertainty surrounding Iran's geopolitical situation, which dampened market sentiment.
- Oil Price Rebound Impact: WTI crude oil prices rebounded by over 2% after Iran announced it would not attend peace talks, raising fears of a deepening global energy crisis, which could further hinder economic recovery.
- Supportive Economic Data: March retail sales rose by 1.7% month-over-month, surpassing expectations of 1.4%, indicating robust consumer spending that may provide some support for the stock market, despite overall market pressures.
- Fed Nominee Supports Independence: Fed Chair nominee Kevin Warsh emphasized the importance of monetary policy independence and controlling inflation in his Senate Banking Committee statement, which could positively influence market confidence.
See More
Polymarket Expands into Perpetual Futures Trading
- Market Expansion: Polymarket announced its expansion into perpetual futures trading, following news that its main competitor Kalshi plans to offer crypto trading, demonstrating a keen response to market demand.
- Increased Competition: This move may position Polymarket and Kalshi in direct competition with platforms like Robinhood, Coinbase, and Kraken, which have integrated prediction markets into their offerings over the past year, highlighting the value of young speculators.
- Volume Growth: According to CoinGecko, the top centralized crypto exchanges recorded an annual perpetuals trading volume of $86.2 trillion last year, reflecting a 47% increase, showcasing the activity and potential of this market.
- Market Activity: By entering the perpetuals market, Polymarket and Kalshi can maintain ecosystem activity amid stalled cryptocurrency prices and slowed trading activity, fostering more consistent trading volume and speculative engagement.
See More
New York Sues Coinbase and Gemini for Violations
- Legal Action: New York State filed a lawsuit against Coinbase Financial Markets and Gemini Titan on Tuesday, accusing them of violating state executive law, indicating a stringent regulatory stance towards cryptocurrency trading platforms.
- Lawsuit Context: Although copies of the complaints are not yet available, this move could significantly impact the operations of both companies in New York, particularly concerning compliance and market trust.
- Market Reaction: The lawsuit may lead to a decline in investor confidence in Coinbase and Gemini, potentially affecting their stock performance, especially amid heightened volatility in the current cryptocurrency market.
- Regulatory Trend: This action by New York reflects a broader regulatory trend, signaling that government scrutiny of the cryptocurrency industry is intensifying, which may prompt similar actions from other states.
See More
Bitmine Surpasses 4% of Total ETH Supply
- ETH Holdings Surge: Bitmine currently holds 4,976,485 ETH valued at $7.7 billion, representing 4.12% of the total ETH supply, indicating a strong position in the cryptocurrency market that is likely to attract further investor interest.
- Launch of MAVAN: Bitmine has launched MAVAN (Made in America Validator Network) to provide secure and efficient ETH staking services for institutional investors, which is expected to enhance the company's competitiveness in the ETH staking market and drive long-term revenue growth.
- Significant Trading Volume: Bitmine's stock averages $1.2 billion in daily trading volume in the U.S. market, ranking 80th, reflecting its popularity among investors and potentially facilitating future capital raising and market expansion.
- Institutional Investor Support: Bitmine has garnered support from top institutional investors, including Cathie Wood of ARK and Pantera, which not only boosts market confidence but also provides robust financial backing for the company's future growth strategy.
See More
Coinbase Outshines Bitcoin as a Superior Investment Opportunity
- Market Dominance: Bitcoin accounts for nearly 60% of the total crypto market cap, remaining a popular choice for institutional and retail investors despite recent losses, highlighting its relatively lower risk profile.
- Stablecoin Revenue Growth: Coinbase generated $1.35 billion in stablecoin revenue in 2025, representing 20% of its annual net revenue of $6.88 billion, indicating strong performance in the stablecoin market that will drive future growth.
- Trading Revenue Potential: As investor confidence returns, Coinbase's trading revenue is expected to rebound, particularly with increased demand for crypto ETFs, further solidifying its leadership position in crypto trading.
- Rise of Decentralized Finance: Coinbase's involvement in decentralized finance (DeFi) and asset tokenization through its Base blockchain has already amassed over $4.5 billion in its ecosystem, showcasing its strategic positioning in the emerging fintech landscape.
See More
Coinbase Benefits from Blockchain Adoption Surge
- Stablecoin Market Growth: Coinbase earned $1.35 billion in stablecoin revenue in 2025, representing 20% of its annual net revenue of $6.88 billion, indicating that the surge in stablecoin adoption significantly boosts the company's earnings and strengthens its position in the cryptocurrency market.
- Bitcoin Market Dominance: Bitcoin accounts for nearly 60% of the total crypto market cap, and despite a 10% decline year-to-date, its recent rise to $77,000 suggests potential recovery, which could enhance investor confidence and drive up Coinbase's trading revenue.
- Rise of Decentralized Finance: Coinbase is actively involved in decentralized finance (DeFi) and asset tokenization through its Base blockchain, which has over $4.5 billion in funds, enhancing its competitive edge and providing new revenue streams for future growth.
- Regulatory and Competitive Challenges: While Coinbase faces regulatory and competitive headwinds, its emerging leadership in the blockchain space could allow it to outperform Bitcoin as the industry matures, potentially leading to higher market returns.
See More
US Stocks Close Lower as Oil Prices Rebound Impact Market
- Market Decline: The S&P 500 index fell by 0.63%, the Dow Jones Industrial Average dropped by 0.59%, and the Nasdaq 100 index decreased by 0.42%, reflecting investor concerns over the uncertainty surrounding Iran's geopolitical situation, which dampened market sentiment.
- Oil Price Rebound Impact: WTI crude oil prices rebounded by over 2% after Iran announced it would not attend peace talks, raising fears of a deepening global energy crisis, which could further hinder economic recovery.
- Supportive Economic Data: March retail sales rose by 1.7% month-over-month, surpassing expectations of 1.4%, indicating robust consumer spending that may provide some support for the stock market, despite overall market pressures.
- Fed Nominee Supports Independence: Fed Chair nominee Kevin Warsh emphasized the importance of monetary policy independence and controlling inflation in his Senate Banking Committee statement, which could positively influence market confidence.
See More
Polymarket Expands into Perpetual Futures Trading
- Market Expansion: Polymarket announced its expansion into perpetual futures trading, following news that its main competitor Kalshi plans to offer crypto trading, demonstrating a keen response to market demand.
- Increased Competition: This move may position Polymarket and Kalshi in direct competition with platforms like Robinhood, Coinbase, and Kraken, which have integrated prediction markets into their offerings over the past year, highlighting the value of young speculators.
- Volume Growth: According to CoinGecko, the top centralized crypto exchanges recorded an annual perpetuals trading volume of $86.2 trillion last year, reflecting a 47% increase, showcasing the activity and potential of this market.
- Market Activity: By entering the perpetuals market, Polymarket and Kalshi can maintain ecosystem activity amid stalled cryptocurrency prices and slowed trading activity, fostering more consistent trading volume and speculative engagement.
See More
New York Sues Coinbase and Gemini for Violations
- Legal Action: New York State filed a lawsuit against Coinbase Financial Markets and Gemini Titan on Tuesday, accusing them of violating state executive law, indicating a stringent regulatory stance towards cryptocurrency trading platforms.
- Lawsuit Context: Although copies of the complaints are not yet available, this move could significantly impact the operations of both companies in New York, particularly concerning compliance and market trust.
- Market Reaction: The lawsuit may lead to a decline in investor confidence in Coinbase and Gemini, potentially affecting their stock performance, especially amid heightened volatility in the current cryptocurrency market.
- Regulatory Trend: This action by New York reflects a broader regulatory trend, signaling that government scrutiny of the cryptocurrency industry is intensifying, which may prompt similar actions from other states.
See More
Bitmine Surpasses 4% of Total ETH Supply
- ETH Holdings Surge: Bitmine currently holds 4,976,485 ETH valued at $7.7 billion, representing 4.12% of the total ETH supply, indicating a strong position in the cryptocurrency market that is likely to attract further investor interest.
- Launch of MAVAN: Bitmine has launched MAVAN (Made in America Validator Network) to provide secure and efficient ETH staking services for institutional investors, which is expected to enhance the company's competitiveness in the ETH staking market and drive long-term revenue growth.
- Significant Trading Volume: Bitmine's stock averages $1.2 billion in daily trading volume in the U.S. market, ranking 80th, reflecting its popularity among investors and potentially facilitating future capital raising and market expansion.
- Institutional Investor Support: Bitmine has garnered support from top institutional investors, including Cathie Wood of ARK and Pantera, which not only boosts market confidence but also provides robust financial backing for the company's future growth strategy.
See More
