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Coinbase

Coinbase Q4 Report Shows $2.2B Revenue Generated from Transaction Fees

Coinbase Q4 Report Shows $2.2B Revenue Generated from Transaction Fees

Coinbase’s fourth-quarter financial report outperformed market expectations on Thursday, with the company posting $2.5 billion in net revenue for the quarter, outperforming analyst predictions by 27 percent.

According to FactSet, Coinbase’s revenue for the period was expected to be around $1.9 billion. Notably, the prominent cryptocurrency exchange more than quadrupled transaction income from Q3 to Q4, accounting for 91 percent of overall Q4 revenue ($2.276 billion).

Investors were encouraged by the company’s overall transaction revenue of $6.8 billion for 2021. However, despite the report suggesting $840 million in net profits and a considerable growth in monthly transacting users (MTU) from 7.4 million in Q3 to 11.4 million in Q4, COIN share prices fell 4.7 percent in post market activity, bringing the year-to-date decrease to 30 percent.

It’s also worth noting that non-trading products like loans and staking contributed $213 million, or a little less than 9% of total income in Q4.

The crypto platform located in the United States revealed a recent decline in crypto market volatility and asset values compared to the all-time high circumstances of Q4, owing in part to global market uncertainty.

As a result, Coinbase anticipates a reduction in MTUs and subsequent transaction income in Q1 2022, according to the article.

Despite a possibly difficult first quarter, Coinbase said to investors that it intends to make “aggressive” internal investments in 2022 while also preparing for any possible unfavorable market conditions.

“ In the case of a significant reduction in our company that dips below the ranges we have anticipated for, we may slow down our investments and strive to restrict our adjusted EBITDA losses on a full-year basis to about $500 million.”

Citing the rapid increase in NFT sales last year as an example, Coinbase also shared the possible expansion of DeFi, NFTs, and Web3, NFTs as potential drivers of future growth for the company.

The business also stated that it wants to add 6,000 people by 2022, with a strong emphasis on customer service and dependability, which Coinbase has been criticized for in the past.

According to Coinbase, between $4.25 and $5.25 billion will be invested in 2022, with a strong emphasis on technology and development teams.

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Top Cryptocurrency Exchanges For Trading Cryptocurrencies

Top Cryptocurrency Exchanges For Trading Cryptocurrencies

Cryptocurrencies empowered by the Blockchain technology is a revolutionary technological achievement that aims to transform the concept of finance. It has only been a decade since this technology has been introduced in the market. However, the cryptocurrency sensation has taken over the world like a storm. 

That is exactly why for many, understanding cryptocurrencies can prove to be quite challenging. Moreover for those who are new to the world of cryptocurrencies, figuring out the right platform for trading could be a daunting task. 

There are many crypto exchanges that offer exciting features such as providing staking rewards, which means one can earn rewards for holding cryptos. In addition to that several other features like cryptocurrency trading tools, margin trading and so on are provided.

Following are some of the best cryptocurrency trading exchange platforms that individuals can use for trading crypto and other digital assets.

  • Coinbase: Perfect for Bitcoin-based traders

Coinbase offers more than 80 different cryptocurrencies, including the popular Bitcoin, Litecoin, Ethereum, Ripple and Dogecoin. The exchange also provides a host of options for institutional clients and individuals. Some of the features offered on a Coinbase account include Android and iOS applications for mobile, an account option known as Coinbase Earn. This account pays an individual in crypto for watching videos with educational content and staking rewards as well. 

There are two other options provided by Coinbase, namely Coinbase Pro which is meant for advanced traders and for clients with high net worth (traders with at least $ million) and similar institutions, they offer the Coinbase Prime platform. Users on Coinbase Pro can gain access to some of the most advanced features such as charting tools, secure bots for trading and order books that project real time data.

Institutional clients will also have other options to explore from such as cold storage service which is an offline storage service for crypto assets and commerce services. In addition to this, they also provide an asset hub which allows the issuers to list, as well as to grow their products.

  • Binance: Optimal option for low fees

After Binance had halted their services for the US based customers, they had launched Binance.US. The exchange is primarily focused on US based customers and traders and the platform supports over 50 different cryptocurrencies. Similarly like Coinbase, they also offer their services for institutions and individuals separately. 

The most prominent of their services and perks include rewards for staking cryptos, crypto trading pairs, OTC trading, Stablecoins and recurring buys. These services give the option to invest automatically on a certain schedule that has been fixed.

Speaking about rewards from staking, Binance offers 1-10% for simply holding different digital assets over a prolonged period of time. For instance, if an individual decides to hold 20 QTUM in their Binance account, he or she will be able to earn 1-2% of that value as a reward annually. 

Furthermore, they also provide a wide variety of services and features for clients who are in the institutional category. These services include their Websocket feed that can generate market data on a real time basis, OTC trading portal, a trading API, monthly rewards for staking and of course 24/7 client support.

  • Kraken: Best option for margin and futures trader

The crypto exchange platform Kraken offers more than 80 different crypto assets for retail as well as institutional clients. However, speaking of global support, Kraken’s reach extends that of Binance.US. The crypto exchange offers their services in a little over 200 countries throughout the whole world. 

The platform offers services in both futures trading along with margin trading. One can borrow around five times their account balance with the help of the margin trading option in order to trade crypto assets on their platform. The futures trading option allows clients to trade only with bitcoin, ripple, ethereum, bitcoin cash and litecoin. 

Kraken also provides their very own platform for futures trading. But the institutional level clients can leverage the option of expert insights, support for account management, special one to one consultations and so much more.

  • CEX.IO: Best for selection of cryptocurrencies

This crypto exchange platform is based out of London and offers their services throughout 99 percent of the countries throughout the world, which includes 48 states in the United States. The platform provides their clients access to more than a host of 80 cryptocurrencies other than bitcoin.

The exchange allows all the users to access the instant buy feature available on this platform. In addition to that, they provide features such as loans backed by crypto, mobile apps and staking rewards as well. 

  • Gemini: Perfect for trading in Ethereum and Bitcoin 

This platform also offers a wide array of options for institutional and individual users. Traders have been given access to multiple platforms which includes the Gemini apps for Android and iOS, Gemini Web Exchange, Gemini Fund Solutions, the Active Trader platform and the institutional tools for trading.

  • Bittrex: Best for security concerns

Bittrex is a really tough competitor when it comes to the security concerns of trading accounts. Apart from using authentication systems, they also use a multi stage strategy for the digital wallets. They keep the funds in a cold storage which in actuality is offline storage. The transaction fees on Bittrex is also much lower when compared to other crypto exchange platforms.

This is a crypto exchange based in Luxembourg which offers around 20 cryptocurrencies on their trading platform, including options for institutional and advanced crypto traders. Clients in the United States can use Bitstamp USA which is their subsidiary for the US clients. One would require a minimum of $50 to start trading and the lowest amount of fees start from 0.5%.

The commission fee structure available on this platform is perfect for those who are willing to invest low. However their selection of cryptocurrencies are on the lesser side. The platform provides access to only a handful of crypto assets such as Bitcoin, Bitcoin SV, Bitcoin Cash, Ethereum Classic, Ethereum, Litecoin and Dogecoin. 

Conclusion

These are some of the best cryptocurrency exchange platforms that are available out there. Even though there are talks of high volatility in the crypto market, it cannot be denied that Blockchain and Cryptocurrencies are reshaping the world of finance and many industries throughout the world. However it is always advisable to learn Blockchain and learn cryptocurrencies thoroughly before investing and trading cryptocurrencies by oneself. A certified cryptocurrency course provides all the fundamental information one can seek before dipping their toes in the world of crypto and enjoy the unlimited benefits it offers.

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$1.5 Billion Junk Bond Issued By Coinbase, Indicates Investors Are Eager To Join The Crypto Space

Coinbase, a popular company operating in the domain of cryptocurrency and Blockchain ecosystem, has recently conducted a sale of a junk bond which was valued at an estimated $1.5 billion. According to experts, this clearly indicates the fact that cryptocurrencies have already become mainstream in the market.

According to the experts, the bond, which is valued at $1.5 billion, is actually expected to sell. However, one of the leading credit rating institutions in the world has set the rating of Coinbase Inc.’s debt issuer to junk grade or commonly known as non-investment grade, only because of the fact that there is future competition and uncertain regulatory environment around crypto at the moment.

Several analysts who belong from Moody’s team, for instance, Donald Robertson, Fadi Abdel Massih, and Ana Arsov, presented a report this Tuesday where they have stated that the profile of Coinbase surely points to a certain credit strength which can easily be labeled as fit for investment or investment grade. But as of now, the conditions regarding regulations and competition are not favorable, and hence the strength factor is getting offset.

As of now, Coinbase is selling two different types of bonds where one bond is for seven years which is available at a coupon rate of 3.375 % and is due for 2028, and another one is available for 3.625%, which is basically a ten-year bond and is due at 2031. 

According to the experts, this issuance of bonds is actually an extremely favorable event which means a great deal for the greater cryptocurrency and blockchain ecosystem and, of course, for Coinbase. This is a type of product through which individuals can directly connect with the benefits of the cryptocurrency market without having the need to purchase cryptocurrency directly and simply earn interest from that purchased amount of crypto.

However, just because of the fact that the bonds are only just a grade lower from becoming investment-grade bonds, the company could not manage to get their hands on the lowest cost of borrowing. To speak in general, the average returns from bonds that are rated similarly are about 2.86%, which is even lower than the rate of interest, which at this point in time is stuck at 3%.

Finishing thoughts: Are you interested in developing your own DeFi based applications and Cryptocurrency projects?

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To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.

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