Coinbase Valuation Pegged at $68 billion Ahead of Landmark U.S. Listing

By Noor Zainab Hussain and Joshua Franklin

The eye-popping valuation underscores how the perceived value of Coinbase has rallied in lock-step with the surge in the price of cryptocurrency bitcoin.

In a regulatory filing, Coinbase said its shares in the private market traded at a weighted average price of $343.58 apiece in the first quarter of 2021 through March 15, up from $28.83 per share in the third quarter ended Sept. 30.

That represents a nearly 13-fold jump in its valuation in the space of a few months. According to data platform PitchBook, Coinbase was valued at a shade over $8 billion during its last private fundraise in October 2018.

The latest filing from Coinbase also signals heightened confidence that the landmark listing will be approved by regulators.

A successful listing by Coinbase, whose business is primarily focused on digital currencies, would represent a landmark victory for cryptocurrency advocates vying for endorsement for a sector that has struggled to win the trust of mainstream investors, regulators and the general public.

It could also be seen as a tacit regulatory approval of assets traded on Coinbase’s platform. The company has more than 43 million users in more than 100 countries.

Coinbase did not indicate in the latest filing if it had received approval from regulators that would allow it to trade cryptocurrencies that have been classified as securities in the United States.

CRYPTO HIGHS

San Francisco-based Coinbase’s potential listing also comes at a time when the value of bitcoin continues to surge, it hit a record high of $61,781.83 on Saturday. The price of the digital currency has fallen since then as investors consolidated gains and on news of plans by India to ban cryptocurrencies.

A regulatory filing last month, which provided the first detailed look at Coinbase’s finances since it was founded in 2012, showed it had swung to a profit last year as bitcoin surged.

A clutch of other crypto firms including Cipher Mining Inc are pushing ahead with listing plans despite regulatory uncertainty.

Coinbase, among the most well-known cryptocurrency platforms globally, has registered about 114.9 million shares for its direct listing, according to its latest filing.

The low and high sale price per share in the private market was $200.00 and $375.01, respectively, in the first quarter through March 15, Coinbase said.

In December, the company confidentially submitted paperwork with the U.S. Securities and Exchange Commission to go public.

Coinbase is planning to go public through a direct listing rather than a traditional initial public offering. This means the company is not selling any shares in advance of its market debut, as is the case with IPOs.

(Reporting by Noor Zainab Hussain in Bengaluru and Joshua Franklin in New York; Writing by Anirban Sen; Editing by Vinay Dwivedi and Shounak Dasgupta)

Binance, Bitfinex, Coinbase, Huobi receive about 40% of all BTCs

Data obtained from Chainalysis, a leading crypto data analytic firm, the four biggest crypto exchanges since 2018 Coinbase, Binance, Huobi, and Bitfinex received about 40% of all BTCs via exchanges this year.

The next ten crypto exchanges collected 36% in a combined volume of BTCs leaving other smaller exchanges to share out the remaining 24% of transfer volume.

Chainalysis, in a detailed report, also analyzed that though about 96% of retail traders made most of the transactions, the professional traders controlled most of the volume;

“Retail traders, whom we categorize as those who deposit less than $10,000 USD worth of Bitcoin on exchanges at a time, appear to be the large majority, accounting for 96% of all transfers sent to exchanges on an average weekly basis.

“Professional traders, however, control the liquidity of the market, accounting for 85% of all the USD value of Bitcoin value sent to exchanges,” the report said.

Chainalysis also concluded that Bitcoin’s supply makes it similar to gold, giving it a safe haven asset status as digital gold.

“But this digital gold is supported by an active trading market for those who prefer to buy and sell frequently. The 3.5 million Bitcoin used for trading supplies the market, and, in interaction with the level of demand, determine the price.”

The report by Chainalysis also spoke about where Bitcoin presently stays. It said;

“Roughly 60% of Bitcoin that is not lost is held by a licensed custodial service, or as FATF would refer to it, a Virtual Asset Service Provider (VASP). Most cryptocurrency exchanges would fall into this category, along with hosted wallets.

“As we can see, this share has risen steadily over time, reflecting the growth of custodial cryptocurrency businesses as Bitcoin has gone more mainstream.

“The dominance of VASPs becomes even clearer when we consider that, of the remaining 40% of available Bitcoin, which is not currently held by VASPs, 87% has passed through a VASP at some point.

“Most people either hold their Bitcoin on VASPs, or acquire their Bitcoin from VASPs.”

The article was written by Olumide Adesina an Investment Professional 

The Crypto and Blockchain World – Trading and Investing in Today’s World

The Landscape

Throughout 2018, we saw regulators across key crypto markets including, but not limited to, China, India, Japan, and South Korea, clamp down on what was commonly referred to as the Wild West of the Global Financial Markets.

Over the course of the current year, however, the public attitude has shifted.

There are numerous reasons behind this, including significant steps by regulators and governments to shut down the more cavalier exchanges permitting the trading of cryptocurrencies, without the need for the standard disclosures seen across exchanges offering to trade of more traditional asset classes.

While jurisdictional restrictions continue to be a thorn in the crypto sphere’s side, crypto exchanges have also made significant strides in delivering more technically advanced trading platforms.

Not only have exchanges delivered the platforms for the effective trading of cryptocurrencies, but a number have also been built on blockchain tech, adding an additional layer of security.

Cryptocurrency Trading

Since the early days, when investors were only able to invest in the actual cryptocurrencies across exchanges that were no able to protect investor funds, times have changed.

The crypto trading market has evolved from exchanges offering crypto to crypto trading, into trading between cryptocurrencies and fiat money, but also the trading of certificates of deposits, derivatives and more.

As crypto exchanges have developed, risk management and other platform capabilities have been introduced. Encouraged by the volatility and potential earnings the crypto market offers more seasoned investors crossed over.

Across the crypto exchange spectrum, the types of exchanges on offer vary. While some are under the more standard web-based models, others are built on a blockchain platform.

As the blockchain world expands, the number of exchanges and trading platforms based on blockchain is also on the rise.

One such trading platform is Torex.

Torex

Torex is a multifunctional blockchain platform supporting cryptocurrency trading.

The advantage of using Torex is that it consolidates different exchanges, coins, and analytical tools onto the Torex platform.

In the first quarter of 2020, traders will be able to trade, gain experience and share trading strategies.

The Torex trading platform delivers the following capabilities to support both more novice and advanced crypto trading:

Centralized Parallel Monitoring

Enables the tracking of cryptocurrency rates on different exchanges on the Torex platform.

Advanced Analytics

The platform is planned to provide diverse analytics, ranging from embedded news aggregators to detailed technical analysis.

Multi-Exchange & Multi-Coin

Fast operations with any coin or token (like Bitcoin and Ethereum for example) from different exchanges.

Diverse Trading Tools

The platform, in 2020, will allow traders to choose between API-trading, copy trading, arbitrage trading, crypto betting, and more.

Advanced Cryptocurrency Arbitrage

Torex’s Arbitrage Tool analyzes the liquidity and depth of order books across multiple crypto exchanges, providing traders with easy access to liquidity-driven price arbitrage.

Cryptocurrencies are considered to be the most volatile of asset classes, with values capable of rising or falling by a few percentage points in a matter of minutes.

The volatility delivers traders with the rare opportunity of inter-exchange arbitrage.

Torex provides traders with the platform to take advantage of arbitrage windows. An arbitrage window develops when the strike price of a cryptocurrency at one exchange is higher or lower than found on another.

Using the Torex Arbitrage Tool, traders are also able to adjust the parameters. Traders are able to select the exchanges, cryptocurrency pairings, minimum trading volumes, and the minimum percentage of profit expected.

This capability is delivered through the manual mode of the Torex Arbitrage Tool. In automatic mode, an arbitrage assistant will carry out the functions, with the trader being required to make only minor inputs.

Cross-Platform

Torex is fully functional on PC and mobile devices. (A fully functional mobile version for Android and iOS is due out in Q4, 2020)

The Future of Crypto Trading

The nascent nature of the crypto trading world means there are plenty of opportunities for traders, both the novice and more advanced alike.

Crypto exchanges will need to continue to develop and introduce greater capabilities to hold onto existing liquidity and fee income.

Additionally, being flexible as such to meet the ever-fluctuating demands on the regulatory front, is also an important factor for traders domiciled across multiple jurisdictions.

The minimum requirements for the vast majority of crypto traders now include:

Stop loss, take profit, and trailing stop orders. Traders now can simultaneously place stop loss and take profit orders.

Trailing stops have become more popular in the volatile world of crypto trading.

Trailing stops allow traders to adjust the order limit along with the price, which is essential within the more volatile crypto sphere.

Other Modern Trading Platform Capabilities

API Trading

API Trading allows traders to make transactions and monitor currency rates across different exchanges. The added advantage is that it supports the managing of several accounts on one exchange.

Torex uses the official APIs, developed and released by the leading stock exchanges. These APIs allow users to manage all of their exchanges on the Torex platform.

Crypto betting is similar to the futures markets, where investors and traders forecast future prices.

Crypto Betting

Another development in the crypto world is the offering of crypto betting. In crypto betting, the user needs to predict how the rate of a coin or token will change in a given period of time. (Due for release in Q3, 2020).

Idea Sharing

On the Torex platform, there is also the opportunity to share trading tips through an encrypted TOREX end-to-end messenger.

Trader ideas is a recommendation to open a transaction that a trader creates and makes visible to all users on the platform.

Within the Torex world, traders will be able to purchase a subscription for a given number of published ideas for a given number of days. In 2020 traders will have a possibility to make payments in Torex tokens, called TOR. Basic Torex functionality is and will be available free of charge.

For an investor, the investor pays a commission for the ability to view and accept trading ideas.

The platform uses a Telegram Messenger bot to ensure both quick and easy to view trading ideas and signals in support of the network.

Trading ideas provides traders and investors alike with the opportunity to seize on a series of trading ideas.

Torex will release the idea-sharing capability in Q1, 2020. The copy trading capability is due to roll out in the 2nd quarter.

Blockchain

As the cryptocurrency world has evolved, the number of exchanges developed on blockchain technology has also increased.

A key attribute to the use of blockchain technology is the level of trust and transparency it delivers.

There are a number of increasing advantages of using blockchain tech. These go beyond the recording of transactions on the exchange.

The use of smart contracts is certainly one, which delivers even greater transparency.

Conclusion

As the crypto trading world evolves, more traders and investors continue to cross over from more mature asset classes. Trading platforms, including Torex, will need to continue to deliver equivalent, if not, more advanced trading experience than seen across traditional exchanges.

Catering to the need of both traders and investors will further fuel interest in crypto trading.

Alongside the necessary tools to trade and the appropriate transaction logging, security and speed are also significant priorities.

Since the early days, when hacking and theft was rife, cryptocurrency market players have begun to provide a far safer environment.

Exchanges are increasingly using cold wallets, which holds funds offline and out of reach from hackers. 2-factor authentication (“2FA”) is widely offered to further protect investor and trader accounts. With that in mind, 2FA authentication is implemented in Torex universal trading platform as well.

Coding has also become more sophisticated. Ensuring that hackers are unable to break into the system and take what very little is online is key.

We can expect the use of blockchain and an ever-increasing number of capabilities across the exchanges and trading platforms to further support the cryptomarket.

By historical standards, more recent crypto exchange offerings are certainly more sophisticated.

This is not surprising when considering the risks associated with trading in cryptocurrencies.

For investors looking forward to Torex, the IEO is coming soon. The soft cap has already been reached. Torex’s intention is to create a sophisticated, transparent and truly universal platform to meet the needs of every crypto trader.

Cryptocurrency Trading: Exchange vs Brokerage

Nowadays, everyone who knows at least something about finance has heard of cryptocurrencies. In 2017, this industry exploded in popularity, and the crypto market began attracting the attention of more and more traders throughout the world. With extreme volatility and virtually unlimited profit potential, people started going absolutely crazy about it. As a result, a lot of tools, products, and services appeared in the market that opened the door to earning with cryptocurrencies.

There are however two ways of trading cryptocurrencies: over an exchange or with a broker. These two do have some differences, which are not very clear to the general public. The following will look into the basic things a trader has to deal with when trading cryptos over an exchange or on the online broker trading platform. This will help you to finally understand which kind of trading is better: with an exchange or with a broker.

Signing up and Verification

Exchange

In some of the largest crypto exchanges the signup process is closed, but where it’s still available, the process is as simple as registration on other websites. What you need to do is to provide your email, create a password, confirm your email address, and that’s it! You are signed up. After you have signed up you need to go through the verification process in order to enable depositing and withdrawing funds from your account. To get this done, you will have to upload or send your photo ID colored copy and provide a photo of you with your ID near you. The exchanges respond to such verification request within between a few hours and a few days. There are some cases when you don’t have to get verified once signed up. For example, with Binance, one of the most popular crypto exchanges out there, you can deposit to and withdraw from your account right away, although only 2 BTC per 24 hours. With your transactions growing bigger, you will still have to get verified.

Broker

Signing up with a broker is not a very difficult thing either, it is mostly the same as on an exchange. However, in order to deposit funds and start trading, verifying your account is mandatory. As a rule, you will be required to submit scan copies of one or two docs, those being your ID and proof of address. Different requirements can be in place for different jurisdictions. The verification process as such runs quite faster than on an exchange, being complete within just 30 minutes or even without verification (15-days period of verification). After your account has been successfully verified and your trading account open, you can easily deposit funds and start trading.

Deposits and Withdrawals

Exchange

Depositing fiat money to crypto exchanges is often a hassle. As such, you cannot deposit USD or EUR on Binance, and must use cryptocurrencies instead, which means you have to buy some crypto first before that. There are many ways to buy digital currencies out there, but such transactions are often paired with high fees and commissions. If you need to run multiple transactions when making a deposit, you should bear in mind that you will have to pay a fee each and every time; this way, you may lose up to 15% when depositing.

Withdrawing funds from exchanges in fiat currencies is again a piece of hassle. Of course, you can use e-wallets and online exchanges, but this again involves commissions. Withdrawing to a bank account can be an issue, too, as not all banks accept money from crypto exchanges because of the origin of such money and transactions.

Broker

Unlike currency exchanges, depositing with a broker is a breeze. A broker’s client has a large number of ways to make a deposit, including credit cards, popular e-wallets, etc. You can deposit US dollars, euros, and sometimes other currencies. This simplifies the whole process a lot, while, as a rule, there are no deposit fees whatsoever.

As for withdrawals, broker terms are usually still much more attractive than those of a crypto exchange. Instead of paying 5% or 6%, you just have to pay a fee of between 0% and 3%, which depends on your withdrawal method.

Trading

Exchange

Trading on a crypto exchange is not rocket science. You just need to select the desired trading instrument, open your trade and watch the price chart. You can place by and sell orders, as well as stop limit orders. In this aspect, crypto exchange features are somewhat limited compared to those of a broker platform.

One of the advantages of an exchange is that you can choose among a lot of different digital coins to trade. Binance, for instance, offers 120 cryptocurrencies for trading, which gives you a nice set of diversification options when selecting your trading strategy.

Broker

Using a broker platform, you get extensive feature set that will help you to work out your strategies and risks more precisely. As such, you will be able to put additional indications on the chart and use the in-built tech analysis tools. However, the broker platform will not offer you such an impressive number of cryptos to trade as an exchange. Each broker has different cryptocurrency offerings, but, most likely, you will find only the most popular cryptos out there.

Among the absolutely positive things about the brokers are the relatively tight spreads. The spreads in the cryptocurrency market may reach a few hundreds of dollars, but on the trading platforms, you will get the tightest spreads possible. As such, the BTC/USD spread is as low as 0.1 pips in R Trader, which is one of the tightest in the industry.

Another advantage is that the broker platforms have much more features to offer. Unlike the exchanges, you can put multiple charts in your window, track the quote flow, use indicator sets and other extensions, etc.

As such, there is a strategy builder feature in R Trader, which allows creating automatic trading strategies without any coding background. Using strategy builder, you will be able to create trading robots that could drastically raise your performance.

Safety & Security

Exchange

Crypto exchanges are relatively unsafe. You can, of course, create a very strong password and even enable 2-factor authentication, but, unluckily, this cannot guarantee 100% safety of funds. Besides, each crypto exchange security level is different, and one can’t tell what is going to happen going forward. Lately, news on hacking and robbing client funds appear everywhere. This year, in the course, if BitGrail and Coincheck (both very large exchanges) hack the investors lost around $700M. There are even some cases when the crypto exchange owners do frauds and then try to get away with the client money. In this light, crypto trading is overall riskier than other types of trading, as the crypto market is not regulated and, thus, is very vulnerable.

Broker

Trading cryptocurrencies with a regulated broker guarantee some degree of safety to the clients. First, if a broker is regulated with a reliable authority, such as CySEC, FCA, SEC, etc, this means the company is at least not a scam. Second, a regulated broker’s business is strictly audited, and the client has a right to file a complaint whenever the broker is thought to breach the rules. Third, regulated brokers, as a rule, are members of investor compensation schemes, the object of which is to secure claims of clients against brokerage houses that are unable to meet obligations due to financial circumstances or bankruptcy. Finally, unlike exchanges, brokers keep the client money on the bank accounts, which works as an additional guarantee.

In conclusion, one should say that cryptocurrencies are high risk and very volatile assets, which can bring both quick profits and quick losses. When choosing a trading method for cryptos, one should study all pros and cons carefully. You have to understand very well which companies or exchanges you are going to use when trading cryptocurrencies. Both broker and exchange trading have their advantages and disadvantages, so your final decision will depend upon your goals and personal preferences.

This article was written by Dmitriy Gurkovskiy, a Chief Analyst at RoboForex

Top 5 Altcoin Cryptocurrencies Exchanges

What is a Cryptocurrency Exchange?

Cryptocurrency exchanges are businesses that operate like stock exchanges where people go to buy and sell digital currencies. Simply put, they are online platforms where people exchange cryptocurrencies for other cryptocurrencies or fiat currency.

There are two types of cryptocurrency exchange

Fiat Exchange

A fiat cryptocurrency exchange is an exchange that allows the use of fiat currencies (USD, Euros or GBP) for the purchase of digital currencies.

Cryptocurrency to cryptocurrency exchange

Cryptocurrency to cryptocurrency exchange allows virtual currencies to be traded for each other. In this case, a person may hand over Bitcoins to get a certain amount of Ethereum.

Below is a list of the top 5 cryptocurrency exchanges in the world.

  1. Coinbase
  • Fiat Support: Yes
  • Order Types: Market, Limit Stop Limit
  • Transaction Fees: No Marker fees, moderate taker fees

Coinbase should be a good start for novice traders looking to find their way in the cryptocurrency business. The cryptocurrency exchange comes with a user-friendly interface that makes it easy to buy and sell cryptocurrencies.

Coinbase is a reputable cryptocurrency exchange, backed and trusted by millions of customers. The exchange platform makes it easy and secure to buy, use, store and trade a wide range of cryptocurrencies.

The exchange accepts credit cards, and banks account for the purchase of cryptocurrencies, ranging from Bitcoin to ether, Litecoin, Ripple among others. Coinbase does not have restrictions on who can carry out transactions on the platform as it allows people from all walks of life regardless of jurisdiction.

The fees for buying a cryptocurrency using a credit card are currently pegged at 3.99%, while fees for bank transfers are pegged at about 1.49%. The exchange has a sign-up bonus of $10 in Free Bitcoin for the first $100 order than one makes.

  1. Binance
  • Fiat Support: No
  • Altcoin Support: Yes
  • Order Types: Market, Limit Stop Limit
  • Transaction Fees: 0.1%

Binance is a Hong Kong-based cryptocurrency exchange that charges some of the lowest fees for cryptocurrencies transactions. The low transaction fees are made possible by the fact that the platform is funded by its underlying coin BNB.

Binance is a crypto to crypto exchange, whereby cryptocurrencies are used to buy other cryptocurrencies rather than fiat currencies. The platform comes with two interfaces one Basic, which is designed by those that are just getting started and Advanced suited for experienced users.

Binance is perfect for those looking to trade an excellent array of cryptocurrencies at low transaction fees of 0.1% per trade.

  1. CEX.IO
  • Fiat Support: Yes
  • Altcoin Support: Yes
  • Order Types: Market, limit stop limit
  • Transaction fees: Moderate taker, lower maker

Cex.io is a fiat based cryptocurrency exchange that allows people to buy a wide array of cryptocurrencies using fiat money. The exchange comes with a personalized and easy to use dashboards for trading various cryptocurrencies. The exchange also offers security, high liquidity, and cross-platform trading.

Based in London, the exchange is available to 99% of the countries in the world. It is also the first cloud-mining provider as it also doubles up as a multi-functional cryptocurrency exchange. The exchange is perfectly suited for individual businesses and corporation looking to buy various cryptocurrencies with no limits.

The exchange compensates for the lower transaction fees it charges by charging a premium on Bitcoin price.

  1. HitBTC

Launched in 2013, HitBTC cast itself as an advanced Bitcoin Exchange that allows people to trade bitcoin in exchange for other cryptocurrencies such as Ripple, Dash, and Zcash.   The exchange also provides support for Ethereum, Litecoin Dogecoin, and Monero among others.  It claims to provide the most reliable, fast and powerful platform solution in the market.

The cryptocurrency exchange uses the 2-factor authentication advanced encryption technology and uses cutting-edge matching engine technologies.  The exchange also offers cold-storage services for cryptocurrencies.

HitBTC charges as low as 0.1% in fees for every marker trade that people make. Traders also stand to enjoy 0.01% rebate on LP orders. The exchange has no limits on deposits and withdrawals.

  1. YoBit

YoBit is a Russian based cryptocurrency exchange founded in 2015.  YoBit platform allows people from all walks of life to buy and sell a vast array of cryptocurrencies.  In addition to bitcoin, the exchange offers support to hundreds of other Altcoins.  The exchange currently supports two fiat currencies, the U.S dollar, and the Russian Ruble

Some of the deposit methods include Payee AdvCash, Perfect Money, and QIWI. The exchange also accepts cryptocurrencies from digital wallets which can be exchanged for other digital currencies in the trading platform.

YoBit does not charge any trading fees, it is also free to deposit money into the account. Withdrawal fees vary depending on the mode of transfer. Cryptocurrency withdrawal fees are pegged at 0.0005, Perfect Money at 5%, Payer 7% AdvCash 4% Credit card 4%.

YoBit offers the option of two-factor authentication for people who wish to secure their account as an added layer of security.  Also, a bonus program rewards frequent users of the platform.

Conclusion

While all cryptocurrency exchanges serve the purpose of letting people buy and sell cryptocurrencies, they differ a great deal. That said, when it comes to selecting a platform to use to buy and sell cryptocurrencies, it is essential to look at exchange fees as well as the number of coins supported, as well as the location in which it is available.

Customer support is also essential as from time to time one may need help to be able to complete certain operations.  It is also important to consider whether an exchange is a fiat or crypto-based.