Better Cryptocurrency Stock: Coinbase or Square
Back in April, I highlighted Coinbase (NASDAQ: COIN) and Square (NYSE: SQ) as two potential ways to invest in the cryptocurrency market. Coinbase operates the largest cryptocurrency exchange in the U.S., and Square's Cash App lets its users easily buy and sell Bitcoin (CRYPTO: BTC).
At the time, I claimed that Square's more diversified business made it a better investment than Coinbase. But since I made that call, Square's stock has declined about 8% as Coinbase's stock rallied nearly 18%. Let's take a fresh look at both fintech stocks and see if my earlier thesis still makes sense.
Coinbase generates nearly all of its revenue from cryptocurrency trades. As a result, it benefits more from the rising prices of cryptocurrencies than Square, which generated 59% of its revenue from Bitcoin trades in the first nine months of 2021. The remaining 41% of its revenue came from its digital payment fees, seller services, and hardware sales.
Source Fool.com
