Coinbase Granted Access to a New Huge Opportunity -- Here's What Investors Should Know
When it comes to trading cryptocurrencies, few companies are as big and as important as Coinbase Global (NASDAQ: COIN). But what if I told you it was playing in the shallow end of the pool? According to a recent industry report from CoinGecko, spot trading of cryptocurrencies is a $900 billion market. But this accounts for less than 23% of all trading volume in cryptocurrencies.
The much larger opportunity in cryptocurrency is in the trading of derivatives. And on Aug. 16, Coinbase announced it's approved to now offer trading on cryptocurrency futures, representing a headfirst dive into the deep end of the pool.
Stocks trade on exchanges and have set trading hours. By contrast, cryptocurrencies can be traded all the time. When you trade a cryptocurrency at its current price, that's called spot trading. And spot trading is a major part of Coinbase's business.
Source Fool.com