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Log onto a Metaverse-Facing Crypto Platform with Coinbase Global

Based in Delaware, popular cryptocurrency trading platform Coinbase Global (NASDAQ:COIN) makes the world of crypto investing easily accessible. However, just because the platform is popular doesn’t mean that Wall Street is currently enamored with COIN stock.

The app for Coinbase (COIN) displayed on an iPhone screen.
Source: OpturaDesign / Shutterstock.com

Indeed, the stock has fallen under major selling pressure lately. When the tide of sentiment turns negative, that’s when contrarians should consider making a move.

Not that there aren’t risks involved — it’s always a perilous journey in the crypto-verse. As we’ll see, Coinbase still has some technical issues that require attention.

But then, that’s the nature of new technologies: there will be growing pains to deal with. And speaking of new technologies, there’s a significant foray into the much-hyped metaverse in progress — and the moneymaking opportunities deserve your attention.

A Closer Look at COIN Stock

While 2021 has been a veritable roller-coaster ride, there are defined support and resistance levels which COIN stock traders should be aware of.

To be more specific, $220 provides strong support while $350 has proved to be a stubborn resistance point. Knowing this, enterprising investors can “play the range,” so to speak.

As of Dec. 17, COIN stock was close to the bottom of its range, as it cost around $243 per share. Thus, it’s not really necessary to wait for the stock to fall to $220 – remember, trading isn’t always an exact science.

Also, you don’t have to hold the stock until it reaches $350. Even if it goes from $250 to $300, that would represent a 20% gain – not too shabby.

At the end of the day, it’s best to decide on a buy price and then wait patiently. As the old saying goes, the waiting is just as important as the trading.

Seeing Inflated Values

Let’s face it: the blockchain is still in its infancy and there are technical kinks that still need to be worked out. It reminds me of the internet in the 1990s, when connectivity was far from reliable. As the years passed, the internet became more technically consistent. Hopefully, we’ll see the same thing happen with the blockchain and cryptocurrency.

In the meantime, weird and possibly dangerous things are going to happen. For instance, the Bitcoin’s (CCC:BTC-USD) price briefly reached $850 billion on Dec. 14 — or so it seemed. According to Coinbase, “some customers are seeing inflated values for non-tradable crypto assets on Coinbase.com and Coinbase Wallet. This is a display issue only and does not impact trading.” This apparent price irregularity was soon corrected, but it’s still unsettling that this happened at all.

Besides, there have been issues in the past. On Nov. 23, Coinbase warned that connectivity issues may “cause failed trades, delayed transactions, and unexpected behavior on the webpage and mobile apps.”

Additionally, according to the Barron’s article, “trading was delayed on the exchange on Oct. 27, and the site had customer log-in issues on Oct. 6.”

Traveling Across Different Worlds

Until these types of problems are figured out and resolved, it’s going to be more difficult to hold a comfortable position in COIN stock. That being said, there are some encouraging developments happening with Coinbase, especially concerning the company’s connection to the metaverse.

In a recent blog post, Coinbase co-founder and Chief Executive Officer Brian Armstrong and Identity Product Lead Alex Reeve boldly declared Coinbase’s intention to build an “identity on-ramp into the metaverse.”

Apparently, Coinbase users will have access to the metaverse, as well as non fungible tokens (NFTs). More specifically, the users will be able to “create a unique username NFT that resolves to a wallet. Eventually, this will allow users to carry a unique ID across different worlds in the Metaverse.”

This is all somewhat vague right now, but hopefully Coinbase’s executives will soon provide more details on the company’s foray into the metaverse and NFTs.

The Bottom Line on COIN Stock

The blockchain is still in its developmental stages, much like the internet was 30 years ago. So, COIN stock involves a measure of speculation as the technology is still a bit glitchy. Still, it’s exciting to be on the ground floor of the blockchain and cryptocurrency revolution.

Coinbase is on the front lines of that revolution and with a venture into the metaverse, it’s only going to get more exciting — and perhaps more lucrative for everyone involved.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarketsFinom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. 

Article printed from InvestorPlace Media, https://investorplace.com/2021/12/log-onto-a-metaverse-facing-crypto-platform-with-coin-stock/.

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