For many cryptocurrency holders and traders, Coinbase (NASDAQ:COIN) is a go-to source to buy Bitcoin (BTC-USD) and other digital assets. Now is a great time to consider COIN stock, as Coinbase is committed to secure financial transactions during these uncertain times.
Wall Street is in an uproar over the collapse and possible rescue of SVB Financial (NASDAQ:SIVB) and its subsidiary Silicon Valley Bank. Yet, even amid the turmoil and confusion, Coinbase shares could actually be a safe-haven investment and a bargain in 2023. So, let’s see why financial traders should consider a stake in Coinbase right now.
COIN Stock Could Rise on Bank Run Fears
Who would have imagined that COIN stock could be a crisis hedge? Yet, it’s entirely possible this year. For the first time in a long time, there are news reports in respectable publications about bank runs in which depositors are frantically trying to withdraw cash from their accounts.
Chatter about a run on the banks, whether it’s justified or not, will only reinforce the notion that Bitcoin and other cryptocurrencies could be a better alternative to traditional assets (dollars, bonds and so on). And, where do many beginners go to open their first crypto accounts?
Surely, you know the answer to that question. Coinbase is the starting point for a large number of new cryptocurrency investors. Hence, whether bank run fears are reasonable or not, it’s possible that both Bitcoin and Coinbase will gain safe-haven status in 2023.
Coinbase Is Committed to Safety and Security
Now that safety is top of mind among savers and investors, Coinbase is reaffirming its commitment to providing a secure experience for its customers. This includes deploying “multi-factor authentication and extensive [know your client] checks during onboarding.”
Furthermore, Coinbase implements “sophisticated risk management systems to protect our customer’s funds from theft or hacking.” Additionally, Coinbase has “compliance and investigations teams” that “work with regulators, including law enforcement agencies, around the world.”
This is exactly the language that today’s investors want and need to hear. It’s understandable if people have doubts about the practices of some financial institutions, such as Silicon Valley Bank. Yet, Coinbase is distancing itself from banks with questionable reputations. It’s a smart move that should convince some traders to buy COIN stock now.
Coinbase Is Expanding Internationally
It’s typically a good sign when a business expands its operations into multiple countries. That’s exactly what Coinbase is doing as the company moves forward with its “Go Broad, Go Deep” international strategy.
Indeed, Coinbase is going broad and deep with global rollouts of new initiatives. Over the coming weeks, Coinbase will expand its presence in South America, Europe, Africa/Middle East, Asia, Australia and North America.
In those regions, Coinbase plans to announce key partnerships, as well as launch new products and services. Additionally, Coinbase intends to engage with “leading government officials and regulators.” So, even while some other financial firms are failing, COIN stock can gain value as Coinbase accelerates its expansion efforts.
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.