© Reuters. SoFi vs. Coinbase: Which Crypto Trading Platform Stock is a Better Buy?
Cryptocurrency trading volume has increased exponentially and investing in digital collectibles is going mainstream. Therefore, crypto trading platforms Coinbase (NASDAQ:) and SoFi (SOFI) should benefit. But which of these two stocks is a better buy now? Read more to find out.San Francisco-based Coinbase Global , Inc. (COIN) provides financial infrastructure and technology for the crypto-economy. It offers the primary financial account in the crypto-economy for retail users and a marketplace with a liquidity pool for transactions in crypto assets for institutions. In comparison, SoFi Technologies, Inc. (SOFI), which is also San Francisco-based, is a finance company that operates an online platform that provides financial services. It offers student loan refinancing, private student loans, personal loans, auto loan refinance, home loans, mortgage loans, and investments.
Despite their extreme volatility, cryptocurrencies have taken the world by storm over the past few years. While massive energy consumption in the mining process and illegal activities like money laundering remain a concern, cryptocurrency trading could keep soaring as several countries legalize these digital assets. Investors’ interest in the high-flying and digital currencies continues to grow amid favorable government policies to regulate them. Moreover, rising interest in digital collectibles should further drive the growth of crypto trading platforms. Therefore, we think both COIN and SOFI should benefit.
SOFI has gained 3.7% in price over the past three months, while COIN has negative returns. However, COIN’s 15.1% gains over the past six months are significantly higher than SOFI’s negative returns.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.