Earlier in the year (well, late last year...), I was looking at different stocks to buy after a Lithium based one did pretty decently and I was able to sell a chunk and go shopping on the Australian Stock Exchange (ASX). As usual, the encounter withe the traditional stock exchange was a pretty horrific experience after the fast-moving 24/7 experience that you get with crypto exchanges... the slowness, and the opening times.. the use of a broker. Sigh... anyway, this post isn't about that...

... there were a couple of things that I was interested in investing in, but they were on American stock exchanges. As an Australian investing in American stocks, well... you need to fill out some tax forms and that sort of thing... probably it is all innocent enough, but I wasn't keen to submit a batch of forms and all of that. I know that it is just a small barrier... but again, coming from the crypto side of things, it is still a barrier.

... and that moment of stopping to think about it. Well, it was a sort of blessing... I was interested (among other things...) in buying Coinbase (COIN) shares. At the moment, it does appear that Coinbase is one of the only exchanges that is giving the public a regulated and reliable place to trade and purchase crypto.. and they have even put out a decent self-custody hot wallet as well. So, I have high hope that Coinbase would be the one to push the next surge in popular adoption. Like it or not, most people will still prefer a centralised "broker" to trust... even if it is not really in the ethos of crypto. But as we know, being a self-custodian of your own crypto is an incredibly tricky thing for most people... and in many cases, actually much LESS secure! Until better wallet infrastructure is rolled out... well, there is too much responsibility required to handle the digital equivalent of nuclear waste. I still recommend Coinbase to newcomers to crypto... it is easy to use and a good first place to start, even if the fees are higher and all of that... but it is a safe and non-intimidating place to begin.

But the pause did get me to thinking... even though Coinbase stocks are likely to soar if crypto gets more adoption... or in the next bull run, and it would be really nice to be riding that wave just like an early Microsoft, Google, or Apple investor.... well, I started to realise that this was really the old centralised way of thinking.

Currently, if traditional stocks (even those that I had mentioned before...) are rising... they rise on the backs of their access to the "thing" that makes them valuable. In the case of software companies, it is their core software product... mining companies, the mineral ore... all of that sort of thing. And what is the key defining aspect of that "core" value? Well, it is that it is inaccessible to everyone else on the planet... either due to being protected crown jewels in the case of the software, or "ownership" in the case of mineral ore.

... and that is NOT the case for crypto-exchanges. If crypto exchanges soar... then they are providing a good platform and access to the underlying goods (crypto...) and that there is enough interest to make it profitable. If there is enough interest to make it profitable, then the underlying crypto assets are doing well! And crypto assets are accessible to everyone with an internet connection... no additional barriers to entry!

So, why invest in the exchange... when you can invest in the underlying crypto assets? Of course, that does mean that you have to pick the right ones... but for me that means that you are currently looking at things like Ethereum and Bitcoin (and maybe Cosmos...) as the solid ones that are more likely to prevail. Of course, I would remiss to not keep a few moonshot choices as well, but I do recognise those as being moonshots rather than likely options.

So, long way to say... Coinbase, well... I prefer to invest in the underlying "blue-chip" crypto assets themselves. I would say, invest in Coinbase, if you don't want to try and pick winners in the crypto assets... but I don't think that you would need to do that if you stick to the older more "trusted" crypto assets rather than trying to pick the 100-xers!

I can also be found cross-posting at:
Hive
Steem
Publish0x

Handy Crypto Tools

Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
GMX.io: Decentralised perpetual futures trading on Arbitrum!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.