PayPal vs Coinbase: Which is the Best Pick for Blockchain Stocks?
Investing in blockchain stocks would help beginner investors diversify their portfolios
Blockchain forms the basis of major cryptocurrencies, including Ethereum. In this article, we are going to compare the two best blockchain stocks- PayPal Holdings Inc. and Coinbase Global Inc, for those who want to expand their exposure to the overall industry. Apart from directly buying crypto, investing in blockchain stocks would help beginner investors diversify their portfolios.
Digital payments specialist PayPal is fully embracing cryptocurrency and blockchain technology. Not only can users buy and sell crypto in their PayPal accounts, but the company is also reportedly exploring the launch of its stablecoin, which would be pegged to the U.S. dollar. That would be a big step toward crypto being more integrated with business. The platform started accepting Bitcoin for payment in 2014, and today it also accepts Ether, Litecoin, and Bitcoin Cash. Its current blockchain stock is US$79.75, a 2.70% increase from the previous close.
Coinbase is one of the most popular cryptocurrency exchanges on the market, where users can buy, sell and store their digital assets. The company is known for powering the crypto economy by bringing together blockchain technology and traditional finance to deliver a variety of crypto products to users. But the exchange also offers blockchain development services, which let developers build crypto products through its Coinbase Cloud. The platform, which integrates with more than 15 blockchain protocols, has an innovative system that allows Coinbase to develop and launch new products and services. Its current blockchain market stock is US$70.00, a 13.45% increase from the previous close.
Both blockchain stocks are historically cheap. PayPal currently trades at 24 times forward earnings and four times this year's expected sales. Coinbase trades at nearly 230 times forward earnings due to its upcoming spending spree, but it trades at less than six times this year's sales.
