Crypto Is Extremely Volatile -- but This Stock Could Benefit Either Way

Crypto rarely moves in a straight line. Prices surge, then pull back. Sentiment shifts quickly. And for many investors, that volatility makes it difficult to decide what to do next. And that's the problem. Trying to guess where crypto goes next often means getting the timing wrong.

But what if there were a way to benefit from that volatility, instead of trying to predict it? That's where Coinbase Global (NASDAQ: COIN), the cryptocurrency exchange platform, becomes an interesting stock to watch.

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The real driver isn't price, it's activity

Most investors think of crypto in terms of price. If Bitcoin rises, that's good. If it falls, that's bad.

But for Coinbase, the equation looks different. Coinbase earns a large share of its revenue from transaction fees -- this segment accounted for 56% of its $7.2 billion in revenue in 2025. That means its business depends less on where crypto prices go, and more on how much trading is taking place.

And here's a little secret: Trading activity tends to increase during periods of volatility. When prices rise, investors rush in. When prices fall, they react by buying dips, cutting losses, or repositioning. Either way, activity increases. And as activity increases, Coinbase stands to benefit. After all, it stored more crypto than any other company in 2025.

Why can volatility be an advantage?

Coinbase's huge market share offers a compelling opportunity for investors. Instead of trying to predict whether crypto will go up or down, investors can focus on volatility itself.

Crypto remains one of the most volatile asset classes. That characteristic often discourages traditional investors. But it attracts a different group of participants: short-term traders and speculators aiming to benefit from price action.

So more traders lead to more trades, higher transaction volume, and ultimately higher revenue for platforms like Coinbase. In that sense, volatility isn't a risk, but part of Coinbase's business model.

The risks still matter

Of course, this business model isn't without challenges. Coinbase still depends heavily on trading fees, which can fluctuate with market conditions. During prolonged periods of low activity, revenue can decline -- and this has happened before.

Moreover, competition remains intense, and fee pressure could weigh on margins over time as traditional brokerages like Interactive Brokers and younger platforms like Robinhood Markets try to grab market share in the crypto market.

What does it mean for investors?

Crypto is an emerging asset class that has attracted many investors. Yet its highly volatile nature makes it difficult for conservative investors to pick long-term winners.

Fortunately, investors can now benefit from that very volatility by riding Coinbase's coattails. As long as short-term traders continue to trade, react, and engage with crypto markets, platforms like Coinbase remain at the center of that activity.

And that may be one of the simplest ways to benefit from this emerging asset class.

Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Interactive Brokers Group. The Motley Fool recommends Coinbase Global and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.