Coinbase (NASDAQ: COIN), a prominent cryptocurrency exchange platform, has been a significant player in the digital asset space since its IPO on April 14, 2021. As a publicly traded company, Coinbase provides users with a platform to buy, sell, and trade a variety of cryptocurrencies. Given its established presence and role in the evolving crypto market, Coinbase remains a compelling option for investors looking to diversify their portfolios with exposure to the digital currency sector. To make informed investment decisions, it’s essential to review the latest financial performance and market trends related to Coinbase. Our updated guide to Coinbase stock offers detailed insights to help you navigate the investment landscape and understand the company’s current position in the crypto market.
How to Buy Coinbase (COIN) Stock
Coinbase trades on the NASDAQ, offering easy access for retail investors who want to diversify their portfolios or test a new and exciting stock.
If you’re familiar with how to buy stocks, you can use your current brokerage account to invest in Coinbase stock. If not, use these steps to get started.
Step 1: Pick a Brokerage
A broker is a financial service company that offers retail investors a trading platform that they can use to buy and sell shares of stock online. Before you can buy or sell stock, you must choose a broker and open your brokerage account.
Some of the factors you might want to consider when you choose the best broker for your needs may include:
Commissions and Fees
Though many brokers now offer commission-free trading, you shouldn’t assume that your broker will allow you to buy and sell stocks with no fees. Be sure to know and understand your broker’s fees before you open an account.
Trading Platform
Some brokers offer simple and streamlined trading platforms aimed at investors who have never bought or sold shares of stock before. Other brokers focus on offering a wide range of educational resources and analysis tools that you can use to enhance your investing experience. You may want to watch a few video demonstrations before selecting a broker to be sure that you’re opening an account with a platform you’ll be able to use effectively.
Access to Additional Markets
If you’re only interested in buying Coinbase stock once it is publicly listed, you can invest effectively using any brokerage platform that offers NASDAQ access. However, if you want to invest in additional securities like options contracts, cryptocurrencies, futures contracts and precious metals, choose a broker that offers a single platform for all of your interests.
Step 2: Decide How Many Shares You Want
After you’ve opened your brokerage account, keep track of how the share price of Coinbase moves. You can track and view COIN here or check the IPO calendar here if you bought into Coinbase early and wish to try other IPOs.
Decide how many shares you want to purchase based on the total amount of money that you can afford to invest. As is the case with any stock, never invest more money than you can afford to lose, as stock prices can dip suddenly and without warning.
Step 3: Choose Your Order Type
After deciding how many shares of stock you want to buy, one of the final steps you should take is deciding which type of order you wish to place. The order type dictates how much money you’ll pay for each share of Coinbase stock you buy, when your order is executed and more.
Some of the most common types of stock orders you’ll see may include:
Market Orders
A market order tells your broker that you’d like to execute your stock order at the current market rate. For example, if shares of Coinbase stock currently trade at $200 a share and you place an order to buy 10 shares of stock at the current market rate, you’ll likely pay around $200 per share of stock you buy.
Limit Orders
A limit order tells your broker that you want to buy a select number of shares of stock at or below a specified price. When you place a limit order, you’ll specify a maximum price that you want to pay for each share of stock you buy, in addition to the number of shares you want to purchase. For example, you might place a limit order with a limit price of $200 per share of Coinbase stock. If your broker executes your order at or below a price of $200 per share, your broker will carry out the order. If the price of Coinbase stock doesn’t fall to $200 or lower throughout the trading day, your broker will not fill the order.
Step 4: Execute Your Trade
After you have chosen an order type and decided how many shares of stock you want to buy, double-check your order details before submitting the order. After you submit your order, your broker will take care of executing the order according to your specific instructions.
If your broker cannot fill your order (for example, because the limit price isn’t reached during the trading day), it may leave it open indefinitely or cancel the order at the end of the day according to your preferences.
Coinbase Financial History
Coinbase went public in April 2021 through a direct listing, initially seeing its share price soar to approximately $429 on its debut. However, it faced significant challenges amid regulatory scrutiny and macroeconomic factors that affected the broader cryptocurrency market. By 2022, the stock plummeted, hitting a low of below $50, driven by declining crypto prices and increased regulatory pressure on digital assets.
In 2023, the landscape began to shift positively with rising investor interest in Bitcoin ETFs, which bolstered market sentiment and helped create a more favorable environment for cryptocurrencies. This turn of events coincided with a solid recovery in Coinbase’s share price, which climbed to about $186 by the end of the year. Throughout this period, Coinbase’s financial performance remained under scrutiny, but the renewed optimism in cryptocurrencies, coupled with strategic adjustments, positioned the company for growth amidst evolving market dynamics.
Coinbase’s Growth Potential
Coinbase’s growth potential is exemplified by its remarkable revenue growth trajectory, which surged from $534 million in FY2019 to an impressive $7.8 billion in FY2021, reflecting a stunning compound annual growth rate of 283%. This substantial increase demonstrates Coinbase’s ability to capture a significant share of the cryptocurrency market, especially during periods of heightened trading volumes.
The company’s performance closely correlates with cryptocurrency market valuations, evidenced by recent trading volumes that have surpassed those of 2023, indicating a resurgence in user activity and engagement. As cryptocurrency trading gains traction, Coinbase stands to benefit from increased transaction fees and user participation.
Additionally, Coinbase showcases strong financial metrics, highlighted by positive operating income and robust free cash flow figures. These indicators not only reflect the company’s operational efficiency but also its capacity to scale sustainably. Overall, with a solid revenue growth trajectory, strategic positioning in the evolving cryptocurrency market, and strong financial performance, Coinbase presents significant growth potential for the future.
Should You Buy Coinbase Stock?
Investing in Coinbase stock has both rewards and risks due to the growing crypto market. Coinbase is a top exchange with promising growth.
Coinbase earns money from transaction fees and subscription services, but investors should be careful due to market fluctuations affecting demand and profitability. It provides a promising chance for those interested in cryptocurrencies, but risks must be considered like market changes and uncertain profits.
Frequently Asked Questions
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Yes, Coinbase (COIN) is publicly traded on NASDAQ. You can buy and sell its stock through any brokerage account. As with any investment, be sure to research and consider your investment goals and risks before buying.
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Yes, Coinbase (COIN) went public in April 2021 via a direct listing on NASDAQ. Investors can buy and sell shares, though the stock price fluctuates with the cryptocurrency market and broader financial trends.
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The minimum investment on Coinbase varies by cryptocurrency, starting as low as $2. This flexibility allows beginners to start small and gradually increase their investments over time.
