Summary
Coinbase came into existence in 2012 with a remote-based working environment for the workforce. The crypto exchange lets users buy, sell and store their cryptos while ensuring security and transparency. The Coinbase share got famous among investors due to the continued increase in the adoption of cryptocurrency. Coinbase shares are always a top priority for investors since its IPO in 2021.
Traders only need to open an account with the broker they fit best to their trading goals. Then they add a deposit to the account to buy Coinbase shares. There are also advantages and disadvantages of buying Coinbase shares.
Before buying shares, it is crucial to keep in mind all variables that can affect the share price of Coinbase and the procedure of how to buy Coinbase (COIN) shares. Traders must take into account a variety of aspects that can easily affect the price of Coinbase shares, including trading fees, the past performance of Coinbase, and the trading platforms offered by brokers. The regulations also play a huge role in the credibility of a broker.
The following steps need to be followed when buying shares in Coinbase.
- Select an Online Stock broker
- Create a Brokerage Account
- Deposit Funds
- Buy Coinbase Shares
- Manage your Coinbase Positions
The pros and cons of buying shares of Coinbase are as follows.
Pros
- Growth Potential amid Increased Crypto Adoption
- Leading Crypto Exchange
- Huge Market Exposure
Cons
- No Dividend Payments
- Share Performance depends on the Crypto Market
- Regulatory Changes might affect the Share Price
Buying shares in Coinbase should involve considering all the factors that could affect the share price. Some of the factors are briefly discussed below.
Commissions & Fees
Traders have to pay fees and commissions when buying COIN stocks. Brokers have their set criteria for charging fees on every specific trade. Traders prefer those brokers who offer reasonable commissions and fees. The lower the fees and commission are, the more traders invest in shares. The market activity and conditions directly affect the trade volumes, liquidity, and share price of Coinbase. On the other hand, greater fees and commissions can discourage investors from trading and reduce liquidity.
Stock Brokers Regulation
Before buying shares in Coinbase, it is important to conduct a thorough analysis and confirm that the stockbroker is supervised by a reputable agency, such as the Securities and Exchange Commission (SEC), Financial Conduct Authority, or Cyprus Securities and Exchange Commission (CySEC). Verifying the broker’s compliance with regulations lowers risks. Regulatory agencies create rules and standards to ensure open transactions in the brokerage industry. Investors must abide by these regulations to protect their money against fraud, illegal trading, and other unethical practices.
Trading Platforms
Traders can choose between desktop and mobile trading platforms when they are interested in buying shares of Coinbase. The trading journey is related to the effectiveness of the order execution system on a trading platform. The accuracy and speed of a platform reduces likeliness of problems related to order execution that can affect the decision of an investor. A variety of tools and features are available on various trading platforms with the purpose of helping traders in making great investment decisions. It’s also important to choose a platform with strong security features to protect financial and personal information.
Leverage Availability
There are brokers that offer only real shares, but some brokers also let the traders use leverage on stocks CFDs, such as Capital.com. Leverage helps in increasing the buying power of a trader. This is done by borrowing money from the broker you choose. Leveraged trading somewhat allows the traders to buy more shares than their own funds are capable of buying. This might improve possible returns on investment. Leverage might increase potential benefits, but it also enhances the risks involved in buying shares. The losses with leverage can cross the amount of initial deposits if the market goes opposite to the expectations of the trader. Prior to thinking of using leverage to trade share CFDs, traders must be aware of the level of risk they can take and ignore.
Coinbase Stock Performance
The past performance of Coinbase stock helps traders analyse the price movement of Coinbase shares. Due to the increased popularity of cryptocurrencies, the Coinbase shares got popular. Although historical performance might have an impact on share prices, it is not the only one. Current market conditions, Coinbase-related news, and a number of other variables also have an impact on the share price of Coinbase.
As a result, it’s critical to take a wide range of variables into account when evaluating the prospective effects of a stock’s historical performance on the price of its shares. Coinbase shares were listed on NASDAQ under the ticker symbol COIN on April 14, 2021, at an IPO price of $250 per share. The market capitalisation of the company is $13.04 billion. The current price of COIN is $55 per share. Although the current price is 85.5% down from its IPO price, it is +74.3% up from its all-time lowest level that was seen at the start of this year in January 2023.
Coinbase Past Dividends
Dividends are paid to the company shareholders from its earnings. Coinbase does not pay dividends as of now. The policy can be changed in future. Being a very new and rapidly expanding company, Coinbase decided to prioritise putting its revenues back into the firm for growth, Research & Development, and other strategic projects rather than paying dividends.
Online brokers are usually the first and foremost choice of traders who wish to buy Coinbase shares. Most brokers offer both desktop and mobile trading platforms, which makes them the best choice. The traders open an account with them and deposit money, and they can conveniently buy COIN shares. Traders should always choose the broker after completely analysing its features and policies.
Desktop Trading Platforms
The proprietary trading platform by a broker can be easily installed or opened on a desktop. Desktop trading platforms have their own features. They have a user-friendly and customisable interface. Active traders can benefit from them by utilising unique trading tools. Brokers such as eToro offer a proprietary trading platform. Its one-click feature enables the trade to begin and end trading any stock anytime.
The MT5 platform can also be opened on a desktop with its cutting-edge feature, allowing the trader to choose any accounting order type and exercise market depth to embark on a great trading experience.
Mobile Apps
Traders also have the option to use mobile phones and their tablets for trading. All they need to do is to access the mobile trading app. The mobile apps allow traders to manage their portfolios, do in-depth market analysis and execute their trades fast. Traders stay convenient and very flexible while trading with mobile devices.
Third-party platforms like MT5 also offer a mobile app for traders. The stock market is easily accessible for those interested in buying Coinbase shares. A unique set of technical indicators and signals are available to analyse the trades like a professional. Users of the mobile app have access to a trading community, share trading strategies, and are able to copy the trades of experienced traders. This function enables new traders to pick up tips from more seasoned ones and possibly duplicate their performance. Both of the broker’s mobile trading apps, like the one offered by eToro and the MT5 mobile app, can be downloaded on Android and Apple phones.
The trading and non-trading fees incurred when trading or investing in Coinbase shares are as follows.
Trading Fees
The trading fees charged by brokers are mostly commissions and spread. The pricing structure issued by a broker details the spread charged by them. Different brokers have different pricing structures, so they charge different spreads. Spread is the value that comes after eliminating the selling price from the buying price. Most of the brokers offer a commission-free policy to buy Coinbase shares. But it’s actually the charges that occur to execute the trade by the broker. Some brokers, however, charge a commission that traders need to be aware of before buying Coinbase shares.
Non-Trading Fees
Online brokers charge an account maintenance fee from traders to look after their accounts in the best way possible. Another non-trading fee also is an inactivity fee charged to traders if they don’t show any trading activity for mostly a year or so. The inactivity is also called a dormant fee. The broker also charges currency conversion fees from their clients if the currency supported by the broker differs from the currency of share the client trades in.
About Coinbase (COIN)
Coinbase emerged as a cryptocurrency exchange in 2012, founded by Fred Ehrsam and Brian Armstrong in San Francisco. The employees of Coinbase work remotely, that’s why they lack a headquarter. Coinbase has around 4,510 employees, according to 2022 data. It is one of the most widely used and famous exchanges in the US. It has been crucial in overcoming the difference between the centralised world of traditional finance and the decentralised world of cryptocurrency.
Using conventional fiat currencies, customers of Coinbase can purchase and sell cryptocurrencies. It provides users with an easy-to-use trading interface so they may engage in the crypto market easily. Users who use Coinbase can keep their cryptocurrency in a safe online wallet. To accommodate varying security demands, it provides separate hot wallets (online) and cold storage wallets (offline). Additionally, Coinbase runs Coinbase Pro, which was also known as GDAX in the past. This is a more sophisticated trading platform geared toward seasoned investors. Additional features, including expert order types and charting tools while charging lower trading fees, are available with Coinbase Pro.
To make cryptocurrency transactions easier on web and mobile applications, Coinbase offers a variety of integration possibilities, including APIs and plugins. With Coinbase’s increasing popularity, it has broadened its services to meet the needs of various consumer groups and geographical areas. The platform has worked closely with regulatory bodies to ensure compliance with legal and security measures. It has aggressively sought out regulatory compliance. This dedication to compliance has aided Coinbase in establishing a reputation and trust throughout the market.
There are almost 43 million users worldwide using Coinbase services. Around 114,000 partners and not less than 7,000 institutions are also associated with Coinbase. Coinbase also offers shares for the general public to trade. The IPO was done in 2021 by a listing on Nasdaq. The COIN closing price on the first day was $328.28. The share price of Coinbase is currently $55 and showing a bull trend. The market capitalisation is $13.04 billion. There are many factors that can collectively or separately affect the share price of Coinbase, including the broker you choose, its regulatory status, fees and commission and the trading platform offered. Coinbase is not offering dividends to its shareholders.
Reddit and Quora are popular sites where people can ask queries and hold discussions regarding any topic. So, we are mentioning the review or discussions involving Coinbase shares on both these platforms.
Reddit is the website that helps investors ask questions or be a part of conversations regarding stocks. So, in the same way, the Coinbase shares were being discussed in many places.
One of the discussions in the context mentioned that Coinbase has been on hit for like the previous two years after the safety of the crypto community. The BTC going parabolic makes Coinbase more unique as it has almost $33 billion in BTC. The member found Coinbase a great option and asked for the thoughts of fellow members.
Quora
Quora has many ongoing conversations about buying Coinbase shares. In a question asking about the pros and cons of Coinbase shares, a Quora member praised the Coinbase shares. He stated that anyone interested in cryptocurrencies might benefit from buying shares in Coinbase as it’s a good investment to begin with.
Bottom Line
Coinbase is an exchange where users can purchase, sell, and store their cryptocurrencies while maintaining security and transparency. Due to the continued growth in the popularity of cryptocurrencies, Coinbase shares became well-known among investors.
Since its IPO in 2021, investors have been interested to know how to buy Coinbase (COIN) shares. The only thing that traders need to do is open an account with the broker that best suits their trading objectives. To purchase Coinbase shares, individuals can then add a deposit to the account. Purchasing Coinbase shares has both perks and risks.
The trading platforms and fees associated with buying Coinbase shares need to be reviewed before trading. The trading fees include spread and commission. The non-trading fees include inactivity, account maintenance and currency conversion fees.
Q & A
Coinbase was founded in 2012.
Coinbase launched its IPO on 14th April 2021.
Coinbase’s share starting price at IPO was $250.
The Vanguard Group, Inc. has the largest share in Coinbase.
Coinbase shares can be bought through an online broker such as eToro.
Selling Coinbase shares is easy; all that you need to do is to open an account with a regulated broker and sell your Coinbase Shares.
Yes, you can use leverage to trade Coinbase shares by CFD trading.
This decision is primarily based on your risk tolerance and trading goals. But for now, Coinbase is showing a bull trend, so it’s a good buy.
Yes, Some brokers offer commission-free stock trading.
Coinbase is based in San Francisco, but it does not have an onsite headquarters because of its remote working environment
The increase in the value of crypto will have a positive effect on the value of Coinbase shares as more revenue will be generated from the Coinbase crypto exchange.
