Can you buy coinbase stock

These underlying risks make Coinbase a risky stock that’s likely to be overvalued through the internet hype machine.

How to Buy Coinbase Stock: The Bottom Line

Coinbase is the largest cryptocurrency exchange in the United States and has a solid tech footprint. One thing it doesn’t have is its own coin, and unlike typical cryptocurrency projects that launch with ICOs and STOs, Coinbase wants to go public as a security through the SEC.

It filed its paperwork in December 2020, but the application is yet to be approved by the SEC. There’s a reasonable chance it could run into challenges, but it’s also in a great position to profit from the pandemic economy.

IPOs and cryptocurrency have a reputation for high risk, but exchanges aren’t tied to any one coin.

Can you buy coinbase stock

This is after it raised $300 million in a Series E investment round. This means the company raised $525 million from investors before going public.

It also debuted a new feature in August to offer bitcoin-backed loans.
This trading option lets customers access liquidity from their crypto holdings while retaining the HODL (hold on for dear life) mentality crypto’s most diehard fans and believers spout.

So, when can you get in on the action?

When Will Coinbase IPO?

Coinbase filed its draft registration Form S1 for an IPO with the U.S. Securities and Exchanges Commission (SEC) in mid-December 2020.
The company announced it on its Twitter account the morning of December 17.

This doesn’t mean the company will be approved – it’s simply the application for the SEC to scrutinize.

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You’ll need to purchase real-time market data separately if you want live prices.

Step 2: Transfer funds to your account

Brokers accept debit cards and wire transfers for trading account deposits. Depending on who you go with, it might take several days to set up and fund your account, as the broker needs to verify your identity to meet financial regulations.

Step 3: Decide how much to invest

When funding your account, it’s a good idea to use funds you can afford to lose.

Depositing your kid’s college fund into your trading account in the hope of tripling it overnight is a bad move.

For instance, when Coinbase IPOed in April, it experienced a huge sell-off to the $250 reference price in less than a month.

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Coinbase safely stores over $3.7 billion in customer funds, and reportedly holds almost 1 million bitcoin across its 35+ million wallets, making up around 5.4 percent of all bitcoin in circulation, more than any other exchange in the world.

In short, think of Coinbase as the leading crypto banking and trading platform. And now you’ll be able to buy stock in this next-generation “blockchain bank.”

As always, one of the best ways to evaluate an investment is to try the product yourself.
Do your research.

The Coinbase IPO

The Coinbase Initial Public Offering is a big deal. (Read the prospectus here.) It’s the first time that a major crypto company has been offered to the public as a traditional stock on Nasdaq.

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If the price falls to that level, the brokers liquidate your position, limiting your total downside in the trade.

Step 6: Submit the order

After selecting the right order type to match your trading strategy, you’re ready to buy Coinbase stock. Load your trading platform and enter the COIN ticker.

Populate the other fields with your order type, limit price, and the number of shares or fractional shares you want to buy.

Click the buy button to get into Coinbase stock, and click the sell button when you want to exit your position, hopefully with a profit.

Step 7: Monitor how Coinbase performs

As the first crypto exchange to IPO, Coinbase is heavily subject to news in the crypto-sphere. Any change in crypto regulations can cause the price to move.

Can i buy coinbase stock

Risking your account on one company is dangerous; what if the trade goes the wrong way? Fractional shares give you exposure to COIN price action at a risk level you can manage while also giving you the capacity to invest in multiple companies.

Low account fees

Brokers want your business, and they compete with each other for it by offering different fee schedules. Before signing up with a broker, shop around for the best prices on fees.

Margin trading

When you open your trading account, you have the option of selecting a cash or margin account with the broker.
A cash account lets you trade the cash balance of your account.

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If you use all your buying power in a single day, you’ll have to wait a day for the clearinghouse to process your trades.

To get around this issue, your broker offers you a margin account. With margin, the broker is supporting your trading by “lending” you funds.

The broker also gives you the chance to use “leverage” on your account balance so you can buy shares worth 3x or even 6x your balance. If a margin trade goes against you, be prepared to deposit more money to cover any maintenance margin required by the broker.

Real-time data and charts

Your broker issues your charts with your trading platform.

Beginner traders will find the charts user-friendly, making for a pleasant trading experience. However, they lack real-time data, and your quotes come delayed by up to 15 minutes.

Do i buy coinbase stock

While the SEC has chosen not to act, creating great freedom in the market, if the agency does choose to act there is good reason to believe that its regulation will be sweeping.

The cryptocurrency industry is well aware of this danger, which drives its often-contradictory stance on the issue of whether cryptocurrency assets are financial products. When speaking to the market, cryptocurrency firms seek investors and speak in the language of initial coin offerings, returns and capital gains.
When speaking to regulators these firms insist that crypto tokens are a technology product, no more worthy of SEC oversight than a Word document.

The SEC has been unusually opaque on this issue. The closest that agency officials have come is the occasional non-binding public statement.

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If it is approved, expect the company to react swiftly while the crypto and IPO markets are still hot.

How To Buy Coinbase Stock

Right now, the only way to “invest” in Coinbase is to park your money with them. The company has several options through its wallets that allow customers to generate income from their crypto holdings.

However, any savvy crypto investor (or legacy investor for that matter) is aware of blockchain voting rights.

As of the end of 2020, there’s no way via either crypto token or security to buy shares in Coinbase.

And whether they issue stock shares or crypto tokens is going to be a hotly debated issue.

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Coinbase stock is now trading. How much is it worth?

In this article, you will learn more about Coinbase, how you can invest in Coinbase stock, and what might be a fair price to invest in Coinbase.

What is Coinbase?

Coinbase is one of the world’s leading bitcoin exchanges, boasting some 43+ million users in over 100 countries. Labeled as the first “bitcoin unicorn” upon achieving an $8 billion valuation in 2018, Coinbase products make it easy for users to buy, sell, and trade bitcoin and other cryptocurrencies from your computer or mobile phone.

Based in San Francisco, Coinbase launched in 2012 and today has become the default “bitcoin bank” for millions of users.

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