How to Buy Coinbase (COIN) Stock in [2022]

FinanceBuzz is reader-supported. We may receive recompense from the products and services mentioned in this floor, but the opinions are the author ‘s own. recompense may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies. Coinbase is a popular U.S.-based cryptocurrency exchange that allows users to buy and sell currencies such as bitcoin and quintessence. Coinbase is a locate for people to buy and sell popular cryptocurrencies, such as bitcoin and quintessence. Coinbase is the largest cryptocurrency substitute in the U.S., which makes it a commodious place for Americans to buy and sell crypto .
The party went public in 2021, which leads to the question of how to buy Coinbase stock. And, possibly more importantly, whether Coinbase lineage is a good buy, particularly as it has struggled to keep tempo with its initial public offer ( IPO ) price.

Does that mean the livestock is a bargain, or is it a warning sign telling you to stay away ? The real answer is a bit more complicate and requires a deep dive into Coinbase stock .

Coinbase details

Company name Coinbase Global, Inc.
Founder(s) Brian Armstrong, Fred Ehrsam
Year founded 2012
Location Decentralized; no physical headquarters
Industry Financial services
Number of employees 3,700+
Ticker symbol COIN
IPO date IPO took place on April 14, 2021

Coinbase was founded in 2012 by co-founders Brian Armstrong and Fred Ehrsam. When it was first founded, the company ’ south mission was to enable anyone to safely and securely send bitcoin from anywhere. Since then, the crypto exchange has evolved to include many of those most popular cryptocurrencies, such as ether ( the mint that runs on the ethereum network ), tether, and USD mint. Coinbase describes itself in its SEC filing as powering the cryptoeconomy .
As of 2021, Coinbase has more than 3,700 employees. In May 2021, the caller announced it would close its former headquarters in San Francisco. now, the party is entirely decentralized and doesn ’ deoxythymidine monophosphate have a physical headquarters. The caller makes money by charging transaction fees for trades on the platform .
As of May 12, 2022, Coinbase has a marketplace capitalization of $ 11.92 billion. market cap is the market valuation of a company. It ’ s found by multiplying the phone number of shares by a party ’ s share price .

Why do people want to invest in Coinbase?

Simply put, Coinbase ’ second status as the largest cryptocurrency rally in the U.S. makes it attractive to malcolm stock grocery store investors. Coinbase is popular because it makes it relatively slowly to buy and sell cryptocurrency .
Coinbase supports more than 100 of the most cryptocurrencies on its platform. It already has more than 89 million affirm users and is used in 100 countries. Nevertheless, Coinbase plans to scale globally .
It plans to use a “ go broad and go cryptic ” overture, where it will launch cryptocurrency products such as Coinbase Wallet, which stores cryptocurrency and NFTs. The ship’s company besides said it will hire 2,000 newly employees as it continues to expand its crypto asset offerings .
recently, Coinbase launched an NFT marketplace and announced it is now available in India. ( An NFT is a digital asset that represents a real-world object such as art or music. ) Going fore, the company ’ south mission will be one of “ bringing more economic exemption to each and every individual and business around the global. ”

Reasons to invest in Coinbase

One argue Coinbase appeals to investors is its popularity. As the most popular cryptocurrency exchange in the U.S., Coinbase has a huge volume of trade on its platform. In terms of dollar measure, the quarterly volume of trades on Coinbase has topped $ 500 billion, and it has $ 278 billion worth of assets on the platform as of May 12, 2022 .
Because it makes money chiefly through transaction fees, that trade book has produced substantial earnings. For example, in Q4 2021, the company brought in $ 2.5 billion with a net profit of 33 %. net income profit is the come of money a business earns after deducting operate, tax, and interest expenses .
Price targets for Coinbase stock tend to be much higher than its stream monetary value, which could indicate that there is a miss of investor confidence or that the store could be undervalued. A price prey is an analyst ’ second projection for the future price of a security such as a stock .
If the current price targets come true, those who buy in now could see a return on their investment. But price targets, as with weather forecasts, are merely a projection and not a guarantee of future performance .

Pros of buying Coinbase stock

  • Company is expanding into new markets and rolling out new products
  • Significant earnings and a healthy net profit
  • Could be undervalued

Reasons to avoid Coinbase

Although Coinbase has a set going for it, there are some things investors should keep in beware before going all in. Investing money in individual companies always comes with a certain grade of risk, and Coinbase stock is no exception .
The first thing of which you should be aware is the monetary value swerve for Coinbase stock. Although its first gear plowshare price was mentioned as a potential professional in the former section, it could besides be a con, depending on your expectation .
With the exception of a rise in price in late 2021, Coinbase stock has largely been on a down vogue since its IPO. At the fourth dimension of the arise in 2021, popular cryptocurrencies such as bitcoin were spiking, which naturally influences the price of Coinbase stock .
however, after closing its first gear trading day at $ 328.28, Coinbase shares have since fallen to less than one-third of that price as of May 12, 2022.

In fact, on May 9, 2022, Coinbase had the worst single-day decline in history according to MarketWatch and has fallen 70.74 % year-to-date. The current declines come as investors look to reduce their exposure to notional assets amid economic uncertainty and the Fed ’ s corresponding matter to rate hikes .
Coinbase besides saw a significant loss of income in the first one-fourth of 2022, coming in below Wall Street forecasts. Its net income saw a loss of $ 430 million. Some might see this as an opportunity to buy in hope that the price will rise, while others might see this as a reason to steer clear .
As of May 12, 2022, bitcoin prices were depressed 40.50 % YTD, putting far blackmail on Coinbase stock. How things continue to develop in the year ahead is a wonder of speculation, which leads to uncertainty for the immediate future of Coinbase stock .
Coinbase.com besides has a much lower trade bulk than its rival Binance. meanwhile, more conventional digital payment providers such as PayPal and trade platforms such as Robinhood besides support cryptocurrency trade today. That could put far down coerce on Coinbase lineage if Coinbase ’ s competitors end up eroding its market share .

Cons of buying Coinbase stock

  • Price has struggled since Coinbase’s IPO
  • Economic volatility and uncertainty, along with rate hikes, could create downward pressure on share price
  • Facing increasing competition from other exchanges and established payment providers

How to buy Coinbase stock

Coinbase stock is available on the NASDAQ, meaning it can be traded on all the major brokerages and investment apps. In most cases, buying Coinbase stock follows a few basic steps :

  1. Open a taxable brokerage account.
  2. Fund your account by linking it to your bank. Transfer as much cash to your brokerage account as you want to invest in Coinbase stock.
  3. Using your brokerage account or investment app, search for Coinbase by name or by ticker (COIN).
  4. Place an order for your stock. Depending on the brokerage or app, you may have advanced options, such as limit orders and fractional shares.
  5. Wait for the shares to appear in your account. Depending on the order type and whether the market is currently open, it may take a few days for them to appear.

once the shares appear in your account, you are all set. In some cases, you may have the option to make recurring investments if that is something that interests you .
If you ’ rhenium hesitant about buying Coinbase instantaneously, you could buy an exchange-traded fund that includes Coinbase in its holdings, such as Cathie Wood ’ second ARK Innovation ETF ( ARKK ) .
To find an investment service that meets your needs, check out our list of the best investment apps and best brokerage accounts .

FAQs

What is Coinbase’s stock symbol?

Coinbase is traded on the NASDAQ under the stock symbol COIN .

Is Coinbase a dividend stock?

Coinbase stock has not paid any dividends to date. Dividends are cash payments issued to shareholders, normally on a quarterly basis. They typically come from the company ’ mho earnings and are a way to reward investors. not paying dividends is normal for a party of Coinbase ’ sulfur age. At this stage, companies normally reinvest most of their net profit in inquiry and development .

Can you buy stocks on Coinbase?

presently, you can only buy cryptocurrencies on Coinbase. A complete tilt of back cryptocurrencies is available in Coinbase ’ second asset directory .

Bottom line

Coinbase store is an interesting alternative for those who want to invest in cryptocurrency without directly buying currencies, such as bitcoin or ether. Coinbase is the largest cryptocurrency switch over in the U.S. ( and made our list of the best cryptocurrency exchanges ), and it plans to continue expanding globally. This could make it an attractive investment for U.S.-based investors, though Coinbase ’ s parcel price has struggled since its 2021 IPO .
Investing in single companies could be hazardous, and returns are far from guaranteed. If that level of risk doesn ’ t match your investing stylus, a smart choice for many investors is investing in broad index funds, such as an S & P 500 fund or a total-market fund .
These funds allow you to grow your investments over clock while reducing your overall risk. Plus, investing can be entirely passive voice.

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