Coinbase Global (COIN) made its debut on the stock market in April 2021. This US-based exchange serves as a one-stop-shop for crypto investors and traders across the world.
Fortunately, now there is an easy way to capitalize on the growth of this cryptocurrency platform. Our guide will explain how to invest in Coinbase stocks using a beginner-friendly online broker like eToro.
How to Invest in Coinbase Stocks in Five Easy Steps
Are you here looking for a quickfire guide on how to invest in Coinbase stocks? Then, this is what you need to do:
- Step 1: Find a regulated broker that can give you access to Coinbase stocks.
- Step 2: Open an investment account with eToro by providing your personal details and contact info.
- Step 3: Search for 'COIN' on eToro to find the trading page of Coinbase stocks.
- Step 4: Start making your investment into Coinbase stocks by entering the amount you want to put into this company.
- Step 5: Finally, click on 'Open Trade' to make your 0%-commission investment into Coinbase stocks.
As is evident by now, making your first investment into Coinbase stocks can be easy and stress-free - given that you have chosen the right online broker.
Your capital is at risk. Other fees may apply
How Does Investing in Coinbase Stocks Process Work?
Investing has always been considered one of the best tools to grow your wealth. However, many hesitate to make an attempt primarily due to the lack of knowledge regarding the process.
In fact, you do not have to be a stock market genius to invest in Coinbase stocks and profit from the growth of this company. All you need is a basic understanding of what investing is all about - so let us start with the fundamentals.
When you are investing in Coinbase stocks, you are essentially purchasing shares of this company. You will maintain your position for long periods of time, through the temporary ups and downs of the market.
Once the value of Coinbase stocks increases, you will cash out your investment - ideally, making an attractive profit. However, before putting your money into this asset, you should have a clear grasp of the future potential of this company.
In other words, you should carefully analyze the market conditions that can work in your favour or against you.
For Coinbase, there could be any number of factors that can affect its share prices.
- To give an example, being a leading cryptocurrency exchange, any news that concerns the related industries can directly impact the growth of this company.
- Similarly, global financial regulations and the health of the economy can also have an influence on the value of this particular stock.
In the end, the value of Coinbase stocks will be determined by the dynamics of supply and demand. If there is a rising number of investors choosing to buy COIN shares, this can lead to a surge in its price.
On the contrary, if shareholders are keen to dispose of their Coinbase stocks, then you are likely to see prices falling. If you are able to foresee these market trends, you will be able to correctly time your COIN investments and make a profit.
Here we have an example for you that will explain the entire concept more clearly:
- Let's say that Coinbase stocks are valued at $250 per share.
- You believe that the cryptocurrency industry is likely to explode in the upcoming years.
- You thus decide to invest $1,000 into Coinbase stocks.
- By next year, the value of Coinbase stocks increases to $300 per share.
- This means a 20% return on your $1,000 investment.
Typically, stock investors tend to hold on to their shares for a longer period of time to make the most gains. If you are wondering how to invest in Coinbase stocks for the first time, you might want to think a few years ahead to make sure that this company has the potential to yield you high returns.
If the value of Coinbase stocks takes off after you have made the investment, you can end up making attractive profits. That being said, you should never overlook the fact that the share price of the company can also drop, leading to losses instead.
Why Should You Invest In Coinbase Stocks?
There has been a lot of discussion surrounding the public-listing of Coinbase. While some investors see this company as an interesting investment opportunity, others are more skeptical due to its close association with the cryptocurrency industry.
If you are considering why you should invest in Coinbase stocks now, you are on the right path. After all, it is paramount that you understand the risk-reward profile of an asset before putting in your money.
With this in mind, here we are listing a few aspects that are currently working in favour of Coinbase.
Coinbase is Still Growing
It is no news that Coinbase is an extremely successful cryptocurrency exchange. As a business, it makes money from transaction fees on the platform and generates cash flow that can encourage its intrinsic value to grow over the years.
With the market for digital assets flourishing, this company stands to make significant gains. Assuming that the business continues to be profitable, investing in Coinbase stocks can attract generous returns.
It doesn't matter if people are trying to get on the crypto wagon or sell off their tokens, this firm will be able to continue reaping benefits from the transactional fees and commissions it charges!
An Alternate Means of Entering the Cryptocurrency Industry
Many investors stay away from the crypto industry due to its highly volatile nature. That is to say, if you were to invest in a single digital token, you will be increasing your risk exposure.
In contrast, although Coinbase generates profits from the crypto markets, it is insulated against the collapse of any single digital asset.
- For instance, let's say China is to ban Bitcoin.
- This can have dire consequences on the value of BTC.
- While such news can hurt the cash flow of Coinbase to an extent, the impact is likely to be far less damaging than what Bitcoin would face.
In other words, Coinbase, as a company, is not entirely reliant on the trading volume of any one cryptocurrency.
Instead, it makes a profit from the overall market. As such, the business would be able to move forward even if a number of digital assets were to fail.
Coinbase is Expanding
Coinbase certainly enjoys an early-mover status. But it still faces fierce competition from the rest of the market, one that is constantly trying to innovate. That said, this company has already developed a long-term plan that involves reinvesting into other areas.
Coinbase sees itself as a cryptocurrency infrastructure business and is considering other diverse revenue streams that can bring on more stable and secure profits over the long term.
By 2026, the management team expects to have over 50% of the company’s earnings come from sources other than transaction fees. This will include endeavours such as cashback credit cards, loans, deposit accounts, and other fintech solutions related to the digital asset industry.
Coinbase Global is also investing in other crypto-related startups founded by their ex-employees, thus positioning itself to profit from external innovations.
Altogether, with over 68 million users and growing, Coinbase has plenty of room to flourish - especially if digital tokens continue to grow in popularity.
How To Invest In Coinbase Stocks - Coinbase Stock Brokers
When it comes to the question of how to invest in Coinbase stocks, your first thought is likely to be about the share market. Although this company is listed on the NASDAQ, it will not be possible for you to buy or sell directly on the exchange.
Instead, you will have to find a broker that can help facilitate your investments. In the earlier days, this position was filled by individuals who were well-versed in the workings of the share markets.
Today, you can easily find an online platform that can buy and sell Coinbase stocks on your behalf while you place trades from the comfort of your home.
So, let us take a closer look at what online brokers are and how these platforms can help you invest in Coinbase stocks.
In simple terms, these are websites that you can use to buy and sell Coinbase stocks. You will essentially be placing orders on the platform, which will execute them for you. In other words, your broker will serve as the middleman between you and the exchange.
Contrary to popular misconceptions, brokerage platforms have evolved to adapt to investors of every level. For instance, from our research - we found that eToro is one of the best platforms that you can use to invest in Coinbase stocks.
With over 20 million registered users, this trading site gives you access to share markets, commodities, ETFs, and even cryptocurrencies.
The broker packs tons of educational resources for beginners, including features such as CopyPortfolio and CopyTrader - which will allow you to invest in Coinbase stocks in a passive manner.
More importantly, eToro is heavily regulated - meaning your interests as an investor will be protected. It is also easy to invest in Coinbase stocks using this broker, as the platform supports a number of payment methods.
All that being said, you should also note that the right online broker can make a significant difference in your investing experience. While platforms like eToro can provide you with a hassle-free experience, another site might make things more complicated for you.
Your capital is at risk. Other fees may apply
How To Choose A Platform To Invest In Coinbase Stocks
To continue from above - choosing the right broker to invest in Coinbase stocks is one of the most crucial decisions that you will be making in the process.
You want a platform that prioritizes safety and charges you reasonable fees - without compromising on user-friendliness and other features.
With this in mind, let us discuss what points you need to keep in mind when looking for your online broker to invest in Coinbase stocks.
Licensing and Reputation
First and foremost, you will need to find a broker that is safe, secure, and transparent. After all, you are entrusting your hard-earned money to your chosen platform.
As such, you will need to ensure that your Coinbase stockbroker is properly licensed and complies with the regulations set by the proper financial authorities.
In other words, this means that your investment platform will be transparent about its privacy policies and have set up sufficient steps to ensure the safety of your personal and financial information.
- For instance, it is mandatory for regulated brokers to keep client funds segregated from theirs.
- In addition, they also have to submit their records for regular audits.
- Some financial authorities such as the FCA have even set up schemes that will compensate you - in case you have held any money in a firm that fails.
As you can see, it is in your best interest to stick with a regulated broker when investing in Coinbase stocks. If an investment firm is regulated, it is likely that the platform will display the details of its valid licenses on the website.
For example, if you check out eToro - you will have no trouble in finding out that this site is regulated in Europe, the UK, the US, Australia, and the Seychelles.
The platform will also clearly feature the risks associated with stock investments. If you are unable to find any regulatory backing for a broker, it might be best to look elsewhere.
Fees to Invest in Coinbase Stocks
When thinking of how to invest in Coinbase stocks, you will also need to consider the cost of making the investment. That is, apart from the amount you are risking into this asset, you will also have to pay for a variety of fees charged by your broker.
Put otherwise, the brokerage fees can make a dent in your take-home profit from your investment. Therefore, you will want to spend some time understanding the fee structure of your trading platform before signing up.
In this section of our How to Invest in Coinbase Stocks Guide, we will discuss what types of fees you are likely to be charged by your broker.
Also called a 'stock trading fee,' investment commission is quite common across brokerage platforms - and is charged every time you buy or sell Coinbase stocks.
Now, the commission is often calculated differently between brokerage sites. For instance, one platform might enforce a percentage fee structure - against the size of your investment.
- Your broker charges a 2% commission on Coinbase stocks.
- You invest $1,000 into COIN shares, which brings your commission to $20.
- Furthermore, this commission is charged on both sides of the investment transaction - that is, for buying as well as selling.
On the other hand, some brokers might charge you a flat fee - no matter how much you invest in Coinbase stocks.
It is often considered that it is impossible to avoid paying commission to your broker. However, platforms like eToro facilitate investments without charging you this fee. That it to say, you can invest in Coinbase stocks at eToro on a 0% commission basis.
Deposits and Withdrawals
Commissions are not the only investment-related fee that you will have to encounter when investing in Coinbase stocks.
In fact, depending on your Coinbase stockbroker, you might have to cover the cost of every transaction you make on the platform - which includes deposits and withdrawals.
- Some brokers allow you to deposit and withdraw funds for free via a bank transfer. Although you might be able to save some money here, this means that you will have to wait a few business days for the transaction to complete.
- If you want to make an instant deposit, debit/credit cards are viable alternatives. However, this might involve an unfavourable transaction fee.
- Platforms like eToro also allow you to pay for your Coinbase stock investments via e-wallets - which includes PayPal and Neteller.
As imaginable, the payment types supported and the associated fees can vary widely from one broker to another. For this reason, you will want to check with your chosen platform to see if your preferred method comes at an extra cost.
Minimum Coinbase Stocks Investment and Payments
Another factor you want to carefully consider is how much money you want to risk on Coinbase stocks. In most cases, your brokerage platform might have set a minimum investment amount.
With eToro, you will be able to stake from just $50 to invest in Coinbase stocks. This will give you the opportunity to gain exposure to this asset at a sensible amount.
On the other hand, there are also brokers that set the minimum investment at much higher amounts. Understandably, this can be an issue for those trying to limit their risk.
As such, you will want to find a broker that allows you to make smaller deposits as well as have low minimum investment requirements.
Cashing Out your Coinbase Stocks
When thinking of how to invest in Coinbase stocks, you should always have an exit plan. Ideally, you will want to cash out your investment when you have met your profit goal.
- For instance, suppose that you invested $10,000 into Coinbase stocks.
- You had a profit target of 50%.
- Meaning, you will only sell your COIN shares when the value of your investment reaches $15,000.
This you can find by checking your portfolio, where you will be able to see the unrealized profits and losses from your investments.
You can also choose to sell your entire Coinbase stock investment or a part of it, as per your financial standing and objectives. When you are ready to cash out, you can do so directly from your brokerage account.
Brokers like eToro make it incredibly easy for you to buy as well as sell Coinbase stocks on a commission-free basis.
How To Invest In Coinbase Stocks Today - Step-by-Step Walkthrough
At the beginning of our How to Invest in Coinbase Stocks Guide - we gave you a quick overview of the investment process. For those who need a more detailed explanation, we will cover each of these steps in detail.
As we have already discussed, the most important step is to find the right online platform to invest in Coinbase stocks. Based on the factors we covered earlier, we found that eToro is the best broker for this purpose.
And hence, we will be using this platform as a guide to show you how to invest in Coinbase stocks easily, safely, and cost-effectively.
Step 1: Open an Account
Signing up on eToro to invest in Coinbase stocks is as easy as creating an online account on any other website.
Here is what you need to do:
- On the eToro website, click on the 'Join Now' button.
- Enter your email address, and set your username and password.
- Fill in some basic personal information such as your first and last name, other contact details, and date of birth.
After confirming your email address, eToro will present you with a questionnaire that seeks to understand your experience with financial investments and your risk appetite.
The broker will then use this information to give you access to different markets and provide you with additional features such as educational resources.
Before you can proceed with your Coinbase stock investment, you will need to complete one important step - identity verification.
Step 2: Provide Some ID
Being regulated, eToro is required to verify the identity of each and every registered user. This means that in order to gain access to all features of the platform, you will need to complete the Know Your Customer process.
Not to worry, all you need to do is provide a government-issued ID that can verify your identity. This can be done by submitting a copy of your driver's license or passport.
You will also have to provide a document that clearly states your address - such as a utility bill or bank statement issued within the last three months.
Upon uploading these documents, eToro will verify your account within 1-2 minutes, and you will be able to start investing in Coinbase stocks right away.
Step 3: Deposit Funds
We prefer eToro for a variety of reasons - one of them being its support for a wide variety of payment methods.
Whether you want to invest in Coinbase stocks using a traditional bank wire transfer or a debit/credit card - the process can be easily completed on this platform.
eToro has also partnered with e-wallets such as PayPal, Neteller, and Skrill so that you can make quick payments for your Coinbase stock investments.
Step 4: Search for Coinbase Stocks
To start investing in Coinbase stocks, you will need to find the asset on eToro. You can simply enter ‘COIN’ into the search box to find the respective market.
Step 5: Complete Coinbase Stock Investment
Upon landing on the Coinbase stock page, you can click on the 'Trade' button to begin your investment process.
Here, you will need to enter how many shares of Coinbase you want to buy. Alternatively, if you have a specific investment amount in mind, you can also specify that. Remember that you will need to stake a minimum of $50 to gain access to this stock.
Finally, you can click on 'Open Trade' to complete your investment. eToro will carry out the purchase of Coinbase stocks for you, and the shares will be reflected in your account portfolio.
Step 6: Cash Out Your Coinbase Stock Investment
When you find the right time to cash out your Coinbase stock investment, you can do so directly from your eToro account. You can sign in to your brokerage account to find COIN shares in your portfolio.
Next to it, you will be able to see the 'Sell' button. You can click on it to sell the Coinbase stocks you own.
eToro will execute your order, and the proceeds will be deposited into your account balance. You will then be able to withdraw the funds to your original payment method by making a request on the platform.
How To Invest In Coinbase Stocks Today - Step-by-Step Walkthrough
Buying Coinbase stocks can be a good way for you to make a side investment into the cryptocurrency market. If digital assets are to flourish in the future, it’s likely that this will positively impact the value of this company.
However, there is no sure way of telling whether Coinbase stocks will be a successful investment choice for your portfolio. Therefore, we urge that you do independent research before risking your money.
Most importantly, you will also need to find a regulated broker to facilitate your Coinbase stock purchases.
eToro can be one of the best platforms you can pick for this purpose - as this site allows you to start investing in COIN shares from just $50 and without charging you any commission.
eToro - Best Place To Invest In Coinbase Stock
eToro have proven themselves trustworthy within the stock market over many years – we recommend you try them out.
Your capital is at risk. Other fees may apply
FAQs Investing in Coinbase Stock
What is Coinbase?
Coinbase is a cryptocurrency exchange with over 68 million users across the world. The platform generates money primarily from the fees charged when users trade digital assets.
How to invest in Coinbase stocks?
You can invest in Coinbase stocks via regulated brokers like eToro - which facilitates 0%-commission investments.
How much money do I need to invest in Coinbase Stocks?
You can determine your stake in Coinbase stocks by evaluating your financial standing and risk exposure. You will also have to take into consideration the minimum deposit requirement set by your broker - which is only $50 in the case of eToro.
Should I invest in Coinbase stocks?
If you believe in the future of cryptocurrencies, then Coinbase stocks might be of interest to you. However, you will still need to carefully study the future prospects of the company before making an investment decision.
How to sell Coinbase stocks?
You can buy and sell Coinbase stocks through a regulated broker like eToro.