Buy Coinbase (COIN) shares
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This guide includes a history of Coinbase and its recent performance to help you decide whether to invest. Find out how to get your own shares as well as the best brokers to use to do so.
Where can I buy Coinbase stock?
If you already know everything about Coinbase, sign up to one of the brokers below to get started. They have been approved by our team of financial experts and you can use our reviews to help pick which one works best for your investing strategy. Otherwise, keep reading to learn more about Coinbase.
How to buy Coinbase stock, a step-by-step guide
It is easy to buy shares in Coinbase. We have broken down the process into easy-to-follow steps for your convenience below. Read through and find out everything you need to know before you invest in COIN.
Choose a broker and create an account
The easiest way to invest in a publicly traded company is by signing up to an online broker. When searching for the best broker, focus on the platform’s reputation, fee structure, and customer support. You should also consider your needs; for example, some brokers are better for long-term investors, while others are best for short-term traders.
Once you have chosen the platform you want to use, create an account by providing some personal details, such as your name and some contact details. You may also need to provide a copy of your photo ID. Then, deposit money into your new account; most brokers accept bank transfers, and some even support PayPal.
Decide how much to invest
You should have a clear budget in mind, and this will help you stay on the right track and avoid spending beyond your means. You should also consider how many shares you can get for your money – for instance, £1000 may only get you 2 shares from one company, but 100 from another.
Furthermore, you also need to consider how risky an investment is. The riskier the stock, the smaller portion of your budget you should invest in it. Coinbase has established itself as one of the leading companies in the crypto industry, but it is also worth noting that cryptocurrency faces the risk of potentially damaging regulation.
Research Coinbase and its potential
You can’t expect an investment to be successful unless you do your research. So, take your time to review a company’s latest financial documents, looking at things like its revenue numbers and profit and loss statements. You should compare Coinbase to competitors in its industry, and the latest analysis from leading experts can further inform your knowledge of COIN’s potential.
Coinbase’s potential comes from the sector it occupies, with many commentators feeling both cryptocurrency and blockchain technology are set for major strides over the next decade. You need to weigh up whether these growth prospects appeal to you or whether you’d rather invest in a more stable company that has performed well for a longer period of time.
Place an order for COIN stock
Go to the search tab of your chosen broker’s interface and type in the stock’s ticker symbol, COIN. You will then be able to see the stock along with a candlestick chart of its price performance in any given interval. Depending on the exchange a company trades on, you may be unable to access it from the country you reside in. However, since Coinbase is listed on the NASDAQ, it is almost universally available.
Execute your order
Type in the number of shares you want to purchase, check you are happy with the price and incurred fees, then execute your transaction. You should own shares in Coinbase almost instantly, though this can vary depending on the type of order you opt for. You can then look at your portfolio to keep track of open orders and the shares you already own.
Review your investment regularly
Now you have invested capital into Coinbase shares, it is important to keep track of their performance. That way, you can spot the right time to sell them and the opportune moment to purchase more. You can also consider creating things like a stop-loss order, which is effectively a safety net that automatically sells your shares to minimise losses once the price drops to a certain point.
What is Coinbase? And should I invest?
Coinbase is the largest cryptocurrency exchange in the United States and one of the most popular in the world. Formed in 2012, it’s ridden the blockchain boom all the way to a valuation of more than $100bn. It was listed on the NASDAQ stock exchange in 2021.
It’s the first cryptocurrency exchange to list on the stock market. Cryptocurrency is already a huge industry, with Bitcoin alone accounting for $50bn worth of trading volume every day. Trading on Coinbase makes up about 10% of the total market and the exchange makes its money from transaction fees paid on every trade.
Investing in the early stages of a listing can be more risky. That said, Coinbase might be appealing if you’re interested in cryptocurrency in general, or looking for a way to diversify into new industries. The main competition comes from Binance, which is the largest exchange in the world but has no plans to go public itself just yet.
How has the company performed in recent years?
Very well, which led to the decision to go public in 2021. The exchange has been growing rapidly over the past few years, expanding its user base from 1m in 2014 to more than 40m in 2021. In that time more than $433bn worth of cryptocurrency has been traded on Coinbase.
2020 was the company’s most profitable year so far, as Coinbase registered profits of $300m from more than 30m customers. This is notable, not just for being a lot of money but because many tech start-ups, from Uber and Lyft to Netflix and Airbnb, had never recorded profits ahead of listing on the stock exchange.
Its strong financial performance has led to a steady increase in valuation. In 2018, independent analysis valued Coinbase at $8bn. By late 2020 it was $28bn. Heading into its IPO, it was valued at over $100bn.
Is it a good time to buy Coinbase shares now?
It depends on your confidence in cryptocurrency and how much risk you want to take on. Coinbase’s rise is on the back of demand that sent most coins to all-time price highs in 2020 or 2021. Cryptocurrency is volatile, and new stock market listings tend to be as well, so you have to be willing to accept the possibility that your investment might experience dramatic short term swings.
If you’re taking a more long term view, remember that Coinbase’s business model relies on lots of cryptocurrency trading. There have been times in the past where interest in coins like Bitcoin have plummeted, leading to bear markets (known on the inside as ‘crypto winters’) that lasted for a long time.
Despite that risk, being the first to hit the stock market is likely to solidify Coinbase’s place as one of the most popular exchanges. It’s well placed to take advantage if demand continues to grow, and the best thing to do if you are planning to invest is to keep tabs on the state of the crypto market as a whole. You can use our latest Coinbase news articles to help you:
Latest Coinbase news
Should you buy Coinbase stock on post earnings weakness?
BlackRock to offer crypto to institutional clients via Coinbase
Coinbase stock opened 30% up on Thursday: explained here
Coinbase shares are up 15% on Monday: explore why
Coinbase is cutting 18% of its workforce: ‘it’s a one-time event’
Coinbase Q1 results: ‘we’re encouraged by several key developments’
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