How to Buy Coinbase Stock (COIN)
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Coinbase is a major U.S.-based cryptocurrency exchange, a platform where crypto assets may be traded.
Coinbase stock gives investors exposure to the cryptocurrency market without directly investing in cryptocurrency.
Coinbase shares may be bought and sold on the Nasdaq exchange under the ticker symbol COIN.
In 2021, the U.S. cryptocurrency exchange Coinbase went public, with its shares opening at $381 on the Nasdaq stock exchange under ticker symbol COIN. This marked a milestone in the world of cryptocurrencies, as Coinbase is the first pure-play crypto trading company to list on a U.S. exchange.
COIN's share price has trended lower since its IPO, and cryptocurrency itself has been battered as of lately. But Coinbase still stands out among cryptocurrency exchanges.
» Confused? Learn more about cryptocurrencies
How to buy Coinbase stock
You can buy Coinbase stock through a brokerage account. You'll need to add money to the account and then search for Coinbase stock within the brokerage's platform using the symbol "COIN." You cannot buy Coinbase stock directly from Coinbase the company.
Here's the simple way to buy Coinbase stock:
1. Open a brokerage account.
2. Search for Coinbase stock within your brokerage account's platform.
3. Decide how much you want to buy, in dollars or shares.
4. Hit "buy."
» Check out the best brokerage accounts for stock trading
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If you’re considering adding Coinbase to your portfolio, you may want to think about your purchase carefully. There are a lot of factors that go into buying a stock, and it's good to go in having done a little research. Here's the longer version of how to buy Coinbase stock.
Key Terms:
Blockchain: A tamper-resistant record of crypto transactions. It keeps track of who owns what digital assets, and when crypto is bought and sold.
Coins or tokens: Units of cryptocurrency.
Cryptocurrency: A class of digital assets that circulate without a central monetary authority like a bank.
Cryptocurrency exchange: A platform where cryptocurrencies may be traded.
Crypto wallet: Stores digital assets.
Pure-play company: Publicly traded company focused on a single line of business (or industry).
Below, learn how to buy Coinbase stock.
1. Research the future of cryptocurrency
What's unique about Coinbase stock is that your investment’s potential success is tied to the popularity and trading volume of cryptocurrencies. Cryptocurrency stocks give investors a way to get exposure to the cryptocurrency market without directly investing in cryptocurrency.
When you invest in a company, it’s a vote of confidence in the company itself, but it also shows you expect demand for its product or service to rise, too. Do you believe there’s a future for cryptocurrencies, like Bitcoin, Ethereum and the dozens of altcoins available to trade on Coinbase? Do you believe cryptocurrency is the “future of money” that could usher in an “open financial system around the world,” as Coinbase states on its website?
Or, is this all just a fad? An exchange like Coinbase is highly susceptible to changes in demand, and if crypto loses its appeal and users stop exchanging on Coinbase, this could impact revenue.
Just as you would want a thorough understanding of the renewable energy market before investing in a renewable energy company, you’ll want to fully wrap your head around cryptocurrencies before investing in a pure-play crypto company.
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Fees $0 per online equity trade | Fees $0 per trade | Fees $0 per trade |
Account minimum $0 | Account minimum $0 | Account minimum $0 |
Promotion None no promotion available at this time | Promotion None no promotion available at this time | Promotion Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money. |
2. Understand Coinbase’s role in the future of crypto
If you believe there’s a future for cryptocurrencies, the next question to ask yourself is whether Coinbase is positioned to capitalize on cryptocurrency’s popularity. This is where investors might perform an analysis: studying the company’s revenue, earnings, user growth, competition, management and dozens of other factors.
But investing in Coinbase comes with a Catch-22: If you fully believe in cryptocurrency — that is, believe in the applications and value of a decentralized public ledger — then do you have confidence in Coinbase, which is itself a centralized company?
In addition to the Coinbase app, the company does offer its Coinbase Wallet separately, which lets users store their own cryptocurrencies and explore decentralized applications.
» Learn more: How to buy bitcoin
3. Decide how much to invest in Coinbase
When it comes to actually investing in Coinbase, the same rules apply for buying equity in any company. There’s inherent risk, and you should invest only an amount you can afford to lose. Moreover, don’t invest any cash you might need in the near future, say for at least the next five years. Building in this buffer will give you time to potentially recover from any near-term drops in the stock price.
Lastly, if you’ve yet to start a long-term, index fund-based investment plan, it’s a good general rule of thumb to fund one before diving into the stock of a company that has recently gone public — or any individual stock, for that matter.
4. Open a brokerage account
If you don't already have an investment account, you'll need to open a brokerage account to buy stocks like Coinbase. Brokerage accounts also offer you access to other investments, like mutual funds, bonds and exchange-traded funds — and these days, some brokers even offer cryptocurrency trading themselves.
The process to open an account takes only a few minutes, and once the account is funded, you can place your Coinbase order on the broker's website or trading platform. For more about the process, including details about the various order options, read our full guide to how to buy stocks.
Next Steps:
Author Chris Davis owned Bitcoin and Ethereum at the time of publication.
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