Are you all set and ready to invest part of your money in stock market shares? Well, this article is going to guide you on how to buy coinbase stock in 2022. Now that Coinbase is traded publically as COIN on the Nasdaq stock exchange market, one can easily buy and sell its shares like any other public stock product.
Stock in simple terms refers to corporate equities, securities traded on a stock exchange. Once the company’s shares are listed on a stock exchange and trading in it commences, the price of these shares will fluctuate as investors and traders assess and reassess their intrinsic value.
Stock markets are public platforms or mediums in which individual and group investors come together to buy and sell shares. Purchasing of stock is an act of economic mechanism which means that the buyer or investor has ownership in a certain proportion of what a company or corporation owns and generates in profits.
Gone are those days when shares were denoted on a piece of paper as a certificate. If someone is willing to invest in a company’s shares, he would have to visit the office of a broker and make the transaction there, after which he would be given a share certificate. Today, everything is executed digitally, therefore, an investor only needs a few clicks from his computer to purchase shares from online platforms.
Values of stocks or shares are usually determined by traditional demand and supply in the market as buyers and sellers place orders. One important thing you need to know is that you cannot buy a share from a company whose share is privately owned and managed. A company needs to declare its assets public through IPO (Initial public offering) for others to be able to invest in their stocks.
Now that coinbase has decided to follow suit with other companies in declaring their assets public property, thereby giving everybody unlimited access to buying or selling their stock shares, we found it worthy of writing a bit to help anyone dreaming to buy, some guidelines on how to buy coinbase stock in 2022.
What is Coinbase?
Coinbase as you might have heard is an online crypto exchange platform or a marketplace where buying and selling of cryptocurrency assets like Bitcoin, Ethereum, and so on takes place. Coinbase possesses some amazing distinguishing features which differentiate it from some of its counterparts. One of these features is the consistent publication of real-time pricing information about the digital assets being traded.
Coinbase is one of the major and best crypto exchanges in the world. It is a platform that simplified the investment processes for aspiring investors. This is by the provision of a simple interface for buying and selling crypto assets to those wanting to invest in crypto with little to no professional trading knowledge.
Why Should I Buy Coinbase Stock?
Investing in Coinbase’s COIN can be a simple way for someone to participate indirectly in crypto dealings. The profits coinbase generates will rise with the rise in the crypto prices, judging that its revenue comes from the commissions and fees users pay as transaction fees on the Coinbase platform.
It was on April 14, 2021, that Coinbase launched its IPO (Initial Public Offering). It opened at relatively a hefty rate of about $381 per share (when compared to other companies’ shares). Coinbase charges fees for transactions done on its platform such as depositing funds and trading through which the company generates money.
The highest percentage of the coinbase’s revenue is believed to come from transaction fees from the trade of cryptocurrencies and other services like storage. The fact that the company is not reliant on a single cryptocurrency as its sole source of revenue makes it somewhat a good investment to give a shot.
Like any other investment, there exist some factors that are known to affect share prices. These may include governmental policies, crises in the global economy, regulatory bodies, natural disasters, and so many other financial factors. Investors’ beliefs about the future of a company may directly affect the value of its stock. Investors’ confidence in a company plays a significant role in raising the price of its stock, and anything contrary to that may result in a contrary outcome.
Advantages of Coinbase Over Other Stocks
Being the only crypto company to become the first to have declared its assets publicly on the stocks listing and which focus mainly on crypto, there is a high probability that group investors and individuals with huge net wealth would be attracted to invest their money in COIN Stock thanks to its anticipated distinguishing security over its competitors.
With the increasing popularity and the recent surge in crypto assets, many people would be willing to try this kind of economy but would at the same time like to get trustworthy platforms to conduct business with. The public listing of COIN stock together with the reputation of Coinbase will give the investors more peace of mind in trusting the company.
Where to buy Coinbase stock
You can buy Coinbase’s COIN on any brokerage firm that allows you to trade on one of the standard markets in the United States, NASDAQ (National Association of Securities Dealers Automated Quotation) in particular, with which most of the brokers operate. Such brokerage firms include Sofi Invest, Robinhood, Tradestation, JP Morgan, and so on. Coinbase has since launch been listed on NASDAQ and is traded like a stock on a symbol with COIN text inscribed on it.
How to buy coinbase stock
After making your final decision about giving coinbase stock a trial, you will then need to make a choice on the desired brokerage company you’ll like to work with. After finding the one that sits well with your mind, you therefore then need to follow the following general procedures below to buy Coinbase stock;
Pick a Brokerage
The foremost step to buy Coinbase stock – or any different stock is to pick a brokerage. You can only buy Coinbase stock when you pick a Financial Service company certified to vend shares.
As someone residing in the United States, there are a lot of available brokers willing to permit you to purchase your stocks through them. All you have to do is explore for the right bone.
You should still regard the commission freights, the Account types, or the vacuity of other requests.
Some brokerage now similarly have the option to deal with cryptocurrency means. Before you invest in Coinbase stock, this is the first thing you do.
The next step after picking a brokerage establishment is to decide the number of shares you want. To do this, take a look at the current trading price, the company’s value, and look out for any challenges.
Also, have a budget in mind before the market opens.
Friendly advice; do not invest further than you can go to lose.
Choose your Order Type
Once you decided how many shares you want to buy, the coming step in how to buy Coinbase stock is to choose an order type.
There are four types of orders.
Market Order: This is the utmost introductory type of trade. You purchase or vend a stock incontinently at the current price.
Limit Order Known as pending order, this is when you buy or vend at a certain price in the future. In substance, it sets a maximum or minimum price at which you’ll vendor buy.
Running Stop Orders; the price of the stocks you’re buying rises above a certain chance at the current request rate, also this order is executed.
Stop Orders: Stop orders are done when the price of the stocks you’re buying rises above a-set price.
Execute Your Trade
Once you’re done with these, your broker takes over and complete the forms on your behalf. This is why when learning how to buy your Coinbase stock, choose the right broker.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund the account.
- Research the stock. Find the stock by name or ticker symbol – COIN – and research it before deciding if it’s a good investment for you.
- Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
How to Buy Coinbase Stock on Robinhood
- Head over to Robinhood and create an account or sign in.
- Navigate to the stock’s detail page where you find helpful information like the stock’s history and performance.
- At the bottom of the page, tap on Trade and then Buy or just Buy, which will appear by default if you don’t currently own the stock.
- Enter the dollar amount you would like to purchase or click on Buy in shares.
- Review your order, confirm and submit.
How to Buy Coinbase Stock on Vanguard
To buy Coinbase stock on Vanguard;
- Log in to your Vanguard account
- Choose the option to trade ETF or Stocks
- Select account if you have more than one, and click buy.
- Search for ‘COIN’
- Enter the number of shares you’ll like to purchase and select an order type.
- Review the order summary on the Preview and Submit page. When satisfied, click on Submit Order.
Before deciding to throw your weight on COIN stock, you have to be very sure that you have done your homework very well and you have to also ensure that you understood everything you need to know about the stock and the company in question.
Anyone investing in coinbase’s COIN also needs to familiarize himself with the basic knowledge of cryptocurrency judging that the company’s revenue comes from fees accrued from charges on different crypto transactions conducted on the platform.
You should put at the back of your mind that investing in the stock market is rigorously a risky task, most especially on stock shares that are derivatives or dependent on cryptos.
One can lose more than 60% of what he has invested in a matter of a few days. Nevertheless, it can be seen as one of the most profitable and easiest ways to build up your net worth within a short period.