Cryptocurrency has been made lawful by Coinbase. At least, many in the Bitcoin community hold that view and view the company’s IPO as evidence that digital assets have become accepted as legitimate investment options. Even though many investors don’t fully understand cryptocurrency, investors are enthusiastic about it. Regulators’ indecision regarding handling this product creates both risks and opportunities. Coinbase has become a viable option for investors in this industry. Before investing in cryptocurrencies or closely connected assets such as coinbase stock reddit, consult a financial counselor.

What Is Coinbase?

Coinbase is a controlled cryptocurrency exchange that allows customers to purchase and sell virtual money. It benefits both large financial organizations and individual investors and dealers.

Users have access to various services through its cryptocurrency exchange, including derivatives, credit cards, loan services, and the recently established NFT marketplace. Coinbase provides crypto custody for institutional customers, which includes large-scale crypto asset storage, security, and insurance – invest in coinbase stock reddit.

How to purchase Coinbase stock

Examine the potential of cryptocurrencies.

The distinctive feature of Coinbase stock is that the viability of your investment depends on how well-liked and active the cryptocurrency market is. Investors can access the cryptocurrency market through cryptocurrency stocks without actually purchasing cryptocurrencies.

When you invest in a business, you are expressing your belief in the enterprise while also expressing your expectation that demand for its goods and services will increase. As a result, if cryptocurrency loses its attractiveness and consumers stop exchanging on Coinbase, this could affect revenue. Exchanges like Coinbase are highly vulnerable to changes in demand.

Recognize the significance of Coinbase to the development of cryptocurrencies

The second thing to consider if you think cryptocurrencies have a future is whether Coinbase gets positioned to benefit from their growing popularity. Here, investors might conduct a fundamental analysis similar to any publicly traded company by examining the company’s revenue, profitability, user growth, competition, management, and a host of aspects.

Set your Coinbase investment amount.

Purchasing stock in any company also applies when investing in Coinbase: You should only invest money you can afford to lose because there is inherent risk. Additionally, refrain from funding any money you might need soon, preferably not for at least the next five years. Including this buffer will give you potentially recover from any short-term stock price declines.

Open a trading account.

You’ll need to open a brokerage account if you don’t already have one to purchase stocks like Coinbase. Additionally, brokerage accounts give you access to other investments like bonds, mutual funds, and exchange-traded funds; some brokers now even provide cryptocurrency trading services.

How Much Does Coinbase Stock Cost?

In the year 2012, Coinbase formally launched as a bitcoin exchange. The stock was accessible to private investors before its public offering and done through the NASDAQ private market. Everything changed when Coinbase went public through a direct listing in April 2021. It also made it possible for regular investors to purchase Coinbase stock.

After a choppy session, the price of Coinbase stock dropped from a high of about $425 to close out the first day of trading at just over $328. After receiving a $250 reference price from the NASDAQ at first, this was impressive.