A major cryptocurrency exchange has gone public. Now that it’s possible to buy Coinbase stock under the ticker symbol COIN, the question is how? Coinbase is the first pure-play cryptocurrency trading company to list on an American stock exchange making this a significant milestone for crypto markets.
Now that Coinbase, Inc. is publicly traded, you can buy and sell its shares on the stock market like any other public company. However, what makes this stock different from others is that its potential success is tied to both the popularity and trading volume of cryptocurrencies. Cryptocurrency investments allow investors to gain exposure to the cryptocurrency market, but without having to invest directly in cryptocurrency.
1. Research the future of cryptocurrency
Just like with any other stock, you need to know what you’re investing in. Read the economic reports and track the current price of Coinbase as well as the history. Just like any other stock you want to buy low and sell high. By using a cryptocurrency exchange platform you can let AI do the work for you. Even if you’ve decided crypto assets will be part of your investment portfolio, you need to specifically research Coinbase and determine whether it is one you want to specifically have.
2. Understand Coinbase’s role in the future of crypto
Ask yourself whether Coinbase is positioned to capitalize on cryptocurrency’s popularity. Not all currencies are equal! Perform a fundamental analysis standard for a public company. Study the revenue, earnings, user growth, competition, management, and dozens of other factors.
3. Decide How to Invest in Coinbase
Coinbase offers both its Coinbase app and its Coinbase Wallet separately. These apps let users store their own cryptocurrencies, explore decentralized applications, and perform transactions. However, Coinbase Wallet doesn’t charge any fees for transactions but instead covers its costs by charging fees to cover the transaction fees incurred by the main Coinbase app.
4. Decide how much to invest in Coinbase
Just as with any investment, there is always a risk. You should invest only an amount you can afford to lose. Furthermore, don’t invest any cash you might require in the near future, for example, for at least the next 5 years. If you build in this buffer, you’ll have time to potentially recover from a drop in the stock price.
5. Open a brokerage account
You’ll need to open a stock brokerage account to buy stocks like Coinbase. A brokerage account offers you access to other investments besides stocks, including mutual funds, bonds, and exchange-traded fund shares — and nowadays, some brokers even offer their own cryptocurrency trading services.
To open an account takes only a few minutes. Once the account is opened, you can then place your Coinbase order on their website or trading platform. To avoid making panic stock purchases with Coinbase it’s best to use an AI trading bot. Algorithms work 24/7 within the parameters you establish. Learn how EndoTech’s strategy filters through the noise to increase strategic trades.