Coinbase exchange, an American-based platform launched in 2012, ranks as one of the largest crypto exchanges today based on trading volumes and liquidity levels. The ecosystem opens up a hub for users to buy, sell, and trade with multiple cryptocurrencies such as Bitcoin, Ethereum, Dash, and many more.
At the beginning of April 2021, Coinbase announced that the Securities and Exchange Commission approved its request to list a common stock. This mission was finally accomplished on April 14, as Coinbase finally went mainstream on the Nasdaq stock exchange under the COIN ticker.
The Coinbase IPO Model
Initial Public Offerings pose as fundraising events for companies that seek to serve the public market by selling off their shares of stock. Additionally, hosting an IPO aims to advertise a company to the public and build a trustful environment with regulatory bodies.
In this case, Coinbase took the initiative of undergoing a direct listing procedure where a company does not need to pay for any promotional charges or endure any costly fee.
Furthermore, leveraging a direct listing will eliminate investment banks from formulating the price of the stock’s IPO. The new IPO model by Coinbase ensures entities put more emphasis on growing beyond their current levels.
Coinbase Stocks Comes Closer to You
Initially, Coinbase stock was only accessible to private investors on Nasdaq’s private market. Following its release into the public market, the stock price was set at $250. However, the company did not make any trade when stocks stood at that value.
The COIN stock asset began trading at $381 on Nasdaq’s market and shot up to $429 within minutes of its first trade. As of this article’s writing, COIN stock is trading at $311.20.
Coinbase CEO, Brian Armstrong, expressed his gratitude stating that the listing will fulfil the exchange’s mission of accelerating economic liberation. He also added that the direct listing hopes to provide better access to financial services.
Interestingly, COIN is already experiencing massive buyers like ARK Invest’s CEO Catherine Wood, who obtained COIN stocks worth $250 million. The move by Coinbase to go public will ultimately encourage the global adoption of digital assets as more crypto brokers intend to join the mainstream arena.
How to Buy Coinbase COIN Stock
Select a Broker
Brokers pose as financial companies that facilitate the buying and selling of stock shares. Before purchasing shares of stock, users are required to select an appropriate brokerage company and open an account with the selected entity.
However, It is essential to make several considerations before choosing a brokerage company. Investors should be on the lookout for the platform’s trading fees as most brokerage companies require a certain amount of payment to buy and sell stocks.
Investors can research the trading platform that brokers are offering. By investigating, a user is guaranteed that he/she will operate with a simple and effective platform to purchase the COIN stock.
After that, traders can open an account with the brokerage service of their choice. A new account necessitates users to hand over their personal information, fill an application form, and integrate a bank account funded with the COIN stock.
Estimate the Amount of Shares to Buy
Usually, the stock asset prices descend even after they first launch into the market. It is, therefore, important for investors to purchase the COIN stock according to the price they can afford. This decision will eradicate any financial losses that traders may encounter once the COIN stock prices dip.
Evaluate the Type of Order
Selecting a particular order will impact the number of funds a trader will use to buy the COIN stock. Market buy order is one approach traders can take as it involves describing the number of shares they would like to obtain. After specifying, the brokerage platform will acquire the indicated shares at the lowest price available.
Alternatively, traders can also decide to use limit orders which involves pointing out the number of shares they would like to buy within a certain price bracket. Limit orders assure traders that they will pay for the COIN stock at the exact price or lower than the stipulated price.
If the shares of stocks exceed the indicated maximum price, brokers will not proceed with the investor’s order. Once everything is in place, brokers can now start handling the COIN stock purchase request from investors.
Examples of Brokerage Platforms
Below are a few brokerage firms users can leverage to purchase the COIN stock.
RobinHood is a financial trading application that allows users to trade digital currencies, stocks, and exchange-traded funds. The application is well-known for implementing a commission-free ecosystem for selling any type of stock.
Getting started is also easy since users do not need to pay for a brokerage account. However, a regulatory minimum of $2,000 is required to create a margin account as stipulated by the Financial Industry Regulatory Authority.
A share of stock may have a high price that an ordinary retail trader might not meet. RobinHood mitigates this issue by employing the concept of fractional shares. This concept enables traders to buy a fraction of a stock for as little as $1 even when the stock asset costs way more than a dollar.
Webull operates as a broker-dealer company regulated and registered by the SEC. Here, traders can select and trade from more than 5,000 stocks at a commission-free rate.
The platform offers traders extended and flexible trading durations ranging from 4:00 AM to 9:30 AM ET for pre-markets and after-hour periods starting from 4:00 PM to 8:00 PM ET.
Opening an account on Webull is quite simple since users only require their mobile number or email address. In the next step, a user must fill in a verification code and finish off with an application form requesting identification details.
COIN stock is yet to experience a rapid price momentum as the frenzy of Coinbase exchange going mainstream continues. Moving forward, Binance plans to feature COIN stock on its platform and allow traders to invest a fraction of the stock asset.
This milestone hopes to propel Coinbase to a higher level by facilitating access to stock shares and digital currencies.