All you need to know about Coinbase stock | Why you should invest

All you need to know about Coinbase stock

/ 07:25 AM April 27, 2021

People can now invest in Coinbase stock along with their other cryptocurrencies. As a result, the internet is ablaze with investment tips and predictions for the crypto exchange. Some are looking ahead with better returns from bitcoin and other digital currencies. Others see much more for investors and cryptocurrency.

First, let’s go through the details of the Coinbase stock and its IPO. We’ll clear up some details the media often mistake about the publicly traded option. Then, we’ll talk about how this could affect crypto and its investors. If you haven’t gotten into buying Coinbase stock or cryptos in general, now’s a good time to start!

There have been many recent developments on crypto, such as Visa allowing it as a payment option. Besides this, most cryptocurrency news talk about potential price spikes or crashes. Coinbase stock may now be publicly traded, and it has broader effects on cryptocurrency. Nevertheless, it’s best to get into the crypto market as soon as possible.


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Coinbase isn’t an IPO.

Coinbase isn’t an IPO

If you’ve been buying cryptos, you may have been getting it using Coinbase. Now, you could purchase a bit of the platform too! You can now purchase shares from Coinbase.

On April 14, Coinbase Global Inc. became a public company. Although, we’ll only get an idea of its value once it gets new investments.

Fred Ehrsam and Brian Armstrong started the company in 2012. Ehrsam left it in 2017 while Armstrong remained as the cryptocurrency exchange’s CEO.

On the first day of trading, Coinbase stock sold for $291.8 million in total. Armstrong sold 749,999 shares or around 1.5% of his stake.

Many media outlets call the trading platform’s stock an IPO. After all, we often hear of new companies releasing an initial public offering.

More accurately, Coinbase posted a direct listing. If you’re planning to invest, you should know how it’s different from an IPO.


Difference of IPO vs. direct listing

Difference of IPO vs. direct listing

Private companies often enter the public market via IPOs. However, the crypto trading platform decided to get a direct listing. This move may help Coinbase get more investors.

If you already invest in cryptos, you know that investments involve risks. You’ll have to weigh the perks and quirks of Coinbase stock before buying.

IPOs involve issuing new shares, while direct listings involve existing claims. This is why the first round of Coinbase stock came from its CEO.

An initial public offering often takes a lot of time and money. A direct listing could help a company avoid these hassles. Also, it allows existing shareholders to sell their shares.

IPOs help companies get capital by selling new shares. Direct listings don’t help get more funding, so companies need to get it through other means.

Underwriters help sell stocks for a business that’s going public via IPO. They charge enormous fees, though. Direct listings don’t get aid from underwriters, so they avoid those costs.

Those fewer costs come with higher volatility, though. A direct listing’s stock price depends on the market. Then, Coinbase stock could be affected by the sudden crypto price changes!

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Possible effects of Coinbase stock

Possible effects of Coinbase stock

Investors have a lot of great opportunities ahead of them. Wall Street analyst Gil Luria of DA Davidson said cryptocurrencies might expect an “Amazon moment” with Coinbase stock.

The value of Bitcoin and Ethereum has been rising. Their trading volumes smash records as more people buy and sell cryptos.

When companies go public, more people notice them. This means more folks are buying crypto coins. If you have some, hold on as their prices may go to the Moon and beyond!

Acceptance for cryptos grows as more companies use it. For example, Visa is now one of the first credit cards that accept USD Coin (USDC).

What’s more, more retailers now accept bitcoin as a payment method. This means you could buy more stuff with bitcoin, from food to gold.

Ever thought about earning cryptos in your job? The members of the NBA Team Sacramento Kings could receive their pay in cryptos.

In response to Coinbase stock, the United States government would pay more attention to cryptocurrencies. They might make more rules for these digital assets.

Governments see the worth of bitcoin, but they also worry about how it could go wrong. In the long-term, we may see tighter laws for cryptocurrencies.

Still, Coinbase and its coins will keep on growing. As more people use bitcoin, their prices will continue to rise. Buy as early as you can, so you can benefit sooner!

Related Article: What Can You Buy with Bitcoin?

Should you buy Coinbase stock?

Should you buy Coinbase stock?

It’s an excellent time to purchase fresh stocks from the crypto exchange. More people around the world will be using digital currencies. This lets you earn lots of money from this crypto boom.

You’ll find lots of experts making their best stock price targets. For instance, there’s more news on the NASDAQ website about Coinbase stock. You might have seen it on social media too.

Buying Coinbase stock is a “mainstream way” of investing in cryptos. Stock trading is more than ten years old, so more people understand how it works.

Although, it might be best to keep Coinbase stock for long-term gains. Direct listings and cryptos change prices often, and the company deals with both.

What’s more, stocks often give slow and steady returns. Keep your digital coins handy for short-term earnings. You could try day trading them to make money faster.

Stocks have a lot in common with cryptos. For instance, you’ll also have to pay transaction fees. Still, it would help if you learned the other stuff like taxes on stocks.

Final Thoughts

There is more media coverage of Coinbase stock lately. Many people see how much this could spread cryptos into the mainstream. There’s no better time to invest than now!

It shouldn’t be your only investment, though. Besides bitcoin and Coinbase stock, you may want to purchase index funds like the S&P 500.

What’s more, you could add other crypto coins to your portfolio. You may want to check out Litecoin, Ethereum, Dogecoin, and more altcoins.

Why not try another way of earning from cryptos? Set up a crypto mining rig, and it will fetch more coins for you! Though, you’ll need a bit of extra cash for a decent computer.

Learn more about Coinbase stock

Is Coinbase publicly traded?

On April 14, Coinbase Global Inc. released its public listing. People can now buy Coinbase stock along with other crypto coins.

Can I buy Coinbase IPO?

Contrary to popular belief, Coinbase didn’t release an IPO. It got a public listing instead. Still, you could buy Coinbase stock nowadays.

What is the Coinbase stock symbol?

You could find it under the ticker symbol “COIN.” On the first day of trading, it sold 749,999 shares that cost a total of around $298 million.

Is Coinbase a buy?

It’s best to purchase Coinbase stock as soon as you can. It’s because trends are looking great for the crypto industry. Check for yourself if it’s the right fit for your portfolio.

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TAGS: coinbase, interesting topics, US Markets, US Stocks
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