Coinbase is one of the world’s highest volume crypto exchanges. They offer a wide variety of services and abilities to users of their platform and have been in the industry since 2012.
The San Francisco based company decided to go public with an IPO launch in April of 2021 at more than $328 per share which qualified it to be included in the S&P 500 Index. COIN is listed on the NASDAQ and is available through any brokerage that allows you to trade on it. In this guide we will give you our favorite places to buy COIN along with the benefits and drawbacks to owning stocks.
Why Should I Buy Crypto Stock?
There are a variety of potential benefits to owning/investing in stock much like there are for investing in cryptocurrencies. Long-term growth potential is often the biggest draw for many investors, as stocks typically tend to grow faster than the inflation rate. Investing in something with a fairly reliable return such as a traditional IRA (or RRSP in Canada) for retirement is one of the more common potential benefits to investing in stocks.
Dividends are another draw and can be thought of like staking rewards except they are based on the company’s performance rather than a guarantee for helping to secure the network. As with staking crypto assets, not every stock option pays dividends.
It’s also very easy to buy and sell stocks nowadays, making them a very liquid form of investment. The rise of investment apps has made it extremely simple to buy and sell a stock with a few clicks.
Our Favorite Platforms to Buy Coinbase Stock
There are a few different ways to go about buying Coinbase stock but these are a few of our favorite methods, that also happen to be companies that also some form of crypto exposure:
Wealthsimple
Wealthsimple was launched in late 2014, and the financial technology company is mainly focused on providing ways for users to easily access and manage investments via automated savings systems. While the company is based in Toronto, Canada, this platform is also available to citizens of the United States and the United Kingdom. Users are able to buy and sell stocks across a variety of exchanges in a personal or TFSA account and can also buy and sell supported digital assets in their crypto account.
Robinhood
Robinhood is an investment platform that allows users to enjoy commission-free trading from the comfort of their mobile devices. They are mainly focused on allowing their customers to invest in the traditional stock market but Robinhood also added a crypto section of their platform during the huge crypto asset bubble of 2017. Robinhood is only available to American citizens and you can also get a debit card for your account to spend your profits/holdings.
SoFi
SoFi stands for Social Finance. It’s a personal finance company based in San Francisco, and it was originally founded all the way back in 2011. SoFi provides a variety of financial services such as investing, banking, and personal loans, and are constantly adding new products to drive user adoption. They have had tremendous growth since the pandemic and now offer crypto in addition to traditional finance.
Cash App
Cash App started as nothing more than a way for users to send payments between each other, but it has grown into much more than that. Now Cash App is basically a full-service banking option, as users are able to get a debit card attached to their Cash App account, receive ACH transfers and direct deposits, and even invest in the traditional stock market while also being able to buy and sell Bitcoin.
Revolut
Revolut is a financial app that started out in the United Kingdom but has since expanded to all European Economic Area (EEA) countries along with the US, Canada, and Japan to name a few others. With Revolut you can spend in 150 different fiat currencies with no fees on international withdrawals. It is an FDIC insured company and offers savings vaults along with the ability to purchase stocks and crypto. They also offer disposable virtual cards for online spending.
How to Buy Coinbase Stock
Buying stock using the aforementioned platforms is a relatively easy process that generally goes something like this:
- Create an account on any platform that lets you trade on the NASDAQ, all of the ones listed on this page let you for example.
- Fund your account whichever way works best for you.
- Find COIN on the platform.
- Choose how much you want to buy and at what price, you can likely choose to buy at market price or set a limit you are willing to pay.
- Wait for your order to be filled.
- Done! Once your order is filled you then own COIN and can sell it when you please.
Downsides of Stocks
The downsides of stock investment are quite similar to the downsides of investing in crypto assets and tokens.
There is the general risk of investing in anything, as you can pick the wrong asset and lose money very easily. There is little risk of getting scammed as you might in crypto though, as with centralized finance you have little chance of getting a rug pull, if any.
Other Crypto-centric Stock Options
Want to invest in a stock that has crypto exposure but not enthralled with Coinbase?
There are actually a number of stocks that benefit heavily from positive moves in crypto. Here’s a small sample:
MicroStrategy (MSTR)
Famously headed by crypto bull Michael Saylor, MicroStrategy is an analytics and mobility software maker. They design, develop, market, and sell software platforms through licensing and cloud-based subscriptions. The company currently owns 121,044 Bitcoins.
Voyager Digital Limited (VOYG)
Company focused on providing a fully functional suite of APIs and mobile apps to let anyone buy, sell, trade, invest, or earn with their digital assets. The brokerage has its own crypto token called Voyager Token (VGX) which is used to reward users with higher interest rates, cashback offers and other exclusive services.
Hive Blockchain Technologies (HIVE)
Headquartered in Vancouver, Canada, HIVE is focused on bridging the traditional and blockchain sectors together. They use 100% green energy to mine both Bitcoin and Ethereum and aim to generate long-term value for shareholders by hodling. With operations in Canada, Sweden, and Iceland, HIVE is well-positioned to grow as blockchain becomes more widely adopted.
