Buy Coinbase Stock or Not? Our future forecast 2022!

Christina Clarke
October 5, 2021
Coinbase itself announced the direct listing of Class A common shares in a blog post. The securities regulator has now reviewed and completed the registration declaration. After the IPO, investors are now asking themselves: buy Coinbase stock or not?
Buy Coinbase Stock or Not? Our future forecast 2021!

It was speculated for a long time; now it is official: The Coinbase trading platform is going public. The IPO will take place on April 14th, 2021, on the US stock exchange Nasdaq. Coinbase itself announced the direct listing of Class A common shares in a blog post. The securities regulator has now reviewed and completed the registration declaration. After the IPO, investors are now asking themselves: buy Coinbase stock or not?

Table of Contents

What should you look out for when buying Coinbase stock?

You should pay attention to the following points when buying Coinbase shares:

 Why should you invest in Coinbase stocks? Coinbase is a crypto exchange with more than 40 million active users, is one of the best-known and most popular trading platforms for cryptocurrencies. The company was founded in 2012 and has developed rapidly to this day. In addition, Coinbase has the backing of numerous investors.

 Where can you buy Coinbase shares? Coinbase shares can be bought through all common brokers on the Nasdaq. Most likely, the share will also be tradable with our test winner, ETFinance. In our opinion, ETFinance is the absolute best stock broker, as you can buy stocks and ETFs here completely free of charge.

 What can the future of Coinbase stocks look like? Analysts and experts estimate that after the IPO of Coinbase, the prices will rise even further. Cryptocurrencies are becoming more and more popular, and accordingly, more and more crypto exchanges are being used. Therefore, a worthwhile, long-term investment with high returns is not entirely unlikely.

 The IPO of Coinbase will take place on 04.14.2021 instead, as it is from official sources. As a result, investors now naturally ask themselves the following questions: When exactly can you buy Coinbase shares? How can you invest in Coinbase? What is Coinbase? What are the forecasts? And where can you buy Coinbase shares after the IPO?

 The best brokers for buying Coinbase stocks:

Rating

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Min. Spread

Assets

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4.9/5
250
0.07
  • Commodities
  • Forex 40 +
  • Metals
  • Stocks
  • Indices
  • Cryptocurrencies
85
2
4.5/5
250
0.07
  • Metals
  • Forex
  • Indices
  • Cryptocurrencies
  • Commodities
  • Stocks

 

254
82
3
58
4.9/5
250
0.07
  • Forex 40+
  • Metals
  • Commodities
  • Stocks
  • Indices
  • Cryptocurrencies

 

480
80
3
50
Buy Coinbase stock in 4 steps

Step 1: Select a broker for Coinbase shares

After the IPO on April 14th, 2021, you can buy Coinbase shares. The registration declaration was submitted in December 2020, and the examination has been completed. Due to its popularity and rapid growth, numerous brokers will offer the stock directly at the stock market launch. 

When choosing the right broker, it is advisable to pay particular attention to deposit insurance. If the broker files for bankruptcy, your deposits and shares are retained thanks to deposit protection. For example, our test winner, ETFinance, offers state-guaranteed deposit protection of up to 20,000 euros and 0% commission when buying shares. Thus, not only is the capital protected but shares can also be traded cheaply.

Registration is usually straightforward and simple. You can start trading after just a few minutes. If you do not want to use equity yet and deal with the broker first, you can also use the demo account.

Before doing this, it is, of course, worthwhile to calmly evaluate the company because when investing, you should always analyze exactly where you are investing very hard-earned money. Then, after the decision, you can place a buy order with most exchanges within a few clicks.

If you want to learn about Coinbase in advance, you should read our detailed test report on the crypto exchange here.

Stock selection and valuation can be very complicated. If you want it to be easier, we recommend a social trading platform. Here you just follow an experienced trader and automatically copy that trader’s trading decisions.

Our broker recommendation at this point is ETFinance. At ETFinance, valid EU regulation meets fair prices and a sophisticated platform.

etfinance

Step 2: Registration

Once you’ve decided on a broker, the next step is to register and log in.

At ETFinance, you have several registration options. In addition to the option of creating a user account yourself, there is also the option of registering via a Facebook or Google account, which once again simplifies the process considerably.

 To open an account, all you need in the first step is a  username, email address and a  strong password. With this, you first open a  demo account with ETFinance, whereby you can trade unlimited with virtual credit.

 However, if you want to buy Coinbase shares in the future, you can switch to live mode or simply make a deposit. A valid ID is required for verification.

 Step 3: Deposit

After registering, you have to decide how much money you want to invest in stocks. We generally recommend never investing more than 5% of your capital in a single share. So possible losses are manageable.

However, how much you want to invest in the Coinbase share is entirely up to the trader. The minimum deposit amount at ETFinance is 250 EUR. If you can then decide on a certain amount, you have to add the desired capital to your customer account. To do this, simply click the Add Money button

ETFinance offers various payment options with which you can deposit money into the customer account. The most popular payment options are PayPal, credit card or bank transfer. It should be noted that a bank transfer usually takes 2-3 working days for the credit to reach the customer account. However, if you want to have your money in your account faster, other payment methods are available.

Below is an overview of all payment methods available on ETFinance (after Coinbase’s IPO):

Payment optionPossible?
Buy Coinbase shares with a credit card✔️
Buy Coinbase shares with PayPal✔️
Buy Coinbase shares with Skrill✔️
Buy Coinbase shares with bank transfer✔️
Buy Coinbase shares with Neteller✔️
Buy Coinbase shares with UnionPay✔️

Step 4: Buy Coinbase shares.

After the deposit, the money appears in the account under the menu item “Account”. Now you just have to search for the Coinbase share using the search bar and then select it. Then click on Trade.

A small window will open to set the price and the number of shares you want to buy. In addition, stop-loss and take-profit can be set, i.e. at which price the share should be sold again in the event of a profit or loss. The two fields are optional.

With the Leverage field, you can control whether you want to buy the real share (x1 leverage) or a CFD (x2 or more leverage).

With a final click on ” Place order “, the purchase is completed, and the share appears in the portfolio. Congratulations!

What is Coinbase?

Coinbase is one of the oldest platforms among the crypto exchanges. Already in 2012, the company of Brian Armstrong and Fred Ehrsam was founded. The company is based in San Francisco and is funded by many well-known American venture capitalists.

Investors also include the New York Stock Exchange (NYSE) and numerous other banks. By 2017 it had already received more than  USD 117 million in capital from investors.

Coinbase is now available in over 30 countries, including South Africa.

  • In addition to the normal Coinbase platform, which is aimed more at beginners, Coinbase users also get access to Coinbase Pro.
  • The trading platform Coinbase Pro is a professional trading platform from Coinbase, which is aimed more at more experienced traders. In return, the fees on Coinbase Pro are lower than on Coinbase.

Buy Coinbase Stock or Not? Our future forecast 2021!

The story behind Coinbase

Coinbase was founded in June 2012 by Brian Armstrong and Fred Ehream. Both still work for the company. In addition, many large companies have also invested in Coinbase.

These include BBVA, SVAngel, IDG Ventures, USV and many more. The company is headquartered in San Francisco, United States.

It is a licensed and monitored exchange for trading cryptocurrencies.

The trading platform offers a variety of cryptocurrencies to buy and sell. Fiat currencies are only used to purchase various coins, and of course, you can also have the money paid out back to your bank account at the end.

New business figures disclosed

With the initial listing and the necessary forms to the US regulatory authorities, Coinbase has also published new interesting figures. In 2020, the company had sales of 1.3 billion US dollars, more than doubling the value of 2019. The company also made a profit of $ 332 million for the first time in 2020. This million-dollar profit is impressive, especially when considering that almost a quarter of the turnover remains as profit. On the other hand, in 2019, a loss of 30 million US dollars was posted.

Equally impressive is that Coinbase already managed over USD 90 billion in crypto in early 2021, compared to just USD 7 billion in 2019.

Coinbase is benefiting enormously from the current crypto boom and the great interest in cryptocurrencies in general because, as a broker, you can earn money with every transaction of your customers. In addition, the enormous profits made it possible for Coinbase to reward founder Brian Armstrong with almost $ 60 million in 2020 in the form of crypto tokens and options.

The way to the stock exchange

As early as December 2020, Coinbase submitted a registration declaration with the US Securities and Exchange Commission ( SEC ) to dare go public. The securities regulator has now completed its review. However, unlike many other companies, Coinbase will not be offering any new shares.

On April 14th, 2021, the company will bring existing shares (e.g. founder shares, employee shares or investor shares ) to the stock exchange and release them for trading.

You no longer need capital – so Coinbase is doing everything to aim for a stable price. This is, of course, a great advantage for the owners of the shares, but investors also benefit from a stable share with a good growth rate.

Buying Coinbase stock: is it worth buying after the IPO?

What are the advantages of buying?

The IPO of the crypto exchange on April 14th, 2021, is eagerly awaited. The SEC’s review has been completed, and the IPO has been cleared.

Coinbase was last valued at around $ 8 billion in 2018. Current estimates (as of April 2021) assume a market value of 70 to 100 billion US dollars.

In addition, in addition to the active users, there are now allegedly over 43 million registered users on the platform. So there are more than $ 90 billion in assets on Coinbase. So the platform is one of the oldest crypto platforms and one of the most popular.

In addition, it would be a real premiere if a crypto exchange made the leap to the stock exchange and became part of the public capital market.

What speaks against it?

Coinbase is relatively dependent on the rate of the cryptocurrencies, which of course, also means that if the crypto boom were to come to an end and the ratings of Bitcoin & Co. would crash, Coinbase would also be affected. As an up-and-coming company with a strong focus on crypto, the company is riskier than companies from completely different industries.

 In addition, it is also not yet known whether the shares can be bought immediately after the IPO, as a direct listing will first be carried out with existing shareholders. 

How many shares will be distributed to private investors remains to be seen? 

 However, we are sure that ETFinance will also be very interested in offering the Coinbase share and that it will be available to buy there quickly.

 Investing in Coinbase stock – Is it worth it?

  • One of the oldest crypto exchanges
  • Application submitted for IPO in December
  • $ 1.3 billion in revenue & $ 332 million in profit (2020)
  • Meanwhile, more than 43 million registered users
  • Numerous investors are behind Coinbase
  • Depending on Krypto performance
  • No new shares

Buy Coinbase Stock or Not? Our future forecast 2021!

Estimated Fees When Purchasing Coinbase Shares

We compare the fees of the largest brokers with the following example:

  • Purchase of Coinbase shares worth € 1,000
  • Hold the Coinbase share for one month and then sell
  • No course changes in the 30 days

With these assumptions we now compare the fees of Comdirect , ETFinance & Libertex :

ProvidersComdirectETFinanceLibertex
Depositfor freeFor freefor free
Purchase fees3.90 €free0.22%
Holding feesfor freefreefor free
Sales charges3.90 €Spreads0.22%
Total fees€ 7.80Reasonable€ 4.40
Conclusion: Is Coinbase a good investment?

The tension is great: The IPO of Coinbase is imminent, and accordingly, one naturally asks the question: Buy Coinbase shares or not?

Since Coinbase goes public via direct listing, this means that initially, only the existing shareholders will own the shares of the crypto exchange. So how many shares you can buy as a private investor is still a big question. However, new shares will not be issued as Coinbase relies on a stable price rather than a capital grant.

In the end, of course, every investor has to decide whether the hope of a rosy future for the company justifies an investment.

As soon as possible, we recommend buying Coinbase shares through our test winner broker ETFinance, because ETFinance pays 0% commission when buying shares.

Buy Coinbase Stock or Not? Our future forecast 2021!

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FAQs

According to experts and analysts, the forecasts for a Coinbase share would look very good. As soon as Coinbase goes public, we assume that the price will remain stable.

The IPO will take place on April 14th, 2021.

The Coinbase share will be available for sale on NASDAQ

We generally recommend not investing more than 5% of the capital in a share. How much you invest in a particular stock is ultimately up to the investor. There is always a risk!

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