Coinbase IPO has been echoing in the press in recent months. As a platform for crypto As a trading leader, the news was not going to leave investors indifferent, especially given the recent boom in the crypto graphics sector.
It's finally done: on April 14, 2021, Coinbase goes public. It remains to be seen: should we buy Coinbase shares? If so, is it the right time or should we wait? Answers in this article.
Why should you buy Coinbase stock?
There are multiple factors that prove that buying shares in this company is both attractive and promising in the long run. Here are the main arguments.
1 – Bitcoin hits highs at Coinbase IPO
The timing of a IPO may or may not contribute significantly to its success. And when the American group Coinbase goes public, everything seems to indicate that the time is extremely opportune!
Indeed, on April 13, 2021 – the day before the IPO of the company – Bitcoin exceeds $ 62,000 (around € 52,000), a record high never reached historically. Thus, Coinbase action can be carried upwards but also sustained in large numbers, thanks to Bitcoin prices which made noise in the media.
2 – Coinbase Share is listed on the Nasdaq index
Coinbase is now entering a stock index, and not least: the NASDAQ. A guarantee of credibility but also of profitability, since this investment option is inexpensive. Moreover, this does not require the support of investment banks.
This NASDAQ entry is also accompanied by a total of 100 million shares. You will find it on the trading platforms in the NASAQ, with the ticker CORNER.
Even before having a certainty on the Coinbase share price, experts already envision that the company will have a valuation of $ 100 billion on its IPO.
3 – Coinbase, big winner of the explosion of the crypto market
Cryptocurrencies have been gaining traction in the economy and society in recent months. Beyond traders, even the general public is now paying more attention to digital assets that are democratizing. Indeed, more and more of them are accepted as payment method full-fledged, and this is just the beginning of this burgeoning practice.
This real crypto boom has fueled the development of Coinbase well. After all, more and more people want to take advantage of this crypto explosion, which has been widely reported in the press.
To take advantage of this, you can already open a trading account with eToro. This broker offers you its 0% commission actions.
Coinbase: an exceptional turnover
The numbers speak for themselves. Coinbase recently announced its last profits for the first quarter of 2021, and everything suggests that this company is more than profitable and promising.
Indeed, its customers have increased by more 43 million, from 13 million to 56 million currently. Sales are they multiplied by almost 10 in the space of 10 months, thus reaching $ 1.8 billion in the first quarter of 2021. So, everything indicates that Coinbase is an extremely lucrative company, and its stock could be as well.
Investing in post-IPO Coinbase stock, what risk (s)?
Remember, however, the risks of buying shares. Because indeed, there always is, and in the case of Coinbase we must take into account the very nature volatile of its sector.
Indeed, crypto currencies are characterized above all by their strong volatility price – and a sharp drop could be disastrous, reducing investor demand.
There are also other factors that could affect Coinbase's price and these should be kept in mind. We think on the one hand of the competition increased in the exchange sector, and another in regulations governmental possible to frame the market.
How to buy Coinbase shares? Tutorial
As mentioned, buying Coinbase shares is easy, quick and commission free if you go through eToro.
Go to the platform's website. Then after clicking on the button Register now, you will access the registration form in which you can enter your data.
Then it's time to move on to buying Coinbase stock, commission free! Go to the Markets section and then search for COIN in the search bar.
You will then have to configure your trade: amount, currencies, but also, if applicable, leverage, stop loss and take profit. Finish by clicking on Buy and then the Coinbase share is yours.
What future for Coinbase stock?
It is legitimate to wonder about the Long-term Coinbase share price. Are we dealing with a fad? A sustainable megatrend? Difficult to know, because the experts are divided on the question.
It is above all a story of personal conviction. If for you, cryptos are only a highly (overly) publicized “trending” asset, then Coinbase stock shouldn't be in your wallet. However, if for you cryptocurrencies have a future and a long-term economic and societal element, then keep a close watch on the Coinbase IPO.
Either way, cryptocurrencies will no doubt continue to assert themselves in 2021 and beyond, becoming more and more widespread. Thus, Coinbase, as the market leader, should continue to profit from the phenomenon for the time being.
Warning : As Coinbase valuation is set to be very high, buying Coinbase shares is therefore highly speculative. Only invest if you have the means and the conviction.
How to invest in Coinbase stock?
Starting this afternoon, traders around the world will be able to buy Coinbase shares through an online broker.
As such, the eToro broker will offer to buy Coinbase shares. This is an ideal solution for traders of all skill levels. The site indeed offers 0% commission actions, an ergonomic platform and very interesting functions such as social trading. Do not wait any longer to take the plunge.
