Coinbase to expand crypto derivatives in EU with license acquisition

It is also a “balancing test,” meaning you have to subjectively determine which factors outweigh which others. This makes it almost impossible for an industry to regulate itself, as a subjective test can at best provide guidance for how a regulator will rule. According to ETF.Com, 118 ETFs held 19 million shares of Coinbase as of mid-2023. The biggest holder was Cathie Wood’s Ark Innovation ETF (ARKK 2.76%).

  • However, if the company’s success falters, you might lose your investment.
  • Also, Cathie Wood’s ARK Invest reportedly sold around $27.6 million worth of Coinbase stock.
  • Coinbase’s initial public offering (IPO) in 2021 was a monumental moment in the world of finance.
  • As a relatively new technology, crypto isn’t regulated the way financial assets like stocks and bonds are.
  • Limit orders are safer because you can specify the maximum price you’ll pay.

Moreover, don’t invest any cash you might need in the near future, say for at least the next five years. Building in this buffer will give you time to potentially recover from any near-term drops in the stock price. As much as Coinbase likes to tout how its revenue stream is becoming more diversified, the business can’t escape the reality that its ultimate success still hinges on the rise of crypto asset prices.

If you use all your buying power in a single day, you’ll have to wait a day for the clearinghouse to process your trades. Ahead of Coinbase’s IPO in 2021, Wood said Ark’s five-year price target on Coinbase well exceeds the 15% minimum annual growth rate it targets, even if the stock debuted at $300 per share. That implies a 2026 price target of at least $600, about 4 times the current share price. What’s more, she sees Bitcoin climbing significantly higher from today’s price, which could also be a catalyst for Coinbase’s growth. On the other hand, if you’re a short- or medium-term trader, it’s a good time to take profits on COIN stock. In the near term, get ready for a drawdown in the Coinbase share price.

The Zacks Analyst Blog Highlights NVIDIA, Coinbase Global, Block, Interactive Brokers Group and CME Group

Securities and Exchange Commission lawsuit alleging it violated securities laws. Derivatives are a type of financial instrument that derive their value from the performance of an underlying asset. Ark Invest has aggressively sold off its stake in Coinbase since mid-November.

  • Coinbase said it would look to adhere to rigorous compliance standards that are upheld in the EU, including requirements related to combating money laundering, customer transparency and sanctions.
  • You will have to enter your preferred username, password, and email address, or signup with your Facebook or Google credentials.
  • Like any other major marketplace, the company offers several services which facilitate this trading floor.
  • To buy Coinbase stock, you need to open a brokerage account, have funds available, conduct research, and place an order using Coinbase’s ticker symbol, COIN.

There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. More risk-tolerant investors who believe Coinbase can deliver on its promise could do well in continuing to hold for the white coat investor the long term. However, more risk-averse investors might want to sell and consider investing in a lower-risk company with a greater probability of delivering positive returns. Another Cathie Wood-managed ETF, Ark Next Generation Internet ETF (ARKW 3.63%), was a large holder of Coinbase stock.

Should I invest in Coinbase?

If that company performs poorly, you could lose some or all of the money you’ve invested. Once you’ve chosen a brokerage to work with, you have to open an account. There are many brokerage companies out there, each with its pros and cons. Google Finance is currently unavailable as some international data providers no longer support your region. Most have similar capabilities with research and charts along with apps and 24/7 customer service.

However, this also means your investment’s potential success is intimately in link with cryptocurrencies’ popularity and trading volume. Investing in Coinbase is a good way for you to side-invest in cryptocurrency as an asset class. The company’s profits will rise and fall with the cryptocurrency market as a whole, since its profits come from the commissions and fees that users pay on the Coinbase platform. However, it will come without the speculation that investing in a pure cryptocurrency brings. As a company, Coinbase will give you exposure to the market without quite the wild highs and lows of a Dogecoin or Bitcoin.

How to buy Coinbase (COIN) stock

You might want to enter COIN at $100, but the market order might fill at $105 or $110 if the price action moves fast. This excess $5 or $10 that you paid over the price you expected is known as slippage. When funding your account, it’s a good idea to use funds you can afford to lose. Depositing your kid’s college fund into your trading account in the hope of tripling it overnight is a bad move. Brokers accept debit cards and wire transfers for trading account deposits.

Stop limit

Suppose you’re relatively new to investing or have a low tolerance for risk. If you want exposure to the crypto market without directly investing in cryptocurrency, you should consider investing in Coinbase. This guide will analyze the most important facts about the crypto trading platform, as well as explain how to buy Coinbase stock. In addition, we will go through the risks involved and provide you with an overview of the best brokers to use. The cryptocurrency industry is well aware of this danger, which drives its often-contradictory stance on the issue of whether cryptocurrency assets are financial products.

It was the fund’s second-largest holding at 8.3% of its value, making the ETF another meaningful way for investors to gain passive exposure to Coinbase. Those two factors would enable the company to start making money, which could drive its stock price higher over the long term. With that in mind, here’s a closer look at Coinbase’s profitability. It’s essential to thoroughly research a company before buying its shares. The potential of crypto might have you interested in investing in Coinbase. Here’s a step-by-step guide on how to buy the crypto stock and some factors to consider before adding the up-and-coming company to your portfolio.

While our articles may include or feature select companies, vendors, and products, our approach to compiling such is equitable and unbiased. The content that we create is free and independently-sourced, devoid of any paid-for promotion. As with all investing, you are putting your money at risk, so only invest money you can afford to lose. Because cryptocurrency is a new field, there aren’t many public companies involved in the industry.

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