Home > Is Coinbase a good investment?

To buy shares in Coinbase (NASDAQ:COIN), you need a trading or share dealing account. Follow these three steps if you want to buy shares in Coinbase from the UK:

  1. Decide if you want to buy Coinbase shares in the short-term or invest in the long-term
  2. Compare share dealing and trading fees in our comparison tables
  3. Choose which broker is right for you and open an account

How much does it cost to buy Coinbase shares (NASDAQ:COIN)?

Buying one NASDAQ:COIN share costs $42.51. However, as well as the $42.51 cost of buying each share you will also have to pay any relevant tax, commission when you buy and sell shares, custody fees for holding your shares on your account and foreign exchange fees for converting GBP into USD. You also have to consider the difference between the bid price (the price at which you sell shares) and the offer price (the price at which you buy shares). These fees vary depending on what sort of account you open, and with what broker.  You can compare the different costs associated with the different types of trading and investing accounts in our comparison tables below.

It’s also important to remember that share prices can move quickly, for example, the current NASDAQ:COIN share price is $42.51 which is a change of -1.77 or -4% from the last closing price of 42.51 with 10515571 shares traded giving NASDAQ:COIN a market capitalisation of $9648307275. The most recent daily high has been 44.9 and daily low 42.02. The NASDAQ:COIN share price 52 week high has been 331.7 and the 52 week low 40.61. Based on the most recent NASDAQ:COIN share price opening of 42.51, the current NASDAQ:COIN EPS (earnings per share) are -5.6 and the PE (price earnings ratio) is .

Pricing data automatically updates every 15 minutes

Compare investing accounts for buying Coinbase shares from the UK:

US Stock Buying PlatformUS CommissionFX RateShare DealingISASIPPDerivativesMore Info
Hargreaves Lansdown US Stocks
Hargreaves Lansdown
£11.951% - 0.25%✔️✔️✔️✔️See Offers
Capital at Risk
Interactive Investor US Stocks
Interactive Investor
£7.991.5% - 0.25%✔️✔️✔️See Offers
Capital at Risk
Interactive Brokers US Stocks
Interactive Brokers
0.5 cents per share0.02%✔️✔️✔️✔️See Offers
Capital at Risk
AJ Bell US Stocks
AJ Bell Youinvest
£9.950.50%✔️✔️✔️See Offers
Capital at Risk
Saxo Markets US Stocks
Saxo Markets
20 cents per share0.5%✔️✔️✔️✔️See Offers
Capital at Risk
IG US Stocks
IG
£80.5%✔️✔️✔️See Offers
Capital at Risk

Compare trading accounts for trading and shorting Coinbase shares in the UK:

You can use this table to compare the best brokers for trading Apple Shares. All brokers in this list are authorised and regulated by the FCA. CFDs & spread betting carries a high level or risk and losses can exceed your deposits.

US Stock Trading PlatformCosts & SpreadsUS StocksOvernight FinancingCFDsSpread BettingDMAInvestingMore InfoRisk Warning
City Index US Stock Trading
City Index
1.8¢ per share2,0002.5% +/- SOFR✔️✔️See Platform69% of retail investor accounts lose money when trading CFDs with this provider
Interactive Brokers US Stock Trading
Interactive Brokers
0.003%3,5001.5% +/- SOFR✔️✔️✔️See Platform60% of retail investor accounts lose money when trading CFDs with this provider
CMC Markets US Stock Trading
CMC Markets
2¢ per share4,9682.9% +/- SOFR✔️✔️See Platform76% of retail investor accounts lose money when trading CFDs with this provider
Pepperstone US Stock Trading
Pepperstone
2¢ per share8802.5% +/- SOFR✔️✔️See Platform74% of retail investor accounts lose money when trading CFDs with this provider
IG US Stock Trading
IG
0.1%6,3522.5% +/- SOFR✔️✔️✔️✔️See Platform73% of retail investor accounts lose money when trading CFDs with this provider
Saxo Markets US Stock Trading
Saxo Markets
1¢ per share1,0002.5% +/- SAXO Rate✔️✔️✔️See Platform70% of retail investor accounts lose money when trading CFDs with this provider
Spreadex  US Stock Trading
Spreadex
0.3%2,1103% +/- SOFR✔️✔️See Platform69% of retail investor accounts lose money when trading CFDs with this provider
eToro US Stock Trading
eToro
0%2,019+6.4%/-2.9% SOFR✔️✔️See Platform77% of retail investor accounts lose money when trading CFDs with this provider

Is Coinbase (NASDAQ:COIN) a good investment in the long term?

Few assets evoke such polar opinions; either you love it or hate it. And the asset we are referring to is cryptocurrency.

The entire asset class (worth about $1 trillion now) came into existence only 14 years ago. Satoshi Nakamoto published the white paper on Bitcoin – and changed the financial world. Until now, nobody knows for certain who Satoshi is/are. Nonetheless, it did not prevent traders, entrepreneurs and financiers from trading and investing in the original cryptocurrency.

Speculative frenzy drives the cryptocurrency market and coin prices. Bitcoin’s astronomical return has been 30,000x in 10 years! – which has enticed capital from all corners of the globe. Bitcoin also spawned hundreds of other smaller crypto-coins, which too, led to hyper-active volumes.

Coinbase was well positioned to capture this new trading trend and made a huge amount of money capturing the flow. Brian Armstrong, the CEO of Coinbase, and Fred Ehrsam developed the firm into a crypto brokerage giant that stores, manages and executes Bitcoin transactions for retail and institutional clients. From its inception in 2012 to 2020, Coinbasegenerated over $3.4 billion in total revenue‘ (see its 2021 IPO prospectus – full of good information) In other words, the broking company is a market leader in a growth industry.

However, investors who bought on the first day of Coinbase’s public trading (Apr 21, 2021) are suffering from a deep drawdown. From its IPO price of $250, the Coinbase share price shot above $400 swiftly and by the end of its first trading session, Coinbase was valued at $85 billion. Currently, the stock trades at around $50-60, with a market capitalisation of just $12.5 billion – a loss of 85%.

Yes, the stock had a fantastic run prior to the pandemic in 2020. But that’s history. The past 18 months saw plenty of equity being wiped away from the company. It’s a long road to recovery.  Coinbase NASDAQ:COIN Share price

Is it a good time to buy Coinbase shares?

In 2022, the entire crypto industry slipped into a significant downswing. This is because of the sharp increase in interest rates, the war in Ukraine and the complete withdrawal of quantitative easing (QE). All these factors have overturned the bullish speculative mood.

Due to a collapse in Bitcoin and other cryptocurrency prices, many well-known firms have gone bust, including Three Arrow Capital (3AC), Luna/Terra, crypto lender Celsius, and mining Compute North. Overleveraged crypto players are gradually being eliminated from the sector like dominoes. Fear is high as investors wonder who is next on the ‘death list’.

However, remember that the crypto market is cyclical. And Bitcoin has a habit of surprising investors. Therefore, I am not so sure I will write off the entire crypto market just yet.

To answer the question if Coinbase share are worth buying, ask yourself these questions, do you:

  1. have a long investment time frame (3-7 years)?
  2. have some capital which you can afford to lose?
  3. have a high tolerance for massive price swings?

If the answer is yes to all, then you may wish to take a look at buying Coinbase shares.

Is the Coinbase share price overvalued or undervalued at the moment?

Judging from Coinbase’s share price it seems the firm is overvalued. Technically, COIN’s stock chart is acting poorly and I would not be surprised if the stock breaks down beneath its summer floor at $45.

Why are investors bearish? That’s because the firm is losing at lot of money. At quick peek at Coinbase’s quarter results tell you the severity of its strained finances.

In the third quarter, Coinbase lost $544 million. The previous quarter? $1 billion. And the previous quarter before that – another $500+ million. In just 9 months, the firm lost $2 billions altogether already. If Bitcoin trading activities continue to remain low, more losses are to be expected.

Coinbase NASDAQ:COIN results

Source: Coinbase

Why has Coinbase’s share price dropped recently?

The arrival of a ‘crypto winter’ has decimated Coinbase’s share price. This is because Coinbase’s revenue depends critically on the popularity of cryptocurrencies. A booming market like 2021 lifted revenue as traders buy and sell actively.

  • Since January 2022, crypto prices have been sinking like a stone. Bitcoin plunged from $69k to $20k.
  • This reduces liquidity in the market – in turn, reduces transactions and volume.
  • Coinbase’s business depend on market flow, which is drying up significantly

As Coinbase pointed out in its latest quarter results, “Q3 transaction revenue was $366 million, down 44% compared to Q2“. Hence, the market is de-rating Coinbase’s share.

What is Coinbase’ share price prediction?

Coinbase was listed with much fanfare back in 2021. Many analysts are following the company – but half of them are now placing ‘Hold’ or ‘Underperform’ ratings on the company (see below).

This is a signal that the Street is not optimistic about the company. Even Cathy Wood of Ark Investments sold some of her holdings in Coinbase in the summer. Therefore, until crypto prices improve significantly from here, the general sentiment on Coinbase stock will remain negative.

Coinbase NASDAQ:COIN price prediction

Source: Financial Times

Coinbase share price FAQ (NASDAQ:COIN):

The answers to our frequently asked questions by people interested in buying Coinbase shares about Coinbase’s share price are automatically updated every 15 minutes.

What is the live Coinbase share price?

The current Coinbase share price is $42.51

How much has Coinbase’s share price moved today?

Coinbase’s share price has moved $-1.77 or -4% today.

How much was Coinbase’s share price yesterday?

Yesterday, Coinbase’s share price closed at $42.51

How many Coinbase shares are traded each day?

There were 10515571 shares traded in Coinbase yesterday.

What is Coinbase’s market capitalisation (market cap)?

Coinbase has market cap of $9648307275

What has been Coinbase’s share price most recent daily high?

Coinbase’s most recent daily high has been $44.9

What has been Coinbase’s share price most recent daily low?

Coinbase’s most recent daily low has been $42.02

How high has the Coinbase share price been in the last year?

The Coinbase share price 52 week high has been $331.7

How low has the Coinbase share price been in the last year?

The Coinbase share price 52 week high has been $40.61

What is Coinbase’s earnings per share?

Coinbase’s current earnings per share (EPS) is -5.6

What is Coinbase’s price-earnings ratio (PE)?

Coinbase’s current price earnings ratio (PE) is

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