How to Buy Coinbase Shares UK – Invest with 0% Fees Today!
Coinbase is the largest cryptocurrency exchange in the world and will soon hold an IPO on the NASDAQ stock exchange.
Want to buy Coinbase stock around the IPO? This guide will cover everything you need to know about how to buy Coinbase shares in the UK in 2021 and explain why we think Coinbase is worth buying today.
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Where to Buy Coinbase Shares in the UK?
Coinbase is planning to list its shares on the NASDAQ stock exchange in the US. So, in order to buy Coinbase shares in the UK, you’ll need to create an account with a UK stock broker that offers access to this US stock market.
There are a lot of stock brokers available to UK traders, but which ones are the best for buying Coinbase? We’ll highlight the top trading platforms that we think are worth a closer look.
1. Libertex – Low-cost CFD Broker with Coinbase Share Trading
Libertex is a CFD broker that offers trading on a hand-picked selection of around 80 US stocks. While the number of shares to trade isn’t huge, Libertex is planning to offer Coinbase shares after the IPO and there’s a lot to like about this investment platform.
To start, Libertex has a unique approach to pricing. The platform charges fixed commissions instead of variable spreads, which means that you always know how much a trade will cost no matter how the market is fluctuating. The commission for share trades is typically around 0.2%, so Libertex ends up being one of the cheapest stock brokers in the UK.
Since all shares are traded as CFDs with Libertex, you can apply leverage to your trades. Most shares allow you to trade on margin up to 5:1, so you can make big bets on Coinbase shares with just a small initial investment. The broker requires a minimum deposit of £100.
We’re also very impressed with the Libertex trading platform, which is available for web and mobile. You can develop custom watchlists, analyse price movements using dozens of technical indicators, and stay one step ahead of the market with a news feed and economic calendar. Libertex also offers a market sentiment gauge, so you can easily see when a stock’s momentum is shifting.
Libertex is regulated by the Cyprus Securities and Exchange Commission (CySEC), one of Europe’s leading financial watchdogs. The broker is considered highly trustworthy and has been in business since 1997. Libertex offers customer support by email only at this time.
- Hand-picked selection of US share CFDs
- Fixed commissions around 0.2% and no spreads
- Trade Coinbase shares with leverage up to 5:1
- Advanced web and mobile trading platform
- Regulated by CySEC
- Limited customer service options
Your capital is at risk.Why Buy Coinbase Shares Now?
The Coinbase IPO is one of the most anticipated financial events of 2021. The company is planning to go public via a direct listing on the NASDAQ stock exchange on Wednesday, April 14.
So, why should you buy Coinbase shares after the IPO?
A Bet on Digital Currencies
The fortunes of Coinbase are closely tied to the cryptocurrency market. The company makes money off of commissions and spreads when users buy and sell digital currencies like Bitcoin, Ethereum, and more. So, the higher the trading volume in the cryptocurrency market in general, and on Coinbase in particular, the more money Coinbase makes.
There’s plenty of reason to think that interest in cryptocurrency trading will continue to skyrocket. More than 5% of Brits now own Bitcoin and over 75% of the UK’s population has now heard about this cryptocurrency.
At the same time, more and more businesses – including, recently, Tesla – are accepting Bitcoin for payments. China is experimenting with its own digital currency, which could lead to increased interest in the cryptocurrency market. And growing populations in India, Africa, and Southeast Asia will only add to the demand for digital payments with decentralised currencies.
Importantly, investing in Coinbase isn’t the same as investing in a single digital currency like Bitcoin. That’s in part because Coinbase offers cryptocurrency trading for over 4,600 different coins. Even if Bitcoin’s popularity fades (which we don’t think is going to happen), Coinbase can continue making money by offering trading on the next big coin.
Accelerating Profitability
Coinbase’s bet on the cryptocurrency boom is already paying off. In 2019, the company lost $30 million on $533 million in revenue. But by 2020, Coinbase had turned a profit: the company earned $127.5 million on $1.28 billion in revenue.
Even more incredible is Coinbase’s performance in the first quarter of 2021. Just days before the IPO, the company announced that it made a profit of almost $800 million on $1.8 billion in revenue. That’s thanks in large part to the recent boom in Bitcoin, which sent the coin’s value soaring to over $60,000.
These numbers mean that Coinbase is not only profitable, but that the company is becoming more profitable quarter after quarter. Given the positive trends for digital currencies we outlined above, we expect this accelerating profitability to continue.
About Coinbase Shares
Coinbase is the largest cryptocurrency exchange in the world, with over 56 million users and $335 billion in trading volume per quarter. The exchange was founded in 2012 by Brian Armstrong and Fred Ehrsam.
Coinbase enables users to buy and sell over 4,600 different cryptocurrencies through its centralized exchange. The company also operates the USD stablecoin, a cryptocurrency that mirrors the value of the US dollar, and offers a free, secure cryptocurrency wallet for users.
Company and Share Price History
Coinbase has raised 13 funding rounds for a total of nearly $550 million since the company was founded in 2012. One of the earliest investments came from the Y Combinator startup incubator program, which also helped launch companies like Airbnb, Stripe, and DoorDash.
Coinbase has not yet gone public. It’s IPO on the NASDAQ stock exchange is planned for Wednesday, April 14. The company will offer shares through a direct listing, which means that no new shares are being offered for sale – all of the shares traded during the IPO will be shares sold by current investors and employees.
While a price for the listing has not yet been set, Coinbase is valued at roughly $68 billion by private markets. That corresponds to a share price of $343.58.
Coinbase is profitable as of 2020, when the company produced a net income of $127.5 million. That represents a price to earnings (P/E) ratio of 533 at the $68 billion market cap, although this ratio is likely to change once Coinbase shares hit the public market.
Should I Buy Coinbase Shares Today?
Coinbase is the largest cryptocurrency exchange in the world and the company is quickly growing its profits thanks to the boom in Bitcoin and other digital coins. Moreover, Coinbase is extremely well-positioned to keep growing as the popularity of cryptocurrencies increases. Given the positive trends around Coinbase and cryptocurrency trading, we think this stock is a strong buy around its IPO.
FAQs
What is Coinbase’s stock ticker symbol?
Coinbase is planning to list shares on the NASDAQ stock exchange under the ticker symbol COIN.
What is a direct listing?
Coinbase is issuing shares on the NASDAQ exchange through a direct listing. This means that no new shares will be issued during the IPO. Rather, employees and early investors will be able to sell their shares directly to the public.
How many cryptocurrencies does Coinbase offer?
Coinbase currently offers trading on 4,617 digital currencies.
Does Coinbase support NFT trading?
Coinbase doesn’t currently broker NFT (non-fungible token) sales. However, the Coinbase digital wallet does support NFTs, so Coinbase users can buy and sell these assets.
What is Coinbase’s IPO price?
Coinbase has not announced a price range for its IPO. The shares are trading for $343.58 in private markets, but they will likely fetch a higher price when they hit the NASDAQ stock exchange on April 14.
A-Z of Shares
Michael Graw
View all posts by Michael GrawMichael is a writer covering finance, new markets, and business services in the US and UK. His work has been published in leading online outlets and magazines.
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