How to buy shares in Coinbase (COIN) | Stake

What is Coinbase?

While it may not be the biggest cryptocurrency exchange, it is often the first choice for buying into the crypto space for those new to the market. 117% quarter-over-quarter customer growth saw Coinbase’s 56m users contribute US$1.8b in Q1 revenue.

It will go public via a direct listing at an estimated US$100b valuation. If it meets this valuation, it will be worth more than both the Nasdaq and New York Stock Exchange combined.

How to buy shares in Coinbase (COIN)?

During Wednesday’s session on 14 April, Coinbase (COIN) will complete a direct listing. At some point during the session, $COIN will become available to investors.

Here are a few things to keep in mind for those looking to invest.

  • Direct Listings

The stock price and value of a company are entirely determined by market supply and demand. Existing shareholders can sell their shares at a price they calculate as fair while traders and investors determine their bid price. The stock initially trades where the bid and the ask meet.

During a traditional IPO, a bank will predetermine the value of a company during the underwriting process. Given direct listings do not feature an underlying predetermined valuation, they can be subject to increased volatility.

  • Buying on Stake

Investors will only be able to submit an order for $COIN once it is live. This is often an unknown time after the market opens once the pre-listing auction is complete. While the stock page may be visible on the website and app, no orders can be placed until the stock is officially trading.