Should I Buy Coinbase Stock Reddit

I'm fresh to having more funds than simply my piggy bank, and I obtained it via cryptocurrency. I've been doing well (helped by the fact that everything has been doing well), so I decided to be a grownup and diversify my finances by purchasing some Coinbase shares. I got it when it was about half way down from its ATH (yeah, I didn't buy at the high), but it's now 20% down from that. Is this typical? Should I keep going? Or am I being foolish for not getting rid of it sooner?

A stock that is volatile

Because of the volatility nature of Coinbase's principal income source (transaction fees), the stock has been very volatile since its initial public offering in April. For example, from April 14 to October 1, the stock fell 30%, only to rise 56% in the following weeks until November 9. The stock has declined around 30% since that day, when the company released third-quarter financial data. In reality, Coinbase's stock has moved in lockstep with Bitcoin's price, which has recently fallen.

Investing in Coinbase is a fantastic method to diversify your exposure to bitcoin as an asset class. Because its revenues are derived from the commissions and fees that customers pay on the Coinbase platform, the company's income will fluctuate with the bitcoin market as a whole. It will, however, be free of the speculation that investing in a pure cryptocurrency entails. Coinbase, as a firm, will provide you with market exposure without the crazy highs and lows of a Dogecoin or Bitcoin. Depending on your interests, this might be a good or negative thing. Finally, investors should be wary of cryptocurrency's regulatory status and the platforms that trade in it. Nothing, perhaps, will have a greater long-term impact on a cryptocurrency investment (including one in Coinbase) than how the Securities and Exchange Commission (SEC) chooses to govern this market.

Coinbase provides over 100 traded coins, while Crypto.com supports over 150. Both accept common fiat currencies such as USD, EUR, and GBP, as well as coin fractions. Crypto.com supports 26 fiat currencies, although Coinbase no longer shares their whole list. However, New York users are prohibited from purchasing specific currencies on the Coinbase platform, while Crypto.com investors in Connecticut are unable to purchase DAI, and residents of that state, as well as Texas, are unable to purchase PAX Gold (PAXG). Both sites accept Dogecoin (DOGE) and other popular cryptocurrency. Security of Crypto.com vs. Coinbase