Coinbase IPO: how to buy Coinbase shares

Coinbase is a US cryptocurrency exchange with an IPO on the horizon. While the company isn’t yet publicly listed, we’ll show you how to buy, sell and short Coinbase shares for when the company completes its IPO.

Coinbase shares: the basics

We don’t currently know much about the Coinbase IPO. What we do know, is that the company submitted a draft registration document with the US Securities and Exchange Commission (SEC) on 17 December, 2020.

This document is currently confidential and we won’t know the exact details of the IPO – like the exchange the company is going to list on or its target share price – until it has successfully completed its registration with the SEC.

Coinbase: a brief history

Coinbase was founded in 2012 by Brian Armstrong – who serves as the current chief executive officer (CEO) – and Fred Ehrsam. It is headquartered in San Francisco, and acts as a cryptocurrency exchange and broker for bitcoin, bitcoin cash, ether, ripple, litecoin and others.

The company has been growing since its creation and it registered its intention to carry out an IPO with the SEC in December 2020, meaning that the company could go public in 2021.

Coinbase business model

Coinbase has two core products. The first is an exchange for trading the aforementioned cryptocurrencies – known as a Global Digital Asset Exchange (GDAX). The second is a user-facing platform for trading bitcoin, bitcoin cash, ether ripple, litecoin and others.

Coinbase offers accounts to potential clients for cryptocurrency trading. In total, the company offers over 25 cryptocurrencies to its users, some of which are niche opportunities referred to as ‘altcoins’ because they are not widely known in the cryptocurrency mainstream and don’t have the name recognition of bitcoin, litecoin, ether and ripple.

The company charges a commission fee for its users to use its platform and its users can trade with leverage.

Coinbase share price: how to analyse Coinbase shares

You should use both technical analysis and fundamental analysis to analyse the Coinbase share price.

  • Technical analysis is concerned with chart patterns, technical indicators and historical price action
  • Fundamental analysis is based on the fundamentals of a company, including its net revenue or profit and loss statements

You should use a mix of both of these forms of analysis when assessing the Coinbase share price once the company lists – especially since the company’s share price could be volatile given the inherent volatility in the cryptocurrency market.

Interested in analysis? Find out more at IG Academy

Publication date : 2021-01-05T13:58:00+0000

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