How to Invest in Coinbase Stock

Coinbase has a bold goal. It aims to build trusted, easy-to-use products and services to bring more than 1 billion people into crypto. The company wants to develop more uses for crypto beyond trading, so more people will use it for more things, expanding its ecosystem.

The potential of crypto might have you interested in investing in Coinbase, especially since it became a member of the S&P 500 index in 2025. You might already be a user of its platform. Here's a step-by-step guide on how to buy the crypto stock and some factors to consider before adding the up-and-coming company to your portfolio.

How to buy Coinbase stock

Investors interested in buying Coinbase stock have to take a few steps before becoming a shareholder. Here's a step-by-step guide to adding the cryptocurrency platform to your portfolio.

1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in Coinbase?

It's essential to thoroughly research a company before buying shares. You might uncover something about the company that changes your mind. On the other hand, the research process might firm up your conviction that the stock has the potential to be a high-return investment.

There are a lot of factors you should consider when researching a stock. Here are a few reasons why you might want to purchase Coinbase shares:

• You believe cryptocurrencies will play an increasingly important role in the future.
• You actively trade cryptocurrencies through Coinbase's exchange.
• You're convinced that Coinbase stock can outperform the S&P 500 over the next three to five years.
• You believe that Coinbase can grow its revenue and earnings briskly in the future.
• You're seeking a high-upside investment opportunity.
• You're comfortable with the risks, including the possibility that Coinbase stock could be volatile.
• You understand Coinbase's business model and how it makes money.
• You know the difference between crypto and stocks.
• You like to invest in founder-led companies.
• Adding Coinbase would help you build a more diversified portfolio.
• You don't need dividend income from your investment.

Is Coinbase profitable?

Digging into a company's profitability is an important aspect of an investor's research process because increasing profitability is typically the biggest factor driving a company's stock price over the long term. With that in mind, here's a closer look at Coinbase's profitability.

The cryptocurrency exchange has been solidly profitable over the past year. It posted $66 million of net income in the first quarter of 2025 on almost $2 billion of total revenue. However, while Coinbase is profitable, its net income fluctuates wildly. It generated almost $1.3 billion of net income in the fourth quarter of 2024 and almost $1.2 billion in the first quarter of 2024. Meanwhile, its earnings in the second and third quarters of last year were $36 million and $75 million, respectively.

Market volatility can have a big impact on Coinbase's profitability. That can affect its transaction revenue, which declined 19% in the first quarter of 2025 to $1.3 billion. The company is working to offset the variability of its transaction revenue by growing its subscription and services revenue (a 9% rise to almost $700 million).

Does Coinbase pay a dividend?

Coinbase had not started making dividend payments to its shareholders as of mid-2025. The cryptocurrency exchange doesn't intend to begin paying dividends in the foreseeable future. It's retaining earnings to fund its operations and continued expansion. It also launched a $1 billion share repurchase program in late 2024.

ETFs with exposure to Coinbase

Investors don't have to directly invest in Coinbase stock to gain exposure to the cryptocurrency platform in their portfolio. An alternative strategy is to passively invest through a fund that holds its stock. One of the most common passive investment vehicles is an exchange-traded fund (ETF).

According to ETF.com, 182 ETFs held 27.6 million shares of Coinbase as of mid-2025. One of the biggest holders was Cathie Wood's Ark Innovation ETF (ARKK -0.90%). The ETF had a more than 9% weighting to the stock, which was its second-largest holding. That makes it a solid way to gain exposure to Coinbase and other leading growth stocks.

The First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT -4.37%) had an even higher allocation to Coinbase at 18.3% (its second-largest holding). That high allocation makes this ETF an option to consider for those seeking meaningful exposure to Coinbase and other players in the crypto sector through a passive ETF investment.

Will Coinbase stock split?

Coinbase didn't have an upcoming stock split as of mid-2025. The cryptocurrency exchange had not completed a stock split since its direct listing on the Nasdaq Exchange in 2021. It likely won't split its stock soon. Shares of Coinbase had only gained about 5% from their direct listing price by mid-2025. While shares traded at more than $260 a piece at the time, the crypto platform would need to rise well above its initial list price before splitting its stock.

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