Coinbase Global (COIN 2.42%) is a leading cryptocurrency platform. It started in 2012 to provide anyone, anywhere with the ability to easily and securely send and receive Bitcoin (BTC 1.6%). Today, it allows anyone to invest, spend, save, earn, and use a variety of cryptocurrencies.
The company has developed several products and services to encourage more people to use cryptocurrencies. Its digital wallet, Coinbase Wallet, lets users store and manage all their crypto, non-fungible tokens (NFTs), and other wallets in one place. Meanwhile, its trading platform allows users to buy, sell, or HODL (hold for the long term) cryptocurrency. The company's smart contracts allow users to trade their crypto for fiat currency like the U.S. dollar (through USD Coin (USDC -0.0%), a stablecoin redeemable for U.S. dollars on a 1:1 basis).
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 invest
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.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- 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.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest?
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.
Dividend Income
On the other hand, here are some factors that might lead you to opt against buying shares:
- You're not exactly sure how Coinbase makes money.
- You don't hold any cryptocurrency and don't intend to get into the space.
- You're not convinced that cryptocurrencies will become mainstream investments.
- You don't think crypto has many uses other than trading.
- You're unsure whether Coinbase will be consistently profitable.
- Your portfolio is already heavily concentrated in cryptocurrencies and other crypto stocks.
- You're seeking investments with less volatility than Coinbase stock.
- You're at or nearing retirement and need investments that generate income.
USD Coin (USDC)
Profitability
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).
Dividends
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.
Digital Wallet
ETF options
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 4.33%). 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 4.62%) 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.
Stock splits
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.
Related investing topics
The bottom line on Coinbase
Coinbase is a leading cryptocurrency platform. That puts it in an excellent position to capitalize on the growth it sees ahead as more people use crypto for more things. Increasing crypto usage would help grow the company's revenue, potentially enabling it to finally turn the corner on profitability and helping drive significant stock price gains in the future.
However, it could continue to be a bumpy road for Coinbase. Cryptocurrencies have proven to be very volatile, which has affected its revenue. Investors need to ensure they understand the risks before investing in Coinbase stock.
FAQ
Investing in Coinbase FAQ
Is Coinbase a sell or hold?
Coinbase has lots of potential. The company is building a platform to support more than 1 billion people using crypto for more than just trading in the future. That could enable the company to eventually make a lot of money from its crypto-related products and services.
However, its shares have barely risen in value since their direct listing in 2021 and have been very volatile during that period. It's definitely a higher-risk stock.
More risk-tolerant investors who believe Coinbase can deliver on its promise could do well in continuing to hold for the long term. However, more risk-averse investors might want to sell and consider investing in a lower-risk company with a greater probability of delivering positive returns.
What is the forecast for Coinbase stock?
More than two dozen research analysts cover Coinbase stock. The average analyst rating was "hold" in mid-2025 (14 out of 29). Analysts' consensus 12-month price target for Coinbase stock was right around $260 per share (with shares trading at just above that level at the time). The highest forecast price was $400, while the lowest price target was $170 per share.
