As one of the most popular cryptocurrency exchanges in the world, Coinbase allows users to buy and sell cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. While Coinbase doesn’t offer traditional stocks or bonds, it is possible to buy stocks with Coinbase through the use of fractional shares.
Fractional shares are a type of investment that allows users to purchase a portion of a stock rather than an entire share. For example, if a stock is trading for $100 and you only have $10 to invest, you can purchase 10% of a share (or 0.
1 shares) for $10. This allows you to invest in a company without having to come up with the full amount for a single share.
While there are many advantages to investing in fractional shares, there are also some disadvantages to consider. One downside is that you won’t be eligible for certain perks that come with owning an entire share, such as voting rights or dividends.
Additionally, fractional shares can be more difficult to sell than full shares since there may be less demand for them.
If you’re interested in buying stocks with Coinbase, there are a few things you need to do first. First, you’ll need to create an account on the Coinbase website and link your bank account or credit card.
Once your account is set up, you can browse the various stocks available on the Coinbase platform and select the ones you want to invest in.
Once you’ve selected the stocks you want to buy, you’ll need to specify how many shares you want to purchase. You can either enter the number of shares or the amount of money you want to spend on your purchase.
After your order is placed, it will be executed when the market opens on the following day.
Coinbase charges a commission for each trade that is executed on its platform. The commission is calculated as a percentage of the total value of the trade and is generally between 0.1% and 0.5%.
For example, if you were buying $100 worth of stock, your commission would be $0.50 (0.5%).
Coinbase also offers a service called Coinbase Pro which allows users to trade cryptocurrencies on a more advanced platform with lower fees. Commission on Coinbase Pro starts at 0.
04% and goes down to 0% for high-volume traders.
If you’re interested in buying stocks with Coinbase, it’s important to understand both the advantages and disadvantages of doing so before making any decisions. Overall, Coinbase is a reputable platform that offers users an easy way to buy and sell cryptocurrencies including Bitcoin, Ethereum, and Litecoin.
However, it’s important to keep in mind that fractional shares come with some risks and may not be right for everyone.