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* Your capital is at risk.
How to buy
If you live in Ireland, the best way to invest in Coinbase shares is, without any doubt, this popular broker.
eToro*, one of the main brokers around the world, is registered and licensed, among others, by the United Kingdom's Financial Conduct Authority (FCA).
We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in our language, accepts users from Ireland, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.
How to sign up, step by step
The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.
Now check your email inbox: you have received an email from eToro, click on the link and your account will be verified.
Once on eToro, you just have to click on “Deposit funds”, in the page menu.
There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:
As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.
If you have a choice, we do not recommend bank transfer because it takes longer, and it can be very frustrating to see the price of Coinbase rising while you wait for your transfer to be done.
How to make your first trade
As soon as eToro has confirmed the receipt of your credit, you just have to search for “Coinbase” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
- Allows you to make investments in tons of other goods
- eToro offers leverage
- Really user-friendly and simple
- It offers strategies from skilled traders so you can copy them
- Accepts short-selling
Official main site: www.etoro.com *
If you are thinking about investing in Coinbase from Ireland, eToro is certainly the best way to do it.
“Social trading”, a relatively new investment method that consists in replicating techniques and moves from other experienced investors, has become popular because of eToro.
If you are a beginner or haven't gained much investment experience, eToro is great for you. You can rest assured that you are doing a smart investment move when replicating those from subjects with a great deal of expertise. On the other hand, if you are an expert in the field willing to share your techniques with the community, eToro pays up for it.
Besides, this platform is completely manageable, ideal for a user who wants to begin in the stocks world, without ending up overwhelmed with tons of diagrams and numbers.
Assets available in eToro
Besides stocks, there are a few more financial assets available in eToro.
Exchange-Traded Funds or ETFs are similar to index funds. They can be described as a merge between stocks and mutual funds. They are publicly traded, that means they can be bought and sold at any moment at market price. However, their advantage is that they offer more alternatives compared to stocks, and have lower fees.
About Index Funds
This is the best option for people who can invest in the long term, mostly for those who are starting to trade, because it is inexpensive, diversified, and the risk is lower.
Contrary to what it may seem, very few investors can beat the benchmark (although you have probably heard of investors who obtain huge profits).
But putting aside some exceptional cases (like Warren Buffett's), all that glitters is not gold: if you hear of someone who has beaten the benchmark, they have probably done so for a short time, or will charge you so many commissions that it ends up being better for you to index (whit minimal commissions). Besides, if something happened once or twice, it doesn't necessarily represent a regular behavior.
Index funds offer solutions to both concerns: their fees are insignificant and in the long term they tend to beat active managers.
Commodities (raw materials)
Most investors trade with raw materials because of their stability. While other assets present higher fluctuation, commodity prices vary less and offer safety against inflation or market volatility. However, prices are subject to supply and demand in the market, so if the fear of possible inflation provokes higher demand for a certain good, the price will also increase.
Keep in mind that the only intended profit from the investment in raw materials will be the hypothetical capital gain after selling them: unlike stocks, these don't distribute dividends or pay interest.
Commodities are commonly categorized into hard raw materials, which include precious metals, industrial metals, and oil; and soft raw materials, which are basically agricultural products, like soy, cocoa, corn, or rice.
Forex or currency trading allows obtaining profits by exchanging one currency for another.
If you decide to exchange euros and dollars, you buy euros at their price in dollars, therefore you expect that the first currency (the euro) will raise its price compared to the second (the dollar), to make a profit by selling it. Assume you entered when the price of one euro is 1.10 USD and you exit when a euro is worth 1.15: that difference is yours once you sell again.
Perhaps you already deducted this, but this kind of trading requires large resources, because prices never increase that much, or using a lot of leverage, which you know is a risk. In case you are new to the world of trading, we don't recommend beginning with the currency market, because it's not the safest option.
You can exchange with the most common currency pairs on eToro but consider that Forex trading functions through CFDs, therefore the underlying asset won't be yours.
Do you know what leverage is? We'll put it simply: another good thing about trading is that it allows you to invest more money than what you really have. Let's say that you have $ 100 and you put them with x2 leverage, you will be actually investing $ 200.
Leverage and the importance of “Take Profit” and “Stop Loss”
Assuming that, for instance, you are certain that Coinbase price is going up, and that you have $ 1,000 for “going long”, you must know that you can increase your investment and earn higher profits.
Perhaps you could go to your bank, ask for a credit, put something as collateral, wait for it to be accepted, wait for the money, and then purchase Coinbase… However, when you finish doing all that, probably Coinbase would be already much higher, and investing wouldn't be a good idea at that moment.
Leverage is exactly like a credit, but it is only a few clicks away! You will be able to operate with much higher amounts than what you actually have on the platform's wallet. Before trading, you will be able to choose between the different leverage options as in the screenshot below:
With other assets, the ability to leverage is greater. Why? Because cryptocurrencies are a value that is invested in the medium-long term, and leverage is used primarily for short-term operations or day trading. But let's see how leverage works.
You start with $ 1,000 and decide to use leverage x2, which means you would have $ 2,000 to invest, since eToro would put the other $ 1,000.
A week after that, Coinbase valuation rises up and now the value of your investment is 20% higher, which means, you have $ 2,400 in Coinbase shares. So, a wise decision is to sell them back now.
You will have to pay back the $ 1,000 of leverage and you will have made $ 400 (since the other $ 1,000 was your initial investment).
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.
But watch out: if everything goes ok and the asset increases, you will make profits. Nevertheless, if the asset decreases, you will also lose more money really fast.
For example: if the price falls by 10%, you won't lose $ 10, but twice that figure, which means $ 20. For that reason, the concepts of Take Profit and Stop Loss are so important when using leverage.
Take Profit is used as a form of reducing risks when trading. When you enter, you can set a profit limit and ask that your position is automatically closed when the asset reaches a price.
If you purchased Coinbase shares at $ 100, you program eToro to close when it reaches $ 120. That way, you make sure you won't be blinded by greed and decide to keep waiting in case it keeps going up, which could be a mistake since the price could go down again.
Stop Loss is even more important, especially when operating with leverage, since a small loss could be fatal for your wallet. Take into account that eToro will recommend a limit for Stop Loss, but you should set it closer to current price than the platform suggests.
If you do not have much experience investing, you can start by practicing with a “demo” option. You just have to set the “virtual” option” in the upper left corner and you will be able to trade with “imaginary” funds.
A virtual portfolio can help you to practice and gain experience before starting to trade with real money. When you open your demo account, you will begin with a virtual balance of $ 100.000, to trade with a variety of assets available on eToro (not only with Coinbase).
The first attempt is not usually that good. But don't worry, since you can ask eToro to replenish the virtual funds to your portfolio, and the second try you should do better.
Nevertheless, keep in mind that trading is mainly about being prudent, and demo account trading can have the reverse effect. It is not the same to risk your own money than to operate with a false balance that you don't mind losing.
Evidently, if you are interested in trading in the long or medium-term, it makes no sense that you try the virtual mode and waste years waiting to see the results. But it can be very useful if you want to practice short and medium-term investment.
* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.