How to invest in Coinbase from the US

Recommended Broker 🇺🇸
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👌Difficulty Low
☢️Commissions Zero
💲Minimum deposit 200$
🪙Instruments: Stocks like Coinbase, crypto, forex, commodities
⚖️Regulated by: Cyprus Securities and Exchange Commission (CySec), United Kingdom's Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC)
🌐 Official website: www.etoro.com *

How to buy

If you live in USA, a great 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 Australian Securities and Investments Commission (ASIC).

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 the US, 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.

Then check your email: you have received an email from eToro, click on the button 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.

How to make your first purchase

When 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.

How much is the minimum deposit?
The minimum deposit in eToro is 200$.

When will I be able to withdraw my money?
Whenever you want. You just have to sell your Coinbase trade, click on “Withdraw Funds” and you will the money very soon.

What payment methods are accepted?
Available payment methods are: Credit Card, Bank Transfer, PayPal, Rapid Transfer, Neteller, Skrill and Klarna / Sofort Banking.

eToro, our recommended broker for acquiring Coinbase shares in USA?

  1. It's uncomplicated and easy to use
  2. You can learn from other trading strategies
  3. Allows short-trading
  4. Leverage is allowed
  5. Lets you invest in plenty of other goods

Homepage: www.etoro.com

eToro is the best way to purchase Coinbase shares from the US.

“Social trading”, an innovative investment method that consists in replicating techniques and moves from other experienced investors, has become trendy thanks to eToro.

eToro is very helpful if you don't have much experience in trading, because it puts your investment on automatic by emulating moves from those who have been doing it for years. And for those skilled investors willing to share their techniques with the community, eToro rewards your knowledge with money.

Besides, this platform is completely manageable, great for a user who wants to begin in the stocks world, without getting crazy with lots of diagrams and numbers.

About Contracts for Difference

If you have entered eToro previously, you must have noticed that the acronym CFD appears frequently. Before we come back to it, we must say that CFDs on eToro are only possible if you go short or use leverage over x2 (nevertheless, this is not even available on the platform).

We will also refer to terms like leverage and “going short”, in case you are thinking about day trading cryptocurrency or more advanced operations.

The good thing about eToro is that it lets you bet both “in the black” and “in red”. In a hypothetical case: you have the certitude that the Coinbase will fall, so perhaps it is obvious to think “if it is going to depreciate (go down in price), I'll just wait until it does and then I'll bet”. Nevertheless, if it really falls, it might mean extra money for you.

You can do by “going short”. Its operation, roughly, consists in the following:

  • You ask for a loan of, let's say, 100 units of Coinbase, which cost $ 5,000 at the moment (these numbers aren't real)
  • You sell them at their market price, $ 5,000
  • The Coinbase goes from $ 50 to $ 30 (as you calculated, it devaluates)
  • You purchase all 100 units one more time, but now they are worth $ 3,000
  • Now you pay back the 100 units
  • The difference is yours, so, you will have earned $ 2000

Take into account that it is much easier than it sounds: we can just say that by trading in Coinbase you can also earn money if you predict it will fall.

What is leverage?

In case you still don't know what “leverage” is, we'll describe it briefly. When trading, it's the capacity of multiplying your investment by borrowing money from the broker. For example, if you start with $ 100 and you use x2 leverage, you will be investing $ 200.

Leverage and the importance of “Take Profit” and “Stop Loss”

Let's pretend that you are confident that Coinbase will rise, and you consider “going long. You have $ 1,000, but you actually can invest more and make more money.

You could consider requesting a loan, but you must know that all the process takes time, and when you receive the money, Coinbase might be already at a much higher price, so you wouldn't be able to invest the way you planned.

Using leverage, you can obtain that amount with two clicks. It's exactly like a loan, but much better: you will get it from eToro, which lets you invest much more than you have on the platform. As in the image below, you will see the different options you have:

apalancamiento

When trading with other kinds of assets you can use higher leverage. The reason: leverage is most common in short-term operations, and cryptocurrencies tend to be a medium or long-term investment. But let's deepen a bit more on how all this works.

If you have the $ 1,000 and use leverage x2, your investment is 2 * $ 1,000, that is to say, $ 2,000. eToro puts the remaining amount to reach that figure.

A week after that, Coinbase price goes up by 20% and now your investment costs 2,400. But you don't want to be too greedy, so you decide, wisely, to sell back.

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).

In conclusion, by investing $ 1000 and obtaining $ 400, your net profit would be 40%. That is pretty decent.

It may sound too good to be true. The thing is, you can also lose money. If everything goes according to plan and the price goes up, you will earn more money in less time; however, if the value of the asset goes down, you will also lose more in less time.

For instance: if instead of increasing by 20%, the price falls by 10%, you won't lose $ 10, but $ 20. That is why to operate with leverage it is essential to know about Take Profit and Stop Loss.

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 wait a bit longer in case it keeps rising, which could make you lose it all.

Stop Loss is even more necessary, especially when operating with leverage, since a small loss could be fatal for your wallet. Consider that eToro will recommend a limit for Stop Loss, but you should set it closer to current price than that.

What are the assets you can trade in eToro?

Besides stocks, there are way more financial instruments you can trade with in eToro.

Commodity market

Most investors trade with raw materials due to 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, so if the fear of possible inflation produces greater demand for a certain good, its cost will also go up.

Consider that commodities don't pay dividends. Thus, by investing in them you will only have a further income by selling them back.

Commodities are generally classified into two types: first, we have hard raw materials, which are precious metals (gold, silver, copper, and platinum), industrial metals, and oil; in second place are soft raw materials, which are agricultural products such as coffee, rice, soy, or sugar.

Forex trading

Forex or currency trading is the exchange between two currencies.

If you decide to exchange euros and dollars, you buy euros and pay with dollars, hoping that the euro will increase compared to the dollar. Then, if you bought each euro for 1.15 USD and you sell them back when their price is 1.20 USD, you'll be keeping that margin.

Perhaps you already inferred this, but trading with currencies requires a large capital, because prices never increase that much, or using a lot of leverage, which is always a risk. Our advice for those who are new in the world of trading is not to start with Forex, but with a safer and more secure market.

eToro allows exchanging the most usual currency pairs but bear in mind that in this market sales are always made through contract for differences, thus you will not own the real asset.

Trading strategies

There are lots of ways to trade cryptocurrencies: from purchasing and waiting to day trading using volatility of the market to your advantage.

My suggestion for those who are starting to invest is going halfway between the two options: when you open your Coinbase position, place a dynamic stop loss 15-20% under the maximum price, and forget about the operation.

For example, if you buy a cryptocurrency at $ 15, then it increases to $ 25 and decreases back to $17, the stop-loss will allow your operation to be closed, maybe at $ 21 or $ 22. Hence, you will obtain a fine profit.

You may be wondering: why not selling back when the price is at its highest? But that would only work for a psychic or a fortune-teller. The mentioned method is completely realistic and can work out perfectly if it is well applied.

Later on, you will be able to apply more sophisticated strategies, such as short-selling or using leverage.

Virtual portfolio

For those who still don't have much experience in investing, a demo account can be useful. You just need to set the virtual mode and you can start practicing with an “imaginary” amount.

real

A virtual account can be a good way of practicing before starting to operate with real funds. When you open your demo account, you will begin with a virtual amount 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 deposit back the virtual $ 100k to your portfolio, and the second try you should do better.

However, remember that trading is mostly about being cold-minded, and using a practice account can have the reverse effect. It is not the same to risk your real savings than to do operations with a false balance that you don't mind losing. Also, investing virtual money can prevent you from learning to control your emotions, as a true investor should.

Finally, if you intend to invest in the medium or long-term, with earnings almost guaranteed only by duplicating an index, it doesn't make sense that you invest in the virtual mode and wait for years. On the other hand, short or medium-term operations are ideal to try out with the virtual mode.

eToro Interface

As we have mentioned previously, one of the best things about eToro is its extraordinary simplicity: anyone can use it without having to read endless explanatory texts.

Everyone who has previously used Twitter, Facebook or any of the most common social networks, knows enough to operate with the eToro interface.

Now we will detail the sign-up process and the sections of the page that you should familiarize yourself with.

You will have to provide some personal information when registering.

During the sign-up process, you will also find some questions about your previous trade experience.

But don't feel intimidated. The only intention is to know more about you and be clear about which financial instruments they should recommend according to your knowledge and experience.

Let's get to know the fundamental sections of the site.

With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. Just click the tab and you will be able to set it. This is perfect in case you want to purchase an asset that is falling but you believe it will decrease more to a certain point.

The section “News Feed” allows users to interact and learn from each other by sharing their opinion and experiences.

“Instruments”, “People” and “CopyPortfolios” are within “Discover”. As we discussed previously, the trading instruments available on are:

  • Cryptocurrencies
  • ETFs
  • stocks
  • Raw materials
  • Forex
  • Index funds

In “People” are all the profiles and historical performances of other users, and you can replicate their movements with just one click. This is where the “social trading” concept is best applied.

Using the search box, you can find the investors that you find more interesting: by average earnings, market or risk level, for instance. You just have to type the amount you want to invest and eToro itself will be in charge of replicating the movements made by the selected investor, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will invest $ 100 of your money in the same asset.

Finally, there are three main types of CopyPortfolios: Top Trader, Market, and Partner.

fondos
The benefit of using CopyPortfolios instead of copying people is that this way the risk is more diversified. There are all kinds of portfolios that you can find easily and are divided by sectors. Thus, if you suspect a specific industry, like biotechnology or pharmacy, will have good incomes in the future, you can look for that specific portfolio and do your investment.

“Social trading”, an innovative concept

The first platform that thought of trading as a social activity was eToro, and the idea became successful really quick. Other brokers have also adopted this concept, but eToro is way better.

But they didn't limit themselves to transferring the logic of the social network to the trading world. There are already countless sites to discuss investing, but they were not satisfied with that: the great innovation of eToro was allowing users to imitate the strategies of experienced investors, who were rewarded for their contributions.

You will find in the left menu of the site the options “Copy People” and “Invest in CopyPortfolios”.

CopyPortfolios

“CopyPortfolios” contain a collection of assets of the same sector. For instance, if you anticipate that a particular sector will have significant profits but you are not sure which investments to make, you just have to select a portfolio that groups together a variety of related companies in that industry.

CopyPortfolio has generated a 100% return in the last twelve months, and the only thing you have to do is to click on “Invest”, enter the amount, place the stop-loss and wait.

Copy People

A second option is to directly copy users: in “Copy People” you can find eToro users who are very successful and whose moves you can duplicate simply by clicking “Copy”.

In each user profile, you will be able to see their risk profile (the higher the risk, the more chances of winning more and losing more money), their performance history, and what kind of financial instruments they trade..

Besides duplicating other user's moves, which is great and very helpful, we also recommend that you benefit from the community by reading other user's remarks. You can learn a lot from their experiences, particularly if your goal is to make a living from trading.

* 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.