Trading Coinbase After It Wins Key Singapore Licence
Coinbase won a key licence in Asia's biggest crypto hub Singapore. The Monetary Authority of Singapore granted it a Major Payment Institution licence so it can offer payment services using digital tokens. Learn more about what this could mean for the stock and what analysts are currently forecasting.
| Stock: | Coinbase Global Inc (Class A) |
| Symbol for Invest.MT5 Account: | COIN.US |
| Date of Idea: | 2 October 2023 |
| Time Line: | 1 - 6 months |
| Entry Level: | $87.00 |
| Target Level: | $145.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Coinbase's Singapore 'Major Payment Institution' Licence
The Monetary Authority of Singapore (MAS) granted permission for crypto exchange Coinbase to offer payment services to institutions and individual investors in digital tokens. Singapore is now considered to be Asia's crypto hub as authorities have quickly moved to provide a licence and framework for using digital tokens.
The world's largest listed crypto exchange received initial approval last year but now has it confirmed by the country's regulator. With around 30% of Singaporeans owning cryptocurrency, it could be an interesting market addition for the listed exchange.
Last month, the Monetary Authority of Singapore stated that many applicants for its licence were not successful as it only grants licences to crypto firms that have strict anti-money laundering controls.
While this is a huge step for Coinbase to attract more clients and to become a leader in Asia, there are risks involved. As the largest US cryptocurrency exchange, it is still in a battle with the US regulator the Securities and Exchange Commission. However, it did win approval from the National Futures Association to offer cryptocurrency futures to retail traders.
Along with the mixed regulatory backdrop towards cryptocurrencies and their exchanges, is the general lack of demand for digital tokens. Most cryptocurrencies are trading heavily down on the year and well below all-time highs. Lower crypto trading means lower revenue for firms such as Coinbase which profit from transaction fees.
The uncertainty is highlighted by the mixed forecasts from analysts shown below.
Coinbase Stock Forecast - What do the Analysts Say?
According to analysts polled by TipRanks for a Coinbase stock forecast in the past 3 months, there are currently 6 buy, 9 hold and 6 sell ratings on the stock. The highest price level for a Coinbase stock forecast is $145.00 with the lowest price target at $27.00.
The average price target for a Coinbase stock forecast is $82.74.
An Example Trading Idea for the Coinbase Stock Price
An example trading idea for the Coinbase share price could be as follows:
- Buy the stock on a break above $87.00 to allow for volatility.
- Target just below the highest analyst price target of $145.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Coinbase shares:
- If target is reached = $580.00 potential profit [($145.00 - $87.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how far below its IPO (initial public offering) price is.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade, the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Coinbase stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall!
How to Buy Coinbase Stock in 4 Steps
With Admirals, you can buy shares in US stocks with a competitive commission from $0.02 per share and a low minimum commission of just $1.
- Open an account with Admirals to access the dashboard.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top right to view the live price chart.
- Click Create New Order from the bottom of the screen to open the trading ticket.
Click on the banner below to trade Coinbase stock today! ▼▼▼
Do You See the Coinbase Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Coinbase share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
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