How to Trade Coinbase to Record Highs Amid Crypto Boom

November 03, 2021 18:36

As the price of cryptocurrencies such as Bitcoin and Ethereum soared to record highs last week, crypto stocks have also managed to ride the wave higher.  

One of the most famous crypto stocks is Coinbase – a cryptocurrency exchange that allows you to buy, sell, receive, store and send all sorts of crypto coins.  

While the stock made a record high at $429 on its first trading day, it collapsed more than 50% over the next few months to a record low at $207.  

But now, Coinbase shares have surged nearly 60% higher and analysts are forecasting a new record high making it a stock to watch. 

Stock: Coinbase
Exchange: NASDAQ 
Symbol for Invest.MT5 Account: COIN.US 
Symbol for Trade.MT5 Account: #COIN.US 
Date of Idea: 3 November 2021
Time Line: 3 - 6 months
Entry Level: $350
Target Level: $500
Stop Loss Level: $265
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. 

* The Trade.MT5 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. Learn more about CFDs in this How to Trade CFDs article.

Source: Admirals Contract Specification  

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. 

Why Trade Coinbase Stock? 

There are a variety of reasons why Wallstreet is turning increasingly bullish on Coinbase stock. Let’s have a look at a few.  

Reason 1: A vote for cryptos is a vote for Coinbase 

Coinbase’s primary revenue stream is from the commission of cryptocurrency transactions executed by its users. If you are bullish on the long-term prospects of cryptocurrencies becoming more mainstream then exchanges like Coinbase are set to benefit from an increase in transaction volume. 

Reason 2: Regulation of cryptos is a good thing 

One of the issues for many investors is the fact cryptocurrencies are still largely unregulated. However, governments all over the world – including Joe Biden’s administration – are talking about regulating the sector. This is actually a good thing as it can bring more credibility to the sector.  

Reason 3: Facebook gives Coinbase a vote of confidence 

Facebook announced a partnership with Coinbase for the launch of its own digital wallet for cryptocurrencies called Novi. Coinbase will act as a custody partner and help store its cryptos securely using the Coinbase Custody software.  

Reason 4: Coinbase will launch its own NFT marketplace 

NFTs, or non-fungible tokens, have boomed in demand over the past year. For example, the total sales of NFTs last year were $250 million. So far this year, it is more than $2 billion. Major companies like eBay are getting in on the action as is Coinbase.  

The plan is for the Coinbase NFT to be a peer-to-peer marketplace for minting, buying and showcasing NFTs easier than it currently is. While it hasn’t launched yet, the waitlist received 1 million applications on its first day.  

What are Analysts Forecasting for Coinbase Shares? 

According to analysts polled by the Wall Street Journal, there are currently a higher amount of buy ratings on the stock than sell ratings. The buy ratings have also increased in number over the last month.  

Source: WSJ, 2 November 2021 

Of the analysts polled, the highest price target for Coinbase shares over the next 12 months is $600, the lowest price target is $250 and the median consensus of all analysts is $376.85.  

An Example Trading Idea for Coinbase  

An example trading idea for Coinbase could be as follows:  

  1. Buy the stock on a break above $350.  
  2. Target above the record high at $500.    
  3. Place a protective stop loss at $265.   
  4. Keep your risk small at a maximum of 5% of your total account.   
  5. Time Line = 3 – 6 months  
  6. If you buy 1 Coinbase share:  
    • If target is reached = $150 profit.   
    • If stop loss reached = $85 loss.   

Risk management is one of the most important aspects of trading successfully. You should always know how much you could potentially lose on a trade.  

The example figures above have been calculated using the Admirals Trading Calculator which enables you to view what your profit or loss could be based on the numbers you input – a great tool for traders!   

How to Buy Coinbase Shares in 4 Steps  

With Admirals, you can buy shares in US companies like Coinbase with a low commission of just $0.02 per share and a low minimum commission of just $1.   

  1. Open an account with Admirals to access the Trader’s Room.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for Coinbase at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.   

Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance. 

Click on the banner below to buy Coinbase stock today! ▼▼▼ 

Do You See Coinbase 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’s share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  


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  • The Analysis is prepared by an independent analyst, Jitan 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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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.