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Combine water and yeast and let sit until foamy, about 10 minutes.
Combine flour, coconut oil, sugar, salt, and yeast mixture in a bowl. Knead until silky-smooth, about 15 minutes. Place dough in a large, lightly-oiled bowl and turn to coat. Cover with a towel and let rise in a warm place until doubled in volume, about 1 hour.
Preheat the oven to 350 degrees F (175 degrees C). Grease a loaf pan.
Punch down dough and turn onto a lightly floured surface. Shape into a loaf and place into the prepared pan. Cover with a damp cloth and let rise until doubled in volume, about 30 minutes.
Uncover and bake in the preheated oven for 30 minutes for an Italian-style loaf or 45 minutes for a sandwich-style bread.