11 Best Cryptocurrency Stocks To Invest In
Over the past decade, cryptocurrencies have gained significant popularity. While most people remain in the dark about the workings of cryptocurrencies, they are undoubtedly making their way to mainstream markets.
When hearing the term “crypto,” the first thing people often think about is Bitcoin or Ethereum. While the whole cryptocurrency market is still relatively new, the industry has grown tremendously, with a current net worth of about $2 trillion. Due to the abnormal surges in value, many early crypto investors have made millions seemingly overnight –and many people are now on the watch for the next cryptocurrency to invest in.
Crypto Market Growth and Volatility
With more than 8,000 cryptocurrencies, investor interest is growing for a good reason. Cryptocurrencies can be a lucrative way to amass wealth, especially for early investors looking to hold assets long-term. However, the gains aren’t guaranteed since the crypto market is highly volatile — causing many investors to give it a second thought.
Since the crypto market is relatively new, that could explain some of the massive price swings seen in various coins. Although this level of volatility is a risk factor, that shouldn’t deter you from investing in digital assets.
Fortunately, there are several ways to gain exposure to the various digital assets without directly investing in a specific coin. Buying stocks that deal with blockchain technology or directly investing in crypto assets is one way to have indirect exposure to cryptocurrencies.
You may be wondering: What are the best cryptocurrency stocks to buy? Here are the top companies that have already found their way into the crypto space.
11 Best Cryptocurrency Stocks To Buy
Here are the top cryptocurrencies stocks you may want to add to your portfolio.
1. Coinbase Global, Inc. (COIN)
Coinbase is one of the top cryptocurrency exchanges, with over 73 million verified users. The company started as a crypto exchange, but in April 2021, it became a publicly-traded company through its initial public offering.
The crypto trading platform allows users to buy and sell digital assets, including Bitcoin, Ethereum, Solana, Cardano and hundreds of other coins at a small fee. While Coinbase is a crypto trading platform, it has several other features that make it one of the best cryptocurrency stocks to buy.
The company offers blockchain analytics to governments, financial institutions and crypto businesses Users can monitor fraudulent transactions and millions of wallet addresses across the crypto space using Coinbase analytics. With rising cybercrime cases, blockchain analytics ultimately build more trust in the industry.
The crypto exchange company also recently announced its move into the non-fungible token space. The primary reason for this move is to expand the creator economy by allowing artists and others to profit from their work. Coinbase NFT means more accessibility to NFTs.
2. Tesla, Inc.(TSLA)
Tesla, an electric car company, ranks second on the list of the best cryptocurrency stocks. The company has proven to be one of the most successful companies in the EV market, with a market cap that’s reached over $1 trillion.
The electric car manufacturer has always been a cryptocurrency advocate and believes in the future of crypto assets. With about $1.5 billion invested in bitcoin, Tesla regularly sells coins to make a profit.
In February 2021, Tesla went the extra mile to accept Bitcoin payments to purchase its electric vehicles. However, Tesla suspended bitcoin as a form of payment, pointing to environmental impacts surrounding Bitcoin mining. Tesla’s CEO, Elon Musk, later said the company would likely resume accepting Bitcoin payments.
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Apart from Bitcoin, Musk has also become a public face of other cryptocurrencies, including Ethereum and Dogecoin.
With the rising crypto adoption, investing in Tesla stock is a great way to gain exposure to various cryptocurrencies without owning a particular coin or token.
3. NVIDIA Corporation (NVDA)
NVIDIA is a graphics processing unit manufacturer that produces chips used in everyday devices. However, the company is best known for its high-end powering video gaming graphics cards.
Recently, NVIDIA launched CMP HX, a product designed for professional mining. These CMPs are designed to help you mine efficiently and regain your investment faster. With CMP HX, you’ll get maximum performance.
The company also announced its plans to acquire Arm Holdings, a world-class artificial intelligence company. Once this deal is sealed, NVIDIA will likely further maintain its leadership in the chip-making industry.
As the creator of tech to help support your crypto mining, NVIDIA is a solid crypto investment.
4. Advanced Micro Devices, Inc (AMD)
Like NVIDIA, AMD is among the leading designers of Graphics Processing Units. The CPUs and GPUs designed are used in crypto mining. While it does not deal with cryptocurrencies directly, it is responsible for high-end graphics that power applications to create crypto assets.
The creation of cryptography and blockchain requires intensive computational power. In this case, GPUs are perfect. They are a fundamental piece of hardware that makes it possible to create and manage crypto assets. There was a significant increase in AMD’s stock price when cryptocurrency prices rose and the demand for GPUs for mining surged.
AMD has safely positioned itself as an industry leader in chip technology. Plans are underway to make acquisitions that will no doubt secure AMD’s position in the semiconductor industry. The company continues to develop more technologies such as blockchain, making it a worthy investment now and in the future.
5. Square Inc. (Block) (SQ)
The introduction of digital payment methods was mainly aimed at eliminating central intermediaries and reducing costs for both consumers and businesses. Square Inc, now renaming itself “Block” due to its new focus on blockchain, enables users to buy and hold cryptocurrencies in a digital wallet.
Square has made advancements by allowing Bitcoin trading on its Cash App. The company aims to foster Bitcoin use among its users and businesses. Square is set to become a leading platform for crypto transactions between companies and their customers.
Traditionally, people have had to rely on banks for international transactions, and they typically pay huge sums in foreign exchange fees. With cryptocurrency transactions, the central intermediary is removed, and thus less money is spent on the transaction proces].
With an expansion into cryptocurrency and a focus on blockchain, Block stock is a worthwhile investment for beginner or experienced crypto ventures.
6. PayPal Holdings (PYPL)
PayPal is at the forefront of the digital payment revolution, whose primary goal is to leverage technology to simplify commerce and make financial services more convenient and affordable for its customers.
Similar to Cash App, Paypal is a global online payments system. It allows peer-to-peer money transfers through its mobile app, Venmo, and several other ways for people to get paid. In late 2020, PayPal unlocked crypto trading. Venmo became one of the leading crypto platforms by allowing the trading of:
Cryptocurrency is now an important part of PayPal’s business, as it terms the digitization of payments and currency inevitable. PayPal has become a solid access point for any investor who wishes to buy major cryptocurrencies and use them to purchase altcoins or access decentralized finance applications.
7. Marathon Digital Holdings, Inc (MARA)
Marathon Digital Holdings is currently one of the largest bitcoin mining companies in the U.S]. Mining enables the verification of transactions, security of the blockchain and addition of new coins and tokens finding their way to the market. As long as mining continues, the crypto ecosystem remains sustainable.
MARA helps people gain exposure to Bitcoin without necessarily holding the asset directly and working through the complications and aims to build the largest bitcoin mining operation at the lowest energy cost possible. The company focuses on sustainability and environmental protection, so it uses renewable energy providers in its operations.
In addition, MARA boasts of more than 32,350 active miners and 8,133 bitcoins, whose market value is about $340 million. The company’s growth can be attributed to its investment in miners to increase the speed of Bitcoin mining to make production a lot more efficient and profitable.
8. Riot Blockchain, Inc (RIOT)
Riot Blockchain, an American bitcoin mining company, is focused on gaining more exposure to the blockchain ecosystem through its mining operations]. Riot Blockchain also has a couple of joint ventures, internally developed businesses and other investments in the blockchain sector.
The company is primarily focused on Bitcoin and blockchain technology in general, anticipating a fleet of nearly 80,000 miners in 2022. The company also aims to develop a blockchain-based escrow service for wholesale telecom carriers.
Riot is a rapidly growing mining company that aims to expand its operations by increasing its infrastructure capacity and mining hash rate, or mining speed. This expansion makes the crypto stock a lucrative investment opportunity.
9. MicroStrategy, Inc (MSTR)
MicroStrategy Incorporated is a business intelligence and analytics solutions company. The company operations involve the design, development, marketing and sales of its software platforms. This is mainly done through cloud subscriptions, licensing arrangements and other related services.
MicroStrategy offers to help its customers optimize and maintain their business intelligence platform. The company has customers from a wide range of industries, including consulting, technology, banking, finance, insurance, telecommunications and manufacturing. MicroStrategy recently purchased over 100,000 bitcoins worth over $3 billion. Purchasing MSTR stock means you’re essentially indirectly investing in crypto.
10. CME Group, Inc (CME)
CME Group is the world’s largest derivatives marketplace. CME Group aims to deliver new and innovative ways of managing risk and improving performance. The company allows you to trade futures, enabling them to buy or sell an asset in the future at a predetermined price. CME trades a highly diversified number of assets across several industries, including stocks, energy and even currencies. This is where crypto comes in.
CME Group established a market for Bitcoin futures options in 2017. By February 2021, Ether futures were also made available on the exchange, making the trading of Ethereum possible. This way, businesses and individuals can mitigate the risk of rapid changes in cryptocurrency prices.
While crypto derivatives are still a relatively small market for CME, more crypto assets will likely be added to the exchange.
11. Hut 8 Mining Corp. (HUT)
Hut 8 Mining is another most popular bitcoin mining company worth adding to your portfolio. The company is based in Canada and mines both Bitcoin and Ethereum and is known for strong cash flows as compared to revenue. HUT operates by lending bitcoins out instead of selling them in the market, which results in compounded returns, and thus helping to add extra padding on investor and shareholder returns.
The company offers its investors direct exposure to bitcoin through its mining operations. Hut 8 Mining utilizes specialized equipment that solves computational problems and validates transactions to provide hosting services to their institutional clients. With HUT 8, you avoid the complexities and constraints of buying actual cryptocurrencies.
Additionally, it uses alternative energy sources to ensure the sustainability of its operations, so investors do not have to worry about the company getting into trouble due to environmental issues.
Good To Know
As with any other investment, there’s no guarantee of which asset will generate returns, and cryptocurrency stocks are no exception. Plus, crypto stocks are highly volatile, and they could potentially impact the prices of companies involved in blockchain technology.
Many investors shy away from crypto due to volatility but don’t let that deter you from this investment opportunity. With more companies embracing blockchain technology, you can benefit indirectly by purchasing stocks involved in the crypto space. The best thing about buying crypto stocks is that these stocks are not pure plays on the blockchain industry.
Crypto stocks feature ample diversification, securing the revenue and earnings of the company even when there are wild swings in prices. Luckily, the crypto world is gaining mainstream adoption at a significant rate. As more companies become part of the blockchain industry, there is bound to be further momentum in crypto stocks.
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- Time. 2021. "How Investors Can Get In On Crypto Without Actually Buying Any."
- Forbes. 2021. "Coinbase IPO: Here's What You Need To Know."
- Coinbase. 2021. "Coinbase NFT Is Coming Soon: Join the Waitlist Today for Early Access."
- Bloomberg. 2021. "Tesla Now Accepts Bitcoin as Payment for Cars, Musk Says."
- NVIDIA. 2020. "NVIDIA to Acquire Arm for $40 Billion, Creating World's Premier."
- PayPal. 2020. "PayPal Launches New Service Enabling Users to Buy, Hold and Sell Cryptocurrency."
- Investor's Business Daily. 2022. "MARA Stock: Is It A Buy As Bitcoin Slumps? Here's What Marathon Digital Stock Chart Shows."
- CNBC. 2021. "MicroStrategy Owns Over $3 Billion Worth of Bitcoin After New Purchase."