Over the course of the last ten years, cryptocurrency has seen a meteoric rise in popularity. Cryptocurrencies are unquestionably finding their way to markets that are more commonly used, despite the fact that many people continue to be confused about how they operate.
When someone mentions the word “crypto,” the first thing that often comes to mind for most people is either bitcoin or ethereum. According to CoinMarketCap, despite the fact that the cryptocurrency business as a whole is still in its infancy, the sector’s growth has been phenomenal, and it already has a market valuation of over $1.07 trillion.
Many early cryptocurrency investors have gained millions, apparently overnight, due to spikes in the value of their investments. Even if a lot of people lost money just as fast, investors are still looking out for the next cryptocurrency to put their money into.
Both the Growth and Volatility of the Crypto Market
There are already more than 22,000 different cryptocurrencies, which is one reason why investor interest is expanding. Especially for early investors who are willing to keep assets for the long term, investing in cryptocurrencies may prove to be a successful method to accumulate wealth. Due to the very unpredictable nature of the cryptocurrency market, however, profits cannot be assured, which has led many potential investors to have second thoughts.
The fact that the cryptocurrency market is still in its infancy may help to explain some of the enormous price fluctuations that have been seen in different currencies. Despite the fact that this degree of volatility is a risk element, some investors may find that cryptocurrency-related investments are a suitable match for them.
The good news is that there are a number of methods to obtain exposure to the different digital assets without having to actively invest in a particular currency. One approach to gain indirect exposure to cryptocurrencies is to invest in crypto assets such as buying stocks that deal with blockchain technology or buying companies that deal with blockchain technology.
It’s possible that you’re curious about the greatest stocks to purchase related to cryptocurrencies. The following is a list of the most prominent firms that have already entered the cryptocurrency market.
11 of the Very Best Stocks to Invest In Regarding Cryptocurrency
The following is a list of the best cryptocurrency stocks that you should consider adding to your investment portfolio.
1. Coinbase, a Global Corporation (COIN)
With over 108 million verified users, Coinbase is widely regarded as one of the most successful bitcoin exchanges. It completed its first public offering in April of 2021, at which point it became a publicly listed corporation. The organization is going through a difficult time right now. Despite this, it is still the biggest exchange that is open to investors from the United States, and it has no rivals that come close to matching its daily trading volume or number of markets.
The cryptocurrency trading website charges customers a little fee whenever they purchase or sell digital assets such as bitcoin, ethereum, solana, cardano, and hundreds of other currencies. Users also have the ability to buy and sell digital assets. Coinbase is a cryptocurrency trading platform; however, it also has a number of additional attributes that make it one of the most desirable stocks in the cryptocurrency market.
Analytics of the Blockchain
Blockchain analytics are provided by the corporation to governmental organizations, financial institutions, and cryptocurrency companies. Through the use of Coinbase analytics, users are able to keep track of fraudulent transactions and millions of wallet addresses throughout the cryptocurrency market. Blockchain analytics eventually result in increased levels of confidence within the sector, despite the rise in reported incidences of cybercrime.
The cryptocurrency exchange also operates in the sector occupied by non-fungible tokens. The fundamental objective of this change is to broaden the scope of the creator economy by opening up the possibility of financial gain for creators of all kinds, including artists. Coinbase’s new NFT service will make NFTs easier to access.
2. Tesla Inc. (TSLA)
On the list of the greatest cryptocurrency stocks, electric vehicle manufacturer Tesla now holds the second spot. It has proved to be one of the most successful firms in the electric vehicle (EV) sector, with a market valuation that has reached over $1 trillion during stock surges and presently rests at $621.35 billion billion dollars.
The day of the price decrease and the controversy surrounding CEO Elon Musk’s handling of Twitter caused the stock to drop to its lowest point in the last 52 weeks on January 6. Tesla stock still seems to be a decent deal, despite the fact that its price immediately reversed direction as it seemed more likely that Musk will pick a new CEO for Twitter.
The Link Between Tesla and Cryptocurrency
Musk is an advocate for cryptocurrencies and is optimistic about the future of digital asset markets. In the year 2021, Tesla made a purchase of bitcoins valued $1.5 billion. The value increased dramatically up until Tesla sold 75% of its ownership, after which it dropped dramatically. However, the loss is a drop in the bucket for Tesla, since it only accounts for a tiny part of the company’s cash position and a very small percentage of its overall market worth.
Tesla went the additional mile in February 2021 by becoming the first major automaker to accept payments in bitcoin for the purchase of its electric automobiles. Shortly after that, Tesla stopped accepting bitcoin as a means of payment, citing concerns about its effect on the environment. Musk subsequently said that the firm will likely begin taking payments in bitcoin after the difficulties with the environment had been rectified.
In addition to bitcoin, Musk has emerged as a prominent figure in the public consciousness for a number of other cryptocurrencies, including ethereum and dogecoin.
Considering the growing popularity of cryptocurrencies and the possibility that Tesla’s investments in cryptocurrencies will help the company’s bottom line, purchasing Tesla stock is a way to indirectly gain exposure to cryptocurrency while also purchasing shares in an innovative company that is a market leader in electric vehicle technology.
3. The company NVIDIA Corporation (NVDA)
Nvidia is a producer of graphics processing units (GPUs) that also makes semiconductors for use in various consumer electronics. Despite this, the firm is mostly recognized for the high-end video game graphics cards it produces.
The CMP HX card from Nvidia was developed specifically with mining businesses in mind. The market has been unstable, initially as a result of shortages in the supply chain, and more recently as a result of a decrease in cryptocurrency values, which has resulted in a reduction in the demand for mining equipment.
In another development that highlights the dangers of investing in relatively new technology, Nvidia has agreed to pay a fine of $5.5 million for failing to disclose the effects that mining has had on the company’s business. More specifically, Nvidia failed to disclose the fact that miners have contributed to the shortage of graphics cards and increased demand for the cards by snatching them up.
In order to minimize any mining-related runs on its product in the future, the business has included a mining limitation on freshly launched cards. Nvidia, on the other hand, is an excellent choice for cryptocurrency investing due to the fact that it developed the technology that enables cryptocurrency mining and plays a significant role in the broader PC graphics card sector.
4. Spot goes to Advanced Micro Devices Inc. (AMD)
AMD, much like its competitor Nvidia, is among the most prominent makers of graphics processing units and central processing units that are used in cryptocurrency mining. Even though it does not directly deal with cryptocurrency, it is the leader in the production of high-end graphics cards, which are used to power apps that produce crypto assets.
The development of encryption and blockchain technology takes a significant amount of computing power. The use of GPUs is ideal in this scenario. They are an essential piece of hardware that enables users to generate crypto assets and manage such assets.
AMD has successfully established itself as a frontrunner in the market in terms of chip technology. Because the corporation is always working to create new technologies like blockchain, purchasing its stock is an investment that will pay you both now and in the future.
5. Block (SQ)
The primary goals of the adoption of digital payment systems were to do away with central middlemen and to lower transaction costs for customers as well as for retailers and other enterprises. Block, previously known as Square, is a company that focuses on blockchain technology and gives customers the ability to purchase and store cryptocurrencies in a digital wallet.
Block has made significant progress by enabling the trade of bitcoins on its Cash App. The company’s goal is to encourage the usage of bitcoin among both its users and the businesses it works with, and it plans to become a prominent platform for the transaction of cryptocurrencies between businesses and their clients.
People have always been had to depend on banks for overseas transactions, and as a result, they often spend enormous quantities of money in costs associated with foreign currency. Transactions involving cryptocurrencies do away with the need for a central middleman, which results in a reduction in the amount of money spent on the process overall.
Block stock is a viable investment for both seasoned crypto entrepreneurs and those just starting out in the space because of its growth into cryptocurrency and its concentration on blockchain.
6. PayPal Holdings (PYPL)
PayPal is at the vanguard of the movement toward digital payment methods, and the company’s mission is to use technology to streamline business operations while also making its consumers’ access to financial services more easy and more cost-effective.
PayPal is an international online payment system that came before Cash App in its day. People may receive paid in a variety of different ways, including via peer-to-peer money transfers that can be made using Venmo, the company’s mobile app. In the latter half of the year 2020, PayPal enabled cryptocurrency transactions. Because it enables users to trade in bitcoin, bitcoin cash, ethereum, and litecoin, Venmo has emerged as one of the most prominent cryptocurrency platforms. The organization is looking into the possibility of developing its own own stablecoin.
Because PayPal believes that the digitalization of payments and currencies is inevitably in the future, the company has begun to place a significant emphasis on cryptocurrency. Any investor who wants to buy large cryptocurrencies and then use those cryptocurrencies to buy altcoins or access decentralized financial apps may now do so via PayPal, which has become a reliable entry point. PayPal is a profitable investment due to this fact as well as its position as an inventor and leader in the field of payment processing.
7. On the list is Marathon Digital Holdings Inc. (MARA)
At the moment, Marathon Digital Holdings is regarded as being among the most important bitcoin mining businesses in the United States. Mining is the process that ensures the legitimacy of transactions, maintains the safety of the blockchain, and introduces brand new currencies and tokens into circulation.
MARA aspires to develop the biggest bitcoin mining operation at the lowest feasible energy cost, and it enables individuals acquire exposure to bitcoin without directly owning the asset or working through its intricacies. In addition, MARA helps people gain exposure to bitcoin. Because the organization places a strong emphasis on sustainability and the preservation of the environment, its day-to-day activities make use of renewable energy suppliers.
In addition, as of February 2nd, Marathon had a total of 11,418 bitcoins in its assets, including 3,328 bitcoins that were not subject to any restrictions. The company had 71,000 active miners.
The expansion of the business can be traced back to the company’s decision to invest in miners, which sped up the process of mining bitcoins and made manufacturing much more productive and lucrative. A news statement dated January 5 said that the company had one of the most productive quarters in its history during the fourth quarter of 2022.
8. Riot Blockchain Inc., to be exact (RIOT)
According to the website of the firm, Riot Blockchain, which is the biggest bitcoin mining company in the United States, is concentrating on extending its operations by raising the hash rate of its bitcoin mining and the capacity of its infrastructure. Riot is involved in the blockchain industry via a number of different investments, including joint ventures, enterprises built in-house, and other
The firm expects to have a fleet of 115,450 miners by the end of the year, since its primary area of concentration is on bitcoin and blockchain technology in general. As of the 31st of January, it has 82,656. Additionally, the business intends to provide an escrow solution for wholesale telecom carriers that is based on blockchain technology.
Riot is a more high-risk investment than some of the other firms on our list due to the fact that it is actively involved in the bitcoin industry. Having said that, Riot’s early debut into the market and current dominating position provide it with a major advantage over its rivals.
9. MicroStrategy, Inc. comes in ninth (MSTR)
A provider of business intelligence and analytics solutions, MicroStrategy Incorporated was founded in 1999. The activities of the firm consist of the designing, developing, marketing, and selling of its many software platforms. Cloud subscriptions, license agreements, and several other associated services are the primary means by which this is accomplished.
MicroStrategy offers its clients assistance in the areas of platform optimization and maintenance for their business intelligence systems. Customers come from a diverse selection of fields, such as manufacturing, banking, telecommunications, manufacturing, and the consulting, technology, and manufacturing sectors.
The acquisition of bitcoin worth $4 billion by the corporation, part of which was accomplished by taking out loans, is the origin of the company’s engagement in the cryptocurrency market. During the summer of 2017, MicroStrategy made an additional purchase of 301 coins. According to a filing with the Securities and Exchange Commission, the company’s total holdings increased to around 130,000 bitcoins as a result of the cash transaction that was made for $6 million.
The major source of value for this firm as an investment is its core business, not its investments, which is beneficial for investors given that MicroStrategy paid an average of $30,639 per bitcoin. On February 7, a bitcoin was sold for a price that was little under $23,000. But if you think the company’s bitcoin holdings will someday be profitable, you should think about making an investment.
10. CME Group Inc. (CME)
The CME Group is the most important derivatives marketplace on the planet. Its goal is to bring novel and creative approaches to the management of risk as well as improvements in performance. The organization gives its customers the opportunity to trade futures as well as a diverse range of assets, such as equities and currencies, across a number of different markets. The use of cryptocurrencies might now be seen as an option.
In 2017, the CME Group launched a market for “micro” bitcoin futures options. Futures contracts for bitcoin and ether, as well as micro futures and options, are now available. These contracts make it possible for individuals and corporations to hedge against the risk of sudden fluctuations in cryptocurrency values.
Even though crypto derivatives make up a very little portion of CME’s market, other crypto assets are anticipated to be listed there in the near future.
11. Hut 8 Mining Corporation (Hut 8) (HUT)
Hut 8 Mining is another another well-known bitcoin mining firm that you should think about include in your portfolio. The firm is well-known for its mining of both bitcoin and ethereum and has its headquarters in Canada. According to a report from Decrypt, Hut 8 is expanding its offerings beyond cryptocurrency mining to include machine learning, artificial intelligence, and other alternative services. This comes after the completion of Ethereum’s upgrade to a proof-of-stake protocol, which has rendered mining obsolete on that network.
Through the business’s mining activities, the company continues to provide its investors with direct exposure to bitcoin. When providing hosting services to its institutional customers, Hut 8 Mining makes use of specialized hardware that resolves computational issues and verifies transactions. By using Hut 8, you can steer clear of the challenges and limitations associated with purchasing genuine bitcoins. In addition to this, it makes use of alternative forms of energy in order to guarantee the continued viability of its operations.
Up until very recently, Hut 8 did not sell the bitcoins it produced but rather rented them out, which resulted in compounding profits. According to CoinDesk, it reportedly has all of its coins back in its own control at the present time. According to a press statement dated January 6, 2022, as of the 31st of December in 2022, it has 9,086 coins in reserve. This represents a 65% increase over the balance at the end of 2021.
After the buyout of its hosted rigs at a mining site in Alberta is successfully completed, Hut 8 will transition into a fully self-sufficient mining operation.