Featured image by Art Rachen on Unsplash
If you’re curious about cryptocurrencies but you’re not yet ready to invest in them directly, these top crypto stocks could be right for you. In fact, they might give you precisely the opportunity you’ve been seeking. So read on to find out more.
RELATED ARTICLE: BITCOIN ALTERNATIVES: THE MOST IMPORTANT OTHER CRYPTOCURRENCIES
The momentum we have seen with cryptocurrencies during 2021 has been dramatic. However, the record-breaking price surges met equally stomach-churning drops. Meanwhile, new releases such as BitClout and Landshare coin joined the crypto world. Additionally, more regulatory crackdowns emanated from China and Turkey.
For example, Bitcoin hit a record high of $64,000 in April. Now, after a massive 50% drop, the price is trading back at the $63,000 mark at the time of this article. Nonetheless, Bitcoin’s $1.19 trillion market cap and Ethereum’s growing blockchain technology make more investors reconsider crypto assets as a viable investment.
Crypto Stocks Meet Investors’ Needs
Moreover, as investors seek to gain exposure but minimize severe risk, cryptocurrency stocks have emerged to meet that need. For investors who are still unsure about going directly into crypto, several companies offer exposure palatable to wary investors. For example, Buystocks.co.uk provides insight into crypto stocks to help investors make sound investment choices
The outlook by corporations and hedge fund managers looks positive, and the trend is set to continue. What’s more, competing cryptocurrencies like Cardano, Solana, Ripple, and fiat currency-backed stable coins all indicate an industry expanding in use-value.
What Are the Top Crypto Stocks to Watch in 2021?
So, in light of the growing positive sentiment to cryptocurrency investments, we’ll discuss the top crypto stocks to watch in 2021. We will examine how their performance might make them a consideration for your portfolio.
In this article, we will look into:
- Coinbase Global
- Grayscale Bitcoin Trust (GBTC)
- Hut 8 Mining
- Square (SQ)
- PayPal Holdings
- Marathon Digital Holdings (MARA)
One of the largest crypto stocks, Coinbase is a fintech company that provides end-to-end financial technology. The company’s main objective is to build and sustain a crypto economy and a secure, transparent financial system.
The company has big plans. This is evident from its funding initiatives, as it raised $2 billion in senior notes in September. The company will use the funds for acquisitions and product development.
Transacting users is more than 8.8 million. Additionally, Coinbase reported that its revenue exceeded expectations at $2.33 billion.
GBTC works similarly to an exchange-traded fund (ETF), and it represents direct holdings of Bitcoin. You can buy GBTC through a brokerage account just as you would any other ETF.
GBTC gives users the ability to track the price of Bitcoin it holds. However, you cannot trade your shares for Bitcoin. Also, because of the introduction of a Bitcoin ETF later this year, the demand for this top crypto stock could drop substantially. However, the management of GBTC is waiting for the go-ahead to convert to an ETF format after legal approval.
Nvidia is one of the world leaders in GPUs (Graphics Processing Unit) for the gaming industry. Crypto mining requires powerful hardware to solve complex mathematical problems to generate new coins.
Nvidia experienced a massive demand for GPUs. This caused a spike in the share price of this top crypto stock, accompanied by a rise in its revenue earnings. Moreover, the company is continuing to capitalize on the adoption of cryptocurrencies by developing specialized processors to meet demand. Nvidia’s gaming business is still growing strong, up 106% from last year.
Hut 8 Mining is a specialized crypto Canadian company dealing in crypto mining and blockchain infrastructure. Crypto mining needs specific hardware to operate, and Hut 8 Mining has put in the effort to meet the needs of this rapidly growing sector. That effort has paid off, as the price for this crypto stock rose 1,200% during 2021.
In September, Hut 8 received certification as a MicroBT authorized repair center for Canada. This certification builds greater industry trust and access to recourse to meet the needs of crypto miners in Canada.
Square is another fintech company specializing in payment systems and card-reading hardware for small businesses. They announced in October that they had bought 4,709 bitcoins for $50 million.
The company has been bullish on cryptocurrencies for a few years, as they allow Cash App for Bitcoin transactions. Recently, they developed an Auto Invest feature, which allows daily or weekly Bitcoin purchases or stocks. Square’s market value currently stands at $108.7 billion.
PayPal has become a household name in payment processing and transactions. The $333.5 billion-dollar company announced in October that its service allows users to hold and transact several cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
A Mizuho Securities survey indicates that 17% of PayPal users trade cryptocurrencies. This is an impressive number meaning that 67 million out of 392 million PayPal users hold crypto assets. Moreover, the growing adoption sees large revenue potential for PayPal, already achieving a revenue rise of 29% year on year.
MARA is another crypto mining company focusing on building crypto assets. With growing crypto adoption worldwide, MARA shares have surged 750% since last year.
Then in August, MARA purchased attentional mining hardware to the value of $120.7 million. This increase in hardware capabilities means the company hopes to boost its mining output. MARA has seen some spectacular revenue earnings with an unbelievable 10,147% increase year on year.
RELATED ARTICLE: IS BLOCKCHAIN THE WAY FORWARD FOR STARTUPS?
Crypto Stocks Give Investors a Way to Invest in Cryptocurrencies Indirectly
Cryptocurrencies have seen massive adoption, and investment firms around the world are starting to take notice. Therefore, if you are still wary about investing directly into crypto, consider crypto stocks. They give you exposure without the volatility.
RELATED ARTICLE: WHERE TO INVEST IN THIS UNSTABLE MARKET