Exploring Crypto-Related Stocks: Five Opportunities for Investors
Investing in cryptocurrencies can be an exhilarating experience, especially when you see your portfolio skyrocket with double-digit gains. However, the accompanying volatility can be daunting for many. If you prefer a less tumultuous investment approach, consider crypto-related stocks. These can provide you with essential exposure to the crypto market without the same level of drama.
In this article, we will explore five crypto stocks to keep on your radar, highlighting how each company is involved in the crypto space and the potential for significant gains as the market grows. Please note, this is not financial advice; rather, it’s educational content infused with our signature Coin Bureau charm.
Why Invest in Crypto Stocks?
You may wonder why you should opt for crypto-related stocks instead of diving directly into cryptocurrencies. Here are several compelling reasons:
1. Diversification
Cryptocurrency is known for its high risk and volatility. Even Bitcoin, the most established cryptocurrency, can fluctuate significantly. By investing in crypto stocks, you spread your investments across different asset classes, reducing your direct exposure to that volatility.
2. Simplicity
Navigating the world of cryptocurrencies can be complex, particularly for newcomers. The stock market offers a more familiar and straightforward investing experience. Crypto stocks allow you to invest in companies benefiting from the growth of crypto, rather than trying to identify specific projects.
3. Potential for Higher Returns
In some cases, crypto-related stocks can outperform major cryptocurrencies. For instance, MicroStrategy's stock is up over 115% year-to-date, significantly higher than Bitcoin's approximately 40% increase in the same period.
4. Regulatory Clarity
Many investors shy away from cryptocurrency due to unclear regulations. Conversely, stocks are subject to more stringent regulations, making them a more appealing option for risk-averse investors.
5. Tax Efficiency
Tax treatment of cryptocurrencies can be complex and challenging to track. In contrast, crypto stocks tend to be more tax-efficient, simplifying your financial obligations.
6. Retirement Accounts
Certain crypto-related stocks can also be included in retirement accounts, providing an additional layer of security for your investment portfolio.
Five Crypto Stocks to Watch
Let’s take a closer look at five crypto stocks that have the potential to thrive as the crypto market grows.
1. Marathon Digital Holdings (MARA)
Originally the Marathon Patent Group, Marathon Digital was rebranded to reflect its new focus on digital assets. The company aims to build the largest Bitcoin mining operation in North America, employing eco-friendly practices. They use a two-phase immersion cooling system to minimize environmental impact while reducing overhead costs. Marathon also holds over 20,000 BTC, making it one of the largest publicly traded holders of Bitcoin. In the first quarter of 2024, the company mined more than 2,800 BTC, with significant production expected to continue.
2. Coinbase (COIN)
As the largest cryptocurrency exchange in the U.S., Coinbase offers a user-friendly interface and various customer-friendly features. The company went public in April 2021 and has been on an upward trajectory since early 2023. Coinbase earns revenue from trading volumes, particularly during bull markets, which boosts its profitability. Additionally, the company benefits from its involvement with the USDC stablecoin and its Ethereum layer-2 solution, Base, both of which have seen significant growth.
3. Block (SQ)
Formerly known as Square, Block was founded by Twitter’s co-founder Jack Dorsey. The company has shifted its focus toward blockchain infrastructure and offers various services, including its Cash App, which allows users to buy cryptocurrency. Block has ambitious plans, including launching a Bitcoin mining system and committing a percentage of gross profits to Bitcoin acquisition. With a diverse range of revenue streams, Block is positioned for success as crypto markets flourish.
4. MicroStrategy (MSTR)
MicroStrategy is famous for its aggressive Bitcoin acquisition strategy led by former CEO Michael Saylor. The company has made BTC its primary focus, holding over 214,000 BTC. MicroStrategy’s stock performance is closely tied to Bitcoin prices, making it a leveraged bet on Bitcoin. As Bitcoin values rise, so too does MicroStrategy's stock, attracting further investor interest.
5. PayPal (PYPL)
Founded in 1998, PayPal has become a leading payment platform. The company's integration into the crypto market includes direct crypto purchases and stablecoin offerings like PayPal USD (PUSD). PayPal's established reputation increases consumer comfort in using its services, creating a solid revenue stream that will benefit from a potential bull market in crypto.
Conclusion
These five crypto-related stocks could thrive as the crypto market rebounds. Each provides unique benefits and exposure to the cryptocurrency landscape while maintaining a level of stability that direct investments in cryptocurrencies may not offer.
If you enjoyed this article, please like, subscribe, and turn on notifications for more content. To maximize your crypto gains, check out the Coin Bureau deals page, which offers significant discounts on trading fees and hardware wallets. Thank you for reading, and we hope to see you next time!