Top 6 Cryptocurrency Stocks You Should Invest In
Investing in cryptos like Bitcoin is volatile, consider these stocks instead.
Investing in crypto stocks vs coins
Cryptocurrency is an emerging asset class and is more volatile than other assets like stocks and bonds. Depending on your risk tolerance, you may want to consider alternative ways to gain exposure to cryptocurrencies without purchasing coins directly.
A great way to do this would be to look into stocks that are actively pursuing the crypto markets. This is safer because some stocks do not rely on cryptos rising in price to make money. Crypto transactions cost money and companies that facilitate these transactions will benefit even if coin prices fall.
1- Robinhood Markets
Robinhood is a revolutionary discount brokerage app that is changing the way people view investing. The Robinhood app is visually appealing and can attract people to begin their investing journey with its videogame-like platform. Before 2018, you could only purchase stocks and trading options on Robinhood.
Now they have the added ability to trade cryptocurrency. This allows Robinhood to diversify its revenue streams from just stocks and options to other asset classes like crypto. You can even send and receive coins using any other crypto wallet. Robinhood continues to add new coins which will provide them with more revenue from crypto transactions.
2- Coinbase Global
Coinbase is one of the most popular centralized cryptocurrency exchanges. It allows its users to trade over 100 cryptocurrencies and is regularly adding new ones. It is one of the only exchanges that allows you to stake Ethereum, which is the most popular altcoin. Coinbase does not rely on crypto prices to do well, rather they just make fees on every transaction.
Coinbase’s blockchain analytics is used by the government and financial institutions to match wallet addresses to specific people. This is useful to crack down on hackers and for institutions to easily be able to find your wallet address. The blockchain is a public ledger which means all of the transactions are public for everybody to see. Coinbase will help the government with its blockchain analytics and will be able to help catch criminals.
3- CME Group
The CME Group is known for operating futures exchanges that allow people to trade commodities, stocks, and agricultural futures. In 2017, the CME created the first market for Bitcoin futures.
Investing in the CME Group is an amazing way to gain profits from the cryptocurrency market in a safe way. As traders buy and sell cryptocurrency futures, the CME Group will benefit regardless of where the coin price goes.
It is also worth noting that crypto futures are just a small part of its business. Even if crypto fails, the CME Group has many other products that traders will continue to use. This provides a safety net in case the crypto markets do not end up performing poorly.
4- Block
Block makes money on crypto transactions, but also on cryptocurrency itself. It holds over 8,000 Bitcoins on its balance sheet which may turn out to be an amazing investment in the future.
Block hopes to become a top platform for cryptocurrency transactions for businesses that use its technology. This is mainly beneficial for international transactions where traditional banks charge high currency exchange fees. Additionally, Block owns Cash App, which also began offering Bitcoin trading in late 2017.
5- PayPal
PayPal is a similar company to Block because they allow business transactions and own a peer-to-peer payments app called Venmo. Both Venmo and PayPal allow crypto trading, making them a great investment to indirectly gain cryptocurrency exposure.
Venmo is the largest peer-to-peer money movement app so Venmo could theoretically become the largest cryptocurrency platform as well. As businesses continue to utilize cryptocurrency to do business. It will benefit companies like PayPal who are well-positioned to directly benefit from the transactional fees.