Reviewing the 5 Best Cryptocurrency Stocks to Invest In

Adam Johnson

Five best cryptocurrency stocks to invest in are the cream of a broader and growing trend of cryptocurrencies that have become increasingly popular in recent years.

Digital currencies such as Bitcoin (CRYPTO:BTC) were virtually unheard of back in 2012, but now the industry is worth more than $2 trillion. With society getting funneled into a more digital realm by COVID-19, investing in technologies that serve as the gateway between blockchain and our society could be more lucrative than trying to find the next Bitcoin.

After all, there is no shortage of innovative companies trying to bridge the gap between the two worlds.

Consider Coinbase Global Among 5 Cryptocurrency Stock to Invest In

The first cryptocurrency stock worth mentioning is Coinbase Global (NASDAQ: COIN), a top cryptocurrency trading exchange. The company is a popular platform to purchase major cryptocurrencies such as Bitcoin, Ethereum (CRYPTO:ETH) and Cardano (CRYPTO:ADA).

Coinbase earns a small transaction fee every time someone places an order to buy or sell a cryptocurrency. As digital coins become more mainstream, it will be one of the biggest beneficiaries of the boom.

Plus, Coinbase is gaining popularity among institutional customers. In the company’s stakeholder letter, Coinbase noted that institutions are increasingly seeing the exchange as a “one-stop shop” for activities related to managing crypto assets.

Coinbase is well positioned in the Western markets considering its dominant market share. It focuses on the casual user and thus has a superior user experience compared to alternatives in this industry. Thus, Coinbase can be considered the primary gateway for both the general population and institutions to interact with the crypto economy.

Therefore, Coinbase Global can be a solid long-term investment as the crypto market continues to grow.

Chart courtesy of www.stockcharts.com

Nvidia and Advanced Micro Devices Are Two of 5 Cryptocurrency Stocks to Invest In

Nvidia Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) are two semiconductor companies that are leading designers of graphics processing units (GPUs). Although these chip-making companies do not deal with cryptocurrencies directly, GPUs enable computing-intensive applications such as data centers, artificial intelligence and the creation of crypto assets.

GPUs remain a fundamental piece of hardware for the creation and management of crypto assets. Cryptography and blockchain creation require immense computational power, and GPUs are well-suited for the job.

Both Nvidia Corporation and Advanced Micro Devices recently announced acquisitions that likely will further cement their positions as leaders in chip technology. Nvidia is trying to purchase ARM Holdings, a licensor of chip architecture design for data centers and smartphones, while AMD is planning to acquire field-programmable chip leader Xilinx (NASDAQ:XLNX).

Chart courtesy of www.stockcharts.com

Nvidia and AMD are poised to continue taking market share of the semiconductor industry and lead the way in developing more emerging technologies such as blockchain.

Chart courtesy of www.stockcharts.com

Canaan and Hut 8 Mining Make List of 5 Cryptocurrency Stock to Invest In

Canaan (NASDAQ:CAN) designs high-powered, application-specific integrated circuit (ASIC) machines specifically for the purpose of brute force guessing the network’s correct hash (passcode).

Canaan’s next-generation ASIC can make tens of trillions of guesses every second as to the right hash to validate blocks on the Bitcoin network. This is millions of times more powerful than AMD and Nvidia’s latest GPUs.

Chart courtesy of www.stockcharts.com

One of the most popular Bitcoin mining stocks is Hut 8 Mining (NASDAQ:HUT). The company commands a sizable minority stake on the overall Bitcoin network. Instead of selling the Bitcoins it mines on the market, Hut 8 Mining maximizes returns for shareholders by lending them out and farming yields.

The company uses a mix of wind, solar and natural gas sources for its electricity that ensures the sustainability of its operations. This assures investors that the company will not be embroiled in environmental concerns for high electricity use.

Chart courtesy of www.stockcharts.com

Why Buy Cryptocurrency Stocks?

The best part about cryptocurrency stocks is that most of them are not direct plays on the industry. This gives investors the reward for ample diversification. Cryptocurrencies are quite volatile and can cause wild wings in revenue. However, the crypto world is rapidly gaining mainstream adoption. Expect further momentum in crypto stocks as more and more companies join in the blockchain revolution.

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