What are the best crypto (Bitcoin) stocks?
There are several ways to invest in Bitcoin. You can purchase a certain amount of Bitcoins and try to sell them for a profit, but it is also possible to invest in Bitcoin stocks.
On this page, you will learn about stocks that are in some way connected to Bitcoin. All stocks described in this article are from companies that are involved in investing in this popular cryptocurrency in one way or another. By investing in a Bitcoin stock, you are indirectly investing in this cryptocurrency.
Crypto stocks are not the same as crypto
Do not mistake a crypto stock for crypto itself! Other factors play a significant role in a company. The management of the company and its financial performance determine the final outcome. This means that a crypto stock can perform better or worse than Bitcoin.
What are the best Bitcoin stocks to invest in?
There is no one best Bitcoin stock to invest in. It is important to do sufficient research on the companies so that you understand what they stand for. Furthermore, not every investment is suitable for every investor. The list below can inspire and help you find crypto businesses in which you can invest.
Coinbase: a well-known crypto exchange
Coinbase was only launched in 2021, but is now one of the world’s largest crypto exchanges. The exchange earns money on every transaction, as they charge transaction fees.
However, Coinbase stocks are performing poorly in 2022 and 2023 due to the significantly decreased cryptocurrency value. The stock price of Coinbase is therefore strongly linked to the Bitcoin value.
PayPal: Crypto Buying Made Possible
Investing in PayPal stocks can also be interesting. For instance, the company has launched Venmo, a peer-to-peer crypto payment application.
In addition, PayPal is considering launching its own stablecoin and has a strong interest in blockchain technology.
Bitcoin Group stock is listed on the German stock exchange. The company, formerly known as AE Innovative Capital SE, now Bitcoin Group SE, holds an impressive 3,209 Bitcoins in its portfolio. Because of the company’s large holdings in Bitcoin, it is definitely connected to this digital currency. Furthermore, AE offers a Bitcoin marketplace via www.bitcoin.de.
On-Line stock is listed on the London Stock Exchange. The company behind this stock, On-Line Blockchain Plc, strongly focuses on current internet trends, including Bitcoin and blockchain in general.
The company was formerly known as On-Line Plc. When the word “blockchain” was added to the company name, the On-Line stock price immediately went up.
The company Nvidia produces chips that are suitable for solving cryptographic keys, or mining Bitcoins. Due to the company’s specialization, Nvidia is also strongly connected to the Bitcoin price. If you want to invest indirectly in this cryptocurrency, you can also do so by investing in Nvidia stocks.
An alternative stock in the same industry that you can invest in is AMD. Don’t forget, during the gold rush, the sellers of pickaxes made the most money!
Microsoft is a popular company to invest in. Many people know what Microsoft does, but it is not so well known that Microsoft is also strongly connected to Bitcoin. Microsoft’s relationship with this cryptocurrency is due to the fact that the company has always played a leading role in the technology behind this digital currency. If you want to invest indirectly in Bitcoin, you can also do so through Microsoft’s stock.
An additional advantage of an investment in Microsoft is that this company is not only involved in Bitcoin and blockchain. Even when crypto performs poorly, you can still potentially achieve good results with an investment in Microsoft.
Overstock was one of the first companies to actively work with blockchain technology. That is why this company is also strongly connected to the Bitcoin price and is certainly suitable as an indirect Bitcoin investment.
Nowadays, many more companies are connected to Bitcoin in this way, but Overstock was one of the first organizations to deal with cryptocurrencies. That is why this company is more strongly connected to Bitcoin than many companies that are now doing the same.
Meta & Spotify
Both Meta and Spotify are innovative companies that are looking for ways to break through in the crypto market.
Meta tried for a long time to launch its own cryptocurrency (Diem, formerly Libra), but this ultimately failed. Meanwhile, Spotify allows users to receive crypto as donations. I am curious to see how these companies will develop new crypto applications in the future!
With Robinhood, retail investors can speculate on the price movement of crypto. Robinhood Markets became very well known due to the meme stock Gamestop but lost many of its users later in 2022. However, you can indirectly invest in the crypto market with an investment in Robinhood, as the company offers crypto trading to its customers.
Canaan & Hut 8 Mining
You can also choose to invest in a crypto mining company. Well-known examples of publicly traded crypto mining companies are Canaan and Hut 8 Mining.
The performance of mining companies depends heavily on electricity costs and the Bitcoin price. With low electricity costs and a high crypto price, these types of companies can make the most profit.
Crypto stocks versus crypto
Investing in stocks and investing in crypto works a little differently. Stocks are generally less volatile and are also supervised. This allows you to better know what you are investing in and you are less likely to be surprised.
Crypto, on the other hand, is more volatile: as a result, you can lose and earn money faster. Another advantage of investing in crypto is the opening hours: you can trade crypto 24/7 while the stock market regularly closes.
Is it wise to invest in crypto stocks?
The price of crypto or Bitcoin stocks is often closely related to the price of crypto. Therefore, it is only wise to invest in these stocks if you have confidence in the future of crypto. It is advisable to diversify your investments as much as possible: this way, you reduce the chances of losing money with your investments.