Cryptocurrency stocks are a good investment if you wish to get a direct exposure to the demand that is currently prevailing in the market for digital currencies. But it is safe but less attractive to purchase stocks of companies that have exposure to digital currencies. Despite the risks, the digital currencies and the blockchain technology are constantly becoming stronger. Great infrastructures that are required are being built and the investors find it easy to access high grade custody services.
Cryptocurrency Stocks List 2021
The main idea behind blockchain, which happens to be the digital ledger that tracks transactions automatically among the parties and confirms the ownership of a digital coin was to formulate a financial system that can be used for the internet. But crypto assets are now formulated to help secure all sorts of products from copyrights protections to medical records to digital identity. In keeping up with that guidance, here are some of the best cryptocurrency stocks to buy 2021.
Coinbase Global is one of the top digital currency trading exchanges that made its public debut at the beginning of 2021. The company is a top player on the popular cryptos such as Ethereum, Bitcoin and enables the users to trade over 50 cryptocurrencies. Till now the success of this crypto trading platform has been the reason for the increase in the valuation of digital currency that in turn has allowed millions of users to register themselves and start trading with cryptocurrency stocks. This is one of the cryptocurrency stocks to invest in. Every time someone places an order to sell or purchase a crypto, Coinbase earns a certain transaction fee. But the company aims to be more than just a trading platform. It also provides a debit card to its users that enables the customers to spend from the remaining balance in their digital wallet.
PayPal And Square Holdings
The interest of the investors has increased as the prices of cryptos have also increased. But trading was never the real idea behind digital currencies and blockchain. The primary goal was digital payments with a decentralized system. Thus allowing the ability to hold and purchase cryptocurrencies within a wallet is a natural thing for PayPal and Square Holdings, if, over time, these assets earn acceptance. In 2017, the consumer-facing application of the Square Cash App began allowing Bitcoin trading. By 2021, Bitcoin generated huge revenue for Square, even though the future of trading helped the bottom line of Square to some extent. However, this company is able to foster the use of Bitcoin between its business users and can become the largest platform for conducting crypto transactions between companies and customers.
NVIDIA And AMD
Chipmakers like AMD and NVIDIA do not directly deal with digital currencies, but their semiconductor entities are the leading designers of the GPU (graphic processing units). GPUs are known for producing high end graphics for computer games. But they are now used in performing applications that are computing intensive such as in Artificial Intelligence, data centers, and formulation of crypto assets. Formulation of cryptography and blockchain requires huge computational power, and GPUs suit best for these jobs. In 2018, the increasing digital currency prices were the boosting force for AMD and NVIDIA’s increase in the stock price as the cryptocurrency miners had to buy GPUs for their tasks. Graphic processing units still remain an integral piece of hardware in the management and formulation of crypto assets. NVIDIA even launched the latest lineup of chips particularly for the mining of crypto in 2021.
CME Groups functions as the largest financial derivative exchange across the globe which allows the investors to trade futures, which bet on or safeguard the future valuation of any asset as a predetermined value. The exchange trade of the CME Group has a diverse assortment of assets that includes mining and agriculture products, stocks, currencies, and energy. It’s the latter that enables CME Group, a cryptocurrency stock.
None of these cryptocurrency stocks are a pure play on digital currency, but it is crucial to remember that the use of digital assets is still distant from the mainstream. Serious hindrances to the widespread adoption stand ahead which includes influencing the users to stop using currencies provided by the government or any other central authority.
Frequently Asked Questions On Cryptocurrency Stocks
Best cryptocurrency stocks that are ideal for investment include Canaan Inc. (NASDAQ: CAN), Marathon Digital Holdings, Inc. (NASDAQ: MARA), CME Group Inc. (NASDAQ: CME), Mastercard Incorporated (NYSE: MA), and NVIDIA Corporation (NASDAQ: NVDA).
The volatility in Bitcoin and other cryptocurrency stocks – this year has renewed excitement in retail investors since the digital coin last increased in 2017. Billionaires, professional investors, and even companies that are traded publicly have maintained a keen interest in cryptos.
The best cryptocurrency to invest in 2021 includes Bitcoin, Ethereum, XRP, Cardano, Stellar, USD Coins, Chainlink, Uniswap, Polkadot, and Bitcoin Cash.