With the boom of Bitcoin, the rise of Ethereum, and the increased focus on digital companies specializing in blockchain technology, cryptocurrency has been a hot commodity for many investors looking to bring in greater, more exciting returns than the ones found on the stock market. However, investing in cryptocurrency doesn’t have to mean exclusively buying actual cryptocurrency.
Not only is crypto sprinkled with serious risks, it’s also even more unpredictable than the stock market. The migration to cryptocurrency stocks is alluring as a result. This can include stocks for companies that provide crypto services, companies that benefit from crypto and blockchain technology, and even companies rumored to be creating their own cryptocurrency sometime in the near future.
It’s a smart investment strategy: this way, investors can benefit from the success of cryptocurrency while also having some additional protection from the times when crypto isn’t doing so hot. These nine cryptocurrency stocks are a great place to start.
Coinbase
After going public in April of 2021, Coinbase Global (COIN) Initially sold hard. Much like Facebook did following its initial public offering, the market received the listing poorly. But as the months rolled by, word got out: Coinbase isn’t just an exchange to buy and sell cryptocurrencies for retail traders. It supports massive institutional capital flows into cryptocurrency assets.
Coinbase has over 8.8 million monthly transacting users, bringing the app’s Q2 2021 trading volume ever-closer to half a trillion in total.
What’s more, Coinbase’s total retail Trading Volume was $145 billion for this second quarter of 2021. Its success mirrors the success of Bitcoin, and its price per share is starting to trend higher with vigor — analysts’ forecasts predict the stock could rise to anywhere from $337 to $600 per share in the next twelve months.
PayPal
While PayPal (PYPL) itself might not be one of the top spots cryptocurrency traders think of when buying Bitcoin, PayPal’s app Venmo is.
The peer-to-peer payment app launched support for cryptocurrency in the early part of 2021, and ever since then, users have been able to trade Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. As the largest peer-to-peer payment app, PayPal has all the makings of a leading cryptocurrency platform.
For the second quarter of 2021, PayPal hit a total Payment Volume (TPV) of $311 billion and saw a total net revenue of $6.24 billion. This is an increase of 36% and 19%, respectively.
Beyond this, PayPal also saw 11.4 million Net New Active Accounts (NNAs) added and ended Q2 of 2021 with 403 million active accounts in total.
Its price per share currently sits in the mid-$200 range, but forecasts can see this number rising from $275 to $380 per share in the next year.
Square
Not unlike PayPal, Square (SQ) itself isn’t regarded as THE cryptocurrency destination, but its peer-to-peer payment app Cash App is.
Cash App has been allowing for users to buy and trade crypto since 2020, and this strategic move has earned the company a sizeable chunk of its $5.06 billion in revenue for the first quarter of 2021 just from Bitcoin transactions alone.
Looking forward to the year to come, financial analysts see Square stock rising anywhere from $312 to $380 in the next twelve months.
As long as Cash App continues to support Bitcoin, there’s no reason why the company’s revenue wouldn’t continue to soar to new heights.
Robinhood
While Robinhood Markets (HOOD) — often simplified to just Robinhood — was the subject of a lot of scorn during the boom of meme stocks and cryptocurrencies earlier in 2021, but the truth is that the discount brokerage app continues to see great success on the cryptocurrency front even after the dissatisfaction many users expressed toward the company.
This is because Robinhood allows for around-the-clock commission-free trading of Bitcoin, Ethereum, and even Dogecoin.
Crypto trading makes up for a significant portion of Robinhood’s revenue, which means that the success of the company’s stock is contingent on the success of cryptocurrency.
Currently, its price per share is significantly down from the company’s peak of $70 per share in August of 2021. Despite this, forecasters can see the company’s stock rising to between $55 and $84 per share over the course of the next twelve months.
Canaan
Stepping away from stocks that benefit from the actual buying and selling of cryptocurrency, it’s also valuable for investors in cryptocurrency stocks to take a look at companies currently mining for Bitcoin.
Canaan is one such company. Canaan (CAN) designs high-powered, application-specific integrated circuit (ASIC) machines created especially for validating blocks on the Bitcoin network.
Canaan’s technology can make trillions of guesses every second, making it exponentially better than any other competition on the market.
Canaan stock sits below $10 a share at the time of research, which is a significant drop from its previous high of over $36 per share in March of 2021. There are few forecasts to be found for the stock, but if Canaan continues to prove itself as the leading contender in Bitcoin mining, then there’s a possibility that the company’s stock couldn’t return to its previous highs down the line.
Nvidia
Continuing to look elsewhere besides simply companies that facilitate cryptocurrency trading, Nvidia (NVDA) is a leading designer and manufacturer of graphics processing units (GPUs).
Today, GPUs play a key role in data centers, the development of artificial intelligence, and the creation of crypto assets.
This key role has driven up Nvidia’s stock in conjunction with rising cryptocurrency prices before, like back in 2018 when Bitcoin miners rushed to snatch up GPUs en masse.
From its current share price, analysts estimate Nvidia stock can rise by over $100 per share over the next twelve months.
As long as cryptocurrency is mined and GPUs are needed, Nvidia should only continue to see the great financial success its seen so far — and, even if cryptocurrency were to experience a drastic negative change, Nvidia has been around long before cryptocurrency and would certainly survive such a shift.
AMD
Like Nvidia, AMD (AMD) is a semiconductor company that excels at the creation of GPUs. Also similar to Nvidia, AMD saw a boom back in 2018 when crypto miners scrambled to buy up GPUs for the purpose of creating crypto assets.
These two companies — Nvidia and AMD — stand alone as global leaders in their field, which makes AMD just as worthy of purchasing as its competition.
AMD has actually been around even longer than Nvidia’s decades-long history. In fact, AMD became a publicly traded company all the way back in 1979. The company’s price per share is hovering around its all time highs, with some financial analysts seeing a very real possibility of AMD stock rising as high as $172 per share over the next year.
Given the company’s decades-long history of success on the stock market, AMD is another solid place for investors to profit from cryptocurrency trading volumes without having to sacrifice stability over the long run.
While Facebook (FB) is neither involved in the buying and selling of cryptocurrency, the mining of cryptocurrency, nor the creation of hardware or software that benefits the crypto economy, the social media giant has long been hard at work on creating a cryptocurrency of its own.
Called Diem (and formerly known as Libra), Facebook’s cryptocurrency has the potential to be a global form of payment — released by an already well-known platform — that appeals directly to the billions of people around the world with a Facebook account but no bank account.
Facebook’s stock currently resides above the $325 mark, with that price per share forecasted to rise significantly over the next twelve months.
The most optimistic financial analysts estimate the company’s price per share could reach as high as $500 by this time next year, while the median forecast comes in at a still-impressive $424 per share.
Shopify
Shopify (SHOP) is one of the most notable providers of e-commerce software and infrastructure, and the company’s recent embrace of cryptocurrency as an accepted form of payment only exemplifies that notability.
By integrating payment processor CoinPayments into its infrastructure, Shopify has shown the company is committed to bringing in cryptocurrency users across the board — what’s more, Shopify and Facebook recently teamed up to launch Facebook Shops, which has the potential to bring crypto payments to small businesses who otherwise might not have been able to accept crypto.
Shopify stock recently hit an all-time high for its price per share, and analysts predict Shopify stock to rise as high as $2,024 by this time next year with a median forecast of $1,700.
As one of the leading e-commerce providers and a huge advocate for cryptocurrency payments, Shopify has more than earned the attention of potential cryptocurrency stock investors.
The Bottom Line: Best Cryptocurrency Stocks To Buy
From crypto trading apps to crypto mining companies to manufacturers of essential crypto hardware to potential cryptocurrency titans, these companies offer potentially a risk-mitigated way to dip toes into the crypto economy without diving headfirst into more unpredictable cryptocurrencies.
Better yet, many of these companies have shown that cryptocurrency certainly helps their bottom line, but isn’t the only thing keeping them in the green — that means that, no matter what happens with crypto going forward, these investments have the potential to still bring in returns.
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