Cryptocurrencies have become one of the most popular modern investment options, especially among younger generations. With a wide selection of tokens to invest in, the benefits brought from cryptocurrencies, and in general, the way this market is built, the future of crypto looks bright. Thus, good investments usually boil down to which crypto is best for investment at the given moment. But there are other investment opportunities that involve cryptocurrencies but do not require investment in crypto tokens directly.
Cryptocurrencies move in direct correlation with blockchain technology, and thanks to the huge advancements and possibilities that blockchain technology brings, investment opportunities in the crypto field have diversified greatly in recent years. There are possibilities to invest in industries and companies that are associated with cryptocurrencies, but despite this, also operate in other fields. As such, today we will be taking a look at crypto-associated stocks that you can invest in.
What investment opportunities are there?
When investing in cryptocurrencies you are taking somewhat of a big risk. Cryptocurrencies are high-volatility assets, and the possibility of them losing a big chunk of value in a short space of time is always there. This is clear when we take a look at the beginning of 2022 when every major crypto lost more than half of its value. But if you are someone who is interested in cryptocurrencies and the whole blockchain in general, there are other ways to invest in the future of this technology without the need to invest in any token specifically.
Because of this, investing in companies and industries that are not specifically centered around blockchain, but are supporting components of this echo system, or are trying to adapt themselves around this technology, is a good way to invest in crypto. But this does not mean that there are no good investment opportunities in companies that are directly involved with crypto. It is even advised to diversify your investments by investing in both of these types of companies, this will bring safety to your investments and expose you to other investment opportunities as well. So with that said, let’s look at the best stocks to invest in that are associated with crypto.
Coinbase Global
If you are looking for investment opportunities in a company that is involved with cryptocurrencies directly, investing in Coinbase Global stock is the best available option. Listed on NASDAQ under the ticker symbol COIN, Coinbase is one of the largest crypto exchanges in the world. This is an American-based exchange that has no dedicated headquarters and is operating on a “remote-first” basis. This is one of the best innovative companies in the crypto world with aspirations to be more than just a crypto exchange.
On top of generating revenue through trading and other similar types of activities, Coinbase is trying to offer a wide range of services to traders, private institutions, and governments. For example, Coinbase offers special debit cards to users so that they can spend money from their digital wallets. They also made it possible for people to get loans and use cryptocurrencies as collateral. With this, people are able to keep their cryptocurrencies and are not forced to sell them in time of need.
Coinbase also offers solutions to governments in order to make crypto transactions more transparent and make it harder for criminals to operate in this field. Thanks to its massive database coming from its KYC rules, Coinbase can easily track down specific crypto wallet addresses of individuals who are suspected of criminal activities. With this, Coinbase’s future looks bright, but despite these benefits, this company is still largely associated with crypto success.
Nvidia
When looking for crypto-associated stocks to invest in, Nvidia might not come to mind immediately. This is not surprising since this company does not deal with cryptocurrencies in any way, shape, or form, as they simply produce computer parts. But when taking a look at how cryptocurrencies and blockchain work, then investing in Nvidia suddenly becomes logical.
Blockchain needs a lot of computing power in order to operate. For example, Bitcoin will not be able to operate without the help of miners, which are very strong computers that can operate under immense loads. Most of these computers are built using Nvidia GPUs and without them, these miners will not be able to complete essential tasks for the blockchain to keep on functioning. Because of this, investing in Nvidia is the same as investing in the future of blockchain infrastructure, and as the blockchain grows, the demand for these GPUs will grow exponentially, and so will the company producing them.
To see this connection even better, taking a look at crypto price histories and comparing them to the prices of these GPUs at that time, you will be able to spot a very obvious connection. When the price of crypto drops, the demand for these Nvidia GPUs also drops, and with lower demand, the price of these GPUs also goes down. On the other hand, when crypto prices go up more people want to start crypto mining or be involved with blockchain in different ways, which results in an increase in demand for these GPUs, which also increases their price.
If you are not impressed by Nvidia but still like the way in which they are associated with crypto, then there are alternatives, such as AMD that also share the GPU market with Nvidia, and investing in AMD could also be a good decision to make if you are bullish on crypto.
PayPal
PayPal is one of the largest online payment systems in the world and the fact that this company is associated with cryptocurrencies should not be surprising. Every major online store accepts PayPal as a payment method these days and it’s commonly used in person-to-person transactions as well. This goes hand in hand with cryptocurrencies since most cryptocurrencies have the goal of becoming regularly used and widely accepted payment methods. PayPal itself has started to allow users to buy, sell, store, and use cryptocurrencies within their platform. With this, PayPal has shown interest in the crypto and blockchain space and they are here to capitalize on this growing ecosystem.
Because of this, if cryptocurrencies grow to an extent where they are regularly accepted by all kinds of merchants and online stores, PayPal is sure to be a front-runner when it comes to the crypto wallet space.
Why should we invest in these stocks?
Blockchain has been developing at a rapid speed and cryptocurrencies are an integral part of this ecosystem. Because of this, people who are interested in this space and want to make long-term investments should look for different ways they can do so. Investing in cryptocurrencies directly will most likely bring the biggest profits compared to stocks, but it also brings a lot of risks. This is why stock investments that are associated with crypto are safer and more logical investment decisions. If these stocks are chosen carefully and thoughtfully, even if crypto fails, these investments can still show profits.
We mentioned three different stocks a person can invest in if they want to invest in the future of crypto indirectly. Investing in Coinbase’s stock is a straightforward investment in cryptocurrencies without actually investing in any token. This is the riskiest investment and should be done with caution and a good amount of risk management in place. Nvidia is a big player in the future of blockchain infrastructure and when cryptocurrencies grow, this company will also grow, as they supply the most important hardware. PayPal is the way of crypto investment and the success of this investment depends on the mass adoption of cryptocurrencies.
But of course, you can invest in different stocks as well, and these stocks are just good examples of ways you can look at your investments and the way you can build your portfolio around crypto. They are also safer investment opportunities since if cryptocurrencies don’t succeed, Nvidia will still release GPUs and people will still buy them for their computers. People will also still use PayPal to make regular payments and transactions even if crypto vanishes altogether. With these types of stocks in your portfolio, you can make profits even if crypto fails.
FAQs on best crypto stocks to invest in
Are crypto stocks a good investment?
Cryptocurrency stocks can be good investments if approached carefully. Since blockchain is a massive ecosystem, regular companies that don’t have a direct connection with cryptocurrencies can still be connected to them in some ways. Because of this, when investing in certain stocks, the success of crypto can generate good profits for the company. But even if crypto fails, our investments will still be safe, since these stocks are not directly associated with these tokens.
Should we invest in Coinbase stock?
The answer to the question of whether you should or should not invest in Coinbase stock comes down to what you believe. Since Coinbase is one of the largest crypto exchanges in the world, the price of this stock is directly related to the success of cryptocurrencies. Taking a look at crypto price movements and the price of Coinbase stock, you can easily see how these two are connected. This makes Coinbase stock a risky investment, but it can also be a good way to diversify your stock portfolio and implement cryptocurrencies in your long-term investment strategy.