Crypto Investment Strategies: Stocks To Invest In

Cryptocurrencies have become a hot investment, gaining mainstream adoption. While investors can purchase cryptos themselves, a better way to gain exposure to the sector is to invest in bigger, more established companies that benefit from the increased popularity of blockchain and crypto assets.

Some of the top cryptocurrency stocks to invest in include:

- Coinbase Global (COIN)

- NVIDIA Corporation (NVDA)

- Advanced Micro Devices Inc. (AMD)

- PayPal Holdings, Inc. (PYPL)

- Marathon Digital Holdings Inc. (MARA)

- Riot Blockchain Inc. (RIOT)

- MicroStrategy Inc. (MSTR)

- CME Group Inc. (CME)

- iShares Bitcoin Trust (IBIT)

Crypto stocks with the most momentum

Momentum investing is a strategy that involves buying stocks that have performed well in the past and selling those that have performed poorly, based on the assumption that the trend will continue. Cryptocurrencies are a new asset class, and while some people invest in them because they believe that they will become mainstream, others simply want to make a quick profit.

Coinbase Global Inc. (COIN)

Coinbase is the largest cryptocurrency exchange in the US, allowing users to buy, sell, store, and trade various cryptocurrencies. The company went public in April 2021 and has seen significant growth in revenue and its user base since then. Coinbase has gained about 75% in the past three months and has a market capitalization of about $68 billion.

MicroStrategy Inc. (MSTR)

MicroStrategy is a software company that provides business intelligence and analytics solutions. The company is also known for its massive investment in Bitcoin, which it considers a store of value and a hedge against inflation. MicroStrategy has bought over 100,000 Bitcoins worth over $5 billion as of September 2023. The stock has gained about 60% in the past three months and has a market capitalization of about $7 billion.

Marathon Digital Holdings Inc. (MARA)

Marathon Digital Holdings is one of the largest Bitcoin mining companies in North America. The company has increased its mining capacity and efficiency over time and has also invested in Bitcoin itself. Marathon Digital Holdings has gained about 50% in the past three months and has a market capitalization of about $4 billion.

Riot Blockchain Inc. (RIOT)

Riot Blockchain is another leading Bitcoin mining company in North America, which also operates a cryptocurrency exchange called RiotX. The company has expanded its mining operations and acquired several other mining businesses to increase its scale and profitability. Riot Blockchain has gained about 40% in the past three months and has a market capitalization of about $3 billion.

Bit Digital Inc. (BTBT)

Bit Digital is a Bitcoin mining company that operates in both China and North America. The company has faced challenges due to the regulatory crackdown on crypto mining in China but has diversified its mining locations and increased its hash rate. Bit Digital has gained about 35% in the past three months and has a market capitalization of about $1 billion.

Block (SQ) and PayPal Holdings (PYPL)

Block (formerly Square) and PayPal are digital payment protocols that enable users to purchase and hold cryptocurrencies within a digital wallet. In late 2017, Block's Cash App began allowing Bitcoin trading, and in 2023, it managed $2.56 billion in Bitcoin revenue. PayPal's Venmo digital wallet and peer-to-peer payments app also offer crypto trading and have gained traction among investors.

Nvidia (NVDA) and Advanced Micro Devices (AMD)

Nvidia and AMD are semiconductor companies and leading designers of graphics processing units (GPUs). While they do not deal directly with cryptocurrencies, their GPUs are fundamental pieces of hardware for creating and managing crypto assets. Nvidia's CMP HX card, for example, was designed for professional cryptocurrency mining.

Crypto stocks with the best value

Crypto stocks are publicly traded companies that are highly exposed to the cryptocurrency market or blockchain technology. They include crypto exchanges, crypto miners, blockchain technology specialists, and companies that hold large amounts of cryptocurrency on their balance sheets.

Greenidge Generation Holdings Inc. (GREE)

GREE operates cryptocurrency datacenters, power-generation businesses, and crypto-mining facilities. Its stock has dropped by almost 94% in the last year, prompting a 1-for-10 reverse split in mid-May.

Canaan Inc.

Canaan is a Chinese technology company that provides high-performance computing services. It focuses on computing chip design, chip research, computing equipment production, and software services. Canaan supplies computing equipment to the crypto-mining industry, and its shares have lost over one-fifth of their value in the past year due to disappointing earnings.

Block Inc. (SQ)

Block is a financial services and digital payments firm that provides platforms for businesses to accept credit card and cryptocurrency payments. It also offers financial and marketing services. Block's gross profit climbed by over 25% in the first quarter of 2023, driven by substantial gains in Cash App profit, helping to narrow its net loss from the previous year.

PayPal Holdings, Inc. (PYPL)

PayPal is a leading technology platform that facilitates digital and mobile payments for consumers and merchants. It offers peer-to-peer money transfers through its mobile app, Venmo, and other services. PayPal allows users to buy, transfer, and sell cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Its stock took a hit in 2022 and is down in 2023, but it remains a potential value investment for those seeking crypto exposure.

Marathon Digital Holdings Inc. (MARA)

Marathon Digital is a digital asset technology company and one of the largest and most valuable pure-play Bitcoin mining stocks. It aims to build the largest Bitcoin mining operation at the lowest energy cost possible, focusing on sustainability and environmental protection. Marathon has over 239,000 active Bitcoin miners and holds over 17,000 bitcoins as of May 2023.

Riot Blockchain Inc. (RIOT)

Riot Blockchain is another large Bitcoin mining company that aims to expand its operations by increasing its Bitcoin mining hash rate and infrastructure capacity. It has several joint ventures, internally developed businesses, and other investments in the blockchain sector. As a company directly engaged in cryptocurrency, RIOT is a riskier investment than some of the others mentioned.

MicroStrategy Inc. (MSTR)

MicroStrategy is a business intelligence and analytics solutions company. It is far more known for its involvement in cryptocurrency, with its dynamic owner, Michael Saylor, being a self-proclaimed Bitcoin Maximalist with personal bitcoin holdings worth billions. MicroStrategy holds over 214,000 bitcoins as of April 2024, valued at over $7.5 billion.

CME Group Inc. (CME)

CME Group is a derivatives marketplace that offers trading in futures and other derivatives. In late 2017, it was one of the first international stock exchanges to offer Bitcoin futures trading. CME Group maintains a wide moat in the industry, and its regulated status makes it an attractive option for investors seeking safe exposure to cryptocurrency.

Advanced Micro Devices Inc. (AMD)

AMD is one of the leading designers of graphics processing units and central processing units used in crypto mining. While it doesn't deal directly with cryptocurrencies, its high-end graphics cards are crucial for mining specific crypto assets. AMD is known to work well for mining certain alt-coins, making it a potentially attractive investment.

NVIDIA Corporation (NVDA)

NVIDIA is a graphics processing unit manufacturer that produces chips for everyday devices and high-end video gaming graphics cards. It has designed the CMP HX card specifically for professional cryptocurrency mining, and its technology plays an integral part in the PC graphics card industry. NVIDIA is a solid crypto investment, especially with the recent increase in crypto mining in 2024.

Crypto stocks with the fastest growth

Crypto stocks are publicly traded companies that operate businesses highly exposed to the cryptocurrency market or blockchain technology. They can be highly correlated to cryptocurrency price fluctuations, making them extremely volatile and unpredictable. However, with the troubles crypto has faced, some companies have exposure beyond blockchain and cryptocurrency to help mitigate this market volatility.

Robinhood Markets Inc. (HOOD)

Robinhood is a popular discount brokerage app that allows users to buy stocks, options, rare metals, and now, cryptocurrencies. It offers commission-free trading and supports a variety of cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin. Robinhood has seen significant growth in its crypto trading revenue, now comprising a significant portion of its overall sales.

Shift4 Payments Inc. (FOUR)

Shift4 is a payment processing services provider that offers software for transaction and money transfer processes, including cryptocurrency transactions. The company has seen substantial revenue growth, adding several new signature merchants in the latest quarter.

Riot Blockchain Inc. (RIOT)

Riot Blockchain is a large Bitcoin mining company focused on expanding its operations by increasing its Bitcoin mining hash rate and infrastructure capacity. It has a number of joint ventures, internally developed businesses, and other investments in the blockchain sector. Riot recently launched a new mining facility, increasing its capacity to drive more production.

Marathon Digital Holdings Inc. (MARA)

Marathon Digital is one of the largest and most valuable pure-play Bitcoin mining companies. It focuses on sustainability and environmental protection, using renewable energy providers in its operations. The company has invested in miners to increase the speed and efficiency of Bitcoin mining, leading to more profitable operations.

Block Inc. (SQ)

Block, formerly known as Square, is a financial services and digital payments firm. It provides platforms for businesses to accept credit card and cryptocurrency payments. Block has made advancements in the blockchain space, allowing Bitcoin trading on its Cash App platform. The company aims to foster the use of Bitcoin among its users and businesses and is set to become a leading platform for crypto transactions.

Nvidia Corporation (NVDA)

Nvidia is a graphics processing unit manufacturer that produces chips for various devices, including high-end video gaming graphics cards. The company has designed products specifically for cryptocurrency mining, such as the CMP HX card. Nvidia's role in supporting cryptocurrency mining and its position in the PC graphics card industry make it a solid crypto investment.

Crypto stocks with the lowest risk

While all cryptocurrencies are considered a volatile asset class, some are considered lower-risk options.

PayPal Holdings, Inc. (PYPL)

PayPal is a forerunner of Cash App and a global online payment system. It allows peer-to-peer money transfers through its mobile app, Venmo, along with several other ways for people to get paid. In late 2020, PayPal unlocked crypto trading. Venmo became one of the leading crypto platforms by allowing the trading of Bitcoin, Bitcoin Cash, Ethereum and Litecoin. PayPal also has a new partnership with Amazon.

Block (SQ)

Block, formerly Square, is focused on blockchain, enabling users to buy and hold cryptocurrencies in a digital wallet. In late 2017, Block's Cash App consumer-facing application began allowing Bitcoin trading. In 2023, Block managed $2.56 billion of Bitcoin revenue at a gross profit of $86 million.

CME Group Inc. (CME)

CME Group is the world’s largest derivatives marketplace. It allows you to trade futures and a diversified number of assets, including stocks and currencies, across several industries. CME Group established a market for “micro” bitcoin futures options in 2017. Today, Bitcoin and Ether futures, as well as micro futures and options are available, allowing businesses and individuals to mitigate the risk of rapid changes in cryptocurrency prices.

IShares Bitcoin Trust (IBIT)

IShares Bitcoin Trust is a spot Bitcoin ETF, allowing investors to purchase an ETF that is purely backed by Bitcoin. This ETF has a much lower expense ratio than its competitors, making it a win for investors.

Advanced Micro Devices Inc. (AMD)

AMD is among the leading designers of graphics processing units and central processing units used in crypto mining. While it does not deal with cryptocurrencies directly, it is responsible for high-end graphics cards that power the mining of some crypto assets.

Crypto stocks with the highest returns

Crypto stocks are publicly traded companies that operate businesses that are highly exposed to the cryptocurrency market or blockchain technology. Here are some of the crypto stocks with the highest returns:

Marathon Digital Holdings (MARA)

Marathon Digital Holdings is one of the largest Bitcoin mining companies in the U.S. The company focuses on sustainability and environmental protection, using renewable energy providers in its operations. Marathon Digital Holdings had about 239,000 active Bitcoin miners as of May 1, 2024, and as of February 28, it had a total of over 17,000 bitcoins, including over 16,000 unrestricted bitcoins. The company's investment in miners to increase the speed and efficiency of Bitcoin mining has contributed to its growth.

Riot Blockchain Inc. (RIOT)

Riot Blockchain is another large Bitcoin mining company that focuses on expanding its operations by increasing its Bitcoin mining hash rate and infrastructure capacity. The company has a couple of joint ventures, internally developed businesses, and other investments in the blockchain sector. Riot Blockchain has Bitcoin-mining operations in Texas and New York and electrical switchgear engineering and fabrication operations in Colorado.

Coinbase Global Inc. (COIN)

Coinbase is one of the top cryptocurrency exchanges, with over 110 million verified users. It became a publicly traded company through its initial public offering in April 2021. Coinbase allows users to buy and sell digital assets, including Bitcoin, Ethereum, Solana, Cardano, and hundreds of other coins, at a nominal fee. In addition to its crypto trading platform, Coinbase offers a derivatives platform and has launched the USDC stablecoin in collaboration with Circle.

NVIDIA Corporation (NVDA)

NVIDIA is a graphics processing unit manufacturer that produces chips for everyday devices and high-end video gaming graphics cards. The company's CMP HX card was designed for professional cryptocurrency mining, and it has added a mining limiter to newly released cards to prevent future mining-related runs on its products. NVIDIA is also known for its role in creating technology that supports cryptocurrency mining and its integral part in the PC graphics card industry.

Block Inc. (SQ)

Block, formerly known as Square, is a financial services and digital payments firm. It provides platforms that allow businesses to accept credit card and cryptocurrency payments and offers financial and marketing services. The company has made advancements in the blockchain space by allowing Bitcoin trading on its Cash App platform. Block aims to foster Bitcoin use among its users and businesses and is set to become a leading platform for crypto transactions.

PayPal Holdings, Inc. (PYPL)

PayPal is a leading technology platform that facilitates digital and mobile payments for consumers and merchants. It operates its own digital wallets and allows users to buy, transfer, and sell cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. PayPal's mobile wallet Venmo also enables users to buy and sell cryptocurrency. PayPal took a significant hit in 2022 and is still down in 2023, but it remains a valuable investment option for gaining crypto exposure.

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