Diving headfirst cryptocurrency realm can feel like a rollercoaster ride, but wagering on the best blockchain stocks presents a smoother path to capitalize on this technology.
Investors can find a more predictable and secure path in the digital finance sphere. By focusing on companies leveraging blockchain’s potential rather than betting on the dwindling crypto market sentiment.
Instead of pure crypto investing, choosing blockchain stocks to buy offers many advantages. For starters, it bypasses the stomach-churning volatility often triggered by rampant speculation in the crypto market.
Most of these businesses aren’t pure plays which provide an additional degree of security of steady core business to fall back on.
So, buckle up and get ready to explore the exciting realm of blockchain investing rather than looking to predict the unpredictable twists and turns of digital currencies.
|Global X Blockchain ETF
Riot Blockchain (RIOT)
Riot Blockchain (NASDAQ:RIOT) is one of the top Bitcoin (BTC-USD) mining companies, poised to surge ahead on the back of a snapback in BTC’s price. With BTC forging ahead, RIOT stock is up a remarkable 215% year-to-date, with its rocket ship showing no signs of slowing down.
Perhaps one of the key factors underpinning its bull case is the firm’s fortress-like balance sheet with zero debt and a whopping $230 million cash reserve.
It boasts a treasure trove of over 7,000 BTC. This enviable position allows the company to charge ahead with ambitious expansion plans.
Riot’s cost-effective mining approach has resulted in an impressive gross margin of over 25% and a 5-year average of roughly 75.6%.
As BTC continues its upward trajectory, Riot Platforms will march forward with aplomb, dazzling investors with its financial prowess and glittering future prospects.
Block (NYSE:SQ) formerly known as Square, is looking to dominate the decentralized finance space as it fully embraces blockchain technology as a core driving force for its business.
The company’s flagship app, Cash App, will spearhead the new business venture, capitalizing on the platform’s massive popularity.
With an eye on a much grander vision, Block is reportedly developing its own open BTC mining system and a decentralized web platform.
The success of its core business, which has generated double-digit growth in sales, fuels this ambitious expansion over the past several years.
The monstrous growth in its business has helped build its massive cash war chest of over $5.5 billion. Hence, as the fintech giant continues to break new ground, Block is well-positioned to solidify its status as a trailblazer in digital finance.
Coinbase (NASDAQ:COIN) is the world’s second-largest cryptocurrency exchange, with a formidable customer base exceeding 110 million verified traders. It is primed to capitalize on the bustling trading activity as the crypto market surges, positioning it for robust long-term gains.
On the back of multiple headwinds, crushing the crypto market last year, Coinbase’s business has taken a massive beating.
It’s far from where it should have been following a record-breaking 2021, which marked a staggering $7.8 billion in sales and a whopping $4 billion in adjusted EBITDA.
Despite the challenges in recent quarters, a few bright spots still have the bulls licking their lips over its future prospects. These include the strong growth in subscription and services revenue, driven by an ever-expanding list of smart-money clients.
Coupled with the resurgence in the crypto market, this segment is poised for massive future expansion ahead. Therefore, it’s worth keeping tabs on this crypto behemoth as it continues to innovate and conquer new horizons in the digital asset landscape.
Payments giant Mastercard (NYSE:MA) is among the few large-cap businesses harnessing distributed-ledger technology in the real world.
Its effective crypto strategy revolves around integrating blockchain and digital technologies into its rock-solid payment infrastructure.
On top of that, it aims to simultaneously explore new products and services while partnering with innovative companies in the sector to expand its market share further.
As a pioneer in peer-to-peer lending, Mastercard is in an excellent position to capitalize on the unique opportunities blockchain technology offers. One major opportunity lies in streamlining cross-border transactions, which delays and high fees have long plagued.
On the back of the recent controversies in the crypto sector, Mastercard is looking to become more circumspect in the firms it partners with. However, its impressive portfolio of over 90 blockchain patents shows its unwavering long-term commitment to the sector.
Ther company’s core business is as strong as ever, with its dividend growth rates soaring past historical highs.
Last summer, Nvidia (NASDAQ:NVDA) found itself in hot water as the U.S. SEC took issue with its lack of transparency relating to the impact of crypto miners on GPU demand.
The $5.5 million settlement fee raised eyebrows, but the tech giant has emerged relatively unscathed and continues to soar in the burgeoning landscape.
The firm cashed in on the crypto boom by launching its patented cryptocurrency mining processors (CMPs), which got caught in a speed bump with a 77% drop in sales during the fourth quarter.
Yet, Nvidia remains undeterred, continuing to fuel its CMP divisions with an unwavering determination to conquer new frontiers in the realm of AI. Its core businesses continue to fire on all cylinders, with its tentacles spread across multiple tech verticals.
It boasts a robust profitability profile, with double-digit growth in its profitability metrics in the past five years.
PayPal (NASDAQ:PYPL) is a fintech pioneer who has wholeheartedly embraced cryptocurrency and blockchain technology.
Since initiating BTC transactions in 2014, PayPal (NASDAQ:PYPL) has played a key role as a leading facilitator in the crypto sphere, offering customers various services, from trading and holding crypto to using its robust ‘Checkout with Crypto’ service for seamless purchases.
At the end of 2022, the fintech giant held an impressive $604 million in crypto holdings, which are likely to have grown considerably in value when it reports its first-quarter earnings.
Meanwhile, its core business dazzles investors with its unyielding growth, marked by payment volumes and a substantial increase in new active accounts.
As a true innovator in the digital finance realm, PayPal should continue making waves as it ventures further into the ever-evolving blockchain realm.
Global X Blockchain ETF (BKCH)
It’s always prudent to ride the tailwinds in a sizzling sector by investing in an exchange-traded fund. ETFs are always on the radar of savvy investors, offering diversification at a refreshingly low cost.
The blockchain sphere is risky, to say the least, which is why investors must look to managing their portfolio risk effectively. Consequently, it’s wise to bet on the Global X Blockchain ETF (NASDAQ:BKCH).
With a lean expense ratio of 0.50%, this powerhouse ETF invests in 25 different pure and secondary plays in the blockchain sphere. From digital asset mining and transactions to hardware, and tech behemoths, BKCH offers plenty of value to its investors. The BKCH ETF serves up a delectable platter of stocks, sparing its investors the headache of managing individual investments.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines