6 Best Crypto Stocks in 2024
Maximize your portfolio with top performers in the Crypto space
In early 2024, the global crypto market cap surged past $2 trillion, solidifying cryptocurrencies as a top investment choice. While the excitement of buying and holding digital assets like Bitcoin is tempting, it comes with complexities and risks. For traditional investors, cryptocurrency stocks offer a more accessible way to tap into the booming market without directly managing digital currencies. These stocks represent companies significantly influenced by the rise of blockchain and crypto, allowing investors to benefit from the industry's explosive growth without directly holding digital assets.
Here’s a glimpse at the most promising crypto-related stocks to watch. These companies are at the forefront of leveraging blockchain technology, showcasing innovative approaches with the potential to disrupt traditional markets. Their emergence highlights the growing interest and investment in the cryptocurrency sector, signaling its maturation and deeper integration into mainstream financial systems.
What Are Cryptocurrency Stocks?
Before exploring cryptocurrency stocks, it's essential to understand the basics. Learn what cryptocurrencies are here.
Stocks represent ownership in a company. By purchasing a stock, you own a portion of the company and can profit from its success. Stocks are traded on exchanges like the NYSE or NASDAQ, and when a company performs well, its stock price often rises, offering investors the chance to sell at a profit.
Crypto-related stocks represent shares in companies that, while not solely focused on the crypto sector, have significant exposure to or investments in cryptocurrencies and blockchain technology. Examples include firms like PayPal and MicroStrategy, which hold large cryptocurrency reserves or enable crypto transactions. Similarly, platforms like Robinhood and SoFi Technologies allow trading of both crypto assets and traditional financial instruments. Companies like Nvidia and Tesla also correlate with the crypto market—Nvidia's performance impacts AI-based crypto projects, while Tesla influences Bitcoin and Dogecoin due to its crypto holdings.
Traditional investors looking for crypto exposure without directly buying digital assets can also consider Initial Public Offerings (IPOs) of crypto-related companies. IPOs mark the transition of a private company to a publicly traded one, offering investors a way to gain from the growth potential of the cryptocurrency space.
The stocks highlighted in this article are closely linked to the crypto market, with their performance likely affecting certain segments of the cryptocurrency sector.
Types of Cryptocurrency Stocks
Mining Companies: These businesses specialize in mining cryptocurrencies by using powerful computers to solve complex mathematical problems, validating blockchain transactions. Successful miners earn rewards in the form of new coins.
Technology Providers: These firms supply essential hardware and software for cryptocurrency operations, ranging from specialized mining equipment to blockchain technology solutions.
Investment Firms: Companies like Grayscale offer investment products that provide exposure to cryptocurrencies without direct ownership. Investors can buy shares representing a portion of digital asset portfolios managed by these firms.
Companies with Significant Bitcoin Holdings: Some companies, like MicroStrategy, have invested heavily in Bitcoin as part of their corporate strategy, holding substantial amounts of the cryptocurrency in their reserves.
Why Invest in Crypto-Related Stocks?
Investing in crypto-related stocks offers a way to benefit from the cryptocurrency boom without the complexities and security risks associated with holding digital assets directly. Established companies like PayPal and Block Inc. provide a more traditional investment avenue into the rapidly evolving crypto landscape. Their performance often aligns with crypto market trends, granting investors indirect exposure to the sector's volatility and growth potential.
Top Crypto Stocks to Watch
1. MicroStrategy Inc. (NASDAQ: MSTR)
MicroStrategy Incorporated, founded in 1989 and headquartered in Tysons Corner, Virginia, is a business intelligence (BI) company recognized for its significant investments in Bitcoin. Since going public on June 11, 1998, it has achieved a market capitalization of around $26.24 billion and generated $496.26 million in revenue over the past year. The company’s stock has experienced considerable volatility, ranging from $230.72 to $1,815.00 in the last 52 weeks, reflecting its aggressive cryptocurrency strategy.
Under CEO Michael Saylor, MicroStrategy has adopted a bold approach to acquire Bitcoin as its primary treasury reserve asset, currently holding 226,500 Bitcoins at an aggregate cost of approximately $8.3 billion, or $36,821 per Bitcoin. This positions MicroStrategy as the largest corporate holder of Bitcoin and the world’s first bitcoin development company. The company's financial health and stock performance are closely tied to Bitcoin's price movements, and it has recently announced a 10-for-1 stock split effective August 7, 2024, to increase share accessibility. Additionally, MicroStrategy is innovating within the BI space by integrating generative AI into its HyperIntelligence platform, showcasing its commitment to enhancing both technological and financial strategies.
2. NVIDIA Corp. (NASDAQ: MSTR)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is renowned for its high-performance graphics processing units (GPUs) crucial for gaming, professional visualization, and artificial intelligence (AI). The company's revenue reached $60.92 billion in 2023, a remarkable increase of 125.85% compared to the previous year. In Q1 of fiscal year 2025, NVIDIA reported a total quarterly revenue of $26.0 billion, with its data center segment alone contributing $22.6 billion.
At the SIGGRAPH 2024 conference, CEO Jensen Huang unveiled innovative technologies, including the fVDB framework for creating AI-ready virtual worlds and NVIDIA NIM microservices to enhance generative AI capabilities. The company executed a 10-for-1 stock split in June 2024 and increased its quarterly cash dividend by 150%, demonstrating strong financial health and a commitment to shareholder value. Analysts have given NVIDIA a "Strong Buy" rating, reflecting optimism about its continued growth, particularly in AI and computing.
Since its IPO on January 22, 1999, NVIDIA has become a leader in the technology sector. While its business model extends beyond cryptocurrency, the company's GPUs are widely utilized in mining operations, creating a connection between NVIDIA's performance and the cryptocurrency market's fluctuations.
3. Robinhood (NASDAQ: HOOD)
Robinhood Markets, Inc. (HOOD) went public on July 29, 2021, with the goal of democratizing finance. The platform allows users to invest in stocks, ETFs, options, and cryptocurrencies. In 2023, Robinhood reported revenue of $1.87 billion, marking a significant increase from the previous year, despite incurring losses. The stock has experienced fluctuations, with a 52-week range between $7.91 and $19.42, reflecting volatility and growth potential as it expands into cryptocurrency trading.
Robinhood has become a significant player in the cryptocurrency space, enabling users to trade Bitcoin and other popular cryptocurrencies. Its strong association with the crypto market has made the brand synonymous with crypto trading, meaning the company's performance, including its stock, is closely linked to overall market sentiment and fluctuations in the cryptocurrency sector.
5. PayPal (NASDAQ: PYPL)
PayPal Holdings, Inc. (PYPL) went public on February 15, 2002, establishing itself as a leader in digital payments. In 2023, the company reported revenue of $29.77 billion, an 8.19% increase from the previous year, along with net earnings of $4.25 billion. The stock has fluctuated between $50.25 and $77.95 over the past 52 weeks, reflecting market volatility and the impact of strategic decisions.
PayPal allows users to buy, hold, and sell cryptocurrencies directly from their accounts, bridging traditional finance with the crypto ecosystem. This involvement, along with the launch of its stablecoin, PayPal USD (PYUSD), closely ties PayPal's stock performance to the dynamics of both the online payment and cryptocurrency markets. Changes in the crypto market can significantly influence user engagement and transaction volumes on the platform.
6. Block (NASDAQ: SQ)
Block, Inc. (formerly Square, Inc.) went public on November 19, 2015, under the ticker symbol SQ. Evolving into a comprehensive financial services and technology firm, Block offers a range of products, including payment processing and services through Cash App. As of early 2024, the company has a market cap of approximately $51.77 billion, with a 52-week stock range of $38.85 to $87.52, indicating both volatility and growth potential.
Block has a strong correlation with the cryptocurrency market, particularly through Cash App, which allows users to buy, sell, and transfer Bitcoin. The company has invested about 1% of its total assets in Bitcoin, reflecting its belief in the cryptocurrency's long-term value. Founded in 2009 by Jack Dorsey and Jim McKelvey and headquartered in San Francisco, Block operates multiple segments, including Square, Cash App, TIDAL, and TBD.
In Q2 of 2024, Block reported net revenue of $6.16 billion, an 11% year-over-year increase. Additionally, the company launched a Bitcoin dollar-cost averaging (DCA) purchase program, committing to invest 10% of its gross profit from Bitcoin products into Bitcoin purchases throughout 2024, further solidifying its strategic focus on Bitcoin as a tool for economic empowerment.
How to Buy Crypto Stocks
1. Choose a Brokerage: Open an account with a brokerage that offers access to crypto stocks.
2. Deposit Funds: Transfer funds into your brokerage account via bank transfer or other accepted methods.
3. Select Crypto Stocks: Research and pick stocks related to the cryptocurrency industry.
4. Place an Order: Use your brokerage account to place a buy order, opting for market orders (immediate purchase) or limit orders (specific price).
5. Monitor Investments: Track your investments and stay updated on market trends and news in the crypto sector.
6. Secure Your Account: Protect your brokerage account with security measures like two-factor authentication (2FA).
7. Diversify Your Portfolio: Spread investments across various assets to manage risk effectively.
Is Crypto Stock a Good Investment?
Investing in crypto stocks offers potential for high growth and diversification benefits, as the cryptocurrency market has seen substantial expansion. Companies involved in blockchain technology or cryptocurrency mining can provide significant returns. Including crypto stocks in your portfolio can enhance diversification, as they can perform independently of traditional markets and expose you to innovative technologies in digital finance.
However, crypto stocks also come with risks, including high volatility and regulatory uncertainty. Prices may fluctuate dramatically based on market sentiment and regulatory news, making careful consideration and a high tolerance for risk essential.
Conclusion
The interplay between traditional finance and cryptocurrency presents new opportunities and challenges. By staying informed and adaptable, investors can leverage the transformative potential of crypto stocks, which symbolize a stake in the future of finance where digital and traditional paradigms converge.