Buying Cryptocurrency Stocks

The cryptocurrency market has garnered interest from investors all over the world. There are quite a few passionate visionaries out there saying that cryptocurrencies are going to take over the market in the future and that they are going to become more common than fiat currencies as forms of payment. As a result, companies involved in selling products and services related to cryptocurrencies are having the time of their life. 

How to buy cryptocurrency stock?

In order to buy a cryptocurrency stock, you will have to create a brokerage account on the concerned platform, transfer money into your account, select the stock you want to buy, and purchase it or schedule a purchase for later. 

You can either issue a market order or a limit order. Market order means that you want to buy the stock for whatever is the current price. A limit order means that you are willing to buy the stock only when it falls to a certain price, so you have to wait for it.

Can you buy stocks with cryptocurrency?

As of now, there are quite a few companies that sell stocks in exchange for Bitcoin. These include big names like Apple, Facebook, Ford and Netflix. After creating a trading account, you will need to add or purchase bitcoins to that account. 

Currently, these companies only accept bitcoins, but in the future, they may start accepting other cryptocurrencies like Ethereum or Dash. 

See also: Where can I buy Cryptocurrency Stocks

What are some cryptocurrency stocks? 

Here are some examples of cryptocurrency stocks on the market

Canaan

Canaan Creative is a Chinese computer hardware company. Among other products, they manufacture specialized Bitcoin mining machines with scarce supply and high demand. They invented the world’s first ASIC-powered bitcoin-mining machine in 2013. In fact, it is one of the world’s largest designers and manufacturers of Bitcoin mining equipment. 

While it has performed extraordinarily well in the past, they have recently shown rapid ups and downs.

Their shares went up by 36% in March 2021 and fell by 28% in April 2021. Considering this high level of volatility, you might not want to put a lot of money in this stock.

According to some experts, investors haven’t yet recognized the potential of Canaan. But it is worth considering, mainly because it is a pioneer of crypto mining technology and probably has a large number of buyers on its waiting list. 

Riot Blockchain Inc

Riot is a US-based bitcoin mining company. In the first quarter of 2021, they showed a 75% increase in the number of bitcoins mined, which is a laudable feat since the difficulty level of mining bitcoins keeps increasing. A point in favor of Riot Blockchain is that since it mines bitcoins, its price depends on the price of bitcoin because theoretically, the earnings include the value of mined coins minus the cost of mining. So people who have high hopes for bitcoin consider this stock a good investment. 

But this has not always been the case, so you might want to look at other indicators of price and use multiple sources of information before buying, like following their earning reports, primary shareholders and cash flow. The quarterly report submitted by Riot in May 2021 paints a positive picture. 

Silvergate Capital

Silvergate Capital is a commercial bank that shifted its focus from traditional banking services to cryptocurrency in 2013. Considering that people were even more skeptical of cryptocurrency back then, it looks like a bold move. But so far, with their stock going up by 1500% between 2020 and 2021, they have shown promise. In 2017, they created the Silvergate Exchange Network. 

They have a powerful customer base with over 600 institutional investors. An important strength of Silvergate is its infrastructure. For example, in 2021, they founded SEN Leverage, a service wherein institutional investors can take loans by using Bitcoin as collateral. They have also partnered with multiple cryptocurrency exchanges. If you are a long-time investor, you may consider buying stocks at Silvergate.

SOS Limited

SOS Limited provides information technology services like big data, trade and digital asset management. They provide services to different sectors like insurance, finance, health care, and so on. 

PayPal holdings

PayPal is a popular digital platform for money transfer services. In October 2020, they announced a service to allow their users to hold Bitcoin, Bitcoin Cash, Ether and Litecoin. In their last quarterly report, they showed a 29% increase in revenue.

JP Morgan and Chase 

JP Morgan and Chase is a US-based investment bank and financial services company. In 2017, the CEO of the company was openly skeptical about cryptocurrency. But now, they are considering a blockchain run system to make the verification of global payments more efficient. 

Is cryptocurrency better than stocks?

Whether you are investing in cryptocurrencies or stocks, you have to take risks. But when you invest in stocks, you can have some guidance about where the price might go. Cryptocurrency prices, on the other hand, are not tethered to anything. They are completely based on supply and demand forces and speculation about them. 

The cryptocurrency market is smaller compared to markets involving fiat currencies, so small changes can lead to big swings in prices. Also, there is also the possibility that cryptocurrencies are replaced, regulated or put out of existence. The growth of stocks is more stable compared to the extreme high or low fluctuations in cryptocurrency.

Investing in cryptocurrency can be a good idea if you have some extra funds that you don’t mind losing and want to add diversity to your investment portfolio. Generally, people don’t put all of their money on cryptocurrency; it is more like a side investment.