London, UK– Cryptocurrency has evolved as a novel means of investment in recent years. People have started to invest in digital assets like Bitcoin and Ethereum because they offer high returns. In the past, people used to invest in stocks, commodities, and real estate to earn a profit. However, these traditional investment avenues are no longer as profitable as they used to be. Grand Pacific Trade broker Jimmy Lee says this is why people are now turning to cryptocurrency as an alternative means of investment.
In 2009, Satoshi Nakamoto, or someone assuming the name, launched Bitcoin as the world’s first and most well-known cryptocurrency. Since then, hundreds of different cryptocurrencies have been created. These include Ethereum, Litecoin, Ripple, and Monero. Cryptocurrencies are often traded on decentralized exchanges. This means that there is no central authority that controls the price of the asset. They can be bought and sold for other currencies, products, or services.
Crypto stocks have been on a tear lately, with prices more than doubling for some companies since the start of the year. Even though digital currencies have come under pressure in recent weeks, crypto stocks have held up relatively well. People are still bullish on the sector, and for good reason. The crypto industry is still in its early stages, and there’s a lot of potential for growth. Many businesses are just starting to get involved in the space, and there’s a lot of excitement about what the future holds.
Tony Nikolaou says “I think there’s a lot of speculation going on, and I think that’s driving the prices up. I think people are just buying these stocks because they think they’re going to go up.” The recent rally in crypto stocks is reminiscent of the dot-com boom of the late 1990s, when investors were piling into internet stocks. Just like with dot-coms, there’s a lot of speculation and hype surrounding cryptos, and that’s driving prices higher. It’s important to remember that not all dot-coms survived, and many investors lost a lot of money when the bubble burst. The same could happen with crypto stocks, so it’s important to be careful.
Tony goes on to say “It’s not very early for the industry but I think we’re going to see a lot of changes and evolution in the years to come. I’m bullish on the sector because I think there’s a lot of potential for growth. Many businesses are just starting to get involved in the space, and there’s a lot of excitement around what the future holds.” Investors are also attracted to crypto stocks because they offer a way to participate in the digital currency market without actually owning any cryptocurrencies.
Below are some crypto stocks that you can buy even if you’re bearish on digital currencies.
1. Marathon Patent Group (MARA)
Marathon Patent Group is a patent licensing company that owns patents related to digital currencies. The company has been working on a number of projects involving blockchain technology, and it has a portfolio of over 50 patents. Marathon has been working with a number of major companies in the space, including IBM (IBM), Microsoft (MSFT), and Samsung (SSNLF).
2. Hive Blockchain Technologies (HIVE)
Hive Blockchain Technologies is a blockchain infrastructure company that operates mining facilities for digital currencies. The company has a partnership with Genesis Mining, one of the largest cryptocurrency miners in the world. Hive also has partnerships with a number of major exchanges, including Binance and Kucoin. The firm went public in September 2017 and is listed on the Toronto Stock Exchange.
3. Canaan Creative (CAN)
Canaan Creative is a leading manufacturer of cryptocurrency mining hardware. The company produces the Avalon line of miners, which are some of the most popular in the world. Canaan went public on the Nasdaq in November 2019, becoming the first crypto mining company to list on a major U.S. exchange. The firm takes a cautious approach to expansion and is profitable.
4. Riot Blockchain (RIOT)
Riot Blockchain is a cryptocurrency mining company that operates one of the largest Bitcoin mines in North America. The company also has a number of other businesses, including a cryptocurrency exchange and a venture capital fund. Riot went public in October 2017 and is listed on the Nasdaq. It focuses on the development and implementation of blockchain solutions too. The company has a number of partnerships with major companies in the space, including Overstock.com (OSTK) and tZERO.
If you are bearish on cryptocurrencies but still want to participate in the sector, you can do so by buying stocks of companies that are involved in the space. Just be careful as the sector is still very speculative and prices could fall sharply if there is a major sell-off in digital currencies.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.