With Bitcoin breaking it’s all-time high this week, crypto has been at the forefront of people’s minds. The hype train has continued to steamroll forward.
What most people don’t know:
You don’t have to trade cryptocurrency themselves to capitalize on the momentum. In the stock market, you are able to gain exposure to crypto and future technology growth in the space by trading certain stocks and ETFs. We call stocks with services and products in the cryptocurrency space “crypto stocks”.
Many companies that we will be highlighting today have some segment or arm of their business dipped in the cryptocurrency space, while others focus fully on blockchain solutions. These stocks tend to move in ‘sympathy’ with bitcoin and the overall cryptocurrency market. Today, we are going to outline the best blockchain stocks you should keep on your radar for the rest of the year and beyond. Trading these are a great avenue to gain some exposure to the crypto markets:
$MARA: Cryptocurrency Mining
$RIOT: Cryptocurrency Mining
Marathon and Riot are two cryptocurrency stocks that are extremely well-known. They have become household names recent years. Both companies have similar core operations of mining bitcoin, and both tend to follow the price and chart of bitcoin in sympathy. As BTC rises and falls, so do these. Just beware of overnight gap up and down potentials on them as they do not trade 24/7 like BTC itself.
$MARA is showing much more relative strength than $RIOT, and is the much better trader right now. Keep $RIOT on watch, it will likely get bid up if Bitcoin continues to go crazy.
$COIN: Cryptocurrency Exchange & Wallet
Coinbase recently in 2021 hit the market with a highly anticipated IPO that took some time to really gain some steam.
Coinbase is one of the largest cryptocurrency exchanges and trading/investing applications in the world. Allowing you to buy and sell hundreds of coins, Coinbase has made a trusted name for itself as being one of the most reputable and easy-to-use exchanges out there. This stock often trades in sympathy with bitcoin, and is relatively higher priced.
As trading activity and hype amongst the cryptocurrency sector continues, Coinbase should continue to rise as more and more people are continuously trading, generating commissions for the company itself. Look to play Coinbase to the upside as long as overall trading activity and volume continue to pour into the cryptocurrency markets.
$SQ: Cryptocurrency Payment Processing
Many of you may know square because of Cash App, but for those of you who don’t know what Square is they are one of the largest merchant services companies in the world for small to large businesses.
Now, why are they in this list? Recently over the past two years they have been dipping their toes slowly but surely in the cryptocurrency space. In addition to actually holding a decent position in Bitcoin itself with some of their cash reserves, they have also introduced blockchain solutions to their customers via their applications and web platform. They have provided an application for customers to purchase and trade bitcoin, as well as pay and receive bitcoin for goods and services. Off of all of this, they receive a commission cut of each transaction.
Square has already mastered and become known for regular merchant service offerings, and are now diversifying into the cryptocurrency space which makes them one of the only merchant services companies adding blockchain technology to their portfolio of offerings. This gives them a huge edge over the competition.
Their stock is higher priced than some of these now and does not trade directly in sympathy with Bitcoin as some other stocks on this list, so keep that in mind. It moves more in sympathy with $SPY and $QQQ and the overall stock market, but it is a great way to still gain consistent exposure to growing blockchain solutions worldwide.
$HUT: Cryptocurrency Mining
Just like their name suggests, Hut 8 Mining Corp’s primary business operation is mining bitcoin. As the price rises, the payoff for their mining opportunities is higher, just like Gold mining companies. It is one of the best crypto stocks for day trading and swing trading.
Look to trade mining companies when bitcoins price continues to rise. Know that there is only a finite amount of bitcoin out in the universe though, so long term, these companies will have diminishing margins and revenue coming in as more and more competition begins to enter the space. $HUT recently tested it’s all-time high. If the crypto markets continue to heat up, we will likely see it break out and provide a plethora of day trading and swing trading opportunities.
$CME: Cryptocurrency Futures Exchange
CME group runs the largest options, futures, and derivatives exchanges in the world. Their involvement in bitcoin and the crypto space began a few years ago when they introduced Bitcoin futures, which allows traders to hedge their bitcoin bets in either direction.
As a result, the more trading activity that goes on in the crypto space on their crypto derivative offerings, similarly to Coinbase’s model, the more money the company makes in commissions. Definitely a better stock to swing trade, it will get some serious momentum and demand into the stock over the $220 level.
$BITO: Bitcoin ETF
The newest major ETF to hit the market this week is $BITO. This proshares ETF follows the price action and movement of bitcoin, at a much lower price point. This is a great avenue to invest in bitcoin with a smaller bank roll. The key difference between this and bitcoin is the fact that it does not trade 24/7, meaning you have to be aware of the gaps that may occur overnight on it.
Since its inception, the ETF has had a strong first two trading sessions, as many people look to gain exposure to bitcoin at a lower price in the stock market. This will likely to continue be a great way capitalize on Bitcoin’s momentum, with less volatility.
Now that you know the best crypto stocks to watch, you now want to actually learn strategies to capitalize on the momentum. We teach 18 different day trading and swing trading strategies in our live trading boot camp:
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