While cryptocurrency stocks tend to have wild swings in revenue and earnings, they also offer ample diversification. Moreover, cryptocurrency stocks are becoming more mainstream as more companies get involved in the blockchain revolution. A case in point is Coinbase, the largest cryptocurrency exchange in the world. After the CFO of Coinbase announced that the price of Bitcoin will be lowered, the company’s stock fell by over 13%. Consequently, investors should be wary of the volatility associated with crypto stocks.
Many traditional investors prefer to invest in stocks, which have a longer history and can be evaluated more easily. In addition, public companies face more regulatory oversight, which makes them more likely to return value to investors. Many traditional stockbrokers also sell crypto stocks. And investors who have retirement accounts may find it easier to buy crypto stocks through these accounts. Ultimately, it’s up to you to decide which type of investments will make the most sense for you.
The CME Group runs the world’s largest financial derivatives exchange. On it, investors can buy and sell a wide variety of assets, such as currencies and futures. In fact, CME Group has more than $5.2 billion worth of bitcoin on its books. If you’re looking for a way to trade bitcoin on a large scale, you can consider buying shares of these companies. You can find them in cryptocurrency exchanges as well.
Another company with high growth potential is Riot Mining Company, which focuses on blockchain technology and Bitcoin. The company expects to have a fleet of nearly 80,000 miners by 2022. Furthermore, the company is developing a blockchain-based escrow service for wholesale telecom carriers. Ultimately, this makes cryptocurrency stocks a valuable investment option. And if you’re looking for a company to invest in, you might want to look into the stock of this mining company.
Some companies that are putting money into cryptocurrency include PayPal, the largest peer-to-peer money movement app, and Nvidia, a chipmaker and cryptocurrency-mining technology company. As more people use cryptocurrency to move money, PayPal will be well-positioned to benefit. Moreover, PayPal will be able to reap the benefits of transactional fees associated with the cryptocurrency. And Nvidia, the chipmaker and manufacturer of graphics processing units, will see a surge in profits as more people turn to bitcoin for their financial needs.
While many investors shy away from crypto due to its volatility, there are several promising companies that are already leveraging the technology behind blockchain to improve their business processes. With more companies embracing the benefits of blockchain, investing in cryptocurrency stocks could be a profitable choice. The crypto space is entering the mainstream, and as more companies make the switch, the market will continue to grow. The momentum of the crypto stocks will only continue. They could be the next big thing in the global economy.
As with any investment, you should keep in mind the risk and reward involved. Cryptocurrency stocks are high risk but high reward, so they should be allocated as a small portion of your portfolio. Even though they are more volatile, they can offer substantial returns compared to other investments. As a result, cryptocurrency stocks are a smart way to diversify your portfolio and reduce risk. Just remember to invest a small percentage of your total portfolio into a crypto fund and monitor your investments closely.