Cryptocurrency stocks are certainly a booming trend of today. With the entire Crypto market hitting a record of 3 trillion dollars at its peak, everyone is scrambling to see what will explode next!
Purchasing stock in a company having a financial stake in the future of Cryptocurrency or blockchain technology is a simple method to obtain investing exposure to Crypto.
Investors can invest in diversified index funds or exchange-traded funds (ETFs), which have a track record of long-term value growth rather than picking and investing in individual stocks(Individual stock investments may carry dangers same as Cryptocurrency investments).
Many index funds like the S&P 500 include publicly traded companies that have some involvement with the industry, whether it’s mining Cryptocurrency, developing blockchain technology, or holding large funds of Cryptocurrency.
For instance, funds tracking the S&P 500 include Tesla, which has over a billion dollars in Bitcoin and has previously accepted Bitcoin payments. Since its entry into the index in 2020, Tesla has become one of the most valuable companies. Let’s have a look at 5 Cryptocurrency Stocks to invest in 2022.
Coinbase Global Inc.(also known as Coinbase) is a Cryptocurrency trading platform launched in 2012. Coinbase went public on April 14, 2021, by listing directly on the Nasdaq exchange.
Coinbase currently has assets worth $255 billion. These users’ involvement levels tend to rise over time as well. Coinbase currently has 73 million users who have verified their identities.
Coinbase is already a key partner for institutional investors eager to enter the Cryptocurrency sector. Coinbase has launched Coinbase Cloud, a tool enabling developers to build applications and services on top of Coinbase’s infrastructure.
Investing in Coinbase is effectively a bet on the entire Crypto ecosystem’s growth. Investors don’t have to guess which tokens will gain in value. Coinbase will benefit as the Cryptocurrency business matures and becomes more mainstream.
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Square(now Block) launched in 2009 with the initiative to develop comprehensive, omnichannel solutions to assist sellers in selling online, managing inventory, running a busy kitchen, scheduling appointments, engaging loyal customers, and hiring and paying employees. Today, Square’s network has been spread to all 50 states of the US along with countries like Australia, Japan, Canada, and more.
Square introduced the Cash App on October 15, 2013, under the name Square Cash for individuals, organizations, and business owners who were able to create a unique username, known as a $cashtag, to send and receive money.
Cash App enabled Bitcoin trading support in January 2018. Users of the Cash App can buy, hold, and sell Bitcoin. Square’s adjusted Bitcoin revenue is comprised of sales to app users less the cost of obtaining the digital currency.
Cash App customers in the United States gained access to stock trading in October 2019. In November 2020 Square acquired Credit Karma Tax(now Cash App Taxes), a free do-it-yourself tax-filing service. Cash App also completely supports Taproot(a Bitcoin upgrade) which helps users to transmit Bitcoin to Taproot wallets.
During the Covid-19 pandemic spread in 2020, Square stock soared as investors focused on the company’s consumer Cash App. Square stock announced an additional $170 million investment in Bitcoin in early 2021. The company is also considering creating a Bitcoin hardware wallet.
A GPU(Graphics Processing Unit) is ideally suited to handling Cryptography and blockchain creation, which require vast amounts of computation power. Back in 2018, digital currency miners scrambled to buy GPUs to purchase digital currency as Cryptocurrency prices soared.
In early 2021 the company solved the issue of Crypto miners desiring the GPUs originally created for gamers and began incorporating an algorithm that reduces the hash rate when it detects Crypto mining.
This ensured that NVIDIA’s latest GPUs created only for high-end video games reach genuine gamers. Then the company launched a CMP line of chips specifically created for Cryptocurrency mining which helped both gamers and miners to acquire the hardware desired.
These days, video games are an enormous business, and NVIDIA has a dominating advantage. That isn’t going to change even if there is a short halt in Cryptocurrency mining, therefore NVIDIA is not affected by sudden drops in chip sales to Crypto miners.
PayPal officially joined the Crypto train near the end of 2020, allowing users to purchase, sell, and hold Cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. In April, it followed up with the debut of Crypto in the Venmo peer-to-peer payment app.
The option to purchase Bitcoin using the PayPal and Venmo apps has a significant impact on attracting new users and maintaining strong consumer engagement. All of the new features in the redesigned PayPal app are piquing interest in other services. In 2021 after the launch of the new app, Cash Card enrollments have increased by 35%.
ASIC-powered Bitcoin mining machines developed by Canaan accelerated the growth of a computationally progressive Bitcoin mining industry in 2013.
Canaan’s market cap is now around $970 million. The company invests in the development and sale of Bitcoin mining devices, and its stock will most likely trade in lockstep with the market-leading Cryptocurrency’s price swings.
Demand for Canaan’s mining hardware has increased in tandem with the price of Bitcoin per token. If Bitcoin continues to rise, this means that the stock could continue to rise sharply.
If you’ve been trying Cryptocurrencies, there is no assurance that the system and your investment will not fail. And what will happen to all those Cryptocurrencies after your death? You would certainly want to protect your loved ones from legal challenges.
You can leave a backup copy of all your transaction keys to a solid escrow service or lawyer in case of untimely death. If you pass away with no designated backup, there goes your Crypto investment into oblivion.
It’s worth considering incorporating your Crypto-currency holdings into a Digital Estate Plan for various reasons, but mostly because you never know what will happen in the future. Should something catastrophic happen, you don’t want your family to be left holding the bag, so to speak. Knowing how to properly plan for such an eventuality ensures that your hard work doesn’t go to waste and that your loved ones are taken care of long after you’re gone.
