Bulls on Wall Street
With Bitcoin breaking its all-time high this week, crypto has been at the forefront of people’s thoughts. The hype train has continued to move forward.
What most people don’t know:
You don’t have to trade cryptocurrency yourself to benefit from the momentum. On the stock exchange, you can invest in crypto and future technology growth in this area by trading certain stocks and ETFs. We call stocks with services and products in the cryptocurrency space “crypto stocks”.
Many of the companies we’re going to highlight today have immersed part of their business in the cryptocurrency space, while others are focused entirely on blockchain solutions. These stocks tend to “sympathize” with Bitcoin and the entire cryptocurrency market. Today we’re going to outline the best blockchain stocks to keep on your radar for the rest of the year and beyond. Trading these is a great way to get involved in the crypto markets:
$ MARA: cryptocurrency mining
$ RIOT: cryptocurrency mining
Marathon and Riot are two cryptocurrency stocks that are very well known. They have become household names in recent years. Both companies have similar core activities in Bitcoin mining, and both tend to follow the price and chart of Bitcoin in sympathy. When BTC rises and falls, so do these. Just beware of the overnight ups and downs as they don’t act like BTC itself around the clock.
$ MARA shows much more relative strength than $ RIOT and is the much better trader right now. Keep an eye on $ RIOT, it will likely get a higher bid if Bitcoin keeps going insane.
$ COIN: Cryptocurrency Exchange & Wallet
Coinbase recently launched in 2021 with a highly anticipated IPO that took some time to really gain momentum.
Coinbase is one of the largest cryptocurrency exchanges and trading / investing applications in the world. Enabling you to buy and sell hundreds of coins, Coinbase has made a trusted name for itself as one of the most respected and user-friendly exchanges out there. This stock is often traded in sympathy with Bitcoin and is relatively expensive.
With trading activity and hype in the cryptocurrency sector continuing, Coinbase should continue to grow as more and more people continuously trade and generate commissions for the company itself. Try to play Coinbase up as long as general trading activity and volume continues to pour into the cryptocurrency markets.
$ SQ: Payment processing in cryptocurrency
Many of you may know Square for the Cash app, but for those of you who don’t know what Square is, they are one of the largest trading services companies in the world for small to large businesses.
Why are you on this list now? For the past two years, they have slowly but surely dipped into the cryptocurrency space lately. Not only do they actually hold a decent position in Bitcoin itself with some of their cash reserves, but they have also introduced blockchain solutions to their customers through their applications and web platform. They provided an application for customers to buy and trade bitcoin, and to pay and receive bitcoin for goods and services. From all of this, they get a commission cut for every transaction.
Square has already mastered it and has become known for regular trading service offerings and is now diversifying into the cryptocurrency space, making it one of the few trading service providers to include blockchain technology in their offering portfolio. This gives them a huge edge over the competition.
Your stock is now more expensive than some of those stocks and doesn’t trade directly in sympathy with Bitcoin like some of the other stocks on this list. So keep that in mind. It’s moving more in sympathy with $ SPY and $ QQQ and the entire stock market, but it’s a great way to still get consistent exposure to growing blockchain solutions around the world.
$ HUT: cryptocurrency mining
As the name suggests, Hut 8 Mining Corp’s main business is mining Bitcoin. When the price goes up, the payoff for their mining opportunities is higher, just like with gold mining companies. It’s one of the best crypto stocks for day trading and swing trading.
Watch out for trading with mining companies if Bitcoin price continues to rise. Know, however, that there is only a limited amount of Bitcoin in the universe, so in the long run these companies will have falling margins and revenues as more competition enters the market. $ HUT recently tested its all-time high. If the crypto markets heat up further, we are likely to see a breakout and an abundance of day trading and swing trading opportunities.
$ CME: Cryptocurrency Futures Exchange
The CME Group operates the largest options, futures and derivatives exchanges in the world. Their involvement in the bitcoin and crypto space began a few years ago with the introduction of bitcoin futures, which allow traders to hedge their bitcoin bets both ways.
As a result, similar to the Coinbase model, the more trading activity in the crypto space takes place on its crypto derivative offerings, the more money the company earns in commissions. Definitely a better stock to swing trade, it will get some serious momentum and demand in the stock above the $ 220 mark.
$ BITO: Bitcoin ETF
The newest major ETF to hit the market this week is $ BITO. This Proshares ETF follows the price history and movement of Bitcoin at a much lower price. This is a great way to start investing in Bitcoin with a smaller bankroll. The main difference between Bitcoin and Bitcoin is the fact that it is not traded around the clock, which means you need to be aware of the loopholes that can appear overnight.
Since its inception, the ETF has had a strong first two trading sessions as a lot of people try to invest bitcoin on the exchange at a lower price. This will likely continue to be a great way to capitalize on Bitcoin’s momentum with less volatility.
Now that you know the best crypto stocks to keep an eye out for, now you actually want to learn strategies to capitalize on the momentum. We teach 18 different day trading and swing trading strategies in our live trading bootcamp:
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