Digital currency companies hold major potential
The original idea behind blockchain technology -- a digital ledger that automatically tracks transactions between parties and confirms ownership of a crypto asset -- was to create a borderless, peer-to-peer electronic cash payment system that's efficient and secure.
Investors can certainly purchase cryptos themselves, perhaps by buying small amounts of several different cryptocurrencies. Another way to gain exposure to the sector is to invest in bigger and more established companies that benefit from the increased popularity of blockchain and crypto assets. The revenue that crypto service providers are deriving from blockchain tech has grown explosively over time.
Companies that adopt blockchain technology, especially in finance, may gain a considerable edge over traditional competitors in processing payments. Brokers offering digital assets may attract more customers than exchanges offering traditional assets such as stocks and bonds.
You can even buy exchange-traded funds tracking the spot price of Bitcoin nowadays. Eleven such funds were approved in January 2024, with the most popular names including the iShares Bitcoin Trust (IBIT -3.59%) and the Fidelity Wise Origin Bitcoin Trust (FBTC -3.68%). The ETFs make Bitcoin easily available to several new investor types.
However, the sector is subject to sharp market swings. Its peak value of $3 trillion slipped to less than $1 trillion in June 2022 as rising inflation drove many investors away from high-risk investments. The economic downturn also coincided with a downtrend in the cyclical crypto market, also known as a crypto winter.
This was not the crypto market's first gigantic plunge, and it probably won't be the last. Every investment is subject to risks, and you should only invest money you don't need in the short term. That guidance is even more important in the highly volatile crypto sector.
In keeping with that guidance, here are some of the best crypto and crypto-related stocks to consider.
Cardano (ADA)
[Cryptocurrency] is a new asset class, but like real estate, there's only so much Earth. So it's defined, and therefore this moving price of the commodity is just how much, within this finite class of a commodity, this new asset class, how much people value it or want it.
Bitcoin Cash (BCH)
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