Cryptocurrencies have become a hot investment that is gaining mainstream adoption. Markets for digital currencies such as Bitcoin (BTC +0.41%) were virtually unheard of in 2012, but they have since grown into a massive industry.
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 +2.07%) and the Fidelity Wise Origin Bitcoin Trust (FBTC +2.14%). 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.
2. Block and PayPal Holdings
At the heart of every digital payment protocol is the absence of central intermediaries (which means lower costs for businesses and consumers). So, Block (XYZ +1.66%) (formerly Square) and PayPal (PYPL -2.64%) saw a meaningful business opportunity in enabling users to purchase and hold cryptocurrencies within a digital wallet.
In late 2017, Block's Cash App consumer-facing application began allowing Bitcoin trading. Bitcoin is often a huge revenue generator for Block when cryptocurrencies are on an upswing, although the trading feature is not helping the company's bottom line very much. In 2025, Block managed over $3 billion of quarterly Bitcoin revenue.
However, the company is helping to foster the use of Bitcoin among its business users (through the Block ecosystem), and it could become a top platform for crypto transactions between companies and their customers. This is especially promising for disrupting traditional international transactions in which banks often charge hefty foreign exchange fees. Cash App added support for the Bitcoin Lightning Network in April 2022, allowing customers to transfer Bitcoin much faster and without transaction fees. CEO Jack Dorsey said the feature will "increase the usability of Bitcoin, all toward an open global monetary transmission network the world can trust."
PayPal's Venmo digital wallet and peer-to-peer payments app, which unlocked crypto trading in early 2021, offer a similar mix of simple banking features and mass-market crypto-trading tools. At the launch, Venmo supported the trading of Bitcoin, Bitcoin Cash (BCH +0.83%), Ethereum, and Litecoin (LTC -0.40%). Other cryptos may appear over time, like the PayPal USD (PYUSD +0.00%) stablecoin that became available in 2023.
With the most users of any peer-to-peer money movement app, Venmo could become a leading cryptocurrency platform with its new feature. It serves as a solid access point for investors who wish to buy major cryptocurrencies and then use them to purchase altcoins or access decentralized finance (DeFi) applications.
Bitcoin Cash (BCH)
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