Is there any asset that is more polarizing right now than cryptocurrencies? Half the market thinks they are a Ponzi scheme, while the other half believes they are the future of our financial system. As always, the truth likely lands somewhere in the middle. The truth is, for most people, cryptocurrencies are a risky investment and something they are not willing to get involved with. Luckily for them, there are plenty of ways to invest in cryptos through the stock market. This article will provide our top picks for the best crypto stocks for 2024.
What Are Crypto Stocks?
Let’s just start with the basics: what exactly are crypto stocks? Crypto stocks are companies that operate in the crypto industry through operations like crypto mining, crypto services, or even crypto exchanges.
Many investors look at crypto stocks as a safer way to invest in the crypto space. These companies are still regulated by the SEC and are bound by US securities laws.
So are crypto stocks a good investment? For most of these companies, the jury is still out. There is plenty of potential in the industry, especially with the onset of the next crypto bull market. Choosing the best crypto stocks requires researching the business and forecasting how the company will fit into the future of cryptocurrencies.
These crypto stocks trade on the same exchanges as other stocks in the US. One thing to note is that the price of crypto stocks is heavily influenced by the current price of cryptocurrencies, particularly Bitcoin. Their business performance is also cyclical and depends on the current state of the crypto industry. You can expect these stocks to perform much better in a crypto bull market than in a crypto winter.
This is why we want to share with you our top picks for the best crypto stocks for 2024. The industry is currently breaking out again due to a number of different catalysts. It should not be surprising to anyone to see Bitcoin at or back near all-time highs by the end of 2024.
Are Crypto Stocks a Good Investment?
This is the billion dollar question: are crypto stocks a good investment? Over time, crypto stocks have largely underperformed cryptos themselves. In a crypto bull market, you will find that crypto stocks often outperform many other growth sectors. But in a crypto bear market or a crypto winter, you can forget about any type of returns from crypto stocks.
When it comes to crypto stocks, the sector can be broken down into crypto miners, crypto exchanges, and crypto-related services. A vast majority of crypto stocks are companies that mine cryptos like Bitcoin or Ethereum.
So who should invest in crypto stocks? Investors with a larger appetite for risk should consider adding some crypto stocks to their portfolios. The crypto market is volatile and these companies are subject to sudden price changes that can happen 24 hours per day and 365 days per year. Make sure you understand the risk involved when investing in even the best crypto stocks.
Best Crypto Stocks for 2024
Coinbase Global Inc (NASDAQ: COIN)
This should come as no surprise to anyone. Coinbase is emerging as the global leader in crypto exchanges and crypto-related services. Not only is it the largest crypto exchange in the United States, but it is rapidly expanding internationally. Over the past year, Coinbase has established operations in Canada and across the European Union.
Coinbase is also the industry leader in security and is the leading custodian for institutional holders of Bitcoin. As of 2024, Coinbase is the custodian for nine of the top eleven spot Bitcoin ETFs that are listed in the United States. This includes holding spot Bitcoin for institutions like Blackrock and Fidelity.
The company operates in over 100 countries around the world and has over 100 million verified users. As the crypto bull run picks up momentum, Coinbase is the one business that stands to benefit from being both an institutional custodian and the direct exchange for millions of retail traders.
CleanSpark Inc (NASDAQ: CLSK)
CleanSpark is our pick for the best Bitcoin mining stock in 2024. Why? The company uses sustainable energy sources to mine its Bitcoin which is a nice ethical plus. CleanSpark is also run by a competent and organized management team that is already looking ahead to the halving event in April.
The Bitcoin halving will cut the rewards for mining in half, which will have a direct impact on CleanSpark’s revenue. CleanSpark is in the process of acquiring four additional ready-to-go Bitcoin mining facilities which should lessen the blow of the halving.
Shares of CLSK have already run high this year but we believe it is the crypto miner that is best suited to handle the halving. CleanSpark also operates Bitcoin data centers across the country which can add additional revenue streams.
As of March 2024, CleanSpark has over 106,000 Bitcoin miners deployed with a current hash rate of 12.5 EH/S, with a potential full deployment of 315,000 miners and 50 EH/S! Last quarter CleanSpark mined 2,020 BTC with a mining gross margin of 61% and held over 3,500 on its balance sheet.
If there’s one stat that should make you want to invest in CleanSpark it is this. Post-halving, CleanSpark’s cost to mine is $28,093 for BTC whereas the industry average is $47,117. This means CleanSpark will dominate its competition when it comes to margins and efficiency. That’s why CleanSpark is our pick for the best crypto-mining stock.
Robinhood (NASDAQ: HOOD)
Robinhood is a stock that was buried and forgotten during the bear market in 2022. The company lost a lot of face during the meme stock short squeeze event in 2021. Why? Because it was discovered that Robinhood earned a fair chunk of its revenue from something called Payment for Order Flow. This essentially meant that Robinhood was selling its user’s trades to hedge funds and institutions before they were entered.
Three years later Robinhood has made a ton of positive changes to its company. The PFOF still exists, and if you’re a shareholder you’re probably not too bothered by it. But Robinhood has added premium, paid tiers that provide users with bonuses for their accounts. This includes things like high-interest yield on cash as well as a full suite of trading tools, and an 8% margin rate.
Perhaps the feature that is creating the most buzz is Robinhood’s 24-hour trading service. That’s right, Robinhood users can now trade at any time of the day through the web or mobile app. You’re not guaranteed the best prices, but it is something that has attracted a lot of new users. Robinhood is also offering a 3% match on select IRA transfers and 401(K) rollovers. CEO Vlad Tenev recently said that Robinhood’s retirement accounts are rapidly growing with more than $3 billion in assets in custody. That’s incredibly bullish because people tend not to move retirement accounts around, making them a very sticky commodity.
If all of that didn’t make you bullish on Robinhood, the company posted a surprise profit last quarter. Institutions are getting bullish on Robinhood again, especially as the crypto bull market takes off. If you want to invest in crypto trading but want to hedge against Coinbase, then Robinhood is the perfect complement for your portfolio.
iShares Bitcoin Trust (NASDAQ: IBIT)
What’s the next best thing to owning actual Bitcoin? Investing in the largest spot Bitcoin ETF in the world. Blackrock has already accumulated an incredible amount of Bitcoin, with nearly 200,000 already on its balance sheet. IBIT was the fastest ETF to reach $10 billion in assets under management, beating the iShares Gold Trust. The Gold Trust took two years to reach that level while the Bitcoin Trust took just seven weeks.
The costs are low with the MER sitting at just 0.12%. You get direct exposure to spot Bitcoin through the world’s largest investment institution and you don’t have to worry about storage or security. Invest in IBIT in a ROTH IRA or TFSA and earn all of the upside of Bitcoin in a tax-free account. If you have been wanting to invest in Bitcoin but haven’t been sure how to, IBIT is the ETF you need to add to your portfolio immediately.
Is It Too Late to Buy Bitcoin?
Honest answer? It’s never too late to buy Bitcoin. If you haven’t dipped your toe into the crypto world yet, the four stocks above can give you a nice start. The best crypto stocks will provide you with exposure to Bitcoin and other cryptos without taking on the issues with storage or converting fiat currencies.
As with any asset, we can debate whether you should buy it at all-time high prices. As of March 2024, Bitcoin is trading at the highest it has ever been. Bitcoin has a long history of volatility and strong corrections, even during a crypto bull run. With that being said, the spot Bitcoin ETFs have changed everything. We could potentially be experiencing a supply shock that we have never seen before in the Bitcoin market.
With so many lofty price targets, $100,000 seems inevitable for Bitcoin. After that? $250,000? $500,000? When Bitcoin was first created, Satoshi Nakamoto envisioned that Bitcoin would one day be worth $1 million each. Could this be a reality that we are closer to now more than ever? If your answer to this question is yes, then we are still very early and it’s not too late to buy Bitcoin!
Which Cryptos to Buy in 2024?
If you are looking beyond Bitcoin, there are thousands of different cryptocurrencies on the market. During a crypto bull run, almost every token gets a bump. But which coins will outperform? You need to look at things like token utility, tokenomics, fees, and the community.
One coin that has all of this in one package is Solana (SOL). For some, the mention of Solana could bring back bad memories from the collapse of FTX. But Solana has matured since then and we believe that 2024 has the potential to be another Solana Summer.
Solana has incredible technology behind it and has been labelled the Ethereum (ETH) killer. It can process over 2,400 transactions per second with minimal gas fees. In comparison, Ethereum can do about 15-25 transactions per second and Bitcoin can do between three and seven.
The Solana network has a bad reputation for going down and having outages. Well, it has had one brief outage over the past 14 months and is handling more transactions than ever before. For many, Solana’s current state is what we all wanted and believed Ethereum should be. Solana is supported by a robust DeFi system and a strong Meme coin community. Currently, popular Solana meme coins include dogwifhat (WIF), Wen (WEN), Popcat (POPCAT), Stanley Cup (STAN), Harambe (HARAMBE), and Bonk (BONK).
The Bottom Line: Best Crypto Stocks for the Bull Market
For investors who want exposure to the crypto bull market but with less risk, these stocks are worth watching. You might not get the same potential for exponential returns that you would get from buying crypto directly, but in past crypto bull runs, crypto-related stocks have done quite well.
This list provides you with two crypto-based exchanges that will reap the benefits of trading fees and new account registrations. CleanSpark is quite clearly the leader among current Bitcoin mining companies. Finally, the iShares Bitcoin Trust is an ETF that provides direct exposure to spot Bitcoin from the convenience of your brokerage account.
Crypto isn’t for everyone and we understand that. We just want you to know that there are ways to invest in cryptos through the stock market. This is our list for the best crypto stocks for this next bull run and we will add to it as we discover new companies.
For now, add these to your watchlist and pay attention to the crypto markets. As more bullishness enters, these stocks will surely begin to outperform. Finally, before buying any of these stocks make sure they fit with your personal investment strategy. Crypto assets can be volatile so you will need a higher risk tolerance.
As always, this article is not meant to be financial advice but rather an introduction to some of the best crypto stocks on the market.
Stay Savvy!
FAQs
What are the best crypto stocks to buy right now?
Our list provides crypto stocks from each category associated with the crypto industry. For the next crypto bull run, our choices for the best crypto stocks are Coinbase, CleanSpark, Robinhood, and the iShares Bitcoin Trust ETF.
Should I Invest in Crypto or Stocks?
This is up to your own personal investment strategy and risk tolerance. Cryptos can be a lot more volatile, less regulated, and difficult to purchase. They also have the potential to provide exponential, life-changing returns. Crypto stocks are less volatile and trade on the regulated exchanges. You can now gain exposure to cryptos directly in your brokerage account.
Which crypto will boom in 2025?
In a true crypto bull run, most coins will boom higher. Our choice for the most explosive crypto coin is Solana and any meme coins that are based on the Solana network. With minimal transaction fees and over 2,000 transactions per second, Solana is built to be the best on-ramp for casual crypto traders.