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As the value of Bitcoin ( ) continues to skyrocket and other cryptocurrencies like Litecoin, Ethereum and Ripple gain more popularity—driving attention to the blockchain technology of decentralizing digital money—investors are also taking note of companies whose stocks are benefiting greatly from exposure to cryptocurrency transactions.
As you weigh your options whether to purchase an actual cryptocurrency, since investing on cryptocurrency brings a great deal of both rewards and risks, you can easily start putting money on sure-fire investments on these leading “Cryptocurrency Stocks” that stand to gain if Bitcoin, Ethereum ( ) and Ripple ( ) prices continues to surge. These are stocks belonging to companies that manufacture graphics processors, to semiconductors to online payment systems to e-Commerce platforms and more.
PayPal ( )
As the current leader in online payments processing, PayPal is also planning to allow the use of cryptocurrencies like Bitcoin and Ethereum by its users for buying, trading and holding through both the PayPal and Venmo app. This new feature not only gives PayPal customers a new investment platform, it is also expected to further boost the stock value of PayPal.
Nvidia Corporation ( )
The stock of NVIDIA already gotten a boost ever since computer gaming became popular because for its wide range of dependable computer hardware products. Thanks to the increasing interests in cryptocurrency, NVIDIA’s high-performance graphics processors found an additional market in the form of cryptocurrency enthusiasts who are using NVIDIA’s graphic cards for mining operations of Bitcoin and other cryptocurrencies. Because of this new revenue segment, NVIDIA’s returns started soaring to record highs since 2017.
Alibaba ( )
The leading e-Commerce and enterprise cloud service provider in Asia and fast expanding to the rest of the world, Alibaba is also tapping into the blockchain technology that made cryptocurrency popular. According to a company statement “Alibaba’s platform Tmall will use blockchain technology to guarantee product quality”. The company is also providing cloud customers with BaaS (Blockchain as a Service) to build trust and efficient collaboration between internet users.
DocuSign ( )
The pioneer and leader in digital signature technology, DocuSign has added a new feature that has attracted additional users and earned the company increased revenue. By tapping into the blockchain technology and allowing DocuSign users to use Ethereum blockchain technology in recording contracts, DocuSign is seeing an increased role of blockchain technology in the company’s current and future operations.
Facebook ( )
Already a solid option as a stock investment thanks to its status as the leading social media platform in the world, Facebook is also priming up to ride the cryptocurrency wagon. With a new cryptocurrency called Libra in the advanced stages of development, Facebook is foreseeing it as a leading cryptocurrency to be used for financial payments and investment by a large percentage of the world’s population who doesn’t have a regular bank account.
Square ( )
Payment technology giant Square has never been shy about its trust in the future of Cryptocurrency. After purchasing $50 million worth of Bitcoin, Square shared a recent news to its investors “Square has been a leader in the bitcoin space since 2018 through our Cash App product, which provides customers the ability to buy and sell bitcoin. The company formed Square Crypto, an independent team solely focused on contributing to bitcoin open source work for the benefit of all. Square also recently launched the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization encouraging crypto innovation.”
If there’s a company that is fully taking advantage of its cryptocurrency exposure, then that would be Square.
Advanced Micro Devices ( )
Similar to NVIDIA, Advanced Micro Devices benefits from Bitcoin miners who uses the company’s solid line of graphics processor products. Couple this with the already consistent strong performance of the company, investors sees AMD stocks clearing a path to a sting of successful showing on the trade market.
CME Group ( )
As one of the well-known financial derivatives exchange company in the world for stocks investment, forex and indexes, CME Group is also the lone exchange that created a market for cryptocurrency futures contracts. As the popularity of Bitcoin and other cryptocurrency rises, CME Group will definitely benefit greatly in terms of revenue and stock value.
Overstock.com ( )
An e-Commerce company many analysts believe is on the way up and fully headed to increased profitability, Overstock.com’s profile increased when it started to allow users to pay purchases from their website using Bitcoin. Apart from allowing cryptocurrency transactions and incorporating blockchain technology, Overstock.com is also planning to expand into becoming a cryptocurrency company in the near future.
Investing on Cryptocurrency Stocks or Cryptocurrencies via CFD Trading
The best place to start investing on these companies is through CFD (contract for difference) stocks via leading online trading platforms such as eToro and Plus500. You can also trade cryptocurrencies such as Bitcoin, Ethereum, Ripple, etc via CFDs as well.
Here are some important reminders to remember if you want to invest on Cryptocurrency.
- Use a highly-trusted, regulated and safe trading platform such as eToro or Plus500 when investing and trading on cryptocurrency. Remember, there is no EU protection for crypto assets. They are unregulated and are a highly volatile investment product.
- Don’t collect all your eggs in one basket. Diversify by spreading your investment on different types of cryptocurrencies—best ones would be the leading ones like Bitcoin, Ethereum and Ripple.
Always use a dependable digital wallet where you can keep your cryptocurrency safe and only accessible to you.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.