The cryptocurrency market is in continuous development and currently is extremely popular among investors. Since more and more public companies and institutional investors turn to the crypto digital assets, the pressure on the buying side sent prices of major cryptocurrencies to all-time highs.
Just like when trading gold, investors have multiple options at their disposal to gain exposure on the cryptocurrency market. One can own the cryptocurrencies, buy ETFs (Exchange Trading Funds) that track the industry, or buy common shares in companies that already invested or have activities in the cryptocurrency space.
This article deals with the last category and lists the best cryptocurrency stocks to buy in 2021.
Overview of the Cryptocurrency Companies
The cryptocurrency market is forecast to grow by a Compounded Annual Growth Rate (CAGR) of 60.2% by 2026. This is an extremely elevated growth rate, not seen in other industries.
The adoption of blockchain technology increases at exponential rates and worldwide spending on blockchain solutions is expected to follow the CAGR rate mentioned earlier.
What Are the Trading Hours for Cryptocurrency Shares?
Most of the cryptocurrency shares listed in this article are listed OTC in the United States. As such, one must be familiar with the market trading hours in North America.
Where Can I Buy Cryptocurrency Shares?
Brokerage houses and some online brokers offer common shares or CFDs (Contracts for Difference) for most of the cryptocurrency shares listed here.
Top 10 Cryptocurrency Shares to Buy
The top ten cryptocurrency shares listed below are not cryptocurrencies but companies listed on the stock exchange with activities linked to the cryptocurrency space. They have either invested in cryptocurrencies or operate in the crypto universe.
- Marathon Patent Group
- The Crypto Company
- Galaxy Digital
- Hut 8 Mining
- Silvergate Capital
- MGT Capital Investments
Marathon Patent Group
Involved in data processing and outsourced services, Marathon Patent Group is headquartered in Las Vegas, Nevada, United States. It mines cryptocurrencies and operates as a digital asset technology company.
- Market capitalization: $3.01 billion
- Listed on Nasdaq under the ticker MARA
- Its share price rallied massively in 2021 and 2020, up over 2700% in the last twelve months
- It announced in January 2021 that it bought the dip in Bitcoin – now Bitcoin is up to new all-time highs
The Crypto Company
From Malibu, California, the United States, The Crypto Company provides services and education for the DLT (Distributed Ledger Technology) sector and other blockchain solutions.
- Market capitalization: $116.73 million
- Listed on the OTC market under the ticker CRCW
- Down 5.71% year-to-date
An American company, MicroStrategy is involved in building analytics software and services worldwide. It recently made headlines as in the second half of last year it was one of the first public companies to invest heavily into the cryptocurrency space.
More precisely, MicroStrategy converted its treasury from dollars to Bitcoin and did not look back ever since. Considering the fact that the price of Bitcoin rose from below $10,000 to almost $50,000 in the months that passed, we may say that the company run by Michael Saylor did the right thing for its investors.
- Market capitalization: $9.98 billion
- 2000 employees
- Listed on Nasdaq under the ticker MSTR
- The share price jumped 18% after the previous quarter earnings
- Up 167% year-to-date
- Up 571% in the last five years
A Chinese company headquartered in Hangzhou, Canaan provides integrated circuits for Bitcoin mining and other related components. It is also involved in blockchain technology and AI projects.
- Market capitalization: $1.11 billion
- Up 19.06% YTD
- Listed on Nasdaq under the ticker CAN
- Up 55% in the last twelve months
- Its CFO (Chief Financial Officer) recently resigned
An asset management firm from New York, the United States, Galaxy Digital is run by non-other but Mike Novogratz – prominent crypto investor and backer. It has principal investments in cryptocurrency and blockchain, being one of the public companies with the largest exposure to the sector.
- Market capitalization: $3.77 billion
- Recently announced an investment in a Korean crypto fintech firm
- Listed on the OTC market under the ticker BRPHF
- Up 39% this year alone
- Up over 600% in the last five years
Hut 8 Mining
A Canadian company from Toronto, Hut 8 Mining Corporation, does just what the name suggests – it operates a cryptocurrency mining company. It does so at an industrial scale and has data centers in Alberta.
- Market capitalization: $588.31 million
- It recently finalized an equipment financing loan from Foundry Digital
- Listed on the OTC market under the ticker HUTMF
- It has plans to offload another loan, this time from Genesis Global Capital worth some $20 million
- Up almost 400% in the last twelve months
- Up 88% this year alone
From California, the United States, Silvergate Capital Corporation is a regional bank active in the financial sector. Besides the regular banking services that it offers to its clients, it has recently launched cash management services for digital currency businesses.
- Market capitalization: $3.37 billion
- It beat on revenue and on EPS on the last company’s earnings report
- Listed on the New York Stock Exchange under the ticker SI
- Already up 93% in the current year
A Chinese company active in the technology hardware, storage, and peripherals industry, Ebang is involved in building and selling Bitcoin mining machines for both individuals and enterprises.
- Market capitalization: $839.92 million
- Listed on Nasdaq under the ticker EBON
- Up 2.47% YTD
Leovovus is another Canadian company with activities in the cryptocurrency space. Its main industry is application software, thus it comes from the information technology (IT) sector. However, it also launched the first enterprise-grade blockchain solution and believes that blockchain is revolutionizing data storage.
- Market capitalization: $13.55 million
- Listed on the OTC market under the ticker LVNSF
- Up 381.48% in the last twelve months
MGT Capital Investments
From North Caroline, the United States, MGT Capital Investments is a bitcoin mining company active in the application software industry.
- Market capitalization: $83.28 million
- Listed on the OTC market under the ticker MGTI
- Up over 300% in 2021 already
Expert Tip On Investing in Cryptocurrency Shares
Follow closely the price action on the main cryptocurrencies (e.g., Bitcoin, Ethereum). On any continuation patterns, focus on the series of higher highs and higher lows that suggest further continuation to the upside. When the market is at support, instead of buying the actual cryptocurrency, which may be more expensive, you may want to trade cryptocurrency shares as they offer a different perspective but similar exposure.
Why Invest in Cryptocurrency Shares?
More and more public companies announce new investments in the industry. The recent announcement that Tesla has invested $1.5 billion in Bitcoin in the course of January 2021 comes after MicroStrategy, Square, and other players announced something similar, albeit at a lower scale. Put it simply – the adoption rate increases
Frequently Asked Questions
That would be MicroStrategy. The company was one of the earlier to announce a sizable investment in Bitcoin back in 2020 when no one believed that cryptocurrencies will rise to new all-time highs so soon.
There is literally no other industry out there with such growth as the cryptocurrencies had in the last months. The big question is – is this a bubble or the start of an exponential, logarithmic bullish trend?
Still MicroStrategy. The company has a decent accounts receivable/payable ratio and a solid cash and equivalents position.
Investors that believe in the cryptocurrencies but are afraid of owning directly due to fear of losing the password to their investments or simply lacking funds to invest in cryptocurrencies that became really expensive (e.g., Bitcoin price reached over $40k).
Galaxy Digital. The share price offers a great opportunity to gain exposure to the cryptocurrency industry without having to pay the high prices for most of the decent currencies.
Cryptocurrencies offer an alternative to traditional investments, especially the alternative ones. Instead of owning an alternative investment such as gold, many millennials prefer digital alternative investments to hedge against inflation while gaining from the possible price appreciation.