With Bitcoin At $33K, Should You Buy These Crypto Stocks?

According to one analyst, this move would be linked to a single buyer who would have passed a colossal order to make up the course.

The sell-off has been driven by multiple factors including China’s crackdown on Bitcoin trading and mining and Tesla’s surprise reversal of its decision on accepting the digital currency as payment for its cars.

While the asset itself is volatile and prone to boom and bust cycles , our indicative theme on Cryptocurrency Stocks could be a safer way to play the long-term upside from cryptocurrencies, without taking a position in the currencies themselves.

Crypto bellwether Bitcoin has almost doubled year-to-date to levels of about $60k as of the end of last week, as more institutional investors warm up to the currency, with companies such as Tesla also indicating that they will accept bitcoin payments from customers.

The company has taken this a step further, launching its “Checkout with Crypto” service last week, enabling U.S.

Nvidia indicated a few weeks ago, that it would be launching a GPU that was dedicated to mining cryptocurrencies.

, a derivatives exchange, plans to launch new Micro Bitcoin futures from early May, subject to regulatory approval.

The theme, which includes semiconductor, payments, and brokerage companies that have exposure to the cryptocurrency value chain, is up by about 124% since 12/31/2019, compared to the S&P 500 which is up by about 22%.

Our indicative theme on Cryptocurrency Stocks – which includes semiconductor, payments, and brokerage companies that have exposure to the cryptocurrency value chain – could be a safer way to play the crypto space, without taking a position in individual currencies.

Our indicative theme on Cryptocurrency Stocks – which includes semiconductor, payments, and brokerage companies that have some exposure to the cryptocurrency value chain – could be a safer way to play the crypto space, without betting on individual currencies.

Nvidia stock saw big gains over 2020, driven by growing demand for its GPUs from gaming consoles and data centers and its planned acquisition of CPU designer ARM.

CME Group the world’s largest financial derivatives exchange, also offers bitcoin futures contracts.

Our indicative theme on Cryptocurrency Stocks – which includes semiconductor, payments, and brokerage companies that have some exposure to the cryptocurrency space – is up a solid 110% year-to-date, compared to the S&P 500 which is up by just about 14% over the same period.

For example, Payment apps Square and PayPal, who make money by buying bitcoin from brokers and selling them to their customers by adding a “spread” stand to benefit as prices and volumes rise.

Our indicative theme on Cryptocurrency Stocks – which includes semiconductor, payments, and brokerage companies that have some exposure to the cryptocurrency space – is up 88% year-to-date, compared to the S&P 500 which is up by just about 5% over the same period.

The stock has gained a whopping 183% year-to-date, as investors bet that Square’s digital payment solutions will continue to gain traction through and post Covid-19.

Nvidia a semiconductor company that is best known for its graphic processing units which are increasingly used in machine learning and AI, is also finding application in bitcoin mining.

PayPal a large online payments processor, has indicated that it would allow customers to buy, hold, and sell cryptocurrencies such as Bitcoin and Ethereum directly within its PayPal and Venmo app.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500.

This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time.

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