Buy Digital Currency Stocks – 5 Best Digital Currency To Buy Right Now in 2021

Fact Checked by Gary McFarlane

The digital currency market has been exploding in the past year, and it is extremely likely that digital assets will continue to be a major part of the investment world as adoption increases. Yet, not every single investor may be willing to take the high risk of investing in digital currency directly. The major price swings, both up and down, mean that you may have a significant chance to see your investment being wiped out.

This volatility shouldn’t stop you from reaping the benefits of digital currency. To help you make a calculated decision, we have selected the best digital currency stocks to buy right now. These assets will expose you to this new market without focusing on one single cryptocurrency. Rather, these stocks invest in digital currencies, support the development of blockchain, and help you indirectly benefit from this new technology.

Table of Contents

#1 Broker to Buy Digital Currency Stocks – eToro

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

How to Buy Digital Currency Stocks – A Quick Guide For 2021

If you want to get started within a few minutes, eToro is our top broker due to regulatory compliance and safety, user-friendliness, and breadth of features ideal for both beginners and more advanced traders and investors. Even more important, you only need $50 to get started and all stocks come with zero commissions.

  • Step 1: Open an Account with eToroFirst, you need to register and open an account on the platform. To do so, you need to fill in a quick form with your personal details.
  • Step 2: Upload Your ID –To validate your account, you need to upload a government-issued ID to verify your identity and proof of address. The broker will verify your documents automatically, so you can get started within minutes.
  • Step 3: Deposit Funds –All you need to do is deposit your capital. eToro allows you to start with only $50. There are numerous payment methods available and there is no charge for deposits.
  • Step 4: Search for Digital Currency Stock – Look for your desired digital currency stock by typing in the ticker symbol or the company’s name in the search bar.
  • Step 5: Buy Digital Currency Stocks – Select your chosen company and add in the amount you want to spend. You need to deposit a minimum of $50 and you can also buy fractional shares (at least $10 investment), so you can invest in any stock you want.

Once you purchase your stocks, you can click on “Portfolio” to check your investment. You can buy and sell stocks at any time as long as the market is open, but you can also place orders outside business hours and these will be executed as soon as the market opens.

67% of retail investor accounts lose money when trading CFDs with this provider.

Best Digital Currency Stocks to Buy Now – List of the Best Digital Currency Stocks

To help you get started, we have selected the following digital currency stocks based on their financial performance, and potential. Here are the top stocks to buy right now:

  1. Tesla – Most Valuable Company in the World
  2. Marathon Digital – The Largest Bitcoin Mining Company in North America
  3. AMD – The Trend Grower Than Enables Digital Currency Creation
  4. Robinhood Markets – The Hottest IPO of the Year
  5. Coinbase Global – The Largest U.S. Cryptocurrency Exchange

Next, we will dive deeper into why these stocks are the best of this year and what the future may hold for their shareholders.

How To Buy Digital Currency Stocks – Choose a Broker

The first step to creating your portfolio is to choose a broker and sign up. The broker is extremely important – for instance, you need to make sure it is regulated in order to protect yourself from scams or fraud. The best digital currency stocks right now can be safely purchased from the following brokers:

  • eToro – Overall Best Place to Buy Digital Currency Stocks
  • AvaTrade – Trade Digital Currency Stocks at 0% Commission

What Are Digital Currency Stocks?

Digital currency stocks are companies that invest in crypto assets, blockchain technology, or some of their revenues come from this industry. Investors can now invest directly in digital currencies like Bitcoin; however, investing in digital currency stocks is a safer way to diversify your portfolio. The bigger the companies you choose, the less risk you expose yourself to while adding these important assets to your portfolio.

For example, if you invest $1,000 in Bitcoin and this goes down by 10%, your portfolio value also decreases. However, if you invest in Tesla, which has more than $1.5 billion invested in digital cryptocurrencies, you are not as exposed anymore to any cryptocurrency fluctuations. Indeed, the value of digital currencies affects the company’s share price, financial performance, and outlook, but the stock price is dependent on many other factors rather than the cryptocurrency alone. For instance, Tesla’s stock price may remain stable even in this case, especially if they report higher than expected earnings for the quarter.

Best Digital Currency Stocks to Buy Now – Full Analysis

Digital currencies and blockchain technology are some of the hottest topics right now. In this section, we will introduce you to the best digital currency stocks right now. These companies are reputable, well-established, and have an impressive potential for further growth. Whether you want to trade them in the short term or invest in them for years to come, they are surely worth your attention.

1. Tesla – Most Valuable Company in the World

With about 73% share price growth in the past year, Tesla is one of the best performers on the market. Even though it is a carmaker, rather than a crypto mining company, Tesla has bought more than $1.5 billion worth of Bitcoins, rounding up about 42,000 Bitcoins. The company sells its digital currency holdings from time to time, but the balance sheet remains solid.

For risk-averse investors, Tesla is perhaps the best bet to invest in cryptocurrency indirectly. As the value of digital currencies rises, so does Tesla’s valuation. Even more important, Tesla is the most valuable carmaker on the globe as it hovers above $1 trillion.

Even more important, in Q3 2021, Tesla managed to beat expectations. This is an important achievement considering the chip crisis and the supply chain issues caused by the pandemic. Apart from this, the company continues the expansion of its manufacturing processes, aiming to reach a production of 20 million vehicles per year.

If you believe that the demand will match Tesla’s supply, this could be an amazing opportunity to invest in the world’s most valuable company and gain exposure to the crypto world at the same time.

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Marathon Digital – The Largest Bitcoin Mining Company in North America

For a larger exposure to digital currencies, Marathon Digital is the pillar as it is the largest Bitcoin mining company in North America. In short, it is the largest company that makes Bitcoin possible. This is because the term “mining” means to verify transactions, allow new coins to enter the market, and ensure the security of the blockchain.

Marathon Digital’s Bitcoin ownership is not as large as Tesla’s, though. The company has more than 7,500 Bitcoins as of this writing, adding up to about $400 million.

In the past year, Marathon Digital’s stock price increased by more than 782%. So, for instance, if you had invested $1,000 in Marathon Digital, you would have now sold it for $782,000. The stock price was only $4.78 per share in December 2020; now, it is more than $42 per share.

Yet, some analysts expect it to reach a high estimate of $92 in the next 12 months. This would largely depend on the trajectory of Bitcoin as the company is mining this digital currency, thus its performance heavily depends on it.

However, the main advantage of choosing a digital currency stock rather than the coin itself is that the stock price depends on financials, too. As a comparison, while the stock price increased by 782% in the past year so far, Bitcoin increased only by 188%.

67% of retail investor accounts lose money when trading CFDs with this provider.

3. AMD – The Trend Grower That Enables Digital Currency Creation

AMD does not directly deal with digital currencies. Even better, it plays a crucial part in the creation of cryptocurrency by supplying graphics processing units (GPUs). Cryptocurrency creation is extremely resource-intensive – you need extraordinary computational power for cryptography and blockchain, so semiconductor companies like AMD stand to benefit from this new technology indirectly.

In the past year, AMD’s share price went up by 60.9%. For the future, AMD comes with robust prospects. It plans to strengthen its competitive advantages against Intel by acquiring Xilinx, another competitor that manufactures chips. AMD is expected to reach about $3 in earnings per share in 2021; in 2024, this may be as high as $7.

67% of retail investor accounts lose money when trading CFDs with this provider.

4. Robinhood Markets – The Hottest IPO of the Year

If you’re reading this guide, you perhaps already know how popular digital currencies are right now. Thus, it is not surprising that the last two digital currency stocks are, in fact, companies that facilitate their buying and selling.

Robinhood Markets is a popular app to buy and sell numerous digital currencies, including Dogecoin, Bitcoin, and Ethereum. In fact, the company has invested several tens of billions of dollars in digital assets.

Robinhood is at the beginning of its journey as it held its IPO in July 2021. However, Robinhood may require further thoughtful analysis before investing as it failed to meet the revenue estimations for three quarters in 2021.

As of this writing, the stock is about 70% off its peaks, but the revenue growth remains solid, although short of expectations. Interested traders may want to short this stock or, alternatively, if you believe in Robinhood’s ability to bounce back, you may be able to buy this stock at a discount.

67% of retail investor accounts lose money when trading CFDs with this provider.

5. Coinbase – The Largest U.S. Cryptocurrency Exchange

Coinbase is one of the most popular cryptocurrency exchanges on the market. Here, users can buy and sell digital currencies. Some of its profit is reinvested into the platform to boost the functionality. The platform is popular among both retail traders and institutional clients, turning Coinbase into a robust choice as a digital currency stock.

Although it’s been fluctuating considerably in the past year, the exchange may be worth further investor attention. For instance, all of its users are required to pay for trading services, storage, and other features. These are the main sources of revenue for the company, so increasing crypto popularity translates into more trading and, subsequently, more revenues.

There is some risk to be considered before investing in Coinbase. The platform relies heavily on crypto trading to be profitable, while other digital currency stocks explored above have a more diversified revenue model. Thus, if you believe that crypto trading will intensify in the future, Coinbase may be a good addition to your portfolio.

67% of retail investor accounts lose money when trading CFDs with this provider.

Investing vs Trading Digital Currency Stocks

If you want to buy digital currency stocks, you can opt for different ways to do so. These mostly depend on your risk appetite and return expectations. Below, we will discuss trading and investing in digital currency stocks.

Invest in Digital Currency Stocks

If your risk appetite is low, or if you want to invest passively in digital currency stocks, you may consider a buy-and-hold strategy. In other words, you pick several stocks in this industry according to your strategy and their future potential and invest your money for the long term.

You own the shares and you will earn dividends as long as your chosen companies pay dividends to their shareholders. In general, long-term investors buy the real assets (stocks) via a zero-commission broker like eToro.

This strategy will also enable you to streamline your income as you will most likely ride out any price bumps down the road.

Trade Digital Currency Stocks

If you want to start generating income right now, you may want to trade digital currency stocks. This implies having a short-term or medium-term strategy. In general, long-term investors use fundamental analysis to pick stocks (looking at the company’s financial statements, for instance). Traders prefer buying and selling stocks in the short term based on technical indicators.

The easiest way to trade digital currency stocks is to sign up with a broker like eToro that provides derivatives, such as contracts-for-difference (CFDs). Trading via CFDs is easier because you don’t own the actual stocks, it allows you to go short at any time, and use leverage to multiply the value of your trade.

How to Choose the Best Digital Currency Stocks for My Portfolio?

Choosing the best digital currency stocks for your portfolio depends on your strategy. In general, it’s important to acknowledge that digital currency stocks are tech-focused companies. In the technology industry, high revenues with little to no profitability are expected, so this needs more careful analysis than other mainstream industries.

Fundamental Indicators

If you want to buy and hold digital currency stocks, you should definitely analyze the company’s financial statements. Unfortunately, most tech companies on the market come with premiums that are unrivaled by nearly any other industry. Although this higher valuation and, subsequently, higher stock prices may be an indicator of high-growth potential, even financially-struggling companies may have sky-high valuations that are not worth your hard-earned cash.

Also, many new digital currency stocks may not have a healthy cash flow or may not report any profit. The lack of these two indicators means that you will most likely have to use guesswork to assess their viability.

Keep in mind that understanding the company’s processes, mission, and products is crucial to identify whether the company will pay off in the future. In this industry, each detail is very important, so you should take your time to analyze the stocks before investing in them.

Technical Indicators

If you want to make quick returns, you should perhaps check technical indicators to find out which stocks suit your trading strategy. Although there is no strategy that guarantees your profit, you can start with beginner-friendly indicators and try out different combinations.

Trend indicators are usually easy to use. For instance, the share price above the 50- and 200-day EMA (exponential moving average) is a bullish sign that indicates a growing share price; the opposite also holds: when the price is below these moving averages, the price trend reverses and turns into a bearish scenario.

Using market trends to identify the direction of the share price is also a common technique. An uptrend means that the stock price has a history of going higher and higher; traders assume that the price will keep increasing until something indicates the opposite. For instance, a technical indicator (like the EMAs above) turns bearish, which signals that it’s time you sold the stock and took your profit.

Benefits of Digital Currency Stocks

The benefits of investing in new technology can be extremely compelling, even for traditional investors. We’ll discuss some of the most important ones down below.

Rapid Growth

If we look at the stocks above, it’s easy to understand their main benefit: sky-high returns and appealing potential. The right digital currency stocks should multiply your capital several times. This is not unheard of; many new tech companies have been on a rapid growth path and are still growing. Also, these stocks are tied to the progress of cryptocurrency, which is currently booming as it’s adopted by more and more companies, institutions, and countries (as legal tender).

Diversified Revenue Stream

This is another benefit of investing in digital currency stocks rather than buying coins. For instance, Tesla does have lots of capital tied up in cryptocurrency, but it also has a steady revenue stream coming from producing and selling electric vehicles.

Less Risk Than Digital Currency

Investing in digital currency stocks is less risky than cryptocurrency. Rather than depending on the price of a single digital coin, you invest in a company that’s involved in this industry. Thus, its share price is not completely dependent on a single coin.

Drawbacks of Digital Currency Stocks

Next, let’s discuss why you should be cautious before investing in digital currency stocks. Below, we’ll go through two of the most significant risks you should be aware of.

Cashflow and Profitability

High-growth companies like digital currency stocks can be extremely difficult to analyze. In most cases, investors may have to use guesswork, especially when key fundamentals are not available. Digital currency companies are inherently riskier than other stocks because they are part of a nascent industry.

Cyclicality

In general, tech companies are highly cyclical. In other words, their share prices boom during economic growth and are subject to different factors. For instance, the chip shortage and supply chain bottlenecks in 2021 took a toll on many companies in this industry. Yet, due diligence is important since companies like AMD manage to exceed expectations despite these hurdles.

Where to Buy Digital Currency Stocks – Full Broker Reviews

Now that you are better equipped to start investing in digital currency stocks, it’s important to find the best broker for your needs. Below, we will review the best trading platforms to buy digital currency stocks and many other assets at zero commissions.

1. eToro – Overall Best Place to Buy Digital Currency Stocks

bitcoin today

eToro is one of the most popular brokers on the market with more than 23 million users as of this writing. The trading platform is regulated by the main watchdogs in the world, including the ASIC in Australia, the SEC in the US, and the FCA in the United Kingdom, among others.

With eToro, you can browse more than 320 stocks in the technology industry, including the five best digital currency stocks we discussed in the previous section. You only need to deposit at least $50 to get started, and there’s a minimum limit of $10 to invest. This allows you to create a diversified portfolio on a low budget, while deposits and trading are completely free of charge.

Pros

  • Buy and sell real stocks at 0% commission
  • The minimum investment is only $10
  • Allows social trading and copy trading
  • Ideal for both beginners and advanced traders
  • Multiple assets available
  • Fully regulated broker

Cons

  • Technical capabilities could be more advanced

 67% of retail investor accounts lose money when trading CFDs with this provider.

2. AvaTrade – Trade Digital Currency Stocks at 0% Commission

While eToro offers both real stocks and CFDs on stocks, AvaTrade is a CFD-only broker ideal for short-term traders. There are no fees for trading and is more suitable for advanced traders. It is available via numerous trading platforms, including MetaTrader 5, AvaOptions, AvaSocial, and others.

With a zero-commission fee structure, AvaTrade is designed to fulfill any need and preference. Apart from multiple trading platforms, the broker requires you to deposit only $100. The proprietary trading platform comes with about 90 technical indicators, different trading tools, and multiple chart types.

Pros

  • Fully regulated broker
  • Multiple trading platforms to choose from
  • Rich offering of financial assets
  • Thorough educational section
  • Zero-commission trading

Cons

  • Only CFDs are available (no real stocks)
  • May seem confusing for beginners

71% of retail investor accounts lose money when trading CFDs with this provider.

How to Buy Digital Currency Stocks – Detailed & Explained in Full

To help you get started, we’ve put together this quick step-by-step guide that introduces you to registering with eToro.

Step 1: Open a Broker Account

First, access eToro and click to register. Fill in the form with the required details, including your name, email address, and your chosen password. Next, you will have to verify your identity by uploading your government-issued ID and proof of address.

how to join etoro

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Deposit Funds

To buy digital currency stocks, you need to deposit your funds. There are numerous payment methods available on eToro, including e-wallets or debit/credit cards which are free of charge and instant.

Deposit Funds

Step 3: Search for Digital Currency Stocks

Next, you can search for tech stocks or look for a specific company. Use the search bar at the top to find the stocks we recommended above, or go to the “Discover” section to browse the list.

Step 4: Buy Digital Currency Stocks

Finally, click on “trade” and choose how much you want to invest. You can start with as little as $10.

How to Buy Digital Currency Stocks – Conclusion

Some investors still stay clear of cryptocurrency due to volatility. Digital currency stocks, however, allow you to reap the benefits of investing in a high-growth industry without depending on digital coins entirely. Many of our recommended stocks have a diversified stream of revenue, while others enable buying and selling of digital coins, putting them at the forefront of this industry.

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Ana Frincu PRO INVESTOR

Ana Frincu is a freelance content writer specialised in finance and economics. She has a BA in International Business Management and a MA in International Taxation and Finance. With a keen interest in fintech and personal experience as an investor, she covers a broad range of topics, including trading, alternative data, cryptocurrency, and macroeconomics.