The Top 7 Cryptocurrency Stocks To Buy Now For 2023

By Jeffrey Ito

The blockchain and cryptocurrency industries have witnessed massive growth over the previous decade. The rapid growth can be attributed to the success of blockchain as a decentralized financial tool and the expansion of the semiconductor chip market for mobile, edge and cloud computing. Companies around the world are investing in blockchain as a financial tool while cryptocurrencies have attracted a diverse range of investors including individual traders, institutions, and even governments.

Within this article, you will find the top 7 cryptocurrency stocks that should be on your watch list and could become useful additions to a well-balanced technology portfolio.

1. Coinbase Global, Inc (COIN)

Reason for selection: Founded in 2012, Coinbase is publicly traded company and a leading cryptocurrency exchange and platform that allows individuals and businesses to buy, sell, and store popular cryptocurrencies.

Key catalysts for 2023: The continued adoption of cryptocurrencies by individuals, businesses, and institutions could drive an increased demand for Coinbase and its services. In addition, Coinbase’s ability to introduce new and innovative products and services could be a catalyst for its stock value.

Risks and considerations: It is important to note that cryptocurrencies carry inherent risks, including price volatility, regulatory changes, and security concerns. The stock value of Coinbase could be dependent on the fluctuating movements of the overall cryptocurrency market and subject to evolving regulatory and legal considerations.

2. MicroStrategy, Inc (MSTR)

Reason for selection: Founded in 1989, MicroStrategy is a publicly traded company that provides business intelligence and data analytics, mobile software and cloud-based services.

Key catalysts for 2023: MicroStrategy has made headlines by becoming one of the first publicly traded companies to invest a significant portion of its cash reserves into Bitcoin (BTC). MicroStrategy has sparked discussions around the potential integration of cryptocurrencies and blockchain technology into traditional business operations.

Risks and considerations: The company’s stock price may be influenced by the volatile nature of the cryptocurrency market due to its significant investment and exposure to Bitcoin (BTC) as an asset. Consider the market’s reaction to the company’s activities and assess how it may impact investor sentiment going forward.

3. NVIDIA Corporation (NVDA)

Reason for selection: Founded in 1993, NVIDIA is a multinational technology company that specializes in the design and development of graphics processing units (GPUs), and related software and hardware technologies.

Key catalysts for 2023: Factors such as increased adoption of artificial intelligence (AI), machine learning (ML), cloud computing, imaging, mining and gaming can drive demand for NVIDIA’s products and services. The company has been significant advancements in providing technology solutions for automotive companies in the field of autonomous vehicles which could be a major catalyst for its stock moving forward. NVDA has a P/E ratio of 202.4 and a dividend yield of 0.04%.

Risks and considerations: Fluctuations in demand for GPUs can impact NVIDIA’s revenue and profitability. Disruptions in the supply chain, such as component shortages and production delays could impact NVIDIA’s ability to meet customer demand.

4. Advanced Micro Devices, Inc (AMD)

Reason for selection: Founded in 1969, Advanced Micro Devices, also known as AMD, is a multinational semiconductor company that designs and develops computer processors (CPUs), graphics cards (GPUs), and smart chips.

Key catalysts for 2023: Strong adoption of AMD CPUs in the artificial intelligence, autonomous vehicles, edge computing, mining, gaming, and data center markets contribute to the overall rapid growth in AMD’s stock. Continued improvements in performance and feature sets when compared to competitors will attract customers and investors alike. AMD has a higher than typical P/E ratio of 526.64.

Risks and considerations: AMD operates in a highly competitive industry and faces strong competition from companies like NVIDIA and Intel. AMD’s success depends on its ability to develop and introduce new products that can compete with the latest offerings from competitors.

5. Block, Inc (SQ)

Reason for selection: Founded in 2009, Block, Inc., formerly Square, Inc., is a multinational technology conglomerate that processes transactions for point-of-sale terminals and mobile payments.

Key catalysts for 2023: The growth of digital payments, e-commerce, and mobile transactions could drive demand for Block, Inc’s products and services. The continued expansion and adoption of these services can contribute to Block, Inc’s growth and potentially impact its stock.

Risks and considerations: Block, Inc. operates in a highly competitive industry and faces competition from established players like PayPal, Stripe, and traditional financial institutions.

6. Tesla (TSLA)

Reason for selection: Founded in 2003, Tesla designs, manufacturers, and sells electric vehicles, energy storage systems, and renewable energy products. Tesla’s vehicles have helped to accelerate the adoption of electric vehicles and transform the automotive industry. Tesla carries a large percentage of their holdings in Bitcoin (BTC).

Key catalysts for 2023: Teslas has been at the forefront of advancing sustainable transportation and clean energy. Continued technological breakthroughs and expansion into new markets, both geographically and across different vehicle segments, can drive growth and investor confidence. TSLA has a P/E ratio of 56.87.

Risks and considerations: Tesla’s stock has experienced significant volatility in the past, and its value can fluctuate widely in response to market conditions, investor sentiment, and news events. Tesla’s ability to maintain and expand its market share amidst growing competition could impact its long-term growth prospects and stock performance.

7. PayPal Holdings, Inc (PYPL)

Reason for selection: Founded in 1998, PayPal is an international payments platform that allows individuals and businesses to make electronic transactions and send and receive money securely over the Internet. In recent times, PayPal has introduced cryptocurrencies as a part of its core payment services.

Key catalysts for 2023: The ongoing shift towards e-commerce and online shopping has been a significant driver for PayPal’s business. The continued transition from cash to digital payments is expected to fuel the growth of the digital payments industry. PYPL has a P/E ratio of 25.5.

Risks and considerations: PayPal faces competition from established players as well as emerging FinTech companies and traditional financial institutions. Intense competition can impact PayPal’s market position, pricing power, and profitability.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. This article is an overview of the cryptocurrency market and trends that are positively impacting related stocks and companies. Please note that the cryptocurrency market is highly dynamic and subject to rapid changes, so it's crucial to conduct your own research and refer to reliable sources for the most current information.

Methodology

The cryptocurrency stocks selected within this article were chosen for their impact on the growth of the overall cryptocurrency market. Before making an investment it is important to conduct thorough research on the stock that you are interested in. Understand its underlying value, leadership and long-term growth potential. Stay informed about market trends, macroeconomic factors, and industry-specific developments that can impact the stock's performance.

Frequently Asked Questions (FAQ)

1. What is a cryptocurrency stock?

Stocks refers to shares of ownership in a publicly traded firm. Cryptocurrency stocks are stocks that have invested in technologies related to blockchain or the exchange of popular cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Understanding the broader industry dynamics is crucial for assessing the company’s potential.

2. How do I choose which cryptocurrency stocks to invest in?

When selecting a cryptocurrency stock for investment you should look at some important considerations to guide your selection process. Define your investment objectives including the time horizon and risk tolerance. Conduct thorough research on the company that you are interested in and understand the value that it brings to the market.

3. How can I buy cryptocurrency stocks?

If you decide that you want to buy cryptocurrency stocks, research and select a reputable brokerage firm that will meet your needs. Consider important factors such as fees, account types, research tools, and customer support. The next step is to open a brokerage account and choose the stocks that you want to buy before placing an order. After buying the stock, monitor its price performance and manage your portfolio by staying informed about company news and market trends. Consider setting up alerts to stay updated on your stock investments.

Author Bio:

Jeffrey Ito is an accomplished author, blogger, and blockchain enthusiast. He is the CEO of Lithium Gold Ventures, LLC and founder of smartbitcoininvestments.com , a leading resource on the subject of investing in bitcoin and alternative assets that serves over 30,000 readers globally.