Cryptocurrencies have become a popular investment option, particularly among younger generations. With numerous tokens to choose from, the benefits of crypto, and how this market is structured, the future of crypto appears promising. However, there are other investment opportunities that involve cryptocurrencies without requiring direct investment in crypto tokens.

Cryptocurrencies are directly related to blockchain technology, which has advanced significantly in recent years, leading to diversified investment opportunities in the crypto field. You can invest in industries and companies associated with cryptocurrencies but also operate in other fields. Therefore, we will discuss crypto-associated stocks that are worth investing in today.

What investment opportunities are there?

Investing in cryptocurrencies can be risky as they are high-volatility assets. The possibility of losing a significant portion of their value in a short time is always present. A good example is the beginning of 2022 when every major crypto lost over half its value. However, if you are interested in cryptocurrencies and blockchain technology, there are other ways to invest in the future of this technology without investing in any specific token.

One way to invest in crypto is by investing in companies and industries that are not solely focused on blockchain but are supporting this ecosystem’s components or trying to adapt to this technology. This is a good way to invest in crypto. However, this does not mean there are no good investment opportunities in companies directly involved with crypto. Diversifying your investments by investing in both types of companies is even advisable. This will bring safety to your investments and expose you to other investment opportunities. With that said, let’s look at the best stocks associated with crypto to invest in.

Coinbase Global

Coinbase Global stock is a great option if you are considering investing in a cryptocurrency company. It is listed on NASDAQ under the COIN ticker and is one of the largest crypto exchanges globally. Coinbase is an American-based exchange with no dedicated headquarters and operates on a “remote-first” basis. 

Coinbase is an innovative company in the crypto world that aims to be more than just a crypto exchange. Besides generating revenue through trading, Coinbase offers a wide range of services to traders, private institutions, and governments. It provides users with special debit cards to spend money from their digital wallets. Coinbase also enables people to get loans and use cryptocurrencies as collateral, allowing them to keep their cryptocurrencies and not be forced to sell them in times of need.

Coinbase also provides solutions to governments to make crypto transactions more transparent and harder for criminals to operate. Its KYC rules help create a massive database, allowing Coinbase to track specific crypto wallet addresses of individuals suspected of criminal activities.

Coinbase’s future looks bright, but it is still largely associated with crypto success.

Nvidia

When searching for stocks to invest in the crypto industry, Nvidia may not immediately come to mind. This is not surprising since Nvidia does not directly deal with cryptocurrencies. Rather, they are in the business of producing computer parts. However, investing in Nvidia becomes a logical choice when considering how cryptocurrencies and blockchain operate.

Blockchain technology requires a significant amount of computing power to function. For instance, Bitcoin cannot operate without miners, but powerful computers can operate under immense loads. Most miners are built using Nvidia graphics processing units (GPUs). These GPUs are necessary for miners to complete essential tasks to keep the blockchain functioning. Therefore, investing in Nvidia is equivalent to investing in the future of blockchain infrastructure. As the blockchain industry grows, the demand for these GPUs will increase exponentially, as will Nvidia’s production.

To better understand this connection, one can compare crypto price histories to the prices of GPUs at that time. A clear connection between the two can be observed. When the price of crypto drops, the demand for Nvidia GPUs also drops, and their price decreases. Conversely, when crypto prices rise, more individuals seek to mine crypto or become involved with blockchain in other ways, which results in an increased demand for Nvidia GPUs and, consequently, an increase in their price.

If you are not impressed with Nvidia but still appreciate its association with crypto, there are alternatives, such as AMD. AMD also competes with Nvidia in the GPU market. Investing in AMD could also be wise if you are bullish on crypto.

PayPal

PayPal has become one of the world’s largest online payment systems, and it’s no surprise that the company is now associated with cryptocurrencies. Almost every leading online store accepts PayPal as a payment method, making it a commonly used payment option for person-to-person transactions. This trend aligns with most cryptocurrencies’ goals of becoming regularly used and widely accepted payment methods. 

PayPal has recently allowed users to buy, sell, store, and use cryptocurrencies within their platform, indicating their interest in the crypto and blockchain space. If cryptocurrencies continue to grow and become regularly accepted by merchants and online stores, PayPal is likely to be a leading player in the crypto wallet space.

Why should we invest in these stocks?

Blockchain technology is growing rapidly, and cryptocurrencies have become an integral part of this ecosystem. There are different ways for people who are interested in this space and want to make long-term investments.

Investing directly in cryptocurrencies can bring the biggest profits but also carries many risks. Therefore, investing in stocks that are associated with crypto is a safer and more logical investment decision. With careful consideration, even if crypto fails, these investments can still show profits.

We mentioned three different stocks that a person can invest in indirectly for the future of crypto. Investing in Coinbase’s stock is a direct investment in cryptocurrencies without actually investing in any token. This investment is risky and requires caution and proper risk management.

Nvidia is one of the major players in the future of blockchain infrastructure. As cryptocurrencies grow, this company will also grow because it supplies the most important hardware. PayPal is another way to invest in crypto, and the success of this investment depends on the mass adoption of cryptocurrencies.

However, you can invest in different stocks as well, and these stocks are just good examples of ways you can look at your investments and build your portfolio around crypto. These are also safer investment opportunities since even if cryptocurrencies don’t succeed, Nvidia will still release GPUs, and people will still buy them for their computers. Even if crypto vanishes altogether, people will continue using PayPal for regular payments and transactions. You can profit even if crypto fails with these stocks in your portfolio.

FAQs on best crypto stocks to invest in

Are crypto stocks a good investment?

Cryptocurrency stocks can be a wise investment if you approach them with caution. Blockchain technology is a vast ecosystem, and even companies not directly linked to cryptocurrencies can still be indirectly related to them. Investing in certain stocks can generate good profits for the company if the crypto market performs well. However, even if the crypto market fails, our investments will still be safe since these stocks are not directly associated with cryptocurrencies.

Should we invest in Coinbase stock?

Investing in Coinbase’s stock is a matter of personal belief. As one of the largest crypto exchanges globally, the stock’s value is directly linked to the success of cryptocurrencies. A simple analysis of cryptocurrency’s price movements and Coinbase’s stock reveals their correlation. As a result, investing in the stock involves a certain degree of risk. However, it can also be an excellent way to diversify your stock portfolio and incorporate cryptocurrencies into your long-term investment plan.