For those investors who want to ride the rising wave of blockchain technology but find cryptocurrencies too risky, experts at MarketBeat, CNBC, Seeking Alpha, and Investopedia suggest specific cryptocurrency stocks. Here are nine that these experts recommend to buy for your portfolio before the year ends.
Which Cryptocurrency Stocks to Buy That People Know?
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A common characteristic for these cryptocurrency stocks lies in their niche. Most of these corporations operate in the tech sector. However, a few outliers have quite a substantial blockchain presence.
Some financial companies see high returns with the use of digital currencies and blockchain technology. For example, they allow for pharmaceutical companies to have faster and more accurate records. Additionally, utility companies see higher demand because the need for digital mining equipment causes demand for electricity to increase significantly.
Many investors may see tech stocks and pharmaceutical companies as volatile, while they perceive utility and financial institutions as more stable.
To help investors consider their options, this list contains nine prospective companies from different sectors. This diversification helps with different investment styles. Some investors may see investing in cryptocurrencies too risky, so cryptocurrency companies may be a good alternative.
1. Microsoft (MSFT): A Company Interested in Cryptocurrency and Blockchain Technology
With a market value of $800 billion, the technology titan Microsoft is a market leader. This corporation eclipses not only companies but also countries when it comes to its cash reserves. Microsoft is a market leader for consumer electronics, software, and other products and services in relation to personal computers.
Microsoft invests in the cryptocurrency world. In fact, the company has a marketplace of cryptocurrency applications and services that helps small businesses. Microsoft is currently trying out the practical applications of cryptocurrency adaptation with a focus on the business-to-business model.
For investors who want to invest in a company diversified enough to minimize risk and specialized enough to know what it is doing, Microsoft may be a good choice. With a huge war chest for research and development, as well as market leadership in the digital and programming space, Microsoft can be a key player in the cryptocurrency world.
2. Entergy Corp (ETR): Powering Profitable Bitcoin Mining Equipment
Energy companies profit from rising demand for electricity. Bitcoin energy consumption rises not only because of more miners entering but also due to the popularity of other cryptocurrencies that also need digital mining.
Entergy comes into play due to the market they serve in Louisiana, Arkansas, Texas, and Mississippi.
How does this relate to cryptocurrency? Other than being part of the utility sector that can see bigger demand due to mining, Entergy serves Louisiana, currently the state in the U.S. where cryptocurrency mining is the cheapest. Arkansas and Mississippi are also cryptocurrency mining hubs.
As the cryptocurrency world grows, these states may see higher demand for energy. With Entergy as the market leader, portfolios invested in this small-cap company may see electrifying growth.
3. Daimler Ag (DDAIF: US): Speeding to Blockchain Automotive Development
Can you imagine blockchain technology applied to cars? Daimler AG has made that dream into a reality… mostly. As of now, the German automotive corporation that controls luxury brands, like Mercedes-Benz, includes cryptocurrency as part of the corporate strategy.
Daimler AG launched a 1-year corporate loan worth €100 million, which is around $113 million, through blockchain technology. The company announced that they plan to become the first blockchain adapter in the automotive industry. They plan to apply cryptocurrencies as part of their auto financing sector.
Cryptocurrencies are faster to transact with compared to wiring money. Records are permanent, and counterfeiting is impossible. Because of these characteristics, Daimler AG values cryptocurrencies and projects huge opportunities in the digital currency space.
4. Pfizer (PFE): Curing the Ills of the Pharma Industry One Blockchain at a Time
Pharmaceutical giant Pfizer, together with other pharmaceutical companies, fights counterfeit or stolen pills through the MediLedger blockchain project. The World Drug Report for 2017 shows the increase of counterfeit drugs and substance abuse of opioids.
Pharmaceuticals lose not only money but also their reputation and hard work from these generally illegal and unreported back channels. Companies will find inventory reports that reconcile with each other but revenue received not reaching the corporate goals due to losses of pills.
With the government and investors breathing on the necks of pharmaceutical industries, medical companies, headed by the pharmaceutical titan Pfizer, banded together. By creating and investing in a blockchain project, records of pills, logistics, prices, and even data can be shared among companies.
With the lion’s share of pharmaceutical companies participating in the MediLedger project, the value of blockchain and cryptocurrency can increase tremendously.
5. International Business Machines (IBM): Innovating the Blockchain App Ecosystem
A world leader in information technology, IBM has been a part of modern life. Numerous innovations, from the Automated Teller Machine, the floppy disk, and other inventions, have given this Nobel-winning company a well-deserved good reputation.
Valued at $100 billion, Big Blue, the market’s moniker for IBM, has enormous clout in the business technology sector. With its interest in cryptocurrency and blockchain, IBM has seen a huge potential market.
IBM created the business-centric hyperledger, where IBM collaborates with businesses all over the world. This open-source project gives IBM critical information about what businesses need. Also, the collaboration between businesses can make the adoption of blockchain technology faster.
Big Blue may see huge upsides if the project goes well. With that in mind, IBM may be a solid choice for investors, as IBM has more than 100 years of sterling history under its belt, as well as immense research and financial power.
6. Advanced Micro Devices, Inc. (AMD): Making the Cryptocurrency Mining Industry Viable
Advanced Micro Devices is a well-known company that operates primarily in the computer graphics processor niche. With a virtual duopoly with NVIDIA in the lucrative graphics processing unit (GPU) market, investors consider AMD as a relatively stable investment in the usually volatile tech manufacturing niche.
How does AMD relate to the cryptocurrency world when it focuses primarily on the gaming niche?
Mining Bitcoin and other cryptocurrencies need a strong GPU to function. Since AMD has great renown for their GPUs, the market has expanded to cryptocurrency miners.
7. JPMorgan Chase & Co (JPM): Leading the Blockchain Fintech Companies
A name steeped in tradition, JPMorgan dominates the banking sector. With a market cap of $364 billion, the world’s largest bank by market capitalization can literally outlast and outspend any competitor.
Operating a financial services leader can lead to huge expenses, especially with the operations of money and wire transfers as well as record-keeping and other administrative tasks. It is no surprise then that JPM invests in the blockchain technology to lower expenses. With their smart contract platform Quorum, JPM can easily move millions and billions of dollars quicker and cheaper than current wiring and online transfer methods.
If the largest market leader has actively participated in the ground-breaking blockchain technology, other market players will surely follow suit.
8. NVIDIA Corporation (NVDA): Making Cryptocurrency Mining Better
The other graphics processing unit leader, investors consider NVIDIA as a cryptocurrency stock due to its ties to the cryptocurrency mining sector.
Whether you just want to invest in a solid company that knows its market, or you want to support the growing blockchain sector, NVIDIA may prove to be a boon to your portfolio.
9. Nasdaq (NDAQ): Improving Global Exchange Ecosystems with Blockchain
We are not talking about the index, but the corporation itself. You see, NASDAQ is owned by Nasdaq Inc., an American corporation that operates nine stock exchanges. NASDAQ is the flagship service of the parent company, but Nasdaq also operates European stock exchanges like the Stockholm Stock Exchange and the Helsinki Stock Exchange.
With its global reach and technological expertise, NASDAQ plays an important role for cryptocurrencies and the blockchain technology sector. Since NASDAQ operates large exchanges, privacy and quick delivery of information is crucial.
NASDAQ launched and operated the blockchain developer, Chain. By using their own blockchain, NASDAQ has cut costs and delivery time. The effects are tremendous; settlement time, which follows the usual trading day plus three days, can be cut by 99%, making trades instantaneous while protecting the privacy and accuracy of transactions.
As NASDAQ is the world’s second largest exchange, the adoption of cryptocurrencies and blockchain technology may come sooner rather than later through NASDAQ’s efforts and investments. NASDAQ as a company is a respected figure in the financial world as well.
According to the experts mentioned above, these nine companies are likely to survive even if the cryptocurrency sector fails, which is an unlikely event. With their strong fundamentals, these companies may give your portfolio diversity to minimize risk and exposure to the cryptocurrency and blockchain world.
Do you have other cryptocurrency stocks to buy for your portfolio? Do you think these companies are too conservative or risky? Let us talk in the comments section below.
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