Best Blockchain Stocks 2024
Investors are often riveted by the volatility of Bitcoin's price swings and its appreciation potential. But the blockchain technology that underpins this popular cryptocurrency receives far less attention.
Blockchains are electronic ledgers. There is no way to alter or erase the data entered in it, which gives it its much-celebrated property of permanency (and implied integrity).
Even though cryptocurrency is perhaps the most renowned application of blockchain technology, blockchain's capabilities extend well beyond digital currencies. There are a number of organizations that use blockchain technology to improve the efficiency of their operations, especially those involved with complex and decentralized systems.
Here, we discuss such organizations, which gives investors the opportunity to purchase blockchain stocks. There are many blockchain stocks out right now that investors should watch.
Start investing in stocks now with eToro!What Are Blockchain Stocks?
Companies involved in blockchain technology, either directly or indirectly, are considered blockchain stocks. A blockchain is a decentralized technology that records and stores transactions in a computer network. Using cryptography, blocks are chained together to create a list of transactions.
Mining creates new blocks on the chain. The process of mining new blocks involves solving complex mathematical problems using specialized software. Because of this, blockchain data can’t be manipulated, which is why it’s so widely adopted.
The use of blockchain technology varies from company to company. In the next few years, blockchain technology is expected to grow exponentially due to its versatility.
The blockchain technology underpins the cryptocurrency market by providing security and transparency. Blockchain technology, however, has many applications beyond crypto, such as decentralized finance, international payments, auditing and regulatory compliance.
A growing number of businesses are using blockchain technology, incorporating blockchain into their business models, or directly benefiting from cryptocurrency usage.
Top 12 Blockchain Stocks to Invest Now
Nvidia
| Company | Nvidia |
|---|---|
Ticker |
NVDA |
Type of Business |
Graphics processing units (GPUs), application programming interfaces (APIs), system on a chip units (SoCs) |
Almost every investor has heard of the NVIDIA Corporation (NVDA). However, some may not be aware that NVIDIA designs graphics processing units (GPUs) that are widely used in the cryptocurrency mining industry, as well as in gaming, mobile computing, and autonomous driving.
Cryptocurrency miners are so obsessed with NVIDIA's graphics that its 3000 range has been sold on the black market for 300% more than retail.
Analysts believe that NVIDIA's graphics cards are still in high demand for the long term, even though most miners of Ethereum are moving away from proof of work consensus algorithms to proof of stake.
Block (Formerly Square)
| Company | Block |
|---|---|
Ticker |
SQ |
Type of Business |
A financial services and mobile payments company |
San Francisco-based Block, Inc. (SQ) is a financial services and digital payments company. Block owns CashApp, which is a mobile payment service that allows users to trade Bitcoin fast, securely, and easily.
During the fiscal fourth quarter of 2021, CashApp generated revenues of $2.6 billion, up 17.5% from the year before, accounting for 63% of the company's total revenues.
Additionally, Block, Inc. runs Spiral, a platform for Bitcoin developers that encourages the development of fund-free and open-source projects aimed at improving Bitcoin's scalability, privacy, and security.
As part of its collaboration with Blockstream, a leading blockchain technology company, Block Inc. is building a solar-powered bitcoin mining facility at Blockstream's mining site in the United States. As a pioneer in the blockchain industry, Block, Inc. is innovating to get the most out of the technology, which makes it a great investment in 2023.
Accenture
| Company | Accenture |
|---|---|
Ticker |
ACN |
Type of Business |
A multinational professional technology services company |
As a business consulting and technology firm, Accenture provides a variety of services. Blockchain services from Accenture help customers integrate blockchain technology into their businesses. A number of experts forecast Accenture's differentiated growth engine, which integrates blockchain technology, security, and cloud services, will continue to increase market share.
In both consulting and outsourcing, Accenture has been generating double-digit revenue growth. The company has a long-standing client base and a track record of impressive compounding earnings growth.
Amazon
| Company | Amazon |
|---|---|
Ticker |
AMZN |
Type of Business |
A a multipurpose eCommerce business platform |
Most people are familiar with Amazon’s offering to the e-commerce industry. As the world’s largest e-commerce platform, the company provides an online marketplace for consumers to purchase a wide variety of products. Amazon is a company that most likely needs no introduction. With Amazon Web Services (AWS), Amazon also leads the race in cloud computing services. As part of this division, Amazon Managed Blockchain enables users to create and manage their own blockchain networks.
AWS now supports mining Chia (XCH), a newly launched cryptocurrency. While Amazon only generates a small portion of revenue from blockchain services, it’s an industry that is rapidly growing - making it one of the best blockchain companies to watch.
How to Invest in Amazon? A Beginner's GuideCoinbase Global Inc.
| Company | Coinbase Global Inc. |
|---|---|
Ticker |
COIN |
Type of Business |
A cryptocurrency exchange platform |
Next, we have Coinbase (COIN), a financial technology company. A company's main function is to provide end-to-end financial infrastructure and technology. Its primary objective is to build a cryptoeconomy. In over 100 countries around the world, its platform boasts more than 43 million retail users, 7,000 institutions, and 115,000 ecosystem partners. Considering these statistics, Coinbase is one of the top blockchain companies in the world.
Coinbase recently announced that it will buy FairX, a crypto futures exchange. The move is important to the company's goal of bringing the derivatives market to millions of Americans. Founded last year, U.S.-regulated FairX sells futures products regulated. So, if Coinbase offered crypto futures and options trading, institutional investors would likely be more interested in the company.
How to Buy Coinbase (COIN) Stock in 5 StepsMastercard
| Company | Mastercard |
|---|---|
Ticker |
MA |
Type of Business |
A technology firm in the global electronic payment industry responsible for processing electronic payments |
Over the past several years, Mastercard (MA) has experienced tremendous growth due to the trend toward a cashless economy that has increased the volume of debit and credit card transactions. Cashless payments are set to undergo a major transformation thanks to blockchain technology, especially when it comes to cross-border money transfers that have traditionally been slow and costly.
In addition to partnering with blockchain technology companies, Mastercard has formed a Crypto Card partner program, which will see crypto-funding Mastercard payment cards launched in Asia-Pacific. Together with cryptocurrency lender Nexo, MasterCard recently launched the world's first crypto-backed payment card.
Riot Blockchain
| Company | Riot Blockchain |
|---|---|
Ticker |
RIOT |
Type of Business |
A Bitcoin mining company |
Founded in 2012, Riot Blockchain (RIOT) operates a large mining operation in the United States that supports the Bitcoin blockchain. Recent acquisitions of Whinston's 300-megawatt facility in Texas demonstrate the company's commitment to building energy-efficient mining operations.
As a result, Riot Blockchain would be able to produce 750 megawatts at a cost of $0.025 per kilowatt hour. Cryptocurrency mining is one of the most well-paying industries in the blockchain industry, so this is a huge advantage for the company.
PayPal
| Company | PayPal |
|---|---|
Ticker |
PYPL |
Type of Business |
An e-commerce company that facilitates payments between parties through online funds transfers |
Square was preceded by PayPal (PYPL)l, which is a leading player in cash transfers and payment processing among individuals, as well as in the cryptocurrency space. A centralized platform with PayPal makes it easy for users to buy, hold, and sell Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
As well as launching its buy-sell-hold cryptocurrency services through Venmo in 2018, PayPal announced the acquisition of Paidy, a leading Japanese payment platform and buy-now-pay-later solution that could significantly expand PayPal's global market share.
The number of payments processed by PayPal increased 26% in the third quarter of 2021, according to PayPal's earnings report. CNBC reported that PayPal signed a deal with Amazon to allow Venmo users to make purchases on Amazon.com and the Amazon mobile app using their PayPal accounts. This is an important milestone as PayPal transitions away from serving as eBay's payment processor.
Silvergate Capital Corp
| Company | Silvergate Capital Corp. |
|---|---|
Ticker |
SI |
Type of Business |
A provider of financial infrastructure solutions and services for the digital currency industry |
As a crypto bank, Silvergate Capital (SI) runs its own trading network called the Silvergate Exchange Network (SEN). Financial institutions and crypto exchanges use the network to transfer money. Founded in 1998, it is the only crypto-focused, FDIC-insured institution. It has been able to gain zero-cost funding from various institutions and introduced SEN leverage, a loan product for small businesses.
As a result of the firm's innovative business model, revenue growth has increased significantly over the past year. Despite the current business environment, the company's revenue has grown by almost 98% year over year. The company is likely to take advantage of higher interest rates, which should positively impact the company's bottom line and top line.
Canaan Inc.
| Company | Canaan Inc. |
|---|---|
Ticker |
CAN |
Type of Business |
A company that develops supercomputing chips and manufactures blockchain computing equipment |
As the manufacturer of the hardware used to run blockchain based cryptocurrency's software, Canaan Inc. (CAN) sits at the center of the Chinese Bitcoin boom. Canaan Inc. will continue to see demand for its products even though China is now fully banning Bitcoin, as miners will likely move to other companies for setting up their operations.
Visa
| Company | Visa |
|---|---|
Ticker |
V |
Type of Business |
A multinational financial services corporation that facilitates electronic funds transfers throughout the world |
Visa (V), a San Francisco-based payments processor, has made substantial inroads in crypto over the past few years.
Over 60 crypto platforms partner with the company to offer crypto credit cards, including BlockFi, FTX, and Coinbase. Furthermore, Visa accepts crypto payments from more than 80 million merchants, since they can be converted into fiat money.
Consumers will be able to purchase and cash out crypto with Visa cards, as Visa adds new infrastructure and supports the emerging non-fungible token economy (NFT). Furthermore, banks are interested in retaining customers with crypto services.
Moreover, Visa offers stablecoin payouts backed by the U.S. dollar. As a result of this initiative, the company effectively strengthens merchant-customer relations by introducing more payment options. Therefore, decentralized payments have clearly been identified as its next business growth opportunity.
Infosys
| Company | Infosys |
|---|---|
Ticker |
INFY |
Type of Business |
A global consulting and IT services company |
Infosys (INFY) is one of the pioneers in the IT sector and a renowned technology company. It has only refined its technological framework by successfully integrating cryptography and blockchain technology into its technological framework.
It will not be long before virtual reality becomes a parallel world where day-to-day activities will take place. Perhaps this is why blockchain is consuming media attention since it paves the way for more cryptographic networks in the future.
The world is increasingly moving towards a cashless economy, and Infosys is taking the lead to ensure financial services are digitally safe, secure, and diverse.
How to Choose Blockchain Stocks
Do your due diligence: Many companies claim to be involved in blockchain today, but some are pursuing the technology more seriously than others. Therefore, understanding a company's fundamentals and researching it is crucial. In order to make a case for an investment, you must consider factors such as growth potential, competition, and unique factors.
Treat blockchain as a high-growth, high-risk sector: Blockchain stocks, like tech stocks, pose risks to investors. With blockchain's wide utility still unproven, it would make sense to diversify your capital through other investments.
Watch out for new laws and regulations: When so much of the blockchain sector is still in its formative stages, staying up to date with regulators is just as important as researching individual companies. Blockchain-focused companies may be significantly disrupted by government legislation and regulations. In addition, understanding the regulatory backdrop is useful. For example, both the UK and EU have been working hard to prepare legislation relevant to digital assets, which indicates that blockchain technology is viewed by these governments as a driver for growth.
Concentrate on the Bitcoin connection: Bitcoin investing has some advantages over blockchain investing. Some analysts advocate focusing on firms that mostly use blockchain technology to work with the cryptocurrency, given Bitcoin is the most successful application of blockchain technology to date. Investments in blockchain technology companies should focus on those using Bitcoin to leverage their capabilities.
When to Buy Blockchain Stocks
1. You can buy the most promising companies during a bear market in order to sell them during the next bull cycle in the financial markets.
2. Buy on signals to make money on the horizon of several weeks. In this case, it is better to use technical analysis, indicators.
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Summary
In this guide, we’ve reviewed some of the most popular blockchain stocks for 2023. Using the information we’ve provided, you can assess your potential investment choices and pick a suitable broker.
Even though blockchain technology is still in its infancy, it has attracted the interest of many investors. The world's most well-known companies, like Amazon and Mastercard, have adopted the technology and are positioned to be some of the best blockchain stocks to watch this year before the new bull market.
A great way to diversify your portfolio is to find companies that have a strong presence but can be boosted through blockchain services. Just remember that you should never invest more than you can afford to lose.
FAQs
What are blockchain stocks?
In the stock market, blockchain stocks are regular shares of companies that are involved in blockchain technology.
Can you buy shares in blockchain?
Technically, no. In spite of the fact that you can't directly invest in blockchain, you can invest in a company that develops solutions for blockchain technology.
How can I invest in Blockchain stocks?
If you want to invest in blockchain stocks, you can use a broker that offers them. Identify your preferred broker by evaluating assets, fees, and features.
What are the best stocks for blockchain?
The best blockchain stocks include Coinbase Global Inc., Nvidia, Amazon, PayPal, and Mastercard.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
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