Better Than Coinbase: 3 Top Cryptocurrency Plays That Go Beyond Bitcoin

HIVE Blockchain (TSXV:HIVE) and Galaxy Digital Holdings (TSX:GLXY) may be better Canadian cryptocurrency stocks to buy over Coinbase.

| More on:
Diagonal chain made of zeros and ones. Cryptocurrency and mining.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The Coinbase IPO was nothing short of unprecedented. It boomed, and now, it’s starting to go bust, with the stock nosediving over 14% from the top. The valuation is rich, and the stock could be vulnerable to amplified downside if the cryptocurrency trade were to go bust, as it did just over three years ago.

There’s never been an easier time to invest in cryptocurrencies

If you’re a Canadian cryptocurrency fanatic who’s looking to dip a toe into the crypto waters without having to go through the process of setting up a wallet, you’re in luck.

There have never been more ways to bet on Bitcoin, Ether, crypto miners, exchanges, and all the sort. Numerous Bitcoin ETFs have been popping up on the TSX Index from left, right, and centre. Most recently, Ether ETFs have also been landing. As Dogecoin, a digital currency originally created as a joke, continues to pick up traction, count me as unsurprised if Dogecoin ETFs land!

The bears would say there’s never been an easier way to lose your shirt in the growing slate of worthless digital tokens. In contrast, the bulls would say crypto ETF providers are opening up the generational opportunity at hand to mainstream investors.

I’d put Charlie Munger in the former camp.

As Charlie Munger once put it, “Wall Street will sell **** as long as **** can be sold.”

Harsh words, but the man is right on the money. He’s been in the game for decades. And he’s not even tempted in the slightest by the recent run in cryptocurrencies and meme coins. They could go to the moon and back, and Charlie Munger couldn’t care less. The man has seen his fair share of market frenzies, and he’ll probably be one of the last men on the planet to jump aboard the cryptocurrency bandwagon if it were to become a portfolio mainstay.

Beyond Coinbase and cryptocurrencies in a wallet

In this piece, we’ll look at three TSX-traded cryptocurrency stocks that go beyond Coinbase, Bitcoin, or Ethereum. Consider cryptocurrency miner HIVE Blockchain (TSXV:HIVE), the firm behind low-cost Bitcoin, and Ether ETFs Galaxy Digital Holdings (TSX:GLXY) and CI Galaxy Ethereum ETF (TSX:ETHX.U).

HIVE Blockchain is a crypto miner that mines Bitcoin, Ethereum, and Ethereum Classic in parts of the world where energy costs are low enough to justify the economics of mining. I view HIVE as one of the better cryptocurrency miners out there but would warn investors that HIVE stock has crashed 95% before, and it could do it again if Bitcoin were to go bust again. For the bulls, though, HIVE stock may be a way to amplify gains in the crypto world.

Galaxy Digital Holdings is a financial firm that’s betting big on Bitcoin and all the sort. Not only did the firm help bring the CI Galaxy Bitcoin and Ethereum ETFs to the TSX, but it also holds a massive position in Bitcoin on its balance sheet.

In a prior piece, I’d stated that the company held 16,402 Bitcoin and was in a spot to profit profoundly from a continued run. The folks at Galaxy are firm believers in crypto, and they’d probably hang onto their Bitcoin through thick and thin. I view Galaxy stock as a great way to broaden your cryptocurrency exposure and think the name is a far better bet than Coinbase stock at these levels.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned.

More on Stocks for Beginners

growing plant shoots on stacked coins
Stocks for Beginners

3 TSX Stocks With High Dividend Yields

Are you looking for a great opportunity to bolster your portfolio? Here are three TSX stocks with high dividend yields.

Read more »

financial freedom sign
Stocks for Beginners

1st-Time Investors: 2 Cheap Canadian ETFs to Buy for Financial Freedom 

Investing for the first time but don’t know where to start? Here are two cheap Canadian ETFs that can grow…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Got $4,000? 4 Simple TSX Stocks to Buy Right Now

The macroeconomic environment is tense but investing can be simple. Here are four stocks to buy now and book your…

Read more »

Dollar symbol and Canadian flag on keyboard
Stocks for Beginners

The 2 Best Canadian Stocks for Beginners Right Now

Stock market beginners in Canada could kickstart their investing journey by buying these two stocks right now.

Read more »

Arrowings ascending on a chalkboard
Stocks for Beginners

3 Growth Stocks You’ll Want for the Next 5 Years

These three growth stocks offer Motley Fool investors double-digit growth year after year in the next half decade.

Read more »

edit Four girl friends withdrawing money from credit card at ATM
Stocks for Beginners

2 Big Bank Stocks to Own for Lifelong Income

These two Big Bank stocks are ideal staple holdings for newbie investors seeking a lifetime of passive income.

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Superb Income and Growth Stocks for Every Portfolio

The market is full of superb income and growth stocks, but not all belong in your portfolio. Here are three…

Read more »

stock market
Stocks for Beginners

Worried About Stagflation? 2 Canadian Stocks for All Market Cycles 

Stagflation delays economic recovery. You can keep your portfolio stagflation ready with these Canadian stocks that are suitable for all…

Read more »