Forget Bitcoin and Dogecoin: 2 TSX Stocks to Buy Instead

Bitcoin is charismatic enough to attract most of the limelight on cryptocurrency, but thanks mostly to Elon Musk, Dogecoin became one of the most talked-about cryptos.

| More on:
Choose a path

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

Bitcoin has been one of the star, post-crash assets. Institutional investors finally started taking a serious interest in the world’s leading cryptocurrency, and the market followed the lead. But it’s really thanks to retail investors following the “HODL” mantra that the crypto has sustained its value for this long. Even though the growth momentum that caused the stock to reach new heights has run out, the crypto hasn’t crashed yet, and it’s hovering above US$50,000.

But even if Bitcoin is winning in investor loyalty and stability, if we measure different cryptos by the mainstream “attention” they are getting, the “joke crypto” Dogecoin might have a slight edge over Bitcoin. Most of this attention can be attributed to Elon Musk, who at best is taking a joke too far and at worst is manipulating crypto investors.

There is no denying that people have made a lot of money in a relatively short amount of time with both Bitcoin and Dogecoin, but if the crypto “waters” are too unpredictable for you to swim in, let’s stick with the stocks.

A recreational product company

Now that the pandemic is finally being under control in Canada, people will try to reclaim as much normalcy as they can and might try and make up for the lost time. This has the potential to increase the sales of a company like BRP (TSX:DOO)(NASDAQ:DOOO). BRP makes snowmobiles, ATVs, motorcycles, and personal watercraft. So, no matter what “terrain” you are on, a BRP-made vehicle can make your passage more fun.

The company saw two tragic quarters last year in terms of revenue, but the situation has improved substantially in the last two quarters. The balance sheet of the company is a little unbalanced, but apart from that one chink in the armour, BRP is a great pick, especially for its capital growth. The stock rose over 490% in the last five years, and if you believe it can replicate this feat in the next five years, then it’s a stock worth having.

A tech company

Shopify (TSX:SHOP)(NYSE:SHOP) is one of the most sought-after growth stocks that’s currently trading on the TSX. It was a millionaire-maker stock, but it’s difficult to say whether it still is or not. The stock has reached new heights, and even though there is little doubt that there might still be a lot of growth in Shopify’s future, it will unlikely be anything like the magnificent, four-digit growth the company has displayed in the last few years.

Still, Shopify might be a more predictable and reliable way to grow your capital compared to Bitcoin and Dogecoin. Unlike the two speculative assets, Shopify’s future growth will depend upon the growth of the e-commerce market (which is a certainty) and Shopify’s position among similar platforms.

Foolish takeaway

Cryptocurrencies, whether you go with something as relatively credible as Bitcoin or a financial joke that has grown out of hand (Dogecoin), all come with a higher level of volatility compared to even the most aggressive growth stocks. And if that’s beyond your risk appetite, it’s a good idea to stick with the stocks backed by tangible assets instead of an asset class that fluctuates consistently.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify and Shopify and recommends the following options: long January 2023 $1140 calls on Shopify and short January 2023 $1160 calls on Shopify.

More on Dividend Stocks

Canadian stocks are rising
Dividend Stocks

3 Ways to Invest in Canadian Real Estate Under $20

Real estate can be a great way to make passive income, but you certainly don't have to invest a lot…

Read more »

grow dividends
Dividend Stocks

TFSA Wealth: 2 Oversold Canadian Stocks for a Retirement Fund

These top TSX divided stocks look attractive today for TFSA investors.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Create $1,487 in Passive Income From a Top TSX Dividend and Growth Stock

This top growth stock on the TSX today could bring in almost $1,500 in passive income and triple your investment…

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Renters Will Rise in Number vs. Homebuyers in 2022

The greater majority of Canadian renters doubts their ability to purchase a home in 2022 due to surging inflation and…

Read more »

Man holding magnifying glass over a document
Dividend Stocks

West Fraser Stock: A Sneaky Growth Stock No One Talks About

West Fraser (TSX:WFG)(NYSE:WFG) stock has been a sneaky growth stock when it comes to its dividend.

Read more »

Dividend Stocks

Inflation Investing: 2 Top TSX Dividend Stocks to Buy Now

TFSA income investors can get dividend yields of better than 6% to help offset the impacts of high inflation.

Read more »

Canadian Dollars
Dividend Stocks

Got $1,000? Invest it in Real Estate

If you've got an extra $1,000, you should check out cheap REITs like Allied Properties (TSX:AP.UN) for juicy income.

Read more »

Community homes
Dividend Stocks

Real Estate: 2 Top Dividend Aristocrats to Own Today

The recent correction in the real estate sector has made several real estate stocks like these two attractive to income-seeking…

Read more »