Pot or Crypto: Which Stocks Are the Best to Buy Now?

Pot and crypto stocks are two of the highest-potential industries to invest in. But which industry has the best stocks to buy now?

| More on:
Choose a path

Image source: Getty Images

These days, there are several industries offering tonnes of long-term growth potential. For example, pot stocks and crypto are two of the highest-growth industries you can invest in. So, it makes sense that these industries have some of the best stocks to buy now.

And while pot and crypto stocks are both high-potential investments, the two couldn’t be more dissimilar and facing completely different obstacles ahead of that long-term growth.

What is similar about both, though, is that while they offer immense growth potential, stocks in both industries need to be invested in for the long run.

Both industries can be considerably volatile and will take years to reach their full potential. So, to avoid risk and position yourself for optimal growth, investing for the long-term is paramount. But which are the best to buy now: pot stocks or crypto?

Pot stocks

It’s hard to believe it was roughly five years ago when the massive rallies in cannabis stocks began to take place. Investors knew that the recreational legalization of cannabis was a major opportunity.

However, ever since it’s been legalized, many stocks in the industry have suffered. And some are still having a hard time being profitable, which is quite the opposite of crypto stocks.

One of the reasons for this is that the sector has a tonne of growing pains to get through.

The industry is still working to crowd out the black market and improve profitability, and it looks like there may have to be more consolidation in the space.

Over time, though, new innovation should help continue to attract new customers to the industry. The research and innovation in edibles are already impressive and should help to continue growth for the industry.

If you’re bullish on pot stocks, though, rather than investing in some of the big-name pot stocks, it’s crucial you find businesses that have a high-quality business model.

While the bigger name stocks had the most growth potential and volatility in the past, today, it’s all about the quality of the operations. So, if you’re going to invest in pot stocks over crypto, I’d ensure you do a tonne of research and make sure you’re buying the best of the best.

Crypto stocks

There’s no doubt in my mind that pot stocks can offer significant long-term growth potential. With that being said, though, I think crypto stocks offer way more prospects for growth.

The cryptocurrency industry is one of the best to invest in today if you can commit to a long-term investment.

There’s tonnes of potential in the industry, and continuous innovation only continues to expand the industry’s horizons.

In addition to digital currencies such as Bitcoin and those that have been created to improve upon Bitcoin’s drawbacks, there are also blockchain networks, like Ethereum, that offer significant long-term growth potential.

While pot stocks may offer promising growth over the long run similar to crypto, crypto stocks also offer massive growth potential in the short run. This is why if you’re bullish on the sector, you’ll at least want some exposure.

If you have the cash to commit for the long term, I’d strongly consider investing in a top crypto stock like Galaxy Digital (TSX:GLXY).

Galaxy Digital is an exciting financial services company with several operating segments in the crypto space. It’s a stock that offers a tonne of potential, especially if cryptocurrencies can continue to gain popularity rapidly.

Plus, it’s well on its way to being consistently profitable, unlike many pot stocks, which have been operating for more years. And Galaxy is just one of many crypto stocks offering investors an incredible opportunity.

So, while there is certainly potential with pot stocks, I think the best industry to invest in today has to be crypto.

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 Daniel Da Costa owns shares of Galaxy Digital Holdings Ltd. The Motley Fool has no position in any of the stocks mentioned.

More on Stocks for Beginners

Gas pipelines
Stocks for Beginners

3 Reasons to Buy Enbridge Stock Like There’s No Tomorrow

Enbridge (TSX:ENB) is a superb long-term option. Here's why you should buy Enbridge stock right now and hold it for…

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

Business success with growing, rising charts and businessman in background
Stocks for Beginners

2 Top TSX Growth Stocks to Buy Today and Hold for 10 Years

Are you looking for top-performing TSX stocks to hold for a decade? Topicus.com and goeasy could really pay off for…

Read more »

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

This Dividend Stock Just Jumped 10%! Time to Buy?

This dividend stock is way up after being included in a major index, making it a prime time to pick…

Read more »

Pile of Canadian dollar bills in various denominations
Stocks for Beginners

Up 94% in 2024! 3 Reasons Celestica Stock Is (Still) a Screaming Buy Today

Here are the top three reasons that could help Celestica stock continue soaring in the long run.

Read more »

sale discount best price
Stocks for Beginners

Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While 

Buying the dip of a phenomenal cyclical stock could generate fantastic returns. Here is a cheap TSX stock in its…

Read more »

financial freedom sign
Stocks for Beginners

Could This Undervalued Stock Make You a Millionaire One Day? 

The TSX has good millionaire-maker stocks if you wait. This futuristic stock might look undervalued once you see its growth…

Read more »

Aerial view of a wind farm
Energy Stocks

Brookfield Renewable Stock Climbs Higher: Time to Buy?

Brookfield Renewable stock (TSX:BEP.UN) continues to climb, but remains below the $40 mark. But that share price looks in view.

Read more »