Bullish on Crypto? Here’s the Best Stock to Buy Now

With Bitcoin and Ether both up more than 40% in the last month, this might be the last opportunity to buy the best crypto stock in Canada while it’s cheap.

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

Image source: Getty Images

In the current market environment, there’s a tonne of reasons to be bullish on crypto. The sector is full of major growth potential making these coins, as well as crypto stocks, some of the best assets to buy now.

Digital coins like Bitcoin continue to become more popular, as investors see the ability to use them for diversification in their portfolios or hedging against inflation. Plus, Bitcoin is usually needed to buy many other lesser-known coins, giving it tonnes of potential to grow as the industry continues to innovate.

Then you have coins like Ether that power blockchain networks like Ethereum. Ethereum is one of the most promising technologies to come from the crypto industry and has a tonne of growth potential in the long run.

And over the long run, this innovation and popularity will only continue to increase, which is why there is so much reason to be bullish. It’s also why crypto stocks are some of the best investments you can buy now.

And recently, these coins have quietly started to gain some considerable momentum. Bitcoin has gained 20% in the last week and roughly 40% in the last month. Ether is up even more. The crypto has already gained 25% in the last week and roughly 50% over the last month.

So, if you are bullish on the crypto industry and want to gain exposure before these assets continue to get more expensive, here’s the top stock to buy for your portfolio.

The best crypto stock to buy now

While cryptocurrencies can be a great investment on their own, if you were only to buy one asset to gain exposure to the industry, I’d recommend Galaxy Digital Holdings (TSX:GLXY).

First of all, gaining exposure to the high-potential cryptocurrency industry through investment vehicles can give you a big advantage. Since you can buy these stocks in your TFSA, you have the potential to earn all that massive growth and pay no tax on it.

So, although there are benefits to holding cryptocurrencies yourselves, for most investors gaining exposure through a crypto stock will be the best investment to make. Plus, Galaxy Digital has been cheap for a while.

In the last few weeks, though, it’s started to rally up roughly 25%, showing its potential and how fast it can grow. Despite that rally, though, the stock is still considerably cheap, especially from a long-term perspective.

Another reason Galaxy Digital is the best crypto stock to buy, is that it offers investors a tonne of diversification in the crypto industry.

While there is a tonne of potential in the space, there is still uncertainty about which cryptocurrencies will become the most popular. With thousands of coins in existence today, most coins will inevitably fail in favour of the mass adoption of just a few.

So, it makes sense to own a business that benefits from the total popularity of the industry, rather than just betting on the price appreciation of a single coin.

Bottom line

It’s important to remember that the whole space is full of highly volatile investments. So, while you want to invest in these crypto stocks for the long term, the best crypto stocks to buy should have a similar view about the industry.

There is so much potential already in the space that the patient investors and companies who make prudent decisions will be the most rewarded.

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

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

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

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Stocks for Beginners

The Top 3 Long-Term TSX Growth Stocks to Buy Today

These three growth stocks might be some of the best-performing stocks of the last year, but according to analysts so…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

A person builds a rock tower on a beach.
Stocks for Beginners

How to Start Investing With Just $1,000

Even just $1,000 can turn into retirement income with the right investment strategy. So, here's how to get started.

Read more »

concept of real estate evaluation
Dividend Stocks

BRE Stock: Should You Buy the 10.5% Yield?

BRE stock (TSX:BRE) offers investors the opportunity for a rebound in a real estate sector that should see high prices…

Read more »

A bull outlined against a field
Stocks for Beginners

Top 5 Sectors to Watch in a Bullish Market

Do you want growth in a bull market? These aren't just the sectors to watch but the stocks that should…

Read more »

little girl in pilot costume playing and dreaming of flying over the sky
Dividend Stocks

For a Shot at $6,228/Year in Passive Income, Buy 755 Shares of This TSX Stock

Looking for passive income? You'll need to look beyond only dividends. Which is why EIF stock could be one of…

Read more »