With cryptocurrencies rebounding quite significantly in recent weeks, you may be wondering what to invest in. There are certainly a lot of cryptocurrencies with potential. In my view, though, the best way to play the space, especially if you’re just starting out, is to buy crypto stocks.
There are various crypto stocks to choose from. For example, you could consider an ETF that gives you direct exposure to a specific cryptocurrency. Another option that’s popular among investors is to buy mining stocks.
Miners are most popular among growth investors, since their shares are almost always leveraged to the price of the major cryptocurrencies.
And when you’re talking about an industry that’s as volatile and has as much growth potential as cryptocurrencies, mining stocks can offer major rewards.
There are even companies that you can buy shares of that are creating NFTs or new blockchain networks. The possibilities go on, and over time there will only continue to be more companies going public, offering unique opportunities.
If you’re looking for just one crypto stock to buy today, though, Galaxy Digital Holdings (TSX:GLXY) is the best investment for long-term investors.
The top crypto stock to buy as a long-term investment
In an industry as volatile as crypto, most investors will want to minimize as much risk as possible. The best way to do this is by taking a long-term approach and investing in businesses or assets that you believe will continue to grow and offer more value in the long run. This is why Galaxy Digital is the best crypto stock to buy today.
Galaxy Digital is still tied to the cryptocurrency industry. So naturally, the crypto stock’s performance will correlate with the prices of major cryptocurrencies such as Bitcoin and Ether. This means that although it’s a great business, investors should expect some short-term volatility.
And the best way to avoid short-term volatility is by investing for the long run. If you’re committed to the long run, then short-term price movements will have little if any impact on your performance. If anything, they can give you the opportunities to buy more shares cheap.
And when you have a business as solid as Galaxy, that has as much growth potential, it’s a lot easier to focus on its long-term growth potential and forget about short-term noise.
The main reason Galaxy is my top recommendation for investors looking to buy a crypto stock today is that it’s the total package. Galaxy has several operating segments giving investors exposure to almost every aspect of the crypto industry.
Some of the most appealing businesses include its asset management segment, which continues to see a massive increase in popularity.
It also offers prime brokerages services, has a trading division and even has its own mining operations. In addition, though, it also has a venture capital segment focused on identifying and investing in new, high-potential crypto businesses.
If you’re bullish on crypto, it’s because the entire cryptocurrency industry is going through a major revolution and offers a tonne of long-term potential. And that’s exactly why Galaxy is the best crypto stock to buy.
It offers exposure to every avenue of growth potential in the crypto space. So, in my view, this easily makes it the top crypto stock to invest in today.
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.