Crypto Stocks vs. Facedrive: 1 Opportunity Far Exceeds the Other

Crypto stocks and Facedrive have been two of the most popular investments among Canadian investors, but which is the better opportunity today?

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Over the last year, two of the most popular investment opportunities among Canadians have been Facedrive (TSXV:FD) stock as well as those from the crypto industry.

Facedrive is a tech stock that has seen its share price grow rapidly, then fall significantly, leading it to be extremely cheap today.

Crypto stocks, on the other hand, have also seen massive rallies throughout the last year. And while they haven’t fallen as severely as Facedrive, there is certainly a tonne of volatility in the space.

This is normal. With significant risk comes the opportunity for major rewards. However, not every investment works out, and in this case, one opportunity far exceeds the other.

So if you’re looking to buy a top growth stock today, here’s which is the better buy between crypto stocks or Facedrive.

Facedrive stock

Facedrive is a tech stock, but one that’s committed to equitable and sustainable operations. So the stock caught a lot of investors’ attention earlier this year, especially during the rally in EV stocks.

However, during this rally, Facedrive was bid up to an insane valuation where it peaked in February at a market cap of over $5 billion; up until this week, the stock has been plummeting.

On Wednesday, the stock closed trading with a market value below $100 million, then immediately gained 128% on Thursday.

Facedrive was already a company that was struggling. But now, with the stock having a tonne of downside momentum and the volatility picking up immensely, it’s not a stock that’s worth the risk today.

Instead, crypto stocks, while still volatile, offer much more growth potential long-term.

Crypto stocks can be a great long-term investment

The one way to minimize the risk of short-term volatility is to buy a stock for the long run. And with cryptocurrencies, there are plenty of reasons to be bullish on the long-term potential.

Although, Facedrive stock could end up growing its business and becoming successful in the long run, the stock isn’t worth taking the risk to buy today.

The best thing about crypto stocks is that there is a tonne of different options to consider. For example, one of the top mining stocks that has proven it can grow rapidly is HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT).

HIVE is a great stock to buy if you want high-growth exposure to the price of Bitcoin and Ether, the two most popular cryptocurrencies.

Because its operations are leveraged to the price of these main cryptocurrencies, it’s a stock that can see immense growth when prices are rallying.

During 2020, Bitcoin prices gained more than 300%, and Ether prices gained more than 400%. Meanwhile, HIVE, one of the best crypto mining stocks, gained over 2,600%, which was much greater than Facedrive.

Another option for investors interested in crypto stocks is a company like Galaxy Digital Holdings (TSX:GLXY), which offers exposure to several different crypto segments.

Some investors may be bullish on cryptocurrency and blockchain technology. However, they may not want all their exposure to be based on the price of main cryptocurrencies like Bitcoin and Ether.

If that’s you, then Galaxy Digital is the perfect crypto stock to buy today. The company is a financial services company operating in the cryptocurrency industry.

As long as the cryptocurrency industry continues to gain popularity and grow, Galaxy’s operations will expand. And given that blockchain technology is still in its infancy, I’d say that’s a strong possibility.

Bottom line

Unlike Facedrive, these stocks are companies that are leaders in their industry, and furthermore, it’s an industry with a lot more potential for profitability and growth.

So if you’re looking to make an investment with years of high-quality growth potential, crypto stocks are the much better option.

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.

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