Bitcoin Is a Top Buy, But These Crypto Stocks Are Better

You can’t go wrong buying Bitcoin today. However, these two crypto stocks offer far more long-term potential.

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

Image source: Getty Images

Bitcoin, the top valued and most popular cryptocurrency, continues to gain in popularity, as investors look to diversify their portfolios and gain exposure to digital assets. There are lots of reasons to be bullish on Bitcoin. In fact, many of the crypto stocks you can buy today are centred on offering investors exposure to Bitcoin.    

The world’s most valuable cryptocurrency naturally sees growth, as the industry gains popularity, which it’s doing right now. Inflation is another major reason why it could continue to rally for some time. Many investors and analysts have pointed to the potential it has as a hedge against inflation and how it could replace gold as investors’ top choice to store wealth.    

But while Bitcoin is great and certainly has the potential to continue gaining over the long term, it’s well known that there are better cryptocurrencies to buy. In addition, there are also several crypto stocks that offer better opportunities for investors.      

So, if you’re bullish on Bitcoin and cryptocurrencies, here are two of the best crypto stocks to buy today.       

The top Bitcoin mining stock to buy  

If you’re bullish on Bitcoin, then buying a mining stock like Hut 8 (TSX:HUT)(NASDAQ:HUT) might be the most prudent choice.     

These growth stocks follow the price of Bitcoin but are far more volatile. So, while that’s a risk when the price of Bitcoin is falling, if you’re bullish on the cryptocurrency’s long-term potential, then these stocks offer great opportunities.

Year to date, Bitcoin has gained just over 100%. Meanwhile, Hut 8 has gained an incredible 387%, illustrating just how much potential it offers.       

The company not only has its current operations earning cash flow, but it’s also the largest holder of self-mined Bitcoin of any publicly traded company with over 5,000 Bitcoin on its balance sheet. Plus, the crypto stock is now also generating a yield and revenue on its Bitcoin reserve.

The cryptocurrency mining industry isn’t completely straightforward. It can actually be highly competitive. However, Hut 8 has consistently proven it can be a top performer in the industry, constantly increasing its computing power and diversifying its revenue streams.

If you’re bullish on Bitcoin but want even more growth potential, Hut 8 is one of the best stocks to buy for the long haul today.

Galaxy Digital is a crypto stock with significant long-term potential

Another stock that’s a far better investment than just simply owning Bitcoin, in my opinion, is Galaxy Digital Holdings (TSX:GLXY). As I mentioned, Bitcoin, I think, does have potential, but it’s just one cryptocurrency and one opportunity. 

What’s exciting about Galaxy Digital is that it offers several opportunities, which not only diversify your investment but also provide more potential for growth.

In addition to the fact that it has five distinct segments — asset management, trading, investment banking, mining, and principle investments — all growing in different ways, its principal investments segment specifically invests in early-stage blockchain companies such as NFT projects.

This gives the stock incredible growth potential, which is why it’s a far better long-term investment than Bitcoin. So far this year, just like Hut 8, Galaxy has also outperformed Bitcoin, currently up by over 240% to Bitcoin’s 103% gain.

The cryptocurrency asset class in general has a long way to grow, and Bitcoin will surely benefit. However, going forward, I still think most high-quality crypto stocks you can buy will offer far more potential than Bitcoin ever can.

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 Cryptocurrency

cryptocurrency, crypto, blockcahin

HIVE Blockchain Stock Fell 18% In October – Is It Time To Buy? 

Hive Blockchain (TSXV:HIVE) stock is down with the crypto market but ready for a BTC rebound.

Read more »

crypto, chart, stocks

2 Top Cryptocurrencies to Buy in October 2022

Ethereum and Solana are two of the most popular cryptocurrencies in the world that are well poised to deliver substantial…

Read more »

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

2 Cryptocurrencies to Buy for Potential Recovery

The largest and most liquid cryptocurrencies may not always be the first to recover, and you may have to go…

Read more »

Senior couple at the lake having a picnic
Tech Stocks

3 TSX Stocks That Are Great Long-Term Picks

October is a ripe time to buy growth stocks for wealth creation. Use the market downturn to tap the recovery…

Read more »

cryptocurrency, crypto, blockchain
Tech Stocks

Sinking Crypto Stock: Is Hut 8 (TSX:HUT) Worth Buying at $2.30?

A prominent crypto stock trading at an absurdly cheap price, but you must have a high-risk appetite to consider buying…

Read more »

sad concerned deep in thought

Is Coinbase Stock a Good Bet for Cryptocurrency Investors?

Coinbase stock is down 80% from all-time highs, but the U.S.-based cryptocurrency exchange is still one of the largest platforms…

Read more »

Big Bitcoin logo.

Will Bitcoin Ever Shift to a Proof-of-Stake Model?

Following Ethereum's (CRYPTO:ETH) Merge, will Bitcoin (CRYPTO:BTC) adopt a proof-of-stake consensus mechanism or stand pat?

Read more »

cryptocurrency, crypto, blockchain

HIVE Blockchain (TSXV:HIVE) Stock: Is it Cheap or a Falling Knife?

HIVE Blockchain Technologies Ltd. (TSXV:HIVE)(NASDAQ:HIVE) is a crypto miner that looks undervalued in the face of major volatility.

Read more »