Over the past couple of years now, cryptocurrencies have been rallying significantly, but this long bull run has been quite different from many in the past. And as the industry constantly gains more popularity, the opportunities for investors to find new high-potential crypto stocks to buy and hold long-term continue to grow.
Major cryptos such as Bitcoin and Ether are having much longer rallies, and when they pull back, they are much more resilient than they’ve been in the past, often forming a new support level.
This prolonged rally in cryptocurrencies dating back to last year is showing the new revolution in the industry and the investors who have joined the space and are committed in the long run.
So right now, with Bitcoin, Ether, and other major cryptocurrencies having pulled back slightly, this could be a great opportunity to make an investment before the next big rally. Therefore, here are three of the top crypto stocks to take advantage of the discount and buy while they are cheap today.
One of the top-performing cryptocurrency miners
Mining stocks are some of the highest risk stocks in the space, but naturally, that means that they offer some of the best growth potential. And while these stocks will all benefit during the next big rally in cryptocurrencies, Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) has proven to be the top performer in the space so far.
When analyzing a cryptocurrency mining company, there are two crucial things to keep in mind. What is the underlying cryptocurrency that it mines, and does that have long-term potential? In HUT’s case, that’s mostly Bitcoin, so it should continue to have tonnes of long-term potential.
The other factor to consider is how competitive its operations are. Cryptocurrency mining is all about continuing to upgrade your computing power to stay competitive, and HUT 8 has been one of the best in the business at that. Plus, it also holds over 5,000 of its own self-mined Bitcoin, believing that to be a prudent investment as it should be worth more over the long term.
So if you’re bullish on cryptocurrencies, specifically Bitcoin, and you’re looking for one of the best growth stocks, Hut 8 Mining is a crypto stock I’d look to buy at a discount today.
A lower-risk crypto stock with high growth potential
Another high-quality crypto stock to buy that should be a bit less volatile than Hut 8 while still offering similar long-term growth potential is Galaxy Digital Holdings (TSX:GLXY)(NASDAQ:HUT).
Galaxy Digital is the perfect crypto stock to buy for investors who still want a lot of long-term growth potential but lower risk than a mining stock, or for investors who want exposure to the entire industry’s growth potential rather than just the performance of a few cryptocurrencies.
The company has a well-diversified business that should constantly grow as more retail investors, as well as institutional investors, jump on the bandwagon.
Furthermore, as more companies want to go public or consolidation happens, Galaxy’s investment banking business should prosper. And finally, as the industry continues to innovate, Galaxy’s principal investments division, which finds high-potential startups in the cryptocurrency industry, should see some significant growth.
So with the stock now trading more than 25% off its high, Galaxy Digital is certainly one of the top crypto stocks to buy today.
Consider a Bitcoin ETF
Finally, if you’re an investor who is just getting into the space or consider yourself more risk-averse, you’ll probably want to choose a safer option like an ETF. An excellent choice for investors is the CI Galaxy Bitcoin ETF (TSX:BTCX.B)
These ETFs are, of course, still tied to the performance of cryptocurrencies, though. So, in general, it’s still a highly volatile investment. But if you want exposure to the space, it’s one of the lowest risk ways to invest in cryptocurrencies, plus the fund takes care of everything for you.
When you buy the CI Galaxy Bitcoin Fund, you can essentially think of it as buying Bitcoin. The two prices should almost always move identically.
So if you’re bullish on cryptocurrencies and want to buy the dip, the Bitcoin ETF or any of these above crypto stocks offer investors an incredible opportunity today.
