Is This Cryptocurrency Stock Better Than Bitcoin?

Bitcoin (CRYPTO:BTC) has been the cryptocurrency to beat, but if you’re looking at the cost, there is certainly a cryptocurrency stock that could beat it.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 21, 2021 2:30 pm EST

| More on: BTCC.B

Cryptocurrency tokens continue to pop up left, right, and centre. Yet despite the growing list of companies, it cannot be denied that every single one is compared to the one that started it all: Bitcoin (CRYPTO: BTC).

Bitcoin came on the scene, trading at $7,551, and has since ballooned to about $61,000 as of writing. That’s an increase of 708% for those who invested back in 2017. It’s no wonder then that there have been so many copycats, and yet not one compares. Still, could there be a cryptocurrency stock that’s better than Bitcoin today?

Things to consider

The biggest problem that many investors have with the cryptocurrency is obvious: it’s expensive. Bitcoin, as I mentioned, trades at $61,000 as of writing. And even with the substantial growth it’s seen, it’s since levelled off, with many investors unsure about its immediate future. Sure, it might surpass $100,000. However, it’s now a volatile situation where that’s not a sure thing, if it ever was.

And, of course, not everyone has $61,000 lying around for simply one Bitcoin. That alone is the biggest factor keeping many investors away from buying Bitcoin today.

Then there’s the competition. While there’s not one that compares to Bitcoin pricewise, those competitors are seeing more and more investors coming their way. Whereas one couldn’t afford Bitcoin, they could perhaps afford one of the smaller cryptocurrency stocks around today.

Then came ETFs

In Canada, cryptocurrency exchange-traded funds (ETFs) have been around for a while. Yet it wasn’t until the Securities and Exchanges Commission in the United States gave the green light that cryptocurrency stocks started flying higher. This gave companies the option to create funds at a smaller share price for investors to get in on a diversified cryptocurrency portfolio.

But again, Canada has had them around for some time. That means not only can you get a cheaper share price, but you can also take advantage of the growing trend of ETFs and Bitcoin share price.

One to consider

So, in that sense, the option that is better than Bitcoin is investing in a Bitcoin ETF. In this case, I would consider Purpose Bitcoin ETF (TSX: BTCC.B). Purpose is like investing in Bitcoin, because that’s exactly what it invests in — nothing else; just Bitcoin. As it takes on more and more, and as it rises higher and higher, investors will continue to see their returns rise.

Purpose came on the scene this year and is trading down since its initial public offering (IPO). This has come with the volatility and competition of the Bitcoin marketplace in the last year. Still, it offers a far cheaper share price of just $9 as of writing.

So, when Bitcoin recovers, and it likely will, it could be a great time to buy up Purpose. The company is trading below its IPO value but is up from 52-week lows. In the new year, with a far less volatile situation, it’s very likely this stock could explode, as Bitcoin does as well. So, you can get in on the action, at a fraction of the cost.