There’s a reason why so many retail investors, institutions, high-net-worth individuals, and even companies have been buying Bitcoin (CRYPTO: BTC) over the last couple of years. Bitcoin or a high-quality crypto stock are some of the best long-term investments you can buy for growth.
There’s no doubt that Bitcoin, blockchain technology, and the rest of the cryptocurrency industry have a tonne of long-term potential. Plus, because the industry has become so popular and is now seen as more than just speculative, there are several stocks you can buy to gain exposure.
So naturally, as investors recognize the long-term opportunity provided by Bitcoin and blockchain technology, the interest in finding the best ways to gain exposure continues to grow.
Therefore, if you’re bullish on Bitcoin and wondering which is the best crypto stock to buy now, here’s what to consider.
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Bitcoin mining stocks vs. an ETF
Deciding which is the best crypto stock to buy, especially if you’re bullish on Bitcoin, will depend on various factors. Most importantly, though, it will depend on your risk tolerance.
Crypto mining stocks are well-known to be a lot more volatile than crypto ETFs. In addition, there is more execution risk over the medium and long-term, which you don’t have to worry about with ETFs.
So, for more risk-averse investors especially, buying a crypto ETF offers several advantages. However, the one downside is that if the industry were to rally tomorrow, ETFs would almost certainly underperform the mining stocks. Therefore, if you’re a younger investor more focused on growth, you may elect to buy the mining stocks over the ETFs.
As a long-term investment, though, the ETFs are much safer and would likely be my choice of the two.
However, in my opinion, there is one company that could be an even better investment than an ETF or mining stock. So here’s why I think Galaxy Digital Holdings (TSX: GLXY) is the best crypto stock to buy now.
Why Galaxy Digital is one of the best crypto stocks you can buy
Galaxy Digital Holdings is a financial services business that serves the cryptocurrency industry. The company has several different segments, which diversifies it well and is one of the main reasons why it’s the best crypto stock to buy now.
Firstly, if you’re bullish on Bitcoin, Galaxy offers some high-quality and unique exposure. As the price of Bitcoin rallies, several of Galaxy’s segments will see an uptick in business as a result. These include segments such as its asset management and crypto mining operations. So if Bitcoin rallies in price, you can be sure much of Galaxy Digital’s business will be positively impacted.
However, unlike a Bitcoin ETF or a mining stock, if the rest of the industry rallies, but Bitcoin trades flat or even declines for whatever reason, Galaxy Digital could still see a positive impact.
It has a tonne of exposure across the entire crypto industry, making it well-diversified and lower risk, but it also gives it more opportunity to gain value as well.
If the crypto industry were to rally without Bitcoin, Galaxy Digital’s principal investments division would likely see some of its investments post major growth. In addition, its investment banking segment would also almost surely be positively impacted.
It’s this diversification, along with Galaxy Digital’s impressive management team, that makes it the best crypto stock to buy now, whether you’re bullish on Bitcoin or not.
The crypto industry should be approached as a long-term investment. And considering Galaxy’s well-integrated and high-potential operations, it’s one of the best growth stocks you can buy for the long haul today.
