Penny Stocks – 5 Best Crypto Stocks Right Now • Fintech Zoom
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Historically, only investors with a high-risk appetite invested in cryptos, considering how volatile it can be. For instance, in 2020, Bitcoin was about $6,700. Fast forward to April 2021 and Bitcoin is trading above $60,000.
Crypto stocks offer a safer bet for investors who want to enjoy a piece of the action but are concerned about the wild price swings. Although crypto stocks may rise or dip with the cryptocurrency, the swings would be far less dramatic.
Overview: Crypto Stocks
More investors are turning to cryptocurrency stocks as a safer route to enjoy the long-term upside from cryptocurrencies without exposing their portfolios to the volatility of individual cryptocurrencies. Some of these stocks include players in the semiconductor, payments and brokerage companies that have exposure to the cryptocurrency value chain.
Best Online Brokers for Crypto Stocks
If you’re looking to buy or trade crypto stocks, you can do so online from the comfort of your home. Yes, it’s that easy. All you need is a broker. With so many different options to choose from, we have researched and compiled a list of some of the best brokers out there.
Features to Look for in Crypto Stock
- Earnings growth pattern
Look at trends in earnings growth. Do the company’s earnings increase over time? It’s okay to buy a crypto stock because of its perceived value or future growth prospects. Still, if the earnings do not increase even slightly over a long period, this can spell doom for an investor. You can use the ratio of earnings per share to calculate the profitability of the stock. Earnings per share are calculated by dividing the company’s net income by its total number of outstanding shares. Companies with higher earnings per share have better profitability over time.
How well do you trust the leadership of the company? Before buying any stock, you must consider the people at the company’s helms of affairs. Effective leadership gives room for the kind of innovation, flexibility, and stability necessary for growth.
- Long-term strength and stability
The crypto market is generally volatile, and all assets at some point in time rise and dip. So what is most important is long-term strength and stability — look out for a company that can weather the storm and come out relatively strong. A stable company will most likely have effective leadership, low debt ratio and revenue growth.
Are Crypto Stocks a Good Investment?
The answer is yes. But you need to understand that some of these companies’ financial prospect and business performance is inherently tied to the price of cryptocurrencies, which is volatile.
The volatility of digital currencies may dim the outlook on some of these companies’ stocks. However, volatility of cryptocurrencies aside, investing in companies that enable the crypto ecosystems to function is a surer, more lucrative way to profit from the latest optimism on digital currencies.
The reason is that there are currently more than 2,000 different cryptocurrencies, and finding the next significant crypto asset might be a gamble. However, this shouldn’t be misconstrued as investment advice. You need to apply due diligence and seek expert opinion before making investment decisions.
If you’re looking for affordable stocks to add to your investment portfolio, the stock market has become more accessible with respect to the price required to buy a unit of a company’s share. As such, an average person with $5 can buy some company’s shares. Strictly speaking, there are stocks selling under $20, $10 and $5, which might turn out to be a reasonable add-on to your investment portfolio.
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