6 Blockchain Stocks to Buy Into Top Cryptocurrency Trends
Bitcoin and cryptocurrency are here to stay. Over the next few years, there will be more ups and downs, but blockchain innovation will continue. That’s why I’m sharing my favorite blockchain stocks today.
I’ve followed cryptocurrencies for close to 10 years and have even worked in the field. The technology is impressive, and my investing background also lends a hand. I’ve uncovered some great investing opportunities. And many of them are high risk, but not all of them…
The list below includes established companies. They’ve already proven their core business model and produce reliable cash flows. This allows them to invest in blockchain and other new technologies.
As blockchain continues to grow, these companies could see a boost in sales. They’re exploring and developing some unique crypto-related services. So without further ado, let’s dive into the list of blockchain stocks…
Top Six Blockchain Stocks to Buy
- IBM (NYSE: IBM)
- Overstock.com (Nasdaq: OSTK)
- Mastercard (NYSE: MA)
- Square (NYSE: SQ)
- JPMorgan Chase (NYSE: JPM)
- CME Group (Nasdaq: CME)
IBM has its hand in many areas. But it’s specifically become a leader in blockchain technologies over the past few years. It offers one of the leading open-source platforms in the field.
Already, many companies use IBM’s crypto-related services. And they come from different industries, including the supply chain, healthcare, insurance, and oil and gas industries, among many others. IBM has invested heavily in blockchain and is already seeing some returns.
This growth should continue as more companies pivot to using these new ledger technologies. And as mentioned, IBM has many other sources of revenue. This provides more stability for investors as these other projects grow.
Overstock.com is an early adopter of cryptocurrencies. The company is primarily an online retailer for furniture. It started accepting Bitcoin payments as early as 2014. And since then, Overstock has been investing heavily in blockchain tech.
In 2017, Overstock launched plans to create its own cryptocurrency. This resulted in the tZERO token, as well as a blockchain trading platform. The goal was to combine the best of traditional securities and cryptocurrencies. It’s been a bumpy ride, but this blockchain stock has hit new highs in the last year.
Overstock has also partnered with Coinbase to access more customers who want to use Bitcoin for purchases. Coinbase is one of the leading crypto exchanges. You can find my Coinbase review by clicking that link. It almost got five out of five stars!
Mastercard is a huge financial company that deals with payment processing. So naturally, as Bitcoin and cryptocurrencies have grown, this company has kept a close eye. And recently, it’s making some bigger moves…
In February 2021, Mastercard announced that it’s preparing now for the future of crypto and payments. This year, Mastercard will start supporting select cryptocurrencies directly on its network. You can learn more about this move by reading our article on Mastercard and crypto.
Mastercard is a cash flow machine, and it’s taking steps to future-proof its business. It’s a well-known company, but also an up-and-coming blockchain stock to watch.
Square is another payment processor, and it focuses on mobile payments. It’s one of the newer companies on this list, but its core business is growing rapidly. And back in 2018, Square added Bitcoin to its services.
With Square’s popular Cash App, customers can buy and sell Bitcoin. Going another step forward, the company also formed Square Crypto. It’s an independent team solely focused on contributing to Bitcoin open-source work.
On top of that, Square bought $50 million worth of Bitcoin in 2020. That represented roughly 1% of Square’s assets at that time, although the position has likely grown with the price of Bitcoin. So Square is a unique blockchain stock and Bitcoin investing opportunity.
JPMorgan Chase initially avoided Bitcoin and cryptocurrencies. The CEO, Jamie Dimon, went so far as to call it a fraud. But he’s since backtracked a bit… He regretted calling it a fraud and said the blockchain is real.
In 2019, JPMorgan created and successfully tested a digital coin representing fiat currency. And the company is continuing to research blockchain to develop in-house solutions across its different lines of business.
Since JPMorgan is a big bank, the initial hesitancy about Bitcoin made sense. But with Bitcoin’s continued momentum, banks like JPMorgan will benefit by adapting. More of their customers are warming up to cryptocurrencies, and the blockchain technologies have many useful applications…
CME Group is a financial markets company. It deals in derivatives exchanges and trades assets such as agricultural products, metals, currencies and stocks. And as Bitcoin has gained popularity, CME Group has gotten in on the action…
CME group now offers cryptocurrency products. It gives exposure with Bitcoin futures and options, as well as Ether futures. This is a big move and another vote of confidence in blockchain technologies.
Investing in CME Group will give you some exposure to the blockchain. It’s a small piece of the business for now, but as crypto momentum continues, I expect continued growth…
Blockchain Technology and Trends
Most of the blockchain stocks above are in the financial industry. But blockchain goes much further. It’s still in its early stages, and more disruption is coming…
The transparency, immutability and security of blockchain technology makes it useful in many different cases far beyond cryptocurrencies. It can be used in everything from stock trading to food safety to healthcare data security.
In fact, the World Economic Forum predicts blockchain will store 10% of global gross domestic product within the next decade. It could save the finance industry billions of dollars. It can cut out the middleman. And you can use it to better manage supply chains. For example, you could trace contaminated foods back to their sources.
The improvements in speed and security could be revolutionary. Transaction times and trade costs could decrease. You could even use blockchain to track property ownership in less-developed nations. Or you could prevent concert or sports ticket counterfeiting right here in the United States.
Virtually any situation where you need to store transactional information is a prime area to benefit from blockchain technology. And with so much opportunity out there for growth, there are huge opportunities for you to profit from the coming revolution.
Final Thoughts and What’s Next
The blockchain stocks above have great growth potential. They also have stable businesses and the ability to invest in these new technologies. This setup provides safer exposure to blockchain technologies.
But maybe you’re looking for higher-risk, higher-reward opportunities? If that’s the case, you can sign up for Manward Financial Digest. It’s a free e-letter, and you’ll find a wide range of investing tips, tricks and opportunities.
About Brian Kehm
Brian Kehm double majored in finance and accounting at Iowa State University. After graduating, he went to work for a cryptocurrency company in Beijing. Upon returning to the U.S., he started working with financial publishers and also passed the CFA exams. When Brian isn’t researching and sharing ideas online, you can usually find him rock climbing or exploring the great outdoors.