3 Top Crypto Stocks to Buy for February 2022

Consider investing in the top crypto stocks instead of buying Bitcoin and other cryptocurrencies in February 2022.

| More on:
cryptocurrency, crypto, blockchain

Image source: Getty Images

The worldโ€™s most popular cryptocurrency has fallen below below US$36,000 on January 22, 2022. Ethereum (ETH), second to Bitcoin (BTC) in popularity, fell to a six-month low on the same trading day. Financial experts warn prospective investors to prepare for extra risks when investing in the crypto space this year.

Bitcoin and other digital assets remain speculative bets, and therefore, you might lose all your money or earn little profits. As of this writing, Bitcoinโ€™s current price of US$35,030.25 is 48.5% lower than its peak of US$67,566.83 on November 8, 2021. Thus, BTC has lost nearly 50% of its value in over two months.

Canadians, however, still have alternative options to gain exposure to the cryptocurrency market this February 2022. Hut 8 Mining (TSX:HUT)(NASDAQ:HUT), HIVE Blockchain Technologies (TSXV:HIVE)(NASDAQ:HVBT), and Galaxy Digital Holdings (TSX:GLXY) are crypto stocks with growth potential.

HUT 8 has a total return of 245.41% (50.94% CAGR) over three years, while HIVE has rewarded investors with a 502.63% (81.58% CAGR) during the same period. Meanwhile, Galaxy outperformed both with its 850.60% (111.26%) gain in three years.

Crypto mining pioneer

Hut 8 Mining is one of the digital asset mining pioneers in North America. As of December 31, 2021, the $1.12 billion company had 5,518 self-mined Bitcoin in reserve, or a 97% increase versus 2020. During the same month, Hut 8 mined 276 digital tokens (8.9 BTC per day).

Jaime Leverton, Hut 8 Miningโ€™s CEO, said, โ€œ2021 has been a year of transformation for Hut 8, with a focus on not only rebuilding and upgrading, but future-proofing our operations.โ€ It has two mining sites in Alberta, and the development and construction of a third site is ongoing. Management expects its North Bay site to be operational by mid-Q1 2022. If you invest today, the crypto stock trades at $6.77 per share.  

Growth-oriented tech stock

HIVE mines BTC, ETH, and ETH Classic in Canada, Iceland, and Sweden. The $938.44 million company mined a total of 4,032 BTC equivalent in the calendar year 2021. This growth-oriented technology stock prides itself as the bridge between the digital currency in the emergent blockchain sector and traditional capital markets.

In 2021, HIVEโ€™s gain was only 38.49% because the stock mirrored BTCโ€™s performance. The share price rose to $5.99 on November 8, 2021, but went into a tailspin thereafter. As of this writing, HIVE trades at a deep discount (-30.82% year-to-date).

Nevertheless, market analysts are bullish and recommend a buy rating for HIVE. They forecast a return potential of 118.34%. The current share price of $2.29 could soar to $5 in one year.

Enormous capital gain

Galaxy was a winning investment in 2021, with its 107.8% overall return. However, the price has declined 29.49% to $15.97 from its year-end closing price. Still, the 12-month average price target of analysts is $45.67 (+185.97%). The capital gain could be enormous if the prediction proves correct.

The $1.62 billion technology-driven financial services and asset management firm has a deep experience in active and passive portfolio management. Galaxyโ€™s financial solutions covers the digital assets ecosystem and the blockchain technology industry.

Take a small position

HUT 8, HIVE, and Galaxy are not without risks and could, at times, mirror BTCโ€™s movement. You could consider taking a small position in February for potentially massive gains in the near future.

Should you invest $1,000 in Dollarama right now?

Before you buy stock in Dollarama, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy nowโ€ฆ and Dollarama wasnโ€™t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the โ€œeBay of Latin Americaโ€ at the time of our recommendation, youโ€™d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month โ€“ one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

This article represents the opinion of the writer, who may disagree with the โ€œofficialโ€ recommendation position of a Motley Fool premium service or advisor. Weโ€™re Motley! Questioning an investing thesis โ€” even one of our own โ€” helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin and Ethereum.

More on Investing

Forklift in a warehouse
Dividend Stocks

Why Mullen Group is a Must Buy With $5,000 in May 2025

This top Canadian stock continues to be a top choice from analysts, and more growth could be on the way.

Read more ยป

data center server racks glow with light
Tech Stocks

2 Tech Stocks to Buy After Their Incredibly Strong Earnings

Advanced Micro Devices (NASDAQ:AMD) and another tech stock could continue to gain.

Read more ยป

Investor wonders if it's safe to buy stocks now
Dividend Stocks

BCE Finally Cut its Dividend: Is This a Turning Point for the Stock?

BCE (TSX:BCE) stock has finally done it, but the path ahead may still be met with great volatility.

Read more ยป

3 colorful arrows racing straight up on a black background.
Dividend Stocks

Why Chemtrade Stock Jumped 10% This Week

Chemtrade stock remains one of the top and safest dividend stocks out there. Here's why.

Read more ยป

dividends can compound over time
Tech Stocks

Where Will Descartes Systems Stock Be in 3 Years?

Descartes Systems is a TSX tech stock that trades at a lofty valuation in May 2025. However, it continues toโ€ฆ

Read more ยป

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Retirement

Turn Your TFSA Into a Retirement Powerhouse With This 7.6% Dividend Stock 

Are you nearing retirement? Discover essential strategies for creating a retirement powerhouse with your savings and investments.

Read more ยป

Women's fashion boutique Aritzia is a top stock to buy in September 2022.
Stocks for Beginners

Should You Buy Aritzia Stock While itโ€™s Below $70?

It's not just clothes that have Canadians eyeing up Aritzia stock; it's trending on the markets, too.

Read more ยป

online shopping
Tech Stocks

Where Could Shopify Stock Be in 3 Years?

Shopify stock has delivered a stellar return of 196.2% in three years. It means the stock has grown at aโ€ฆ

Read more ยป