Are Crypto Stocks the Best to Buy Now?

For two years through the pandemic, there were plenty of growth stocks gaining value rapidly and creating several excellent opportunities …

| More on:
cryptocurrency, crypto, blockchain

Image source: Getty Images

For two years through the pandemic, there were plenty of growth stocks gaining value rapidly and creating several excellent opportunities for investors. But some of the best growth stocks to buy were in the crypto industry as many popular cryptocurrencies rallied significantly.

However, for roughly six months now, cryptocurrencies have been out of favour, and there is certainly much less interest in crypto from investors than at the peak of the rally.

It should be noted, though, that crypto stocks have been out of favour for roughly the same amount of time as many other growth stocks, especially ones in the tech sector.

Furthermore, while there may be less interest and less momentum from retail investors to find crypto stocks now than there was at the peak of the rally, the industry is still far more popular and has far more potential than it ever has compared to the last times the industry was correcting.

So now is one of the best times to buy top crypto stocks, as they are some of the highest potential growth stocks on the market, and many currently trade at unbelievable values.

What are some of the best crypto stocks to buy now?

Although the crypto industry offers incredible potential, choosing the right stocks that you can commit to for the long haul is key. We all know the industry is super-volatile, so many investors will want to avoid higher-risk mining stocks.

Instead, some of the best growth stocks to buy are crypto ETFs, which offer exposure to popular cryptocurrencies. For example, Ethereum (CRYPTO:ETH) is one of the most popular and highest potential cryptocurrencies to invest in. That’s why one of the best growth stocks to buy now is the CI Galaxy Ethereum ETF (TSX:ETHX.B).

Don’t get me wrong. The ETF will still be more volatile than many stocks. However, compared to other crypto stocks, it’s one of the lowest volatility investments you can make.

Furthermore, the ETF, in general, is a relatively straightforward investment. All you’re concerned about is whether the price for Ether will rally. With other crypto stocks, there are a lot more risks to consider, especially execution risk.

So if you’re looking for growth stocks from the crypto industry that you can buy for the long haul, crypto ETFs are some of the best to buy.

One risk that all crypto stocks have, though, is that you can’t trade them on the weekends. Meanwhile, cryptocurrencies generally trade 24 hours a day, seven days a week. So it’s possible for these assets to see major price movements over the weekend when investors can’t buy or sell any of their stocks.

However, that shouldn’t be a big deal if you’re a long-term investor who’s bullish on crypto and willing to wait for these assets to appreciate naturally.

Bottom line

Crypto stocks are great investments and some of the best growth stocks to buy now. However, they are also well-known to be extremely volatile.

So in order to optimize your success, it’s crucial to find the highest-quality stocks that you’re comfortable committing to for the long haul.

And lastly, investors should consider dollar-cost averaging. If you truly believe in your investment and it falls significantly in price, it’s one of the best opportunities to add more exposure.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — 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 Daniel Da Costa owns Ethereum. The Motley Fool owns and recommends Ethereum.

More on Investing

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

Paper Canadian currency of various denominations
Bank Stocks

1 Magnificent Canadian Dividend Stock Down 28% to Buy and Hold for Decades

This top Canadian dividend stock is underperforming its large peers this year, but a turnaround could be on the horizon.

Read more »

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

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

hand stacks coins
Investing

Secure a Wealthy Future With These 3 Canadian Stocks

These Canadian stocks have the potential to appreciate substantially over time and may also enhance returns through dividend payments.

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

analyze data
Investing

3 Blue-Chip Stocks Every Canadian Should Own

These blue-chip stocks are backed by large-cap companies with well-established businesses, solid fundamentals, and a growing earnings base.

Read more »

dividends grow over time
Stocks for Beginners

The Smartest Growth Stock to Buy With $2,000 Right Now

Do you have $2,000 to invest for the long term? These three TSX stocks have and will continue to deliver…

Read more »