Blockchain technology has taken the world by storm. The technology which underpins cryptocurrencies such as Bitcoin and Ethereum and allows transactions to be recorded on a digital ledger has now expanded into nearly every sector of the economy.
The growth in blockchain technology is set to surge higher in the next few years which is great for investors in the know. In this ‘Best Blockchain Stocks to Buy’ guide, we cover the hottest blockchain stocks to buy now and how to invest in blockchain stocks with zero commissions!
Most of the companies above have made it to the Forbes Blockchain 50 2022 list. Each of these top blockchain stocks has a different level of exposure to blockchain technology which is useful when building a diversified portfolio of the hottest blockchain stocks that can exhibit strong growth.
Did you know you can invest in the most popular blockchain stocks – including all the ones listed above – 100% commission-free using the fully regulated broker eToro? Further down this article, we look at how to invest in blockchain stocks using a simple step by step guide using eToro but for now, let’s go through each of the top blockchain stocks in more detail.
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A Closer Look at the Best Blockchain Stocks to Invest in
Before you buy stocks it is always wise to know as much as possible regarding the long-term prospects of the company you are investing in. The best blockchain stocks are discussed in more detail in this section.
By knowing how companies are leveraging the power of blockchain technology, we can have more confidence in the investment decisions we make. Read on to find out more about the best blockchain stocks to buy now.
1. NVIDIA – GPU’s for Cryptocurrency Miners Using Blockchain Tech
NVIDIA (NVDA) is an American tech company listed on the NASDAQ that specialises in building graphics processing units (GPUs) for the gaming, crypto mining and autonomous vehicle sectors. NVIDIA’s GPUs are widely used for cryptocurrency mining.
While many coins such as Ethereum are moving towards a proof of stake model which involves less crypto mining, analysts are still bullish on NVIDIA’s prospects and how they are linked to blockchain technology.
For example, one of the most recent adoptions of blockchain technology is through the metaverse. As more and more people created and interact with virtual worlds, the hardware and software to do so will see a surge in demand. NVIDIA is very well placed to capitalise on growth in the adoption of blockchain tech and the metaverse.
Since the pandemic in 2020, NVIDIA’s share price has risen more than 660% higher. In November 2021, the stock reached a record high of $346.47. Since then, the stock has fallen around 40%.
This is in line with the broader trend of the market. Global stock market indices declined in the first quarter of 2022 due to the Russia-Ukraine conflict and the impact of rising interest rates from central banks around the world.
However, the recent decline presents a very interesting opportunity for long-term investors which is why NVIDIA is considered to be one of the best blockchain stocks to buy.
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2. IBM – Facilitating the Adoption of Blockchain Technology in Businesses
Not many people may remember International Business Machines (IBM). It was once the ‘go to’ tech stock much like Apple or Microsoft is today. However, the company is trying to reinvent itself and it believes that blockchain technology can help them.
In 2017, IBM launched IBM Blockchain, an enterprise that helps businesses adopt the power of blockchain technology by providing customised blockchain solutions. Currently, IBM Blockchain is working on more than 500 blockchain projects with companies from a wide range of sectors.
For example, Home Depot is using IBM Blockchain technology to improve its visibility and communications. Car manufacturer, Renault created the XCEED blockchain project to automate compliance documents. IBM Blockchain is also working with Walmart, Kroger and businesses from the banking, healthcare and media sectors.
IBM’s share price has had a rocky journey. After reaching a record high in March 2013 around $206.22, the stock has been in retreat ever since. The stock fell more than 57% to reach multi-year lows during the pandemic around $86.50.
Since the pandemic, IBM’s share price is now up around 45%. As more companies adopt the power of blockchain technology, IBM is ready to capitalise. IBM shares could also be regarded as one of the cheapest blockchain stocks around as it hasn’t raced higher from the pandemic like many other tech stocks.
The mere fact IBM shares ended the first quarter of 2022 at around the same price level as where it started the year, highlights the potential underlying, long-term strength in the stock which is why it is considered to be one of the best blockchain stocks around.
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3. Mastercard – Using Blockchain Tech for Crypto Credit Cards
Did you know that more than 24 cryptocurrency credit cards have been launched by Mastercard? The BitPay, Gemini and CoinJar credit cards allow its customers to pay for goods and services at 80 million vendors around the world using their digital assets.
In fact, only in October last year did Mastercard partner with Bakkt which is a subsidiary of the New York Stock Exchange owned Intercontinental Exchange. This will allow more businesses to offer cryptocurrency credit cards by Mastercard which uses the underlying blockchain technology to confirm transactions.
The payments company also run a blockchain incubator called Start Path which provides startups access to Mastercard’s products, clients, workshops and coaching. Currently, Mastercard works with blockchain platforms such as Ethereum, Bitcoin, Avalanche, Terra, Bitcoin Cash and others.
Since the coronavirus pandemic in 2020, Mastercard’s share price surged more than 100% to reach a record high in April 2021 around $401.50. Since then, the price has declined 23% before rallying higher to test the record high at the beginning of this year.
However, the price failed to make a new record high and sold off in line with the broader market. The sell off was far less than some other technology stocks during the same time – highlighting the underlying strength in the share price and why Mastercard is one of the best blockchain stocks to buy.
4. Oracle – Providing Blockchain Tech for Electric Vehicle Raw Materials
Oracle is quickly solidifying itself in the blockchain arena. The software company has built its own blockchain platform called Hyperledger Fabric. There are hundreds of projects now being formed of this underlying blockchain tech.
For example, Oracle teamed up with Circulor, a UK startup that tracks the supply chain in raw materials. Together they built a blockchain platform to track the origin of raw materials such as cobalt in high risk, conflict countries.
Cobalt demand has increased massively over the past few years as it is used in electric vehicle batteries. Around two-thirds of cobalt is mined in the Democratic Republic of Congo. Blockchain technology can help to make sure companies are producing goods that are ethically sourced.
EV manufacturers Polestar, Mercedes-Benz and Volvo have also signed up for Oracle’s and Circulor’s blockchain technology to track their raw materials.
Oracle’s share price surged more than 166% higher from the lows of 2020 to a record high of $106.34 in December 2021. Since then, Oracle’s stock has fallen more than 30% lower but has staged a 20% rally higher this year.
While Oracle is rated as one of the best blockchain stocks to buy now, investors should also know that the software company was the second-largest by revenue and market cap in 2020.
The company already has long-established revenue streams for its other products. Its foray into the world of blockchain tech is an added bonus for investors.
5. Visa – Using Blockchain Tech for Crypto Credit Cards
San Franciso based Visa has partnered with more than 60 cryptocurrency platforms to provide crypto credit cards. These include major players such as Binance, FTX, Coinbase and BlockFi.
The 80 million merchants that accept Visa payments can also now accept crypto as payment, as funds are automatically converted into fiat currency. More than $6 billion has been used on Visa crypto cards since the end of 2020 highlighting just how powerful blockchain technology is.
Visa is very well positioned to capitalise on the increased adoption of blockchain tech. They already have a solid network of clients and users, allowing them to expand their products and services with ease.
Since the lows of 2020, Visa’s share price has risen more than 88% higher, creating a record high in July 2021 around $252.67. The price has since fallen 25% lower but created a new low for this year at $186.67.
Visa’s share price is now up more than 20% since the lows of the first quarter in 2022. The underlying strength of the stock is one reason why Visa is considered to be one of the best blockchain stocks to buy now.
6. Walmart – Utilising Blockchain Tech for Food Safety and Tracing
Walmart is also another major player to be adopting blockchain technology in its business operations. The retailer has built a blockchain-based program on Oracle’s Hyperledger Fabric blockchain system and on the Walmart Blockchain.
Through this system, Walmart can track more than 2,000 food items on the blockchain. This helps the company to track its food products at every point of the supply chain which can help to identify any contamination issues quickly.
The Walmart blockchain tech has also been used by shoppers who can scan a QR code and view information regarding their food products such as where it was grown.
Walmart shares have done very well over the past few years. The stock had a small dip during the 2020 pandemic but went on to rally more than 50% higher to record a new all time high in December 2020 around $153.66.
Since then, the stock has traded in a narrow range. The stock even weathered the overall stock market sell off at the beginning of 2022 and eventually moved higher to create a new record high – highlighting the underlying strength in the stock and why Walmart is one of the best blockchains stocks to buy.
7. Société Générale – Using Blockchain to Save Auditing Costs
With billions of transactions made on a daily basis at global banks, it is a space where blockchain technology can have a direct benefit. Last year France’s third-largest bank, Societe Generale, released a blockchain software program called Cast Framework.
The bank’s software helps cryptocurrency startups to create digital securities stored on the blockchain that is also compliant from a regulatory perspective. So far, the program has reduced transaction times and also helped to save on auditing costs, as everything is already stored on the blockchain which cannot be tampered with.
Societe Generale’s stock price declined from 2017 to the end of 2020 recording a new all-time low in September 2020 around €10.77. However, since this time the stock rallied nearly 250% higher before recording a new multi-year high early this year around €37.65.
Currently, the stock price is down 40% from this price level providing an interesting opportunity for value investors. Societe Generale is considered to be one of the best blockchain stocks as the investment bank has also applied for a French licence to manage digital assets for its clients.
8. Block (formerly Square) – Growing Revenue Stream in Crypto Trading
In December 2021, the company formerly known as Square changed its name to Block highlighting its shift into capitalising on blockchain technology and cryptocurrencies. The company co-founded by Twitter’s Jack Dorsey now holds products such as Tidal, Cash App, TBD and Square under the Block entity.
Last year, the company made $9.8 billion in revenue from bitcoin sales alone. In the third quarter of last year, the company’s bitcoin brokerage Cash App made $42 million in fees from providing crypto trading services to its clients.
With Block going all-in on crypto, it’s one of the top blockchain stocks to watch.
Block’s share price had an incredible run from the lows of the pandemic in 2020. From this price level, the stock surged nearly 800% higher to record an all-time in August 2021 around $289.23.
However, since then the stock has tumbled 70% lower in the recent tech sell-off and lack of crypto demand. But, once crypto demand picks up again, Block is likely to be one of the best blockchain stocks to buy.
9. PayPal – Providing Online Payments Using Blockchain Tech
With online digital payments growth slowing down, PayPal (PYPL) has gone all-in on making sure its app is a one-stop-shop for all financial products and that includes crypto. In late 2020, the company launched its crypto brokerage service which is now used twice as much by its crypto clients than its regular clients.
Furthermore, PayPal’s crypto rewards from the Venmo credit card have been extremely popular. While its crypto revenues are relatively small compared to the size of the market, the intention of the company is to be a leader in the space. They have even discussed launching their own stablecoin, leveraging all the opportunities blockchain technology can provide.
From the lows of the pandemic, PayPal’s share price surged nearly 280% higher to a new all-time high in July 2021 around $309.48. However, due to a lower forecasted growth outlook in one of its earnings reports, the stock price collapsed and is now 65% down from its peak. The stock price has now seemed to have stabilised from the recent fall.
If PayPal can continue to create new crypto products to leverage the power of the blockchain then it is certainly a stock to watch as the infrastructure and client base is already in place. PayPal could be one of the best blockchain stocks to focus on for this year.
10. Coinbase – Crypto Exchange Set to Benefit from Blockchain Growth
Coinbase Global Inc is one of the largest cryptocurrency exchanges in the world. Its customer base now sits at around 73 million crypto users with revenues of nearly $5 billion a year. As more companies use blockchain technology and create their own cryptocurrencies, Coinbase is set to benefit as it’s already an established entity in the field.
What has investors most excited is its plans to open Coinbase NFT where you can invest in NFTs. CEO Brian Armstrong has already stated that he believes it could become “as big or bigger” than its current crypto trading business.
Since its initial public offering (IPO) in April 2021, the stock has had a rocky ride. After reaching a record high on its IPO date around $429.00, the Coinbase stock price dropped more than 65% to a new record low in March 2022 around $150.14.
The recent sell-off in Coinbase’s stock price seems to have stabilised. The Coinbase NFT could be a huge boon for the company which could make Coinbase one of the best blockchain stocks to focus on for this year.
What are Blockchain Stocks?
Blockchain stocks are simply companies that are involved, either directly or indirectly, in blockchain technology. The blockchain is considered to be a decentralised technology whereby transactions are recorded and stored in a computer network. A list of transactions is stored on blocks which are then chained together using cryptography.
New blocks are created on the chain through the process of mining. Specialised software is used to solve complex mathematical problems to mine new blocks. This makes it very difficult to manipulate the blockchain data and is why it is being adopted in all different types of sectors.
In the list of best blockchain stocks above, each company has a different use of blockchain technology. For example, IBM helps businesses create their own blockchain software to facilitate their business needs. Block and Coinbase profit from crypto traders speculating on coins that use a blockchain.
Companies like Walmart use blockchain technology to maintain high food standards, whereas banks like Societe General use the blockchain to save on auditing costs. The versatility of blockchain technology is why its use is expected to grow exponentially in the next few years.
Are Blockchain Stocks a Good Investment?
Blockchain stocks can be great investments if you do your research, exercise proper risk management and have a long term outlook. While the use of blockchain technology has increased exponentially it is still very new.
However, it is likely to be mainstream across most sectors in time which makes for great long term investment opportunities today.
Blockchain Tech Provides Trust and Transparency
The real power behind blockchain technology is the fact no one person controls the ledger book of stored transactions. This means that blockchain offers a high level of transparency and trust and is one reason many companies are incorporating it into their business – a trend that is only likely to grow.
Imagine a world with no accounting hacks or human error in financial transactions. Or, seamless, safe and private transfers of healthcare data. The opportunities are endless.
The Blockchain Market is Set To Grow to $394 Billion by 2028
Analysts are extremely bullish on the growth prospects of blockchain technology. Some are forecasting the market size to reach $394 billion by 2028. As more companies use blockchain technology and accept cryptocurrency as a form of payment, the market size will grow exponentially.
Therefore, the blockchain stocks of today are likely to benefit from growth in the entire sector. As most of the best blockchain stocks listed above already have revenues outside of the blockchain, then this extra growth could be a boon for investors.
Blockchain Penny Stocks
Blockchain penny stocks are companies that are either directly or indirectly involved in blockchain technology with a share price trading around $5 or less. Penny stocks are typically young companies that are early in their business cycle.
The range of blockchain penny stocks can vary as blockchain technology is used in a variety of sectors. Blockchain penny stocks have a higher degree of volatility but can also provide investors with price moves not found in traditional blue-chip stocks.
From our research, we found three blockchain penny stocks that are worth focusing on for this year:
- Gevo Inc – Developing Blockchain Tech for Tracking Sustainability of Renewable Products
- Telefonica SA – Included in the Forbes Blockchain 50 List as a Leader in Employing Distributed Ledger Technology
- Banco Santander – Launched the First Blockchain Bond Using IBM Blockchain Tech
All of these blockchain penny stocks are available to invest in through the top-rated eToro platform.
Where to Buy Blockchain Stocks
If you are asking the question of where to buy blockchain stock then look no further than the eToro stock app. eToro launched in 2007 and boasts more than 20 million users who trade everything from real-time stocks to cryptocurrencies, indices, commodities and more.
eToro is hugely popular because it provides a high level of safety and security for your funds as it is authorised and regulated by the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC) and others.
Another reason this broker is so popular is that you can buy stocks on eToro with zero commission and collect income from dividend stocks. In fact, all of the best blockchain stocks and blockchain penny stocks listed in this article are available to invest in via eToro 100% commission-free. You’ll also have access to a wide range of markets from the best oil stocks and the best metaverse stocks, to the best cannabis stocks.
You can also build a portfolio of digital currencies from the cryptocurrency market and store them in the secure eToro Money Crypto Wallet. Alternatively, you can trade other products such as currencies, commodities, ETFs and indices using CFDs so you can profit from rising and falling markets.
The eToro platform is also considered to be the world’s largest social trading cryptocurrency and copy trading platform. This enables you to interact with other traders and discuss ideas and access the Copy Trader feature.
This allows you to see the performance of other traders and investors. If you like their performance then – at a click of a button – you can have their exact trades copied onto your own account. This is a great way to learn from top traders while building a passive investment portfolio on the side.
You can also access eToro Smart Portfolios which are ready made investment portfolios designed and managed by the eToro investment management committee. These portfolios cover different themes such as blockchain tech, drone tech, cybersecurity, artificial intelligence, the metaverse and many others.
You can open an account with eToro in just a few minutes. Furthermore, you only need $10 to get started!
How to Buy Blockchain Stocks on eToro
If you want to learn how to invest in blockchain stocks and how to invest in blockchain penny stocks, then follow the step by step tutorial outlined below using top rated stock broker eToro.
1. Create Your Account
You can open an account with eToro in just a few minutes. Just fill out a few personal details on the application form and you’re good to go.
2. Verify Your ID
To comply with AML and KYC regulations, eToro will need to verify your identity.
The two verification documents you will need are:
- A valid passport or driver’s licence
- A utility bill or bank account statement issued within the last three months
3. Deposit Funds
In order to invest in the best blockchain stocks, you need some funds to start with. Deposits are fee-free and the payment methods include:
- Debit/credit card
- Bank wire transfer
4. Buy Blockchain Stocks!
The best blockchain stocks to invest in listed in this article are all available to buy through the eToro platform. In fact, there are many more blockchain stocks, copy portfolios and Smart Portfolios that also provide exposure to blockchain tech.
The minimum stake is only $10 and you can do it at a click of a button. Search for your blockchain stock in the search box at the top of the platform and then click Trade to open a ticket and complete your order.
Now you know how to invest in blockchain stocks and how to invest in blockchain penny stocks! The trading ticket also allows you to set pre-determined stop loss and take profit price levels.
There is no question that blockchain technology is the future. The companies leading the way now in blockchain technology are set to reap the benefits in the long term. In this guide, we’ve covered the top blockchain stocks to focus on this year.
When buying blockchain stocks it’s important to choose a safe broker with the best fees. eToro fits this bill as it is authorised and regulated by the UK FCA, CySEC and ASIC and allows to invest 100% commission free.
There is also a whole range of additional features you will find useful such as the copy trading services and eToro Smart Portfolios.
Open an account today for free to see all of the products and services for yourself!
Frequently Asked Questions on Blockchain Stocks
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