What Is a Blockchain? Definition and Examples of Blockchain Technology

Well-capitalized stocks like Intel and CME Group can be purchased through any major stock brokerage that lets you trade U.S. stocks. If you instead decide to invest in a foreign stock or one of the less established blockchain companies that trade on the OTC exchanges or on the pink network, then you’ll most likely have to make arrangements with your broker. Research continues to be the best way to pick promising stocks in any industry, and selecting the right investments in the blockchain business is no different. Although the underlying technology and market involved may differ, the method for selecting promising stocks for investment remains basically the same.

As a digital payments specialist, PayPal has fully embraced cryptocurrency and blockchain technology. It enables crypto transactions within its platform and is exploring the launch of a U.S. dollar-backed stablecoin. Bank of America is bullish on PayPal’s growth initiatives, including its ventures into cryptocurrency and other digital payment services​​. OpenText is a global leader in enterprise information management, and provides a cloud integration platform for digital supply chains and business ecosystems. The company’s customers include some of the world’s largest enterprises in the manufacturing, retail, consumer goods and financial services industries. Maybe the best way for you to invest in blockchain technology isn’t through a single stock but through an exchange-traded fund (ETF).

Although 2022 was a turbulent time for the market, investors are beginning to learn to live with the volatility of blockchain technology stocks. Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services.

Is cryptocurrency a good investment?

Choose companies that align with Blockchain stock your investment goals and risk tolerance, and consider factors such as revenue growth, profitability, market share and management team expertise. Nevertheless, once the market rebounds, it’s not tough to see how Coinbase would benefit. In a bullish market last year, it generated triple-digit growth in sales and profits. Moreover, apart from being exchange and brokerage, its CEO Brian Armstrong aims to develop a robust crypto economy that’s dominated by utility.

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Other top holdings include Mara Holdings (MARA 0.46%), Core Scientific (CORZ -1.86%), and Riot Platforms (RIOT 1.55%). In short, if you believe in the long-term potential of blockchain technology but don’t want to try to pick the winners in the space, this ETF could be right for you. Short-term volatility has heavily impacted the cryptocurrency landscape in recent weeks, with Bitcoin falling more than 14% in the first 5 days of August. However, blockchain stocks remain a solid investment option due to their long-term potential. Riot Platforms’ mining operations are concentrated in North America, with key facilities in Texas and other U.S. regions where it has secured access to cost-effective power and renewable energy sources.

Future Trends and Opportunities in Blockchain Investing

With this background in mind, let’s take a look at the 10 best blockchain stocks to buy according to analysts. A leader in electronic signature technology, DocuSign has leveraged the Ethereum blockchain for recording customer agreements. Despite a recent downturn, analysts see long-term growth potential in its expanding range of services and customer adoption​​.

• Additionally, Visa facilitates a platform for stablecoin payouts pegged to the U.S. dollar.
• Ebang International Holdings is a China-based cryptocurrency mining equipment manufacturer, similar to Canaan Creative, featured earlier.
• Bitcoin reached a new high of $109,000 on January 20 and Bitcoin mining is becoming increasingly popular.
• That makes its weaker 2024 performance a possible strong buy-in opportunity for a stronger end to the year.
• These ten stocks are incredibly resilient and are likely to thrive in any economic environment.

The company successfully listed its shares on the US-based NASDAQ exchange in November 2019 with a current market cap of over $428M USD. We have curated a list of the best blockchain stocks that are publicly listed on two of the largest stock exchanges – NASDAQ and the New York Stock Exchange (NYSE). However, this list is by no means conclusive, as you can find thousands of other blockchain technology stocks listed on other popular exchanges worldwide. Riot Platforms, Inc., together with its subsidiaries, operates as a Bitcoin mining company in the United States.

• Insiders that own company stock include Soo Il Benjamin Yi, Jason Les, Chad Everett Harris, William Richard Jackman, Ryan D Werner, Colin M Yee, Hannah Cho, Lance Varro D’ambrosio and Hubert Marleau.
• Consensus price targets set an estimated one-year share value of $8.31, representing a massive 107% potential upside due to the shares’ current slump.
• It offers comprehensive and critical infrastructure for institutional-scale Bitcoin mining facilities in Rockdale and Navarro counties, Texas; and two Bitcoin mining sites in Paducah, Kentucky.
• MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

What is a Blockchain?

However, with wider adoption and limited supply, Bitcoin (BTC-USD) will likely gain immensely down the line, despite the recent correction. Furthermore, the recent correction in the market has resulted in substantial losses for many crypto stocks. Nevertheless, the current situation presents an excellent opportunity to scoop up some quality crypto stocks, offering hefty long-term value. Many more exchanges, brokerages and payment apps now sell Bitcoin, and many companies such as PayPal and Microsoft accept Bitcoin for payment. Still, purchases with blockchain currencies such as Bitcoin remain the exception, not the rule.

Step 4: Buy blockchain stocks.

Additionally, since it began accumulating Bitcoin, its stock has recorded positive gains outperforming several other traditional securities. Discover which analysts rank highest for RIOT overall weighted by direction, price target, and price movement. Privacy Policy | No cost, no obligation to buy anything ever.Past performance is no guarantee of future results. He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance. I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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The company is also a Hedera distributed ledger technology network user, which allows its Now Platform customers and partners to benefit from the network’s capabilities. There are several problems with blockchain technology, a few being scalability, energy consumption, speed, lack of universal standards, and privacy. Notice that all seven of these stocks are either well-established businesses or leaders in their respective industries (or ETFs that invest in a variety of companies). His work has been published in Nasdaq, Kiplinger, FXStreet, Entrepreneur, VentureBeat and InvestmentWeek. While announcing Q gross profit growth of 20% YOY to $2.23 billion, Block also announced an internal reorganization designed to foster more growth and accelerate go-to-market strength for the company. Riot Platforms scored higher than 37% of companies evaluated by MarketBeat, and ranked 741st out of 903 stocks in the finance sector.

It offers comprehensive and critical infrastructure for institutional-scale Bitcoin mining facilities in Rockdale and Navarro counties, Texas; and two Bitcoin mining sites in Paducah, Kentucky. Headquartered in Las Vegas, Nevada, Marathon Digital Holdings operates as a digital asset technology company focused on cryptocurrency mining and the broader blockchain ecosystem in the United States. It achieved record Bitcoin production, highlighting its significant growth in the blockchain domain​​. This Georgia-based company runs a digital asset platform that allows consumers to buy, sell, convert, and spend digital assets. It caters to merchants, retailers, and financial institutions, integrating crypto into banking apps, payment solutions, and rewards programs. Bakkt’s revenue and account growth indicate its expanding influence in the blockchain​​.

Understanding Investing in Blockchain

For this reason, it’s smart to focus on companies that will benefit from the growth of blockchain technology, but will remain resilient even if their blockchain initiatives don’t succeed. It’s worth noting that blockchain and cryptocurrency are two different concepts. Blockchain is the underlying technology that powers cryptocurrencies, but it has many other potential applications that have nothing to do with Bitcoin (BTC 2.13%) or other digital currencies.