A lot of investors buy crypto in the hopes of easily multiplying their money. While it is true that holding and trading digital assets is one way of raking in a lot of dough, it is not the only avenue to dip your toes in this sector. Several publicly traded crypto-related companies can easily be bought in traditional exchanges. Let us explore some of them and check if one of them fits your fancy.
Coinbase Global Inc. – Crypto Exchange
Coinbase Global (NASDAQ: COIN) is the largest crypto exchange in the US. It was founded in California in 2012 by Brian Armstrong and Fred Ehrsam. It became a publicly traded company in 2021 and was listed on the NASDAQ exchange. On its first trading day, it closed at $328 per share.
What makes Coinbase special? At the peak of the 2021 bull market cycle, the exchange had more than $223 billion under management. That dropped to $80 billion in 2022, however, the crypto platform is still showing significant growth despite the effects of the bear market. At the time of writing, Coinbase is reporting $76 billion in quarterly volume traded and $114 billion in safeguarded assets.
Coinbase also operates in more than 100 countries and employs more than 3.400 people.
According to Coingecko research, Coinbase has a 76.2% market share in the US, as of March 2023. With the recent FUD over Binance, some US investors might transfer to Coinbase.
The exchange is also licensed to engage in money transmission in most US jurisdictions. It is also registered as a Money Service Business with the Financial Crimes Enforcement Network (FinCEN). Despite the apparent regulatory compliance, the exchange is still being accused by the Securities and Exchange Commission (SEC) of allegedly operating as an unregistered exchange broker. If it is any consolation, the SEC says that to almost all crypto projects and companies.
Block Inc.
Block Inc. (NYSE: SQ), formerly known as Square, was founded in 2021 by crypto-supporter Jack Dorsey. The company’s core businesses are point-of-sale hardware and software. It also owns the mobile payment platform Cash App.
How is the company related to crypto?
- The company currently holds more than 8,000 Bitcoins. It believes in BTC’s potential as a store of value and potential to become a global currency.
- Its mobile payment platform, Cash App, allows users to buy, sell, and transfer Bitcoin.
- The company’s subsidiary TBD is developing a platform for DeFI and Bitcoin. Its goal is to create an open and decentralized system that is not controlled by a central authority.
Block offers the best of both worlds for investors. It is engaged in providing real-world services, while also investing in what is believed to be the future of money – Bitcoin.
Marathon – Crypto Miner
Contrary to what misinformed people are saying, Bitcoin did not just magically appear out of thin air. It is mined digitally by computers that are working hard to secure and validate the network. If you are still unsure how this works, then we have a short article for you.
Marathon Digital Holdings Inc. (NASDAQ: MARA) is a company that engages in mining and holding cryptocurrencies. It has one of the biggest and most energy-efficient Bitcoin mining companies in North America.
MARA reported a 3rd Quarter earnings of $0.35 per share on Oct 15, 2023, beating forecasts of analysts. This is probably due to Bitcoin going up in value in recent months. Future earnings should also stay in the green as the king of crypto is expected to enter a bull market phase soon.
MARA owns 13,396 BTC at the time of writing.
Check out Marathon Digital if you are looking for an environmentally friendly company that should do well in the upcoming bull market.
Robinhood – Investment Platform
Robinhood (NASDAQ: HOOD) is a US-based investment platform that offers commission-free trading of stocks, ETFs, and cryptocurrencies. It can be done via its app or through its website.
Features of the platform:
- Commission-free trading. For investors looking to minimize the cost of doing transactions, Robinhood might be a good option.
- Fractional share trading. If you don’t have a big capital, then buying a fractional share of a stock might be the next best thing. Investing can be as low as one dollar.
- Robinhood has its cash card. A MasterCard-powered debit card, making spending as easy as investing.
Aside from crypto, Robinhood also handles other investment assets. So this stock is for those looking for a company that is diversified in other sectors as well.
PayPal
PayPal (NASDAQ: PYPL) is an American multinational company that operates a very popular online payment platform. Aside from transferring fiat, PayPal has initiated several crypto projects.
- PayPal allows users to buy, sell, and transfer crypto assets like Bitcoin and Ethereum
- It has launched its own stablecoin PayPal USD (PYSUD). It is pegged to the US dollar and is redeemable 1:1 It is issued by Paxos and minted on the Ethereum blockchain.
PayPal is already a successful company even without crypto. It gives a service that is used globally. The value of the company will get higher if its stablecoin is adopted on a larger scale. As of Sept 2023, the company reported a revenue of more than $29 billion – a 7.67% increase year-over-year.
You Don’t Have to Buy Crypto to Have Exposure
Crypto is not for everybody – at least not yet. Some cannot be bothered with the intricacies of securing and holding their cryptocurrencies. However, there are companies and industries built around the digital assets sector. The five mentioned above are just a fraction of all firms engaged directly with crypto.
If you are more comfortable trading stocks of companies, then look at digital asset mining firms, publicly traded crypto exchanges, crypto-capable payment platforms, and crypto-backed exchange-traded funds (ETFs). Some companies even hold tons of Bitcoin even though they are not directly doing anything in the crypto sector. For example, Tesla (NASDAQ: TSLA) holds over 10,000 BTC in its portfolio. Elon Musk’s company is known as an electric vehicle (EV) maker, yet is it one of the biggest crypto whales.
Investing in crypto is risky, but can also be very profitable. It involves a lot of research and risk mitigation. However, for those who just want to test the waters and minimize risks, then publicly traded companies might be your cup of tea.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument.
