In 2017, cryptocurrency became the most popular investment sector, often yielding returns in excess of 500 percent for its investors.
Naturally, this has created a huge demand, with many looking to get into it in 2018. Unfortunately, the market has been largely bearish this year, with bitcoin losing over $10k in value since January.
Nevertheless, the seeming downward trend has done little to deter investors from trying to invest and acquire some cryptoassets. What many don’t know though, is that there are different ways to profit from cryptocurrencies.
For those looking to get into cryptos, the most common way to profit from the market and make a sizable fortune is to simply buy some tokens at a hopefully low price, wait until it grows in value –usually at a minimum of 2X- then sell, and reinvest in another token, and so on.
Others take the less popular route of mining Bitcoins, Ethereum, Monero, Dash and Litecoin (these are the only mineable cryptos available for now).
2018 Top 3 Cryptocurrency Mining Stocks To Research
However, there’s at least one more way to make some money from the growing crypto trend: investing in cryptocurrency mining stocks. Most people don’t know about this opportunity, yet it’s been right there all along.
By investing in the stocks of listed cryptocurrency mining companies, you can actually build a sizable portfolio and increase your asset value. Let’s take a look at the top 2018 cryptocurrency mining stocks that that you can invest in today.
Advanced Micro Devices (AMD) (NASDAQ:AMD) And NVIDIA (NASDAQ:NVDA) Stocks
If you thought you’d heard those names before, you’re right. AMD and NVIDIA produce key parts of your computer. AMD manufactures computer microprocessors, while NVIDIA dominates the graphics card industry. Both companies are listed in the stock exchange under the names NASDAQ:AMD and NASDAQ:NVDA.
While there is no direct data on how crypto mining influences the stock prices of these companies, there’s no denying that it has played a role. Both companies saw demand for their devices skyrocket last year in the wake of avid crypto mining and investing.
NVIDIA saw a 41 percent increase in sales, while AMD saw a 25 percent growth. As more people buy more powerful PCs with the intention of mining cryptocurrencies, we will continue to see a price surge.
Graphics cards and microprocessors are key parts of crypto mining. So, the more powerful they are, the better the output. Considering that the cryptocurrency marketing is still in its infancy, we can expect to see the demand for these devices increase, resulting in more sales and an upward trend in the price of their shares.
But then again, you might want to factor in the uncertain and highly volatile nature of the cryptocurrency market before investing in any of these companies.
Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM)
While there are no exact figures or data directly linking this company’s recent growth in sales to cryptocurrency mining, its president C.C. Wei, pretty much said it did. According to him, “these results were mainly driven by strong demand from high performance computing such as cryptocurrency mining.”.
Considering that the company generated $3.5 billion in one month (their biggest month ever), and Bitmain –the world’s current leader in ASICs- is a client, it’s safe to say that crypto mining played a huge role in making that happen.
TSMC produces the ASIC chips that are often used in cryptocurrency mining hardware. So, it’s entirely plausible that the company would experience significant growth in sales volume given the recent launch of Bitmain’s ethereum mining hardware –Antminer E3.
ASIC is short for Application Specific Integrated Circuit. This means that these devices are meant to do just one thing and one thing alone. So, while TSMC reported a strong quarter, the company is cautious about its growth and sales projections moving forward.
This is owing to the current bearish and uncertain state of the crypto market. Investors would do well to consider these two angles before investing in TSMC.
HIVE Blockchain Technologies (HIVE) (NASDAQ:HVBTF)
This crypto mining startup is new on the scene and has its stock publicly traded at a relatively cheap price now. The company is currently in the business of mining some of the aforementioned cryptocurrencies.
Only, instead of selling them off and keeping the money, they are in the business of holding on to some of those tokens, and using them as part of their asset base. As a result, the gamble is that as these cryptocurrencies grow in value, their valuation would do the same too.
Investors would therefore, have the opportunity to watch their assets grow at the same pace as the value of the cryptocurrencies the company holds. While this sounds appealing, there’s the high risk, highly volatile nature of the cryptocurrency market. If the prices of the tokens crash, it means the stock price of HIVE would inevitably follow suit.
Best 2018 Cryptocurrency Mining Stocks Conclusion
These are currently the best 2018 cryptocurrency mining stocks that we could find for you. Just remember that, investors looking to go this route should be mindful of the attendant risks before investing. There’s no doubt that this seems like a great, low risk way to get your share of the cryptocurrency market. Just beware that things can go sideways.
Caveat Emptor: Please note that this is just information, and doesn’t in any way serve as financial advice. The onus is on you to do your own research and due diligence before investing in any cryptocurrency mining stock.