There are different ways to profit from bitcoin’s popularity.
The most popular method is buying and holding it as an asset or just trading the cryptocurrency on a daily basis by buying low, selling high and repeating the same process over and over.
This is followed by the expensive bitcoin mining method, which used to be very profitable before 2016. Of course, you can still make some money from it, but it’s not as much as you could during the heydays.
There’s a third one though; one that’s not as popular. This is simply the very low risk method of buying stocks in companies that are heavily invested in bitcoin. Yes, that's correct.
You’ll just identify companies that the bitcoin directly or indirectly affects its stock price, revenue and profits. Don’t worry, we’ve identified the top 2018 bitcoin stocks to buy.
These are considered the “holy grail” of bitcoin stocks and can get some decent returns on investment. Let’s examine them quickly:
NVIDIA Corp (NASDAQ:NVDA)
Nvidia is one of the world’s largest GPU manufacturers. Their components are used on computing, gaming and ASIC equipment. What should interest you is the ASIC equipment because that is used for the mining of bitcoins.
These typically contain high performance graphics processors which help with the bitcoin mining process. Since the demand for bitcoin miners has gone up, the demand for their graphics cards have gone up too, resulting in significant revenue and profits.
In fact, Nvidia Corporation’s share price appreciated by 70 percent in 2017. The company’s projected revenue for 2018 is $8 billion. With the company’s current market cap of $111 billion, this is a worthwhile bitcoin related stock to buy and hold for the foreseeable future.
Here’s why: Nvidia’s graphics chips are poised to play an even bigger role in the coming explosion of cloud based services and tech. Most tech companies are now looking to get into the IoT, self-driving and AI game.
To do this, they’ll need high performing graphics chips for data rendering. Nvidia so far, is the only company with such capabilities at its disposal. Nvidia is most likely, prepared for the next phase of graphics cards demands across the globe.
Nvidia is the world’s leading graphic chip manufacturer, no other company comes close –although Intel has been trying. Please note that while Nvidia’s shares aren’t cheap, they are still the most viable 2018 bitcoin stock to buy and invest in.
Nvidia has been around for a while and looks poised to be around for even longer. Your investments now will most likely pay off in the near future. There’s no smarter investment vehicle in this niche than Nvidia Corporation.
Advanced Micro Devices (NASDAQ:AMD)
Even though it’s not profit driven, AMD seems to be doing well for its investors lately with its share prices seeing incredible growth. The share price went from about $2 in January 2016, to over $13 in January, 2018.
That’s over 500 percent growth in just 2 years. While the company has been around since the late 60’s, it didn’t enjoy as much success until the last decade when it switched to graphics chips, got rid of old redundancies and hired new minds and talents.
Headed by Lisa Su, AMD is a high value chip manufacturer with outstanding products like the Radeon and Ryzen chips. If you’re using a computer, chances are you have an AMD graphics chip in your unit.
AMD chips have become a major computing component, and looks poised to be so for the foreseeable future.
It is fiercely competing with both Intel and Nvidia Corporation for a larger market share by producing its equally high performing Ryzen and Radeon chips respectively, at a cheaper price. AMD looks poised to play a significant role in the upcoming cloud technology boom.
An indication of this is Alibaba’s deployment of AMD’s graphics chips on its cloud. This singular move validated their role and made them a major player as evidenced by its subsequent deals with Alphabet (Google’s parent company), and Microsoft.
These, combined with the increased demand for its chips in bitcoin mining ASIC hardware, has resulted in the company’s growth. So, even at the price of $13, AMD shares might still be a good bargain, with the company poised to play an even more significant role in the future of cloud computing.
Bitcoin Investment Trust (OTCMKTS:GBTC)
Founded in 2013 by Barry Silbert, a popular name in the cryptocurrency investment and asset management space, GBTC is an asset management firm that’s targeted small investors.
It’s also the world’s first publicly traded bitcoin fund with a portfolio that largely consists of cryptocurrencies. Investors who buy their shares are essentially buying into their current bitcoin holdings.
Early investors who got in when one bitcoin was sold for $100, are now smiling to the bank seeing as bitcoin reached an all-time high of $18,000+ in January, 2018. GBTC’s initial trading price was $32 per share in 2015. It’s now valued at over $700 each.
Unfortunately, this stock isn’t available on the NYSE, NASDAQ or other mainstream trading platforms because of the SEC’s non-approval. This, in part is due to the founder’s shady history as well as SEC’s wary stance on cryptocurrency.
In fact, the company was issued a cease and desist order by the SEC in 2016; an order they haven’t paid attention to or obeyed.
While it’s true that the company appears to be embattled, the realty is you cannot ignore their results for their shareholders.
You will need to research this one a lot more if you’re interested in getting in. We think it’s high risk, but then so was the internet, AOL, and Google when they first started trading.
Overstock is currently poised to get into the cryptocurrency game with its upcoming ICO. With a market cap of $750 million, OSTK which has been publicly traded since 2002, is looking to add another 4500 million to its market cap.
Overstock’s ICO and token sale is currently the cryptocurrency industry’s most expected ICO this year. The success of this ICO will portend a lot of things for the cryptocurrency industry, and increase its legitimacy among skeptics.
Overstock intends to launch the tZero token, a general ledger system for capital markets. The project is currently backed by RenGen and Argon Group.
Since the announcement of the upcoming ICO, OSTK’s share price has seen a 25 percent jump. If this works, we’ll most likely see a huge jump in stock value by the end of the year. Of course, we’ll still have to wait and see, but we think this might be worth investing in if you’re looking for the best bitcoin stocks to buy in 2018.