Blockchain Stocks: 10 of the Best Blockchain Stocks to Invest in Right Now
At the heart of the fast-growing cryptocurrency market is blockchain technology. Let’s take a close look at some of the best blockchain stocks investors can buy right now.
10 Top Blockchain Stocks
Coinbase (Nasdaq: COIN)
Let’s kick off this list with one company that simply couldn’t exist without blockchain technology. Coinbase is a cryptocurrency exchange that gives its users the ability to buy and sell digital currency—including bitcoin, Ether, Litecoin, etc.—on the platform.
When users buy and sell the digital coins, those transactions are then logged in a blockchain ledger. This tech is especially important for cryptocurrencies because, as Coinbase says, the transaction “accuracy is constantly being verified.”
This matters because the price of cryptocurrencies is particularly volatile—thanks, in part, to whatever Elon Musk is tweeting about cryptos on any given day—so knowing exactly when and how much was exchanged is extremely important.
Blockchain technology is also critical to Coinbase because it easily allows for secure transactions—even more secure than using that debit card in your wallet with the fancy wireless microchip—and it doesn’t need a bank to verify the exchange.
NVIDIA Corporation (Nasdaq: NVDA)
Tech investors should be very familiar with NVIDIA and its leading position in the graphics processing unit (GPU) market. GPUs are especially adept at performing tasks that CPUs can’t handle as well (like artificial intelligence processing) and they’re also very good at cryptocurrency mining.
And while mining bitcoin and other cryptocurrencies is only part of the broader blockchain market, investors should know that as blockchain technology becomes more mainstream, it’s likely the servers and other hardware that companies use will increasingly rely on GPUs.
As a leading technology hardware stock, buying shares of NVIDIA will not only give investors some exposure to the broader blockchain trend, but will also allow investors to benefit from artificial intelligence and data centers.
And with NVIDIA’s sales up 53% in fiscal 2021 and its stock up more than 1,000% over the past five years, it’s hard to find a better hardware stock.
Square (NYSE: SQ)
Square doesn’t create any specific blockchain technology, but the financial technology (fintech) company does rely significantly on the technology because it’s a major player in the digital currency market.
Square’s popular Cash App allows users to easily buy and sell bitcoin and the company itself has purchased $220 million worth of the cryptocurrency.
But Square’s management understands that there’s far more to blockchain technology than just buying crypto. Square CEO Jack Dorsey—who is also the CEO of Twitter (TWTR)—said in 2020 that “there are so many problems we can help solve” with blockchain beyond just using it in the financial sector.
IBM (NYSE: IBM)
Another tech stalwart focusing its attention on blockchain technology is IBM. What’s unique about IBM’s opportunity is that the company is building blockchain functionality for some of its clients through its IBM Blockchain service, which it already has up and running.
Specifically, IBM Blockchain helps Nordea Bank (NRDBY) execute secure and safe trades, allows Kroger (KR) to keep track of its food distribution, and helps Marsh McLennan (MMC) to easily check proof-of-insurance records for its contract workers.
IBM’s stock hasn’t exactly been a top performer over the past few years, but the company deserves to be on this list because of its early moves into the blockchain space.
Mastercard (NYSE: MA)
It’s easy to think of Mastercard as just a credit card company, but over the past few years, the company has emerged as one of the top 10 holders of blockchain patents and earned a spot on Forbes‘s Blockchain 50 list. Ok Mastercard, I see you!
Mastercard has amassed 89 blockchain patents and 285 applications pending and is already using some of its technology to improve food supply chains and integrate cryptocurrencies into its vast financial services business.
Mastercard is also using blockchain tech to help speed up international transactions—which are typically slow and expensive for the company—and it could help further bolster its financial services as cryptocurrencies become more mainstream in the next few years.
Besides its newly-formed blockchain street cred, the company’s stock has also easily beaten the market over the past five years, with nearly three times the gains of the S&P 500.
Visa (NYSE: V)
Not to be outdone by its payment processing nemesis, Visa has also fully embraced blockchain technology and made a massive move in mid-2021 to use Ethereum’s blockchain to easily convert digital currency into actual money.
Visa is working with Anchorage, a digital asset bank, to cut out the additional time and expense it takes to settle digital currencies and convert them into traditional fiat currencies. In short, Visa is doing some of the same payment processing services it’s done for decades but is now doing it for cryptocurrencies using blockchain technology.
As Anchorage’s cofounder put it, “This would give the next generation of crypto native issuers the option to directly settle with Visa in a digital currency over a public blockchain.”
That sounds cool, but why does this matter? Because converting digital assets to real currencies can be a huge pain and cost time and money. Now that Visa is helping to speed things up and save some money for the companies involved, it proves that blockchain technology is viable and adds credibility to the broader crypto market.
Salesforce.com (NYSE: CRM)
Salesforce makes cloud-based customer relationship management (CRM) software and over the past few years, this leading CRM company has begun integrating more blockchain tech into its services.
The company launched a Salesforce Blockchain back in 2019, a low-code platform that allows companies to share verified, distributed data sets with third parties. If distributed data sets aren’t your thing (I can’t understand why they wouldn’t be!), just know that Salesforce is using blockchain to make data sharing safer and easier for its customers.
One of the clearest examples of this is Arizona State University using Salesforce Blockchain to save transcripts and student information, allowing students to easily view this information and potentially transfer it to other universities that need it.
PayPal Holdings (Nasdaq: PYPL)
PayPal is another fintech company that anticipates the need for blockchain will continue to expand in the coming years as interest in cryptocurrencies continues to surge.
The company recently started allowing its users to pay for items using bitcoin, as well as buy and sell the digital asset, from its app. But PayPal is going far beyond just using blockchain to make its business better. It’s also investing in the technology.
PayPal’s venture capital arm, PayPal Ventures, invested in a blockchain startup called Cambridge Blockchain back in 2019. It was the first-ever investment PayPal made in a blockchain company.
PayPal’s focus on blockchain and cryptos is important for the investing world because of the company’s vast financial services reach. More than 26 million retailers use PayPal and the company continues to move more towards digital currencies.
PayPal’s CEO Dan Schulman said on a recent earnings call that “the current technological underpinnings of our financial system will be substantially upgraded over the coming years” through digital currencies and blockchain technology. And I was just getting used to mobile check deposits!
Walmart (NYSE: WMT)
As the largest grocery store chain (and retailer) in the United States, Walmart has a lot of incentive to know exactly where its food is coming from and where it’s going.
That’s why the company uses blockchain technology for its Food Traceability Initiative, which tracks everything from leafy greens to meat, to ensure contaminated food is detected quickly and efficiently.
The company has been using the blockchain since 2018 and it’s already helped the FDA track down the origin of contaminated food within one hour.
And beginning in 2019, Walmart Canada launched a blockchain-based distributed ledger technology to track deliveries, verify transactions, and automate payments between the company and its delivery carriers.
But the company is stopping there. Last year Walmart participated in a pilot program with IBM, Merck & Co. (MRK), and other companies to successfully track prescription medicine and vaccine supply chains. The result could reduce the time it takes to inform companies about a potential recall to just a few seconds.
Microsoft (Nasdaq: MSFT)
Microsoft has been at the forefront of new technology for decades and the company proved that it’s still up for a challenge when it started using blockchain tech in 2018 to manage content rights and royalties for Xbox games.
Microsoft used to have to reconcile a long list of royalties for music, special effects, and other services provided by game-makers that would take nearly a month and a half to distribute.
But blockchain technology has allowed for what the company calls “smart digital contracts” that self-execute in real-time. Royalty payments that used to take 45 days to process take just minutes now.
Microsoft’s use of blockchain doesn’t end there. The company has its own Azure Blockchain Service that other companies can use to set up and manage their own ledgers, and already boasts General Electric (GE), JPMorgan Chase (JPM), and Starbucks (SBUX) as customers.
Blockchain ETFs: Buy These to Reduce Stock Market Volatility
If you want to invest in companies that are using and developing blockchain technologies but you don’t want direct exposure—and the share price volatility that comes with owning individual shares of a company—then buying stock in a blockchain exchange-traded fund (ETF) may be your best option.
There are a handful of blockchain ETFs to choose from and each one generally includes a basket of companies that are developing, investing in, or using blockchain.
These include, Siren Nasdaq NexGen Economy ETF (BLCN), Amplify Transformational Data Sharing ETF (BLOK), and First Trust Indxx Innovative Transaction & Process ETF (LEGR).
How Blockchain Works
Blockchain technology has garnered tons of attention from investors as the price of cryptocurrencies like bitcoin (BTC), Ether (ETH), and (yes, even) Dogecoin (DOGE) have skyrocketed.
If you’re like most investors, you may not know exactly what blockchain is or how it works. So here’s a quick primer: Think of blockchain like a ledger that—in the case of crypto—records financial transactions.
But unlike a bank ledger that gives details about who purchased an item from a specific store, a blockchain can keep this information anonymous. Additionally, and importantly, the blockchain’s ledger is decentralized, meaning anyone, anywhere can view it and no one controls or edits it.
Make sense? Good, now there’s one other thing you need to know: Blockchain can be used for so much more than just keeping track of cryptocurrency transactions.
Many companies have already figured this out and are implementing blockchain technology to create digital identifications, store medical records in the healthcare industry, and even keep track of food supply chain shipments.
Simply put, a digital, decentralized ledger has an ever-expanding amount of use-cases and the companies below are tapping firmly into this market… which is estimated to increase 6,000% between now and 2028.
Frequently Asked Questions
What is the best blockchain stock?
The best blockchain stocks to invest in are the ones that have direct exposure to the technology or companies that are developing their own blockchain services. The top-performing tech stocks on this list over the past three years are Square, PayPal Holdings, and Microsoft.
Can I buy stock in blockchain?
You can’t buy specific blockchain stock on any public exchange, like the New York Stock Exchange or the Nasdaq, but you can invest in companies that develop or use blockchain technology.
How much does blockchain stock cost?
You can’t buy specific shares of blockchain so there is no blockchain stock price.
Where to invest $500 right now
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