Top 5 Blockchain Stocks to Buy in 2024
If you’re interested in learning how to capitalise on the revolutionary technology behind the Bitcoin network called blockchain, then you are in the right place. In this article, we go through what the technology is, some of the best blockchain companies you need to know about and five top blockchain stocks to invest in this year.
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Top 5 Blockchain Stocks
Below is a list of the top five blockchain companies to invest in.
Each of these companies uses blockchain technology in different ways. Some of them offer blockchain services to their customers, some are focused on building new products from the blockchain network and some are focused on cryptocurrency where blockchain is the underlying framework.
While blockchain technology has been talked about widely in the media it is still in its infancy. That makes some of these blockchain companies well-positioned to take advantage of the long-term growth the technology provides which is now being adopted by businesses and governments all over the world. As the blockchain network and technology grow, the companies leading the technology will also change.
1. Mastercard (MA)
Global payments and technology company Mastercard consistently ranks among the top ten blockchain patent holders in the world. The company made the Forbes Blockchain 50 list and is already using blockchain technology. The Mastercard Provenance Solution aims to improve food supply chains all over the world using blockchain technology and has created partnerships with GrainChain and Wirex.
2. Amazon (AMZN)
Amazon is a company that most likely needs no introduction. Not only do they operate the world’s largest e-commerce platform, but they also lead the race in cloud computing services through Amazon Web Services (AWS). This division has now launched Amazon Managed Blockchain which allows users to build and manage their own blockchain networks.
In fact, the newly launched Chia cryptocurrency (XCH) can now be mined on the Amazon Web Services platform. While blockchain services only account for a small portion of Amazon’s revenue, it could potentially be a growth sector for the company.
3. NVIDIA Corp (NVDA)
Most investors would have heard of the NVIDIA Corporation. However, not many may know that NVIDIA designs graphic processing units (GPUs) that are widely used in the cryptocurrency mining industry, as well as gaming, mobile computing and autonomous driving - making the company an important part of using blockchain tech.
4. IBM Corp (IBM)
IBM was once a darling of the tech sector but has fallen back dramatically in recent years. The company has tried hard to reinvent itself by focusing on blockchain technology services through the launch of IBM Blockchain in 2017.
Currently, the company is managing more than 500 blockchain projects for a variety of different companies including Kroger, Walmart and World Wire. As more companies adopt blockchain technology, IBM is one of the blockchain stocks that could benefit.
5. Riot Blockchain (RIOT)
Riot Blockchain is a Bitcoin mining company that supports the Bitcoin blockchain through large-scale mining operations in the United States. The company is currently focused on building energy-efficient mining operations as shown through its recent acquisition of the 300-megawatt Whinston facility in Texas.
According to some analysts, this would give Riot Blockchain the ability to output as much as 750 megawatts with a cost of just $0.025 per kilowatt per hour. This would be the lowest price in cryptocurrency mining giving the company a huge advantage among blockchain companies focused on this type of work.
How to Invest in Blockchain Stocks
With Admiral Markets, you can invest in global blockchain stocks and ETFs with the following commissions:
- UK stocks and ETFs – 0.1% of trade value, 1 GBP minimum commission.
- US stocks and ETFs – From $0.02 per share, 1 USD minimum commission.
- Germany and France stocks and ETFs - 0.1% of trade value, 1 EUR minimum commission
You can learn more about investing commissions on the Admiral Markets Contract Specification page. You can search for global stocks and ETFs from the Invest.MT5 web platform and invest in four steps:
- Open an account with Admiral Markets.
- Click on Trade on one of your live or demo trading accounts to open the web platform.
- Search for your symbol at the top of the search window.
- Click Create New Order in the bottom window to open a trading ticket to input your trade size, stop loss and take profit level.
What is Blockchain
Blockchain is a decentralised technology system where the transactions made in digital currencies are recorded and stored in a linked computer network. The ‘block’ and ‘chain’ elements refer to the list of records called blocks that are chained together using cryptography, producing a distributed ledger. This is why blockchain is also referred to as Distributed Ledger Technology (DLT).
How Does Blockchain Work
The purpose of the blockchain is to record all of the exchanges of data. This record is known as the ledger. The exchanges of data recorded on the ledger are known as transactions.
Verified transactions are added to the ledger as a block. Each block has three elements:
- The data in the block.
- A randomly generated 32-bit whole number is called a nonce.
- A 256-bit number attached to the nonce is called the hash.
Miners can create new blocks on the chain through mining. While every block has its own nonce and hash, it also references the hash of the previous block in the chain.
This means that miners need to use specialised software to solve the complex math problem of finding a nonce that generates an accepted hash of which there are around four billion combinations that need to be mined before finding the right one.
This process makes it extremely difficult to manipulate the blockchain. Once a block is successfully mined and is accepted by the nodes on the network the miner receives a financial reward. Nodes are electronic devices that keep a copy of the blockchain and keep the network running.
Conclusion
While blockchain technology is still in its infancy it is rapidly growing, garnering the attention of many investors. Some of the world’s most well-known companies such as Amazon and Mastercard have adopted the technology and are positioned to be some of the top blockchain stocks to focus on this year.
Finding companies that already have a strong presence but can potentially boost their growth through offering blockchain services, could be an interesting way to diversify your portfolio. However, new technologies come and go and the rise of artificial intelligence has taken some of the momentum out of the use of blockchain technology.
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FAQs on Blockchain Stocks
What is best stock for blockchain?
Some of the top stocks that are involved in blockchain technology include Mastercard, Amazon, NVIDIA, IBM and Riot Blockchain.
Are blockchain stocks a good investment?
As with any form of investing, there is the risk of losing capital. Blockchain stocks could be a good investment if you select the right stock. As the technology is new, it is important to analyse the revenue driving a company and make sure that is growing as this will have a greater impact on the share price.
What is blockchain stocks?
Blockchain stocks represent companies that are involved in the use of blockchain technology which is the technology that underpins cryptocurrencies such as Bitcoin and Ethereum.
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