If you are a Canadian investor, chances are you have a Tax Free Savings Account (TFSA). While the TFSA is great, this year there is a total contribution room of $ 75,500. Now, if you are interested in buying Bitcoin, you have a problem. Bitcoin is currently trading at around $ 66,600 at the time of writing. So even if you haven’t invested a dime in your TFSA, that means you can only put one Bitcoin in your TFSA. Maybe it’s time to take a look at the big picture of cryptocurrency.
Let’s say you don’t have $ 66,600 lying around. But you want to participate in the cryptocurrency action. I don’t blame you! Fortunately, there are other ways to invest in Bitcoin and cryptocurrency that won’t cost thousands of dollars. In fact, you can keep everything for less than $ 10 a share.
Canada now has several exchange-traded funds (ETFs) exclusively focused on Bitcoin. The first official was Bitcoin ETF objective (TSX: BTCC.B). It invests 100% in Bitcoin, using investor funds to buy Bitcoin, and then ETF investors get a share. So basically it’s like investing in Bitcoin for a fraction of the price. As you can see, the stock has worked almost exactly like Bitcoin since it first hit the market.
At the time of writing this article, Purpose ETF has around $ 1.2 billion in Bitcoin. ETF shares have risen 13% since entering the market this year. If you’re the type who believes that Bitcoin not only has a future, but a future that’s about to skyrocket, then Purpose is exactly what you want. Right now, you can buy stocks for around $ 10.25.
Bigger than Bitcoin?
Dogecoin has exploded this year, but not by the share price. Let’s do another side-by-side comparison with Bitcoin. While Bitcoin is currently up 545% last year, Dogecoin is crazy 23,430% in the last year! This growth, of course, must be put in context. While Bitcoin trades in the tens of thousands, Dogecoin has gone from $ 0.0034 per share to $ 0.80 per share. Yes, you could have won millions, but it would have been a rare occurrence.
The question is, can you again make millions? Cryptocurrency, which started out as a joke, is like any other cryptocurrency stock. The whole market is volatile, so you will likely see a massive fluctuation in this investment. This is even more so that a move of a cent could be a huge dent if you invest enough to make millions. So it’s not my favorite, but at $ 0.80 per share it’s absolutely affordable to take a small stake.
It is by far my favorite investment. Whether you are interested in Dogecoin, Bitcoin, Ethereum, or any other cryptocurrency, HIVE Blockchain Technologies (TSXV: HIVE) is what you’ll need. The company invests in air-conditioned data centers to mine and sell cryptocurrency. It continues to grow by acquisition and is a real business, not a currency.
This means that its performance actually depends on income. More recently, these revenues have increased to $ 13 million, compared to $ 5 million in the same period last year. And the stock keeps increasing. As of this writing, shares of HIVE are trading at $ 4.22 per share and are up 1,123% in the past year! So here you get the performance middle ground between Dogecoin madness and Purpose stability.
At the end of the line
Cryptocurrency remains an investment area with a lot of volatility. Although all three of these stocks are trading for less than $ 12 per share, if you were considering one, I would choose the HIVE stock. The rest are too dependent on the performance of an individual currency. The HIVE stock, however, is simply dependent on whether the cryptocurrency will be around in a few years. If today is any indicator, it looks like a probable future.
But before you consider HIVE stocks, there are even more high growth stocks outside of this volatile industry.
Should you invest $ 1000 in Hive Blockchain right now?
Before you consider Hive Blockchain, you might want to hear this.
Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his team Stock Advisor Canada just revealed what they believe are the 10 best stocks investors can buy right now … and Hive Blockchain was not one of them.
The online investment service they have been running since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market more than 3 times. And right now, they think there are 10 stocks that are better buys.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool service or advisor. We are Motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we’re posting sometimes articles that may not meet recommendations, rankings or other content. .