Top 5 Best Blockchain Stocks to Buy in 2023

This versatile blockchain technology has been making waves in various industries, and its potential to revolutionize traditional businesses has made it a hot topic among investors. As such, many investors are looking for ways to get involved with this new technology, and one of the best ways is by investing in blockchain stocks.

Let's take a look at the top 5 best blockchain companies to buy into in 2023. We’ll discuss their potential for growth, how they make use of decentralized technology, and why investing in these publicly traded companies now could be a smart move.

How To Buy Blockchain Stocks

If this is your first time investing in stocks, you might need clarification as to where to start. We'll run through the key steps to take so that you can make the most informed decision possible on where to invest your money.

1. Investigate Prospect Companies

The gamble of the stock market is that you can never fully predict what will happen in any given industry. You can try – which is what analysts do professionally – but ultimately, there can be no guarantees. That's why the best way to get started is to research any potential companies and use that information to create an informed decision.

Don't limit yourself to just one industry, even if you've decided that blockchain is your focus. Take the time to look into other related sectors, such as fintech and AI, to get a better idea of what's happening in the world of technology right now. Thoroughly research a list of stocks in terms of:

• Market capitalization (indicates company size)
• Revenue growth (indicates company success)
• Management team (experience and reputation in the industry)
• Financials (1-year, 5-year, YTD)

A common mistake investors make is to look exclusively at financials with no regard to the company’s fundamentals. That's why it's important to combine financial analysis with other factors such as management and market capitalization.

2. Decide Your Investment

How much are you willing to spend on a particular stock? What is your investment strategy? Consider whether you want to take a long-term or short-term approach. Long-term investments are more suitable for those who can afford to wait out market cycles, while short-term investments require a higher risk tolerance and the ability to act fast on opportunities.

The amount you choose to spend will obviously depend on your own financial situation and investment goals. Make sure to factor in the potential of any stocks you're looking at against your own risk appetite, time horizon, and budget.

It's always advisable to spread your investment budget across different stocks in order to reduce your risk and increase your chances of success.

3. Order and Monitor

It's time to choose a broker and begin placing orders on your chosen stocks. Each broker will have their own fees and services, so make sure to research them thoroughly before you commit to one. You can, of course, make direct purchases from the stock exchanges – but an app will give you a better overview of the market, access to more stocks and allow you to set up alerts and other notifications.

Once your order is placed, make sure to monitor any investments closely. While you don't want to be constantly checking in on them (that can lead to overtrading), it's important that you stay informed about any developments related to those companies so you can take advantage of any changes in their share prices.

If you're struggling to choose the right online broker for you, make use of our free comparison tool to compare different brokers and learn more about their fees and services.

The Best Blockchain Stocks to Buy Now (2023)

Ready to invest in blockchain stocks? Now that you're aware of the process and have an understanding of the basics, let's take a look at some of the best blockchain companies to invest in during 2023.

Nvidia (NVDA)

Anyone who knows Nvidia is aware of the company's impressive portfolio when it comes to computer graphics cards. It was the first to introduce revolutionary GPU technology, and it remains at the forefront of innovation in terms of artificial intelligence and computing power.

In the blockchain space, Nvidia made waves with a GPU designed specifically for mining cryptocurrency. Mining is an energy-intensive process that requires a lot of computing power – which is the issue Nvidia addressed in their release of the CMP HX chip.

Nvidia has a substantial market capitalization of $552.55 billion, which isn't surprising, but it also has great returns: a 5-year annualized return of 27.6% and a 10-year return of 49.8%. It's hard to go past Nvidia when the company has been, and remains, such a prominent player in the blockchain and tech hardware space.

Coinbase Global Inc (COIN)

Coinbase was founded in 2012 and is now the United States' biggest cryptocurrency exchange. It's considered the go-to platform for most American traders and investors, which is an impressive feat considering the competition. Coinbase stays ahead of the curve by introducing new features and products that cater to the changing crypto landscape.

The road has been slightly rocky for Coinbase in recent months due to a couple of legal issues as well as the general decline in crypto prices – but with crypto exchanges, lows rarely stick around for long. Coinbase is so heavily entrenched in blockchain technology that it's likely to remain a strong investment option as the technology evolves.

COIN has a market cap of $16.21 billion and saw a 90% surge in January for a promising start to the year. It will be interesting to see how Coinbase fares in the next couple of years as blockchain technology continues to grow.

Riot Platforms Inc (RIOT)

Founded in 2000, Riot Platforms has become a key technology company in the crypto mining space. The company primarily supports the Bitcoin blockchain via its substantial mining operations throughout the United States. Riot blockchain projects employ the latest in mining technology to ensure that its operations remain competitive and efficient.

Since January 2022, Riot reports a 62% increase in BTC production and a holding of 6,978 BTC. A few minor setbacks in production have derailed the company's Q1 goals; however, operations move ahead with optimism from key stakeholders.

Riot has a market cap of $1.1 billion and is projected to see a median $10 stock price increase over the next twelve months (subject, of course, to market conditions).

IBM Corp (IBM)

IBM is one of the oldest tech companies in the world and has a proven track record in terms of innovation. The company saw its hay day producing and selling powerful computer hardware; the floppy disc, UPC hard drive, and hard disk drive are all inventions owing to IBM.

The company began to struggle when faced with contenders like Nvidia, however, and responded by moving into the blockchain space with IBM Blockchain. This is an enterprise blockchain solution aimed at making data exchange and workflow automation more seamless for businesses.

IBM has a market cap of $122.82 billion. While it hasn't started the year off as strong as other stocks, it could still be an attractive option for investors looking for a long-term investment in the blockchain space. Companies with a proven track record of reinvention can be more flexible when shifts in the market occur.

Amazon Inc (AMZN)

Amazon is a behemoth in the e-commerce space and has been for years. The company started as an online bookseller and quickly grew to encompass other goods. Now, Amazon supplies almost anything you'd need from groceries to video game consoles.

The company has recently made moves into the blockchain space with the introduction of AWS Amazon Managed Blockchain. Recognizing that many companies opt out of blockchain due to its complexity, Amazon launched a fully managed service that allows companies to have their own blockchain networks without having to set up and maintain infrastructure.

Unsurprisingly, Amazon has a market cap of $1.05 trillion and an average volume of $79.34 million. The company leaders are exceptional innovators with a ball in every court – so if its blockchain solution doesn't take off, the company still has many other sources of growth.

Best Blockchain Stocks Conclusion

If you haven't already, now may be an opportune moment to look into investing in blockchain stock. All of the companies listed above have a proven track record for success, and while we cannot guarantee strong returns, these five stocks are contenders for potential growth.

Check out their individual profiles and do your own research to determine which one is right for your portfolio. If you're looking for more information or advice on how to choose stocks, take a look at our resources for investors.