Over the past few weeks, the prices of major cryptocurrencies have seen another significant spike. While we are used to seeing cryptocurrencies and stocks rally massively, an increase of roughly 50% in a matter of weeks is still noteworthy.
However, because these price increases are so common, you may be wondering if the rally can continue. Is this the start of another month-long bull run or a short-term rally that will soon fade away?
Can the Crypto Industry Bull Run Continue?
While some fundamental factors have led to price increases, there is nothing to say that a volatile sector like crypto cannot be sold again.
That said, however, there are still interesting innovations in the cryptocurrency and blockchain industry. This should help give cryptocurrencies and cryptocurrency stocks a significant long-term boost.
The NFT industry, for example, is expanding rapidly. It is more than an industry to speculate on works of art or sports moments. There are some high potential use cases in the space and plenty of opportunities for more innovation in the years to come.
Decentralized finance (DeFi) is another area with a ton of potential and ongoing innovation, helping to drive mass adoption in the crypto space.
So as an investor, if you want to gain exposure to this high growth potential industry, it makes sense to take a long-term position.
It is not known what crypto stocks or the rest of the industry will do for the next six months. However, if you think there is long-term potential in the industry like I do, then your best bet is to buy and hold.
This way, you don’t have to worry about short-term volatility and are exposed to some incredible growth opportunities.
So if you are bullish on cryptocurrencies, the only question now is, which stock is the best for your portfolio?
The top cryptocurrency stocks to buy today
Investors interested in buying long-term crypto stocks have a few investment options to consider.
My personal favorite is a company like Galaxy digital holdings (TSX: GLXY). Galaxy Digital is an exciting stock that offers investors exposure to various growth opportunities in the sector.
It has multiple strategic lines of business, including trading, investment banking, and even a hedge fund to invest in startups.
Another line of business it offers is asset management. The company has created funds such as CI Galaxy Bitcoin ETF to give investors exposure to cryptocurrencies through an exchange-traded investment vehicle.
These funds have been very popular and are another reason why Galaxy Digital has seen its operations grow so rapidly. However, these ETFs are also an excellent option for investors. If you prefer to have direct exposure to Bitcoin or even Ether, you can buy these funds for your portfolio.
Lastly, of course, one of the most popular ways investors can gain exposure to cryptocurrencies is through mining stocks.
Mining companies are some of the fastest growing crypto stocks you can buy. Naturally these have been extremely popular, especially at the major bullfights we’ve seen over the last year.
However, mining can be very competitive. And these companies have to continually improve their computing power to remain competitive. Therefore, as with any stock that has massive growth potential, these stocks can be very risky.
However, regardless of which crypto stocks you decide to buy, if you are bullish in the industry and committed to your investment for the long term, there are a myriad of opportunities to grow your capital.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool advisor or premium service. We are Motley! Questioning an investment thesis, even one of our own, helps us all to think critically about investing and make decisions that help us be smarter, happier, and wealthier, which is why we sometimes post articles that may not be online. with recommendations, ratings or other content. .
Fool associate Daniel Da Costa owns shares in Galaxy Digital Holdings Ltd. The Motley Fool has no position in any of the aforementioned shares.