Best Crypto Mining Stocks

Invest in the best crypto mining stocks with Interactive Brokers or Plus500.

The new year brings new opportunities and in recent years, there has been no hotter topic than crypto stocks. The crypto market, despite raising eyebrows, has presented excellent investment potential.  The cryptocurrency market is full of decentralized digital currencies which allow transactions without requiring a third party. Bitcoin has led the way to become the most successful crypto. However, there is another way to gain exposure to Bitcoin and other cryptos — via crypto mining stocks. Learn all you can about these stocks before you invest.

Quick Look at the Best Crypto Mining-Related Stocks:

5 Best Crypto Mining-Related Stocks

Ready to check out the top crypto mining stocks of the year? Get started with our list of the best.

1. Riot Blockchain (NASDAQ: RIOT) 

Riot Blockchain is a Bitcoin mining company that is set to expand its mining. It is one of the biggest U.S.-based publicly-traded Bitcoin miners. However, the company saw a significant correction to its share price after reaching all-time highs in the first quarter of 2021.

It has an aggressive growth plan, looking to increase its mining capacity from 3.0EH/s to 9.0EH/s.

2. Marathon Digital Holdings (NASDAQ: MARA)

Marathon Digital is another Bitcoin mining business. The recent fall in its share price was due to the recent fall in Bitcoin, but the company is expanding in 2022. Its reported hash-rate for Q3 was 2.7EH/s, but expects by mid-2022, an increase to 13.3EH/s.

3. Bit Digital (NASDAQ: BTBT) 

Bit Digital is headquartered in New York, and it currently has 27,744 mining assets in operation.  Its focus on sustainability is vital, as the majority of its operations run on carbon-free energy sources. Since its inception, Bit Digital has mined 3,334.89 bitcoins. 

4. Hut 8 Mining Corp. (NASDAQ: HUT) 

Hut 8 Mining specializes in Bitcoin and Ethereum mining through multiple mining centers and proprietary hardware and software mining operations. 

The company has two data mining centers in Alberta, Canada, focusing on mining efficiently and in an environmentally conscious manner. Hut 8 has expansion plans to pursue aggressive growth and remains an attractive crypto mining stock.

5. Argo Blockchain (NASDAQ: ARBK) 

Argo Blockchain runs an efficient mining infrastructure from its headquarters in London and state of the art facilities in North America. As a result, the company reported impressive mining growth in November, increasing about 15% compared to the previous month.

Overview: Cryptocurrency Mining Stocks

The crypto market has multiplied in such a short period and shows no signs of stopping, despite its recent decline. Blockchain technology assists the maintenance of these decentralized transactions as there is no third party involved.

The mining stocks operate through mining computers to solve complex problems, and in reward, validate transactions and receive new cryptocurrency. Crypto coins then can be held or used in transactions through different databases. 

The crypto mining market was more volatile than usual in 2021, with the stocks listed seeing unconvincing moves in their share price. This may be in relation to Bitcoins price fluctuations throughout the year after a great start.

How to Buy Crypto Mining Stocks

Certain brokers may not offer crypto mining stocks. If your current broker does not offer these stocks or you don't have an account yet, then the steps below are for you.

1. Find a Brokerage

A broker is an essential intermediary between you and the stock exchange. The customer places an order via their broker to buy a stock, and the broker fills out the instructions. If you decide to purchase shares in any of the crypto mining stocks, you instruct your broker to buy the number of shares you request at the price you set, and it carries out those instructions.

The broker will charge a small fee in return. The fee varies depending on the broker. Make sure you research your broker to understand any fees that may be charged,

2. Decide How Many Shares You Want to Buy

Once you have chosen a broker, you need to fund your account and decide how many shares to buy. Take into account the amount of risk you want to take and the percentage of your account attributed to each crypto-mining stock. 

Starting with a small investment and adding consistently over time is a strategy that may work well for you. However, before you make your purchase, consider how you will enter the market. 

3. Choose Your Order Type

This stage requires you to decide on how your position is executed. The most popular order choices include market order and limit order.

Market orders mean you acquire the shares at a price dictated by the market. Or, in other words, you buy at the current market price. Using market orders results in a high chance your order will be filled. 

Limit orders mean that you decide the price you want to buy the stock. You can determine what price you buy the shares at, but you face the risk that the order won’t be filled if the price doesn’t hit your predetermined level. 

4. Buy the Shares

If all the previous steps have been completed, now all that’s left is to buy the shares. Once you have opened the trade ticket and completed the required fields, the last thing to do is click buy. Once completed, you have the option to monitor the position through your portfolio and add to the position over time.

Best Online Brokers for Cryptocurrency Mining Stocks

It's important to find the best broker with the lowest fees. With a variety of choices, it can be challenging to find the best one for you. Get started with our picks for the best brokers for crypto mining stocks.

Features to Look for in Crypto Mining Stocks

If you’re ready to purchase crypto mining stocks, here are the key features to consider:

• Sustainability: As the price of certain crypto coins has increased, specifically Bitcoin, the carbon footprint for the market has followed closely behind. However, the future of clean and renewable energy is rapidly growing and it is an excellent feature for crypto mining stocks to take advantage of and improve their position.
• Hashrate: The hashrate is a numerical value specifying how many hashes are generated by bitcoin miners to solve the current block. This is an important feature for a mining stock and is attractive to investors.
• Number of miners: The increase in miners generates more transactions for the company and more profits to be obtained. Costs for crypto miners can be high, so the number of miners utilized is an important figure for the business.

Pros and Cons of Crypto Mining Stocks

There are pros and cons to investing in any of the top crypto mining stocks. Each company can offer you something different, and it’s important to weigh the strengths and weaknesses before you choose to back any business.

Pros

• Exposure to cryptocurrency market: Investing in mining stocks provides indirect exposure to the crypto market without directly owning cryptocurrencies.
• Potential for high returns: During crypto bull markets, mining stocks can see significant price appreciation, often outperforming the cryptocurrencies themselves.
• Easier to invest: For traditional investors, buying stocks through established brokerages may be more familiar and accessible than navigating cryptocurrency exchanges.

Cons

• Volatility: Crypto mining stocks can be extremely volatile, often experiencing sharp price swings based on cryptocurrency prices and market sentiment.
• Operational risks: Mining companies face challenges such as equipment obsolescence, rising energy costs, and potential regulatory crackdowns.
• Dependency on crypto prices: The profitability of mining operations is heavily tied to cryptocurrency prices, making these stocks vulnerable to crypto market downturns.

Biggest Crypto Mining Movers of the Day

How Far Can Crypto Mining Stocks Go?

The topic of cryptocurrencies has been a never-ending debate since the rise of Bitcoin. 2021 was a significant year for the market, with some investors realizing significant gains. However, many people still have doubts about the authenticity of digital currencies.

Crypto mining stocks will be essential and have shown signs of outgrowing certain cryptocurrencies. Uncertainty is the norm in the crypto space, but it's volatile market can also generate significant returns.

Frequently Asked Questions