What We Found Might Shock You!?
While it may seem obvious to some, we suspect that many have overlooked what we’ve discovered. Every groundbreaking detail is compiled in our exclusive InsightWire report. Read on to find out more about this!
Crypto Returns Are Out of This World
The cryptocurrency market offers numerous opportunities, and it extends far beyond just Bitcoin. The blockchain world has grown more diverse and interesting. Even as the market matures, investors continue to discover opportunities for astronomical gains, making crypto companies essential components of an investment portfolio.
The average return of blue chips pales in comparison to the performance of Bitcoin and other crypto assets.
For example, Germany’s DAX index has gained 21% since the start of 2023, and the American flagship equities index, the S&P 500, has increased by 40%. These are pretty generous figures. Now consider this: Bitcoin, the largest cryptocurrency by market cap, has surged over 230% during the same period. Imagine the boost it could provide to a traditional portfolio.
And I’m not even stretching the timeframes to show the astounding returns since the previous years – it would be unfair to compare the fast growth of Bitcoin in its early days with the well established stock market. However, there are still many promising crypto projects that are making their first steps.
Bitcoin & Web3 Will Rock in 2024 and On
The blockchain market has recovered from the ‘crypto winter’ – a multi-month bearish phase triggered by several crypto crashes and bankruptcies, culminating with the collapse of the infamous FTX. Crypto investors are now more optimistic than ever.
There are two main directions where you should look into: Bitcoin and Web3.
Bitcoin is the king of crypto, acting as the first violin that is making the trends. With a market cap of over $1.1 trillion as of mid-August 2024, it accounts for over 55% of the entire crypto space. The oldest coin reached a new ATH of $73,000 in March of this year.
Deutsche Bank analyst Marion Laboure said that Bitcoin is becoming the 21st century gold. She highlighted the cryptocurrency’s programmed scarcity. With the maximum supply capped at 21 million coins and over 94% of it already in circulation, Bitcoin has turned into a store of value (SoV) and a refuge against inflation.
Although Bitcoin’s network is rigid and doesn’t support decentralized applications (dapps), Web3 offers a more decentralized version of the Internet and online services powered by blockchains that support smart contracts. Some examples of underlying chains are Ethereum, Solana, Polygon, Avalanche, and Sui. These networks power the decentralized finance (DeFi), security token, and non-fungible token (NFT) trends, among others.
ING and Bank of America separately concluded that DeFi was more disruptive than Bitcoin itself.
Companies exposed to Bitcoin and Web3 provide many great opportunities.
Why Invest in Crypto Stocks Instead of Crypto?
Cryptocurrencies can show impressive returns, but we think investing in crypto-related stocks is better, and here is why:
- Convenience – to begin with, storing crypto requires you to deal with digital wallets and multiple transfers. In this case, exiting positions is more difficult, while losing the private key means losing all funds. Some investors buy and hold crypto with crypto exchanges, but this is not the best idea since they’re vulnerable to hacking attacks and exploits.
- Diversification – gaining exposure to crypto stocks helps investors diversify their traditional portfolios.
- Stability – crypto-related companies are less than crypto assets, which often defy any technical analysis logic.
- Regulation – unlike crypto assets, stocks are listed on official stock exchanges, being under the supervision of regulators.
- Dividends – unlike Bitcoin and other cryptocurrencies, many companies pay dividends, multiplying the income stream.
This Success Story Proves Why You Should Go for Stocks
Let’s quickly explore the story of a German company exposed to Bitcoin and see how holding selected stocks provides a great balance between return potential, safety, and diversification capability.
The company I have in mind is Bitcoin Group SE, a Herford-based crypto investor listed on XETRA with the ticker ADE. In 2023, ADE had a challenging period after the ‘crypto winter’ period, but in 2024, the stock has been flying.
As you can see in the chart below, ADE tends to mirror the price of Bitcoin. Although it couldn’t catch up with the cryptocurrency, it has been more stable and provides regulatory safety.
Needless to say, ADE has performed way better than most companies across various industries, proving the immense potential of crypto-related stocks.
Our Gem Can Become the Next ADE
ADE has a valuation of 250 million euros, but our hidden gem is only starting to flourish, showing great potential for similar returns in the upcoming years.
I won’t reveal the company we’ve discovered—details will be in our upcoming dedicated report—but it’s important to know that it’s at an early stage and available at a very low price. This is a real steal that can leverage the massive opportunities of the crypto space.
It’s worth noting that, as a European company, it operates within a crypto-friendly market. The European Union has become the world’s first major jurisdiction to develop and approve a crypto regulatory framework that defines all the rules in a clear fashion.
Therefore, there is no risk that our gem will be pressured to ponder an exit from the EU market, such as Coinbase did recently in the US.
You Will Know It First!
Many investors express regret for not paying attention to the companies when they were first reviewed by the StockWire.
These companies have paid our readers by performing great, but there are other companies that are worth considering as well. Our team believes that some crypto companies are currently undervalued and may become huge in the medium-term future.
Many investors are wary of the high volatility of cryptos, but our selected stocks provide stability. Be the first to discover these gems!
You can get a free copy of our Research report called InsightWire for a limited time by filling out your e-mail address below.
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