Cryptocurrency stocks appear to be attractive buys right now. These companies could increase in value amid the next bitcoin (BTC-USD) halving event. I believe the rise of these cryptocurrency stocks during this time will be due to improving investor sentiment and outlook, fear of missing out (FOMO), as well as the fact that many of these cryptocurrency stocks hold large amounts of cryptocurrency on their balance sheets. An improved book value per share could strengthen the investment case that they have viable prospects.
So, with this context in mind, this article will explore three of the best cryptocurrency stocks that investors should consider adding to their portfolios. I feel that they are collectively trading below their fair values โโas they are not immediately pricing in the catalysts that are on the horizon.
Here are the three best cryptocurrency stocks to buy in December.
Coinbase (currency)
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Coinbase (NASDAQ:CURRENCY) has been a key player in the crypto space and maintains its first-mover advantage as one of the major exchanges in the US.
COIN is simply one of those crypto stocks you should own. Shares some similarities with PayPal (NASDAQ:PYPL) in different ways. Both companies are the go-to options in the fintech and crypto markets, respectively, and both have maintained their competitive moats in the face of growing competition.
One of the weaknesses of these brands is that they make profits mainly from their rates, which is a risk since their competitors can undercut them. However, the market has shown us that people are not primarily price sensitive and only a small segment will buy the cheapest option. COIN has managed to keep its ecosystem intact with effective marketing and branding at the forefront, along with features to keep users coming back, such as NFT Wallets and DeFi features.
Furthermore, the market seems to agree that COIN is one of those crypto stocks that should be held for the long term. JMP Securities, an investment bank, recently doubled its price target on the company from $107 to $200.
Coinbase's biggest competitor, binance, has recently faced a series of legal setbacks. While far from resolved, this development gives Coinbase an advantage in the market, at least for now.
Nvidia (NVDA)
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NVIDIA (NASDAQ:NVDA) is primarily known for its GPUs, but it also has many forks in the fire in the crypto industry.
A key development for NVDA stock on the cryptocurrency front is that GPUs launched Designed from the ground up for cryptocurrency mining. These products are designed to meet the high demand of crypto miners while addressing the GPU shortage for gamers. Differentiating its products helps Nvidia ensure that gamers, the main market for graphics cards, do not suffer due to high demand from people using them to mine cryptocurrency.
To further illustrate NVDA's relationship with the crypto industry, an insufficient supply of GPUs boosted Nvidia's revenue last year. Additionally, the company launched its Cryptocurrency Mining Processor (CMP) card. These cards are rumored to have been purchased recently 4300 dollars each in an auction.
As the cryptocurrency market continues to rise thanks to the tailwinds of user adoption and institutional investment, I predict that NVDA will continue to be a growth stock that investors can hold on to.
Block (SQ)
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Block (NASDAQ:SQ) is a financial services and digital payments company with many interests in the blockchain industry.
I'm mostly bullish on SQ stock because it's undervalued. Although its total market capitalization It is impressive at $48.01 billion and a considerable enterprise value of $44.77 billion; with the current PS ratio of just 2.32 times sales, it is trading just above its gross profits. This implies that the stock is trading at a price lower than what its earnings and growth potential would warrant.
Furthermore, SQ has a huge free cash flow of $795.69 million and a net cash position of $3.23 billion or $5.27 per share, so the company is also financially sound.
Considering these factors, SQ stock is one of those crypto stocks to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed are those of the author, subject to the InvestorPlace.com Publishing Guidelines.
