On the last day of 2020, bitcoin soared to as high as $29,292. Now it’s more than $39,000. The writing is on the wall. Not since 2017 has cryptocurrency experienced such a banner year. It’s no wonder that investors are on the lookout for crypto mining stocks to buy so they can play this red-hot trend.
As economies around the world struggled with the novel coronavirus pandemic, bitcoin quadrupled in value in 2020. However, opinions remain divided on whether cryptocurrencies are an effective hedge against dollar weakness and inflation risk due to their speculative nature.
But one thing is for certain, as prices continue to soar, bitcoin-mining devices will become more difficult and expensive to obtain. That’s why crypto mining stocks have become a safe way to buy into the industry.
In a bull market, these companies give you the opportunity for outsized returns. When things turn pear-shaped, they will continue to deliver respectable profits.
Here are three names that you should keep on your watchlist this year:
Crypto Mining Stocks to Buy: Riot Blockchain (RIOT)
RIOT stock gained nearly 1,500% in 2020, handily outpacing the 314% gains made by bitcoin during the same period. On Dec. 21, the company said it would spend $35 million to acquire more mining capacity, known as