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| Crypto Mining Stocks with the Best Performance | |||
|---|---|---|---|
| Price ($) | Market Cap ($M) | 12-Month Trailing Total Return (%) | |
| Canaan Inc. (CAN) | 3.25 | 557.4 | -62.5 |
| Marathon Digital Holdings Inc. (MARA) | 12.82 | 1,498 | -64.0 |
| HIVE Blockchain Technologies Ltd. (HIVE) | 4.55 | 374.2 | -70.3 |
| S&P 500 | N/A | N/A | -10.7 |
| Amplify Transformational Data Sharing ETF (BLOK) | N/A | N/A | -51.5 |
Source: YCharts
- Canaan Inc.: See above for company description.
- Marathon Digital Holdings Inc.: Marathon Digital Holdings is a digital asset technology company engaged within the mining of cryptocurrencies. Its primary focus is on the blockchain ecosystem and generating digital assets. On Aug. 8, Marathon reported Q2 2022 earnings results. It net loss widened considerably YOY as revenue declined by about 15%. Results were impacted by aspects including the decline in the value of bitcoin, and maintenance and weather issues.
- HIVE Blockchain Technologies Ltd.: See above for company description.
Analyzing Crypto Stocks
If you’re planning to take a position in crypto mining stocks and other related corporations, it is important to have a way of the underlying cryptocurrency market. Investing in cryptocurrencies requires an understanding of what data to search for on a technical evaluation crypto chart. There are a couple of basic parameters to think about when assessing the performance of a cryptocurrency.
Price: Checking the value of a cryptocurrency is step one in checking its performance. Comparing price movements with past days, weeks, months, years, and all times are among the tools mandatory to grasp before investing.
Market cap: The market capitalization of a cryptocurrency is calculated by multiplying the value of every token by the variety of circulating coins. A comparison could be made with the information over the past few days, weeks, and years.
Trading volume: This refers back to the variety of times that a coin changes hands during a certain time period. If it’s expanding, meaning increasingly more persons are buying the coin.
Hashrate: This is the speed of mining a cryptocurrency. In other words, it measures what number of calculations could be accomplished in a second in units of hash/second. It’s a superb sign if the hashrate is higher because meaning numerous miners are verifying transactions, and hence the cryptocurrency is safer.
Circulation supply: In general, circulation supply refers back to the variety of coins or tokens which are actively traded and used out there and by people. The price of coins will depreciate if the provision is high and the demand is low.
Risks of Crypto Stocks
Due to high volatility, the cryptocurrency market carries a certain level of risk, and price swings are common. Before you begin investing in crypto, you need to outline your appetite for risk and implement a solid risk management strategy.
While cryptocurrencies are dangerous, additionally they have the potential to supply outsized returns. When Bitcoin began in 2009, the digital currency essentially had little or no value. In the years that followed, it jumped to a fraction of a penny after which eventually to tens of 1000’s of dollars. Gains like these is perhaps amongst probably the most significant advantages of investing in cryptocurrency.
In addition, the cryptocurrency market is currently dominated by speculative trading. Studies of blockchain activity show that exchange trades remain probably the most prevalent use for cryptocurrencies—and account for way more economic activity than strange trades and purchases. Cryptocurrency skeptics, including Warren Buffett, Bill Gates, and JPMorgan CEO Jamie Dimon, have all warned of a possible crypto bubble. Cryptocurrencies will not be unique in being subject to speculative manias and irrational exuberance, but that is one other risk to think about.
As a brand new technology, some speculative behavior is to be expected, especially as blockchain technology matures. However, recent investors must be wary of falling into fraudulent situations or psychological traps reminiscent of herd instinct, fear of missing out, or the greater idiot fallacy, which may make all of the difference between a calculated risk and a silly one.
The comments, opinions, and analyses expressed herein are for informational purposes only and mustn’t be considered individual investment advice or recommendations to take a position in any security or adopt any investment strategy. Though we consider the data provided herein is reliable, we don’t warrant its accuracy or completeness. The views and methods described in our content will not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained inside our content are rendered as of the date of the posting and will change suddenly. The material shouldn’t be intended as an entire evaluation of each material fact regarding any country, region, market, industry, investment, or strategy.
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