Way back in November, I predicted that crypto stocks would dominate the market in 2021. Now that we’re more than a quarter into the year … Was I right?
Check out the video below. I made my call on crypto back in November 2020. Back then, bitcoin was breaking out at $15,000. In mid-April, it broke $64,000!
Crypto has absolutely been one of the hottest sectors so far in 2021. Bitcoin itself is not a stock, but I’d still consider it the sector leader. All crypto stocks seem to follow its lead.
More recently, the highly anticipated Coinbase Global Inc. (NASDAQ: COIN) direct listing brought a lot of hype to the sector.
But it was also a textbook example of why I don’t suggest trading day-one IPOs, listings, or market debuts. There’s no data. You just never know how things will go. I prefer to wait for the stock chart to set up so I can see the direction of the trend.
COIN was supposed to debut at $250. If you ask me, COIN management got greedy. It opened in the high $300s. Then it gapped way up to over $400. That didn’t last. COIN then dropped fast, settling in the low $300s on the day-one close.
Many traders called it a failure. I think they’re missing the point. The stock was going to be offered at $250 and it closed above $300. In the scheme of things, that’s not so bad.
Sympathy plays in the crypto sector didn’t know which way to go. They mainly stayed sideways or dropped. But that doesn’t mean crypto stocks are over. I consider these the best crypto stocks to keep on watch…
Table of Contents
- 1 Top Crypto Stocks to Watch
- 2 See the Stocks I’m Watching
- 3 Conclusion
- 4 One Platform. One System. Every Tool
Top Crypto Stocks to Watch
As I always say with any watchlist, these stocks are in no way a recommendation to buy or trade. These are the top picks on my watchlist. Take notes and see what fits your watchlist based on your strategy. Let’s get to it!
Crypto Stock #1: Bit Digital Inc. (NASDAQ: BTBT)
My approach to crypto-related stocks really isn’t all that complicated. When bitcoin rips, sympathy plays like Bit Digital Inc. (NASDAQ: BTBT) tend to follow suit.
For example … In early February 2021, bitcoin broke out. Between February 5 and February 8, BTBT shot from around $17.50 to over $25.
In true “buy the rumor, sell the news” fashion, it had another spike right before the COIN market debut.
To put it simply — when bitcoin’s in play, I consider crypto stocks like BTBT and all the others on this list as potentially being in play, too.
Crypto Stock #2: Canaan Inc. (NASDAQ: CAN)
Not to bore you, but the general thesis for all of the stocks on this list is the same. When bitcoin runs, crypto stocks often follow.
So how do you choose the best crypto stocks to buy?
Personally, I look for stocks that have some sort of an edge.
For instance, on my weekly watchlist from March 15, I favored Canaan Inc. (NASDAQ: CAN). There was bitcoin buzz that week, and I felt like CAN seemed to have fewer bag holders and people holding into spikes than other sympathy plays.
Another reason to keep this ticker on your radar? As of mid-April, CAN is in the $13s. It may not be a crypto penny stock, but it is one of the lower-priced plays on this list.
Crypto Stock #3: Grayscale Bitcoin Trust (OTCQX: GBTC)
I just went back in my archives and found a May 2017 webinar where I referred to a bunch of crypto stocks including Grayscale Bitcoin Trust (OTCQX: GBTC) as “bitcoin junk.”
It was a crypto penny stock at the time … As of mid-April, it’s trading in the $50s.
Just because it’s higher-priced doesn’t mean it’s played out. All crypto plays have the potential to make explosive moves.
Turned off by the price? I suggest learning more about what I call the rule of ten. That’s an uncomplicated approach to higher-priced plays using low-priced stock trading strategies. Learn more here:
Crypto Stock #4: Marathon Digital Holdings Inc. (NASDAQ: MARA)
Like with the other crypto stocks in this list, Marathon Digital Holdings Inc. (NASDAQ: MAR) went sideways after COIN’s direct listing.
But I don’t see it as a sign that crypto stocks are over.
Repeat runners tend to run again. MARA has had quite a few runs in the past few months. I’ll keep an eye on MARA as the COIN chart forms and during any and all future bitcoin runs.
Crypto Stock #5: Riot Blockchain Inc (NASDAQ: RIOT)
I love it when a crypto stock has a good story.
During my April 14 Pre-Market Prep session, Riot Blockchain Inc. (NASDAQ: RIOT) provided a great example.
Bitcoin had just passed $64,000. While all crypto stocks were a watch that day, my favorite was RIOT. A prominent short seller had just bashed it on Twitter … It then gapped up even while other crypto plays were fading.
This gave me a chance to teach an important lesson about short sellers creating short squeezes. And it demonstrates that sometimes these plays can deviate from the sector leader or have their own catalysts.
RIOT will remain a watch for me in the foreseeable future…
See the Stocks I’m Watching
Curious about how I’m finding and watching crypto stocks? I use StocksToTrade, of course.
With its advanced charting software and built-in scans, STT has everything traders need to help filter down the thousands of stocks out there into a manageable watchlist.
You can try StocksToTrade for 14 days for only $7. Or you can get a 14-day trial of StocksToTrade with the Breaking News Chat add-on for just $17.
I also have a NO-COST weekly watchlist — subscribe now!
If I sound like a broken record talking about these crypto plays … That’s probably a good thing. Trading them isn’t rocket science. They do tend to follow certain patterns.
By getting to know the patterns these stocks follow and how they react to common catalysts, you’ll be better prepared to take advantage of trading opportunities when they come along.
By getting to know the patterns and how these crypto stocks react, you’ll be better prepared to take advantage of opportunities when they come along.
Want more? I talk about plays like these crypto stocks all the time in my NO-COST Pre-Market Prep sessions.
If you’re really willing to take the next step, consider joining my mentorship program, the SteadyTrade Team. We’re all trying to learn, grow, and get a little better every day together.
Have you traded any of these hot crypto stocks? Tell me all about your experience!