Written by Daniel Da Costa at The Motley Fool Canada
For two years through the pandemic, there were plenty of growth stocks gaining value rapidly and creating several excellent opportunities for investors. But some of the best growth stocks to buy were in the crypto industry as many popular cryptocurrencies rallied significantly.
However, for roughly six months now, cryptocurrencies have been out of favour, and there is certainly much less interest in crypto from investors than at the peak of the rally.
It should be noted, though, that crypto stocks have been out of favour for roughly the same amount of time as many other growth stocks, especially ones in the tech sector.
Furthermore, while there may be less interest and less momentum from retail investors to find crypto stocks now than there was at the peak of the rally, the industry is still far more popular and has far more potential than it ever has compared to the last times the industry was correcting.
So now is one of the best times to buy top crypto stocks, as they are some of the highest potential growth stocks on the market, and many currently trade at unbelievable values.
What are some of the best crypto stocks to buy now?
Although the crypto industry offers incredible potential, choosing the right stocks that you can commit to for the long haul is key. We all know the industry is super-volatile, so many investors will want to avoid higher-risk mining stocks.
Instead, some of the best growth stocks to buy are crypto ETFs, which offer exposure to popular cryptocurrencies. For example, Ethereum (CRYPTO:ETH) is one of the most popular and highest potential cryptocurrencies to invest in. That’s why one of the best growth stocks to buy now is the CI Galaxy Ethereum ETF (TSX:ETHX.B).
Don’t get me wrong. The ETF will still be more volatile than many stocks. However, compared to other crypto stocks, it’s one of the lowest volatility investments you can make.
Furthermore, the ETF, in general, is a relatively straightforward investment. All you’re concerned about is whether the price for Ether will rally. With other crypto stocks, there are a lot more risks to consider, especially execution risk.
So if you’re looking for growth stocks from the crypto industry that you can buy for the long haul, crypto ETFs are some of the best to buy.
One risk that all crypto stocks have, though, is that you can’t trade them on the weekends. Meanwhile, cryptocurrencies generally trade 24 hours a day, seven days a week. So it’s possible for these assets to see major price movements over the weekend when investors can’t buy or sell any of their stocks.
However, that shouldn’t be a big deal if you’re a long-term investor who’s bullish on crypto and willing to wait for these assets to appreciate naturally.
Crypto stocks are great investments and some of the best growth stocks to buy now. However, they are also well-known to be extremely volatile.
So in order to optimize your success, it’s crucial to find the highest-quality stocks that you’re comfortable committing to for the long haul.
And lastly, investors should consider dollar-cost averaging. If you truly believe in your investment and it falls significantly in price, it’s one of the best opportunities to add more exposure.
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Fool contributor Daniel Da Costa owns Ethereum. The Motley Fool owns and recommends Ethereum.