8 Best Crypto Stocks In Canada 2022: Invest in Disruption

The total value of the crypto market topped at around US$3 trillion in Nov 2021.

At this scale, it’s comparable to asset classes like gold, which is astounding considering that humanity has been mining gold for millennia and cryptocurrencies for less than fifteen years.

And that’s not including the infrastructure and equipment market around crypto mining, which is easily in billions.

Despite its intangibility and volatility, cryptocurrencies and the underlying technologies (blockchain) are not going anywhere any time soon.

So the best crypto stocks in Canada may not just remain relevant for decades; they can offer uniquely powerful growth potential.

Best Crypto Stocks In Canada

What Do You Need To Know About Crypto Stocks?

The first question most people interested in crypto stocks have is that wouldn’t it be better to buy cryptocurrencies directly? But there are a few reasons crypto stocks might be preferred over cryptocurrencies:

  • They can be kept in tax-sheltered accounts (TFSA and RRSPs).
  • Crypto stocks may offer better returns than the underlying crypto assets (primarily Bitcoin).
  • Stock investing is familiar, and you may not have to invest anything in their safety like you might do with crypto assets (cold/hot wallets).
  • Cryptocurrencies may face some regulatory challenges that crypto stocks won’t.
  • Crypto stocks offer tangibility that’s absent in cryptocurrencies.

The timing can also be in your favour, as a Bitcoin mining stock might lag behind actual Bitcoin during recovery/growth waves. Even if you miss the chance to buy the crypto asset directly, you may have a slightly wider window to buy the stock.

7 Best Crypto Stocks In Canada (and 1 In The US)

7 Best Crypto Stocks In Canada (and 1 In The US)

There is a decent variety of crypto stocks in Canada. Most stocks represent publicly-traded crypto (primarily Bitcoin) mining companies, but there are some other crypto-related businesses as well.

1. Galaxy Digital Holdings Stock

Galaxy Digital Holdings Stock

Market: TSX
Ticker: GLXY
Industry Niche: Services related to digital assets eco-system

Galaxy Digital is one of the few crypto companies with a comprehensive range and reaches in the crypto market.

While it’s also engaged in mining, its capabilities span far wider. It offers investment banking and asset management services focused on crypto assets.

The idea is that when crypto becomes truly commonplace, Galaxy Digital will be there to offer the digital/crypto version of the conventional financial services to both B2B and B2C customers.

Like most other crypto stocks, Galaxy’s stock saw a rapid rise in 2020 which resulted in over 3,000% growth. The next, more realistic growth phase returned over 130% to its investors.

2. HIVE Blockchain Technologies Stock

HIVE Blockchain Technologies Stock

Market: TSXV
Ticker: HIVE
Industry Niche: Bitcoin and Ethereum mining

HIVE has the distinction of being the first publicly traded crypto-miner in the world. It was listed on the venture exchange in 2017 and mines both Bitcoin and Ethereum.

HIVE’s business model is simple as it focuses on the “HODL” approach, i.e., holding Bitcoin for as long as possible. This allows the company to liquidate its holding at appropriate times (when the Bitcoin value rises).

The company usually has a decent debt to cash (and investments) ratio. It also utilizes 100% green electricity for its mining operations in Canada, Sweden, and Iceland.

The stock saw two spikes in the last five years, growing about 4,600% and 6,700%, respectively. However, the starting price for both spikes was quite low (10 cents per share).

3. Hut 8 Mining Stock

Hut 8 Mining Stock

Market: TSX
Ticker: HUT
Industry Niche: Bitcoin mining and data center services

Hut 8 is counted among the largest Bitcoin miners around the globe. It has three dedicated digital asset/data mining facilities and five data centers.

By March 2022, the company had over 6,115 Bitcoins that it had mined itself, valued at over $312 million. The company also mostly employs renewable energy for its mining operations.

Still, its true strength comes from its diversified business model, which makes it more than just another publicly traded miner.

Thanks to its data centers, it caters to different industries like gaming and visual effects.

Hut 8 stock spiked twice between 2020 and 2022, first rising over 1,100% in about six months, then over 300% in less than six months.

4. Bitfarms Stock

Bitfarms Stock

Market: TSXV
Ticker: BITF
Industry Niche: Bitcoin mining

Bitfarms is a pure-play mining company that focuses on low-cost mining operations, which allows its mining operations to remain profitable, even if the price of Bitcoin dips quite drastically.

It also lends out its computing power for blockchain. The company focuses on 100% renewable-powered mining, so it won’t disrupt the ESG profile of your portfolio.

Most of the company’s infrastructure and mining portfolio is in Quebec, Canada, but it has also expanded to (and is expanding to) the US, Paraguay, and Argentina.

Like most other miners, Bitfarms stock and its growth patterns quite faithfully follow Bitcoin’s. However, the stock’s appreciation is more pronounced.

5. Voyager Digital Stock

Voyager Digital Stock

Market: TSX
Ticker: VOYG
Industry Niche: Crypto trading application

Voyager Digital is a US-based company that has created a crypto trading platform that allows people to trade over 90 digital assets (first quarter 2022).

Its commission-free trading model emulates Robinhood’s. However, you should look into the growth of its user base and the number of active users changing quarter by quarter before making an investment decision.

The company is already supplementing its trading business with additional services and features, and it has already launched its own coin.

The stock started trading on the TSX in September 2021 and has mostly gone downhill. However, it offers a very different and diversified exposure to the crypto market.

6. BIGG Digital Assets Stock

BIGG Digital Assets Stock

Market: CNSX
Ticker: BIGG
Industry Niche: Crypto compliance

BIGG Digital Assets is a future-facing company looking to become a compliance leader in the crypto industry. The company owns and operates a selection of businesses that bring together the two worlds.

Its businesses include the trading platform (compliant), software focused on following the virtual money trail, and a company focused on acquiring Metaverse businesses, etc.

The company is diverse and can be a promising holding when crypto becomes more mainstream as more than just an investment avenue.

It has seen phenomenal growth in the last five years and grew 2,000% and about 10,000% on two separate occasions.

7. DMG Blockchain Solutions Stock

DMG Blockchain Solutions Stock

Market: TSXV
Ticker: DMGI
Industry Niche: Blockchain services and solutions

Underneath most crypto assets, there is a blockchain that sustains that particular eco-system and facilitates exchange and trading, and DMG is in the blockchain business.

Its core solutions include the data centers operations and services necessary to maintain the blockchain.

But it has expanded its operational capacity to include software solutions and compliance/forensic services related to crypto-assets.

Theoretically, the company may offer good returns even when other crypto stocks, especially miners, are slacking, but so far, the stock has swayed with the market.

However, if bought low, the stock may offer amazing returns if it spikes like it did in 2021.

Now, in addition to the best crypto stocks in Canada, there is one US crypto stock that should also be on your radar.

8. Coinbase Stock

Coinbase logo

Market: NASDAQ
Ticker: COIN
Industry Niche: Crypto Exchange Platform

Coinbase is the largest crypto exchange in the US, and it’s the only large-cap company on this list. It’s also one of the largest crypto exchanges in the world that caters to over 89 million active users in over a hundred countries.

It also has an impressive B2B presence, and in most cases, it falls short only from Binance, the largest crypto exchange in the world.

The benefit of investing in a crypto exchange like Coinbase, which has a global presence, is that it is somewhat immune to crypto prices since it’s all about crypto trading.

The exchange does make money even when people are dumping their crypto assets back in the market.

The downside of a heavyweight stock like Coinbase is that it doesn’t really offer the same growth potential characteristic to other crypto assets.

What Is The Best Bitcoin Company In Canada?

HIVE Blockchain, Hut 8 Mining, and Bitfarms are commonly considered some of the best Bitcoin companies in Canada.

How To Buy Crypto Stocks In Canada

The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:

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To learn more, check out my full breakdown of the best trading platforms in Canada here.

Conclusion

The best crypto stocks in Canada can offer more growth in a matter of months than most growth stocks offer in years.

And they are easy enough to track and predict by keeping an eye on the underlying assets, i.e., crypto tokens themselves.

The risk and volatility of both crypto tokens and crypto stocks are nicely balanced with the explosive growth potential they offer. You may consider an alternative exposure to crypto-assets, i.e., crypto ETFs.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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