7 Blockchain Stocks to Buy for Investors Afraid of Crypto

We all know that the cryptocurrency sector imposes significant volatility on potential participants, thus making blockchain stocks quite attractive. Instead of focusing solely on the wild swings of market sentiment, these enterprises are seeking to leverage (to varying degrees) blockchain technology. Whether to spark other innovations or to facilitate crypto mining processes, publicly traded blockchain companies have a lot to offer.

In addition, targeting crypto alternatives rather than crypto itself offers significant advantages in terms of predictability. First, pure crypto investing occasionally attracts nefarious activities, such as cyber attacks. Second, the digital asset market creates significant volatility due to pure speculation. On the other hand, blockchain investing involves funding businesses as opposed to funding the sentiment track.

To be fair, supporting blockchain technology is not as exciting as rolling the dice on specific coins or tokens. However, crypto options offer greater diversity. With that, below are blockchain stocks to consider (in order of ascending risk-reward profiles).

IBM (IBM)

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An interesting dichotomy, IBM (SNEEZE:IBM) represents one of the oldest technology companies, which came to life in 1911. Of course, blockchain technology symbolizes one of the freshest and most groundbreaking innovations. Nevertheless, the two characteristics combine to form a compelling investment for those who prefer crypto alternatives to actual cryptos.

First, IBM dedicated significant resources to developing reliable data exchange and workflow automation through the distributed ledger technology underlying the blockchain architecture. In other words, while crypto projects leverage decentralization to facilitate speculation, IBM uses the same principle to promote business efficiency. Yes, the latter application arouses relative boredom. Nevertheless, it is much more economically viable.

Second, IBM offers reliable passive income. Currently, the company has a forward yield of 5.25%. It also enjoys 29 years of consecutive annual dividend increases. On the other hand, it is difficult for US-based crypto investors to accumulate passive rewards as many exchanges or platforms shut down their state operations. Thus, predictability makes IBM one of the best blockchain stocks to buy.

Visa (V)

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One of the powerful financial institutions specializing in card payment services, Visa (SNEEZE:V) developed interestingly to become one of the best blockchain companies. As the company says on its website, the money underwent and continues to undergo a paradigm-shifting evolution. Therefore, management decided to embrace the decentralized blockchain technology instead of fighting it.

What should appeal to conservative investors seeking crypto alternatives is the predictability of Visa’s business. Despite the pressures affecting the global economy, Visa continues to keep pace. In particular, Gurufocus reveals that the company’s three-year revenue growth is pinging at 10.7%. This statistic ranks over 67.94% of the enterprises listed in the credit services sector.

Since the beginning of this year, the V share has gained almost 13% of its equity value. While not much at all when stacked up against the wild returns of certain cryptos, Visa probably won’t destroy your portfolio during downturns either. Therefore, V is an excellent choice for relatively safe blockchain stocks to buy.

Nvidia (NVDA)

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Has gained attention in recent years as a graphics processing unit (GPU) manufacturer, semiconductor specialist Nvidia (NASDAQ:NVDA) symbolizes a mainstay in the gaming department. However, the processors also run decentralized proof-of-work protocols, making Nvidia one of the best firms for blockchain investments. In other words, Nvidia supplies the equipment that keeps the cryptos ticking.

To use a sports analogy, betting on individual cryptos is akin to betting on which team will win the big tournament. However, owning shares of Nvidia stock is like selling tickets to said matchup. As with other blockchain stocks, the tech firm offers greater predictability. In particular, Nvidia’s three-year revenue growth of an impressive 34.5% pings. Moreover, it is consistently profitable.

Also, you probably don’t have to worry about Nvidia randomly imploding one day. It has a solid balance sheet, supported by an Altman Z-score of 22.89, indicating an extremely low risk of bankruptcy. Therefore, NVDA represents one of the best blockchain companies for those investors seeking crypto alternatives.

PayPal (PYPL)

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With digital payment processor PayPal (NASDAQ:PYPL), we enter the riskier side of blockchain stocks to consider. That is not to impugn PayPal in any way. As both a payment specialist and a provider of business administration applications, it offers an invaluable service to the business community. However, the inflationary headwind that exploded in 2022 destroyed PYPL. It is still trying to climb back towards previous highs.

Basically, PayPal offers a convenient and reliable ecosystem where interested users can acquire some of the best virtual currencies. Additionally, people can potentially leverage this opportunity to expand crypto availability for their businesses. Also, as the gig booms, PayPal delivers relevance in that arena. Therefore, it has many avenues towards revenue generation.

It is also a relatively predictable business. Right now, the company has three-year revenue growth of 16.7%, above nearly 78% of its peers. It has also been consistently profitable over the past decade. Finally, Wall Street analysts rate PYPL as a moderate buy with a price target that suggests over 56% upside potential.

Coinbase (COIN)

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Easily one of the most popular crypto exchanges and platforms in the world, Coin base (NASDAQ:COIN) empowered everyday retail investors to acquire cryptos with fiat currencies. Before that, people had to mine the coins themselves or use risky platforms like the defunct Mt. Gox. Just from an old point of view, COIN ranks among the best blockchain stocks.

But is it one of the blockchain companies to buy? Basically, what set Coinbase apart from previous rivals was accessibility. Even to this day, many projects love to cloak their blockchain technology in convoluted jargon. Not Coinbase – it prided itself on demystifying cryptos, not adding layers.

Now, the risk factor for Coinbase revolves around its reliance on the crypto markets. Basically, the income result is in line with the sentiment towards digital assets. When you operate during a bull market, Coinbase cashes in. During a bearish cycle, the opposite is true. Still, if you believe in crypto but without total conviction, the COIN stock represents one of the exciting crypto options.

Riot Blockchain (RIOT)

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When diving into the riskiest pair of blockchain stocks, this is where you and I part ways, to be quite blunt. Blockchain companies like Riot Blockchain (NASDAQ:RIOT) offer some of the biggest rewards you can get via crypto options. However, mining companies live or die based on crypto sentiment. Don’t think that the mining community can somehow be exempted if digital assets implode. It’s just not going to happen.

Just look at the charts. As you know if you follow virtual currencies, the sector has risen sharply so far this year (putting aside the recent blip going into last weekend). Not surprisingly, RIOT smoked countless other equity-based competitors, soaring to over 212% upside performance. Last week, however, RIOT fell over 15%, which is quite steep for a publicly traded security.

Again, you live or die with the mood of the crypto market if you choose to buy something like RIOT shares. However, a critical advantage of Riot and its ilk is that we are dealing with business enterprises, not coins or tokens. Therefore, your money can be better spent.

Bit Digital (BTBT)

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Finally, we’ll wrap up this list of blockchain stocks to consider Bit Digital (NASDAQ:BTBT). Rated as one of the most dangerous crypto alternatives, Bit Digital focuses its blockchain technology on mining coins and tokens. To be fair, the company stands out from several other competitors because of its commitment to sustainability. On their website, most of the firm’s mining rigs run on carbon-free power.

For that I applaud Bit Digital. Let’s not get this mixed up though – we’re still talking about an extremely risky endeavor. Yes, the shares have performed exceptionally well since opening in January, rising over 175%. At the same time, over the last 365 days, BTBT fell more than 21% in equity value. Since its public market debut in 2018, shares have fallen nearly 62%.

Still, just like Riot Blockchain, Bit Digital represents a legitimate business enterprise. So it is possible that management can harness human ingenuity to drive through the soft cycles of the crypto market. Just make sure you know what you’re getting yourself into.

As of publication date, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Guidelines for publication.