Crypto stocks look to be attractive buys right now. These companies could surge in value amid the upcoming Bitcoin (BTC-USD) halving event. The rise of these crypto stocks during this time, I believe, will be due to the improved investor sentiment and outlook, fear of missing out (FOMO), as well as the fact that many of these crypto stocks hold large amounts of cryptocurrencies on their balance sheets. An improved book value per share could strengthen the investment case that they have viable prospects.
So, with this context in mind, this article will explore three of the best crypto stocks that investors should consider adding to their portfolios. I feel that they collectively trade below their fair values as they are not immediately pricing in the catalysts that loom over the horizon.
Here are the three best crypto stocks to buy for December.
Coinbase (COIN)
Coinbase (NASDAQ:COIN) has been a key player in the crypto space and maintains its first-mover advantage as being one of the leading exchanges in the U.S.
COIN is simply one of those must-own crypto stocks. It shares some similarities with PayPal (NASDAQ:PYPL) in a few ways. Both companies are the go-to options in the fintech and crypto markets, respectively, and both have maintained their competitive moats in the face of rising competition.
One of the weaknesses of these brands is that they get earnings primarily from their fees, which is a risk as their competitors can undercut them. However, the market has shown us that people aren’t primarily price-sensitive, and only a small segment will buy the absolute cheapest option. COIN has managed to keep its ecosystem intact with effective marketing and brand at the forefront of its mind, along with features to keep users coming back, such as NFT wallets and DeFi features.
Furthermore, the market seems to be in agreement that COIN is one of those crypto stocks to hold for the long-term. JMP Securities, an investment bank, recently doubled the company’s price target from $107 to $200.
Coinbase’s biggest competitor, Binance, has recently faced a series of legal setbacks. While far from settled, this development gives an advantage to Coinbase in the market, at least for now.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is known primarily for its GPUs, but it has many forks in the fire in the crypto industry as well.
A key development for NVDA stock on the crypto front is that they released GPUs designed from scratch for mining cryptos. These products are designed to meet the high demand from crypto miners and, at the same time, tackle shortages of GPUs for gamers. Differentiating its products helps Nvidia ensure that gamers, the core market for graphics cards, do not suffer due to high demand from people who use them for mining cryptocurrencies.
To further illustrate NVDA’s relationship with the crypto industry, last year, an insufficient supply of GPU drove up Nvidia revenues. In addition, the company launched its Cryptocurrency Mining Processor (CMP) card. Rumor has it these cards recently went for US $4300 each at one auction.
As the crypto market continues to surge higher on tailwinds of user adoption and institutional investment, I predict that NVDA will continue to be a growth stock for investors to hold onto.
Block (SQ)
Block (NASDAQ:SQ) is a financial services and digital payments company with many interests in the blockchain industry.
I’m mainly bullish on SQ stock due to being undervalued. Although its total market capitalization is impressive at $48.01 billion and enterprise value a sizeable $44.77 billion, with the current PS ratio of only 2.32 times sales, it trades barely above its gross earnings. This implies that the stock is trading at a price lower than its earnings and growth potential would warrant.
Additionally, SQ has a large free cash flow of $795.69 million and a net cash position of $3.23 billion or $5.27 per share, so the company is also financially strong.
With thee factors considered, SQ stock is one of those crypto stocks to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
