Written by Daniel Da Costa at The Motley Fool Canada
Ever since late 2021, many high-quality tech stocks have been selling off and have become some of the best stocks to buy. In addition to tech companies, though, the entire cryptocurrency industry has also fallen out of favour for many of the same reasons.
As inflation began to pick up significantly in the fall of 2021, it was clear that the higher interest rates investors were expecting in 2022 would be coming quicker than expected.
This set in motion a tonne of rebalancing by investors, who dumped higher-risk stocks and assets like cryptocurrencies for safe defensive businesses that earn consistent and robust cash flow.
This is crucial to understand because there is a strong possibility that these headwinds will continue to impact tech stocks for some time.
However, with that being said, cryptocurrencies and crypto stocks could offer potential in the short term and might be some of the best stocks to buy now.
While the headwinds that are impacting these high-risk, high-growth stocks will persist, there are catalysts that could give cryptocurrencies some momentum. So if you’re looking to buy the dip and find the best tech stocks to buy, you may want to consider high-quality crypto stocks today.
Crypto stocks could be some of the best investments to buy in the tech sector
There are several reasons why gaining exposure to cryptocurrencies or buying crypto stocks offers a tonne of potential today.
First off, with all the significant inflation lately, Bitcoin (CRYPTO:BTC) is increasingly being talked about and used as a hedge against inflation.
We’ve seen the potential for Bitcoin increase considerably in the last few years, and now given its popularity and the suggestion by some that it could even be a reserve currency, there is a tonne of potential for the cryptocurrency to rally later this year, before the rest of the tech sector.
In addition, and perhaps even more meaningful, are the major upgrades coming to Ethereum‘s (CRYPTO:ETH) network later this year. Ethereum and the ability to run smart contracts on blockchain networks has been one of the most significant innovations made to date.
So if Ethereum can finally solve its scaling issues, there’s no telling how high it could rally and what momentum it would bring to the entire cryptocurrency industry.
That’s why these crypto stocks are some of the best growth stocks to buy while they and the rest of the tech sector trade cheap.
What are the best stocks to buy now?
There are various stocks to consider that all offer investors incredible potential. If you want to buy a crypto stock that’s a business operating in the industry, my recommendation is Galaxy Digital Holdings, a well-diversified financial services company that serves the cryptocurrency industry and offers investors incredible potential.
However, another option would be to buy an ETF that offers exposure to a popular cryptocurrency. And since Ethereum has so much potential in 2022 and for years to come, one of the best options to consider would be the CI Galaxy Ethereum ETF.
Owning the ETF will provide investors exposure to the high-potential cryptocurrency and earn you returns very similar to if you actually bought Ether. It’s also a much simpler and typically lower-cost way of gaining exposure to the high-potential cryptocurrency.
Both crypto stocks and tech stocks are extremely cheap today and offer long-term investors tonnes of growth potential, which is why they are some of the best to buy now. However, crypto stocks may have more momentum in the short term. And when they do rally, as we’ve seen in the past, they can gain value quickly.
That’s why I’d be looking to buy these stocks today. If you’re early and they trade range-bound for a few more months, you have the opportunity to buy more. However, if you’re late, you could miss out on much of the exciting growth potential.
The post Tech Stocks to Buy: Why Crypto Stocks Are the Best Investments to Make Now appeared first on The Motley Fool Canada.
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Fool contributor Daniel Da Costa owns Bitcoin, Ethereum, and Galaxy Digital Holdings Ltd. The Motley Fool owns and recommends Bitcoin and Ethereum.