The Crypto Bubble Is Bursting: Buy These 2 Stocks Instead
The Motley Fool
Published Jun 09, 2021 08:00
Updated Jun 09, 2021 08:15
The Crypto Bubble Is Bursting: Buy These 2 Stocks Instead
In 2017, cryptocurrency investors enjoyed remarkable gains. Coins like Bitcoin and Ethereum turned everyday people into millionaires. However, in 2018, things turned for the worst. Bitcoin saw its value drop more than 83%. Ethereum fared even worse, falling more than 92%.
Over the past year, investors have seen cryptocurrencies skyrocket. It seemed like any and all coins and tokens were exploding. For example, Dogecoin, which was once regarded as a meme coin, became a favourite after climbing from $0.00413 to $0.87! However, since May, investors have seen their accounts bleed dry. Ethereum is down nearly 40%, Bitcoin has fallen nearly 50%, and Dogecoin has plummeted nearly 55%! With that said, where should investors be putting their hard-earned money instead?
This recent IPO has been a constant winner After its first day of trading, Nuvei (TSX:NVEI) closed the largest tech IPO in Canadian history. This means that the company managed to raise more money than tech giants like Shopify, Constellation Software, and Lightspeed. Since then, Nuvei seemed to be resistant to the market crash that has taken down many favourites within the global tech space. In fact, Nuvei is up nearly 15% this year, whereas many of its peers are still trading in the red or just nearly breaking even.
Founded as Pivotal Payments, the company’s CEO, Philip Fayer realized that the world was entering a pivotal moment in time where digital payments were becoming essential. Since its first day on the public markets, Nuvei has announced its dedication to continued innovation within the payments space. In return, investors have rewarded the stock generously. Nuvei has seen its value rise almost 80% since its September IPO.
Warren Buffett claims investing should be boring One of Warren Buffett’s greatest investing lessons is that boring can be beautiful. He states that investors should not become enamoured by flashy companies with broken fundamentals. Instead, look for companies with a solid foundation regardless of how “exciting” its business may be. goeasy (TSX:GSY) is an excellent example of a boring company that would have made a great investment.
Since the pandemic, consumers have needed to borrow money to cover some of their basic needs. Although interest rates are much lower now than they were before the pandemic, banks were very hesitant to lend money to just anyone. Cue, goeasy. The company offers high-interest loans to subprime borrowers and sells furniture and other home goods on a rent-to-own basis.
The company has continued to post record numbers after record numbers, and these results are reflected in its stock. Since hitting its lowest point after the COVID crash, goeasy stock has gained nearly 360%! Since the start of the year, its stock is up 50%, showing continued strength into 2021. A stock appealing to both growth and dividend investors alike, an investment in this company would have been much more successful than holding cryptocurrencies over the past month.
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The post The Crypto Bubble Is Bursting: Buy These 2 Stocks Instead appeared first on The Motley Fool Canada.
Fool contributor Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Constellation Software, Shopify, and Shopify and recommends the following options: long January 2023 $1140 calls on Shopify and short January 2023 $1160 calls on Shopify. The Motley Fool owns shares of Lightspeed POS Inc.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
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