5 Best Blockchain Stocks to Buy in November 2021

While cryptocurrencies have been quite volatile this year, and some of the observers don’t see much value in digital currencies, the view is more constructive on blockchain technology. Meanwhile, cryptocurrencies received a boost with the launch of the first bitcoin ETF.

Blockchain stocks could be one way to play the cryptocurrency market. Here are the five best stocks that you can buy in November 2021.

1. DocuSign (NYSE: DOCU)

DocuSign looks like an attractive blockchain stock to buy in November 2021. The company is the market leader in e-signatures whose adoption has increased significantly over the last year due to the COVID-19 pandemic. The company uses blockchain technology and allows users to use Ethereum blockchain to record their agreements. DOCU stock has come off its 2021 lows and is up 12.3% for the year. The total addressable market for DOCU is around $24 billion.

DOCU uses blockchain technology

DocuSign’s growth is coming down, just like other “stay-at-home” plays. However, analysts still expect its revenues to rise 29.1% in the fiscal year 2023 that would end in Jan. 2023. The stock trades at an NTM (next-12 months) PE of around 131x which does not seem too high.

Wall Street analysts are also bullish on the blockchain stock and 17 of the 22 analysts covering it rate it as a buy while the remaining five analysts have a hold rating. The stock has a median target price of $330 which is a premium of 33% over current prices.

Overall, DOCU looks among the best blockchain stocks to buy in November and hold for the long term.

68% of all retail investor accounts lose money when trading CFDs with this provider.

2. Nvidia (NYSE: NVDA)

While Nvidia is not a pure-play blockchain stock, it’s hard to miss out on the stock when thinking about blockchain as its graphics processing units (GPUs) are a key component for bitcoin mining. The stock is up 141% for the year and is among the top 3 S&P 500 gainers this year. It is among the rare stocks that outperformed in both 2020 as well as 2021. While many analysts see the stock as overvalued, it has continued to surprise bears with its price action.

Nvidia stock is a play on multiple themes that include the core chips business, AI, blockchain, as well as metaverse. The company is also looking to acquire Arm Holdings to further strengthen its chip business. However, the acquisition is facing regulatory scrutiny in the UK.

Nvidia’s chips power blockchain companies

Notably, after Nvidia reported blowout third-quarter earnings earlier this month, several analysts raised their target price on the stock. BMO and Bank of America raised the stock’s target price to $375 each while JPMorgan Chase raised its target price to $350. Analysts’ action has usually been lagging Nvidia’s price action.

Nvidia has a median target price of $350 which is an 11.3% premium over current prices.

68% of all retail investor accounts lose money when trading CFDs with this provider.

3. Coinbase (NYSE: COIN)

Coinbase is another ancillary play on the blockchain industry. The cryptocurrency exchange went public earlier this year through a direct listing with a reference price of $250. It had fallen below that price level but is now trading above $300. The company’s third-quarter earnings disappointed markets and the sock plunged post the release. However, it’s a long-term play on blockchain and the growing adoption of cryptocurrencies.

Coinbase is an ancillary blockchain stock

Coinbase has been diversifying its business. It has acquired mobile wallet company BRD and is also launching a marketplace for NFTs. There are concerns over margin compression for Coinbase as more companies enter the cryptocurrency exchange industry.

Coinbase acknowledges the risk and its CFO Alesia Haas said during the Q3 2011 earnings call that “We do think in the long term, though, zooming out a little, that we will see fee compression as more and more products will become commoditized in crypto.” She added, “And so, we’ve already begun focusing on diversifying our revenue.”

Meanwhile, despite the headwinds, Coinbase looks among the best ways to play the blockchain industry and the growing adoption of cryptocurrencies.

68% of all retail investor accounts lose money when trading CFDs with this provider.

4. Mastercard (NYSE: MA)

Payments processing company Mastercard is another blockchain stock that you can buy. While the company is known globally for its payments solutions, it has been pivoting towards blockchain technology. Earlier this year, the company announced that it would start supporting select cryptocurrencies on its platform. In September, Mastercard announced that it would acquire blockchain analytics start-up CipherTrace for an undisclosed amount.

Mastercard is pivoting towards blockchain

Recently, Berkshire Hathaway revealed in its third-quarter 13F that it has trimmed stakes in both Mastercard as well as rival Visa. That said, Mastercard stock looks among the best stocks to play the blockchain industry.

Wall Street analysts have a bullish forecast for Mastercard stock and 31 of the 35 analysts covering it have rated the stock as a buy of some equivalent. The remaining four analysts have a hold rating. Mastercard has a median target price of $430 which is a 32.9% premium over current prices.

Mastercard is a play on the growing digital payments globally as well as its pivot towards blockchain and cryptocurrency. While Warren Buffett might have trimmed his stake in the company, it nonetheless looks like a blockchain stock worth buying in November 2021.

68% of all retail investor accounts lose money when trading CFDs with this provider

5. The Global X Blockchain ETF (NYSE: BKCH)

The blockchain sector is an emerging industry and some investors might not be too well versed with the different companies in the industry. If you want to build a portfolio of blockchain stocks without having to worry about selecting and buying individual stocks, you can consider an ETF. ETFs can be a good investing strategy especially for investors who lack the time or analytical skills to pick individual stocks. The Global X Blockchain ETF is one ETF that gives you diversified exposure to blockchain stocks.

BKCH gives a diversified exposure to blockchain stocks

BKCH has assets of just above $121 million and has an annual expense ratio of 0.50%. The ETF has 25 stocks and “seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration.”

Currently, Riot Blockchain is the biggest holding for the ETF with a 13.2% weight in the portfolio. Coinbase and Marathon Digital are the second and third holding with a weight of 11.4% and 10.6% respectively. BKCH looks like a good way to get diversified exposure to blockchain stocks.

Buy BKCH ETF at eToro from just $50 Now!