Over the last year, Bitcoin and other cryptocurrencies have rebounded from their lows in March to reach all-time highs in 2021. As bitcoin continues its run to $50,000 and perhaps beyond, multiple cryptocurrency-affiliated stocks have joined in on the fun.
Riot Blockchain Inc. (RIOT), headquartered in Colorado, focuses on mining cryptos and invests in the blockchain space. This includes a 13% interest in Coinsquare Ltd., a Canadian crypto exchange. Riot Blockchain rebounded from its low of $0.51 back in March of 2020 to a high of over $47 in February 2021 — an unbelievable return of over 8,000%!
Are you thinking about buying shares in Riot Blockchain? Our beginner’s guide below will help you begin this process and launch your investing career.
Follow these 3 basic steps to become an owner in RIOT:
As Bitcoin approaches $50,000, RIOT has expanded its crypto mining operations. The company now runs over 11,000 miners and plans to increase mining operations by year’s end.
Buying a stock like RIOT intrinsically tied to the value of bitcoin presents a risk above and beyond most other stocks. Bitcoin and other cryptocurrencies, still a relatively new space, make it more prone to volatility. While more and more companies have invested in bitcoin to start 2021, risks such as government regulation remain a constant threat.
To start, you need to select a brokerage service. Almost all brokerages have moved to a commission-free model so you can purchase shares of RIOT free of charge.
Just because brokerages tout commission-free pricing doesn’t mean that you shouldn’t compare other brokers. Define your investing goals and choose a brokerage that best suits them. You may find it helpful to choose a brokerage that offers paper trading so you can get the hang of things before putting your money on the line.
Check into any promos/perks that brokerages offer to new users. Taking advantage of these offers means you could get bonus funds to trade with or you could even tap into free stocks.
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.
Get started right away by downloading Moomoo to your phone, tablet or another mobile device.
Once you open up your brokerage account and fund it, decide how you want to invest in RIOT. Consider the volatility of the asset, your overall account balance and your investing timeline.
Investing more than a small percentage of your portfolio into any one stock is always risky, especially when intrinsically tied to the cryptocurrency market. Buy shares conservatively and define where you want to take profits and where you want to cut your losses.
Now that you know how many shares of RIOT you want to purchase, you need to determine how you want to purchase them using an order type.
Using a market order is best if you want to take a position in a company as fast as possible. This order type executes immediately at the current market price. Using a limit order is best if you want to buy into a company at a set price.
Limit orders allow for much more controlled trading, which is especially important when trading volatile stocks such as RIOT. Market orders can result in your buy order filling at an unfavorable price, which can mean instant losses for you.
Click or tap the “buy” button and sit back and relax as your broker fills your order. Once your order fills, the shares will appear in your brokerage account.
Riot Blockchain Inc. (RIOT) was originally founded back in 2008 as BiOptix Diagnostics, a technology/biotech company aimed at the detection of molecular interactions. In October of 2017, the company announced its investment in Coinsquare Ltd., one of Canada’s top crypto exchanges. The company also announced its plans to change its stock ticker to RIOT. After the name change, RIOT shot up more than 500% in tandem with Bitcoin’s meteoric rise in December of 2017, making a high of over $46 in December of 2017.
After Bitcoin topped out at the end of 2017 and fell back down to earth, Riot Blockchain’s stock price declined significantly. RIOT finally bottomed out at around $0.51 in March 2020, after Bitcoin and the whole market collapsed due to the COVID-19 pandemic. Following in Bitcoin’s footsteps, RIOT reached a high of over $47 on February 12. All in all, RIOT has been one of the hottest stocks of the entire market in 2021.
The cryptocurrency space can be extremely volatile, but an investment in Riot Blockchain Inc. can bring some positives such as:
While many people agree that the blockchain technology underlying bitcoin is an invaluable advance for finance, the price of bitcoin could be too inflated already.
If you’ve launched your own crusade to learn how to buy stocks, you’ve probably already noticed that some have been on fire in 2021. Shares of RIOT have exploded to an astounding 8,000+% from their March lows, likely resulting in more and more traders piling into the trade in search of a quick profit. As more and more companies announce their acceptance of bitcoin in 2021, this momentum could continue.
Note that any stock that rises this much presents an added risk. Focus on only risking a minimal amount of capital and define when you want to get out of the trade. As bitcoin continues to become more and more mainstream, RIOT could continue to make headlines in this already interesting year.