11 Best Cryptocurrencies To Invest In For Beginners According To Reddit

In this article, we discuss 11 best cryptocurrencies to invest in for beginners according to Reddit.

MarketVector’s Smart Contract Leaders Index monitors prominent smart contract tokens like Ether, Dot, and Solana. As of 2023, the index has increased by 36%, surpassing even Bitcoin’s growth of 33%. Additionally, Solana’s token has experienced a significant rise of 76% this year. Bundeep Rangar, the CEO of Fineqia, an asset management company focused on cryptocurrency, predicts that the largest returns in the crypto market will come from smart contract tokens on platforms that support decentralized finance (DeFi) applications. According to BofA analysts, smart contract tokens and their blockchain-based applications are comparable to technology stocks that are considered growth stocks in the equity market.

Despite concerns about inflation, a tight labor market, and potential interest rate hikes by the Federal Reserve, the leading cryptocurrencies performed well in February. Among the top 10 cryptocurrencies based on market capitalization, Polygon (MATIC) was the most successful, with a gain of 6.6% in February. It should be noted that the increase in interest rates caused a “crypto winter” in 2022, which resulted in numerous industry bankruptcies and caused the prices of many popular cryptocurrencies to decline. However, things started to look better for the crypto world during the start of 2023.

Cryptocurrencies are decentralized, which means that they operate independently of any central authority or government. This makes them less susceptible to manipulation or interference by governments or other centralized entities. Similarly, they are secured by advanced cryptography, making them virtually immune to hacking and other cyberattacks. Cryptocurrencies also offer a level of anonymity that is not available with traditional payment methods. Additionally, cryptocurrencies have significantly lower transaction fees compared to traditional payment methods, which can help to reduce costs for businesses and consumers alike, with significant potential for growth and innovation in the future. Some of the best cryptocurrency stocks to invest in include Block, Inc. (NYSE:SQ), Intel Corporation (NASDAQ:INTC), and Apple Inc. (NASDAQ:AAPL). However, in this article we discuss the best cryptocurrencies for beginners. Investors can also check out 10 Best Cryptocurrencies to Invest In, 10 Best Cryptocurrency Stocks To Invest In, and 15 Companies That Accept Bitcoin as Payment. 

Our Methodology 

We scoured multiple Reddit threads and selected the 11 most popular cryptocurrencies suggested, owned, and supported by Redditors. These cryptocurrencies are also priced under $25 as of March 6, in order for beginners to easily trade in them. We have also mentioned the biggest firms which are backing faster crypto adoption. 

Best Cryptocurrencies To Invest In For Beginners According To Reddit

11. Chainlink 

Chainlink, established in 2017, is a layer on top of blockchain that makes it possible for smart contracts to be connected worldwide. Using a decentralized network of oracles, Chainlink facilitates secure communication between blockchains and external data feeds, payment methods, and events. This enables complex smart contracts to access the important off-chain information they need to become the primary form of digital agreement. The Chainlink Network relies on a vast open-source community of individuals who provide data, operate nodes, develop smart contracts, conduct research, perform security audits, and perform other roles. The company emphasizes that all node operators and users who want to contribute to the network can participate in a decentralized manner. 

Companies like Mastercard Incorporated (NYSE:MA) are encouraging quicker crypto adoption among users. On January 30, Mizuho analyst Dan Dolev raised the firm’s price target on Mastercard Incorporated (NYSE:MA) to $405 from $380 and kept a Buy rating on the shares following the “solid” Q4 results.

According to Insider Monkey’s data, Mastercard Incorporated was part of 139 hedge fund portfolios at the end of Q4 2022, compared to 146 in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 5.8 million shares worth over $2 billion. 

Like Block, Inc., Intel Corporation, and Apple Inc., Mastercard Incorporated is one of the best cryptocurrency stocks to invest in. 

Baron FinTech Fund made the following comment about Mastercard Incorporated in its Q4 2022 investor letter:

“Shares of global payment network Mastercard Incorporated increased after reporting strong quarterly results, with 15% revenue growth and 13% EPS growth despite significant headwinds from currency movements and the suspension of operations in Russia. Payment volume grew 21% in local currency (excluding Russia) as consumer spending remained resilient and the international travel recovery continued as border restrictions were lifted. We continue to own the stock due to Mastercard’s long runway for growth and significant competitive advantages.”

10. Cartesi

Cartesi is a layer for executing application-specific rollups that includes a Linux runtime. The RISC-V virtual machine used by Cartesi enables developers to bring decades of open-source knowledge to blockchain applications, allowing them to build decentralized applications using their preferred libraries, compilers, and other well-established open-source tools. The CTSI token, which is used by Cartesi, has two main purposes – to facilitate protocol governance and to offer more convenience and speed to Cartesi DApps. Within the decentralized ecosystem created by the Cartesi Foundation, the CTSI token will enable community members to express their agreement or disagreement with community programs that stem from Cartesi Improvement Proposals (CIPs). 

Alphabet Inc. (NASDAQ:GOOG) is one of the top crypto firms to invest in, as it permits enterprises to receive payments in cryptocurrency and invoice their clients using the ten most popular cryptocurrencies. During a recent discussion with an Artificial Intelligence (AI) specialist who highlighted the importance of quality data for large language AI models, Jefferies analyst Brent Thill noted that Alphabet Inc. (NASDAQ:GOOG) has a significant advantage in this area due to its use of Search, Chrome, and Android. Jefferies believes that Alphabet will gradually introduce significant advancements in AI, and that the recent drop in the stock is an overreaction, as the firm maintains a positive outlook on Alphabet’s AI strengths. Jefferies reiterated a Buy rating and $130 price target on Alphabet Inc. shares on February 10. 

According to Insider Monkey’s Q4 data, 152 hedge funds were long Alphabet Inc., compared to 156 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 54.5 million shares worth $4.8 billion. 

Artisan Value Fund made the following comment about Alphabet Inc. in its Q4 2022 investor letter:

“Our biggest detractors in Q4 included communication services sector holdings Alphabet Inc. and Warner Bros Discovery (WBD). For Alphabet, Google’s parent company, growth has decelerated as advertisers have pulled back on digital ad spend following a COVID-driven acceleration as well as due to economic uncertainties. Longer term, Alphabet remains well positioned to win in multiple ways, whether in search, online video or in the cloud. We continue to see large profit pools for Alphabet in the early stages of monetization, along with the migration of advertising dollars away from traditional mediums, like TV, to online search and video. These factors give us confidence that Alphabet continues to have a long runway to grow revenue and profits. Additionally, management has returned capital to shareholders— another lever that can be used to increase the per share value of the business. We view Alphabet as one of the best businesses in the world, capable of expanding revenues at an above-average rate for years to come, with a bulletproof balance sheet and an average asking price. It’s a name we’ve held since 2015, and we believe Alphabet will continue to be a strong compounder of value in the future.”

9. MetisDAO

Metis is constructing a Layer 2 framework, Metis Rollup, that aligns with the principles of Optimistic Rollup. The goal is to create a user-friendly, highly scalable, cost-effective, and fully operational framework that supports the transfer of applications and businesses from Web 2.0 to Web 3.0. The protocol can scale to support a diverse range of applications, including NFT platforms, social platforms similar to Reddit, open-source developer communities, influencer communities, gaming communities, freelancer communities, crowdfunding, yield farming, DEX trading, and more. Metis aims to simplify the process of building DApps (decentralized applications) and DACs (decentralized autonomous organizations) on its platform to such an extent that individuals with no prior experience in blockchain technology can create them in a matter of minutes.

Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a technology company that specializes in digital assets and focuses on cryptocurrency mining. The company is dedicated to the blockchain ecosystem and the creation of digital assets. It is one of the most crypto stocks to invest in.

On January 12, Christopher Brendler, an analyst at DA Davidson, reduced the company’s price target for Marathon Digital Holdings, Inc. from $18 to $12. Despite this, he maintained a Buy rating on the shares. According to the analyst, Marathon’s hashrate, along with its market share, is expected to surge in the first half of 2023 after several months of stagnant activity, as new capacity from its hosting provider becomes operational. Although the delay has dampened investor sentiment and weighed on the stock, Brendler believes that Marathon Digital Holdings, Inc.’s partnership with a publicly traded company has improved its visibility and is a significant positive that will also help the stock to revalue.

According to Insider Monkey’s fourth quarter database, 14 hedge funds were bullish on Marathon Digital Holdings, Inc., up from 8 funds in the prior quarter. 

Here is what Horizon Kinetics 1st/2nd Quarter Interim Commentary has to say about Marathon Digital Holdings, Inc. in its Q1 2022 investor letter:

“Investors also tend to not give sufficient credit to the power of management to enhance or create additional value with such an asset. The commercialization of land requires considerable management expertise. This particular transaction involves two other parties that will build and operate up to 60 megawatts of bitcoin mining, which was stated could accommodate up to 2.0 Exahash of operational capacity. That is quite sizable. As a reference point, Marathon Digital Holdings, which has a $1.0 billion stock market value, even after a year-to-date decline of 70%, had about 3.6 EH/s of capacity at year-end 2021, though it expects to reach 13.3 EH/s during this calendar year. The TPL venture is expected to begin operations in the fourth quarter of this year.”

8. Dogecoin

Dogecoin is a digital currency that is inspired by the famous “doge” Internet meme and has a Shiba Inu on its logo. It is an open-source cryptocurrency that was created in December 2013 by Billy Markus from Portland and Jackson Palmer from Sydney by forking Litecoin. The creators of Dogecoin envisioned it as a playful, lighthearted cryptocurrency that would appeal to a wider audience beyond the core Bitcoin community, as it was based on a dog meme. Additionally, Tesla CEO Elon Musk has expressed his affinity for Dogecoin by posting several tweets on social media. Dogecoin utilizes Scrypt technology and has a block time of 1 minute, distinguishing it from Bitcoin’s proof-of-work protocol. Furthermore, Dogecoin’s total supply is not capped, indicating that there is no maximum amount of Dogecoin that can be mined. Dogecoin’s primary use case has been to serve as a tipping system on social media platforms such as Reddit and Twitter. The purpose of these tips is to reward users for creating or sharing valuable content.

Coinbase Global, Inc. (NASDAQ:COIN) is an American company that runs a platform for exchanging cryptocurrencies. It is one of the premier cryptocurrency stocks to buy. On February 22, Canaccord analyst Joseph Vafi maintained a Buy recommendation on Coinbase Global, Inc. (NASDAQ:COIN) but reduced the price target on the shares to $100 from $120. The analyst acknowledged that Coinbase is currently unprofitable, but highlighted the company’s efforts to become profitable throughout the crypto cycle. Vafi also noted that Coinbase Global, Inc. has the potential to lead the way in various areas, including being a responsible corporate entity, and expressed confidence in the management’s efforts to achieve these goals.

According to Insider Monkey’s Q4 database, 27 hedge funds were bullish on Coinbase Global, Inc., compared to 28 funds in the last quarter. Cathie Wood’s ARK Investment Management is the largest position holder in the company, with 9.18 million shares worth $325.20 million. 

Here is what Miller Value Partners Opportunity Trust Fund has to say about Coinbase Global, Inc. in its Q2 2022 investor letter:

“Coinbase Global Inc. Ordinary Shares fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”

7. Solana

Solana is a blockchain project that provides decentralized finance (DeFi) solutions by leveraging the permission-less nature of blockchain technology. The Solana Foundation, headquartered in Switzerland, officially launched Solana in March 2020, although the idea and initial work began in 2017. The protocol is designed to enable the creation of decentralized apps (DApps) while improving scalability through a hybrid consensus model that combines proof-of-history and proof-of-stake. 

Solana has gained popularity in the cryptocurrency community due to its exceptional speed of processing transactions on the blockchain. This is made possible by Solana’s unique hybrid protocol that reduces validation times for executing smart contracts and transactions. Because of its remarkable processing speed, Solana has attracted interest from both institutional and individual investors. Solana’s protocol aims to cater to a broad range of users, from small investors to large corporations. Additionally, Solana guarantees its customers that they will not be surprised by increased fees or taxes because the protocol is designed to have low transaction costs while maintaining scalability and fast processing.

Robinhood Markets, Inc. (NASDAQ:HOOD), a well-known discount brokerage application, offers its users the ability to purchase stocks, options, precious metals, and most recently, cryptocurrencies. It is one of the top cryptocurrency stocks to monitor. On February 9, Brian Bedell, an analyst at Deutsche Bank, increased the firm’s price target for Robinhood Markets, Inc. (NASDAQ:HOOD) from $9 to $11 and maintained a Hold rating on the stock. The analyst characterized the company’s Q4 results as “mixed,” with solid cost management somewhat negated by slightly lower-than-anticipated revenue.

According to Insider Monkey’s fourth quarter database, 32 hedge funds were long Robinhood Markets, Inc., up from 24 funds in the last quarter. Joshua Kushner’s Thrive Capital is a significant position holder in the company, with 20.4 million shares worth over $166 million. 

Here is what Claret Asset Management has to say about Robinhood Markets, Inc. in its Q4 2021 investor letter:

“Robinhood went public at $38 a share at the end of July of this year. After a one day decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”

6. The Sandbox

The Sandbox is a virtual world built on blockchain technology that was launched in 2011 by Pixowl. It enables users to create, buy, sell, and build digital assets in the form of a game. By using non-fungible tokens and decentralized autonomous organizations, The Sandbox creates a decentralized platform that encourages a vibrant gaming community. The platform’s objective is to successfully integrate blockchain technology into mainstream gaming, and it concentrates on supporting a creative “play-to-earn” model that allows users to both create and play games. To enable transactions on the platform, The Sandbox has introduced the SAND utility token, which utilizes the power of blockchain technology. 

CME Group Inc. (NASDAQ:CME), which operates financial derivatives exchanges, is one of the best cryptocurrency stocks to consider. On February 9, Brian Bedell, an analyst at Deutsche Bank, raised the firm’s price target for CME Group from $200 to $218 and assigned a Buy rating to the shares. According to the analyst, the company’s Q4 results were “quite solid,” with revenue and interest income slightly exceeding expectations, and a more significant beat on adjusted expenses. Deutsche Bank noted that CME Group Inc. (NASDAQ:CME) has demonstrated pricing power by raising futures/options RPC, which will result in a revenue increase of around 4-5%. In combination with organic growth initiatives and trading volumes that can grow at a low-to-mid single-digit rate, the firm predicts that CME Group Inc. can generate EPS growth of approximately 10% this year, up from a previous prediction of 3%.

Among the hedge funds tracked by Insider Monkey, 58 funds were long CME Group Inc. at the end of December 2022, compared to 60 funds in the preceding quarter. GuardCap Asset Management is the largest position holder in the company, with 4 million shares worth $684.7 million. 

In addition to Block, Inc., Intel Corporation, and Apple Inc., smart investors are piling into CME Group Inc. for exposure to the crypto industry. 

Baron Funds made the following comment about CME Group Inc. in its Q3 2022 investor letter:

“CME Group Inc. operates the world’s largest and most diversified derivatives marketplace. Shares fell 13% during the quarter (despite reporting strong average daily trading volume growth of 26% year-over year) due to concerns that EPS growth will slow in 2023 as the rate hike cycle comes to an end. We continue to own the stock due to CME’s strong competitive moats, its product breadth and liquidity depth, its durable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures, and tailwinds from the rising rate environment.”

5. Polygon

Polygon, formerly known as Matic Network, is a platform that simplifies Ethereum scaling and infrastructure development, making it the first user-friendly, well-structured platform of its kind. Its core module is the Polygon SDK, which is a versatile and flexible framework that can support building multiple types of applications. By using Polygon, Ethereum is effectively transformed into a multi-chain system, also known as the Internet of Blockchains, similar to other systems such as Polkadot, Cosmos, and Avalanche. Polygon leverages Ethereum’s security, active ecosystem, and transparency. The $MATIC token will remain in circulation and will play an increasingly important role in securing the system and facilitating governance.

Block, Inc. (NYSE:SQ) is a multinational fintech company that caters to various industries, including financial services, mobile payments, and point of sale. Its Cash App offers a convenient way for users to invest in both stocks and Bitcoin. It is one of the best cryptocurrency stocks to consider.

On March 1, Baird analyst David Koning stated that he would not be shocked if the price hikes on three of Block, Inc.’s products result in at least $60 million added to the Square segment annualized gross profit. This would equate to a 2% or more increase to the segment gross profit and roughly a 1% increase to the total company gross profit. The analyst maintained an Outperform rating and a $92 price target on Block, Inc.. 

According to Insider Monkey’s fourth quarter database, 70 hedge funds were long Block, Inc., compared to 75 funds in the preceding quarter. Cathie Wood’s ARK Investment Management is the leading stakeholder of the company, with 9 million shares worth $565.7 million. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. was one of them. Here is what the fund said:

“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund include Wells Fargo.”

4. Shiba Inu

SHIB is called the “DOGECOIN KILLER” and is traded on ShibaSwap, a DEX created by Shiba Inu. Shiba Inu coin was launched by an anonymous person called “Ryoshi” in August 2020. Shiba Inu intends to be the Ethereum-based alternative to Dogecoin, which uses a Scrypt-based mining algorithm. Shiba Inu is one of several dog-themed cryptocurrencies, including Baby Dogecoin (BabyDoge), Dogecoin (DOGE), JINDO INU (JIND), Alaska Inu (LAS), and Alaskan Malamute Token (LASM). This meme coin quickly gained popularity and value as a community of investors was drawn in by the cute appeal of the coin, as well as endorsements from notable figures like Elon Musk and Vitalik Buterin.

American Express Company (NYSE:AXP) is a payment card services company with operations spanning multiple countries. In June 2022, American Express Company (NYSE:AXP) announced that the Abra Crypto Card on the American Express network will conduct transactions in U.S. dollars and provide crypto cashback for purchases made across all categories. Smart investors consider American Express Company to be among the best stocks to purchase in the crypto market. On February 8, Morgan Stanley analyst Betsy Graseck upgraded American Express Company to Overweight from Equal Weight with an $186 price target. The analyst named American Express Company the firm’s new top pick in consumer finance.

According to Insider Monkey’s Q4 data, 71 hedge funds were bullish on American Express Company, compared to 68 funds in the last quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with 151.6 million shares worth $22.4 billion. 

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company was one of them. Here is what the fund said:

“In financials, American Express Company has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”

3. XRP

In 2012, XRP Ledger was introduced by David Schwartz, Jed McCaleb, and Arthur Britto, who aimed to provide a faster and more efficient alternative to the Bitcoin blockchain, using its own currency, XRP. Ripple was later founded in the same year, with Chris Larsen also on board. XRP Ledger offers various payment-related applications such as micropayments, DeFi and, in the near future, NFTs. XRPL has been widely used since its launch in 2012 and it supports enterprises and developers who use programming languages such as Python, Java and JavaScript with its powerful features and flexibility. The XRP website provides a range of tutorials that can assist developers in getting started with various coding languages, app building, account management, and more.

The XRP Ledger (XRPL) was introduced in 2021 and is an open-source, decentralized and permission-less technology. The XRPL offers several advantages such as its low transaction cost of $0.0002, fast transaction settlement time of 3-5 seconds, scalability of up to 1,500 transactions per second, and it is energy-efficient and carbon-neutral. Additionally, it also includes a decentralized exchange (DEX) and tokenization features built into the protocol. The XRP Ledger has been in operation since 2012 and has successfully closed 70 million ledgers, showcasing its reliability.

Intel Corporation (NASDAQ:INTC), a semiconductor and computer technology company headquartered in California, is considered one of the best cryptocurrency stocks to keep an eye on. On March 1, Raymond James analyst Srini Pajjuri initiated coverage of Intel Corporation with an Outperform and a $30 price target. The firm predicts that Intel Corporation will continue to lose server market share and that there are few indications of significant advancements in manufacturing. However, the analyst believes that as long as margins are improving, the stock can perform well in the short term as the expectations are not very high. 

According to Insider Monkey’s Q4 data, 62 hedge funds were bullish on Intel Corporation, compared to 69 funds in the prior quarter. D E Shaw is a prominent stakeholder of the company, with 13.3 million shares worth $353.7 million. 

ClearBridge Investments made the following comment about Intel Corporation in its Q3 2022 investor letter:

“Also on the detractor side, Intel Corporation delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”

2. Polkadot

Polkadot is an open-source protocol that incorporates sharding and connects multiple specialized blockchains to establish a secure network, promoting interoperability of various asset and data types across different blockchains. Its ultimate goal is to lay a foundation for a decentralized Web3. Polkadot’s native token, DOT, serves three essential functions, which are staking for security and operations, supporting network governance, and bonding tokens to link parachains.

PayPal Holdings, Inc. (NASDAQ:PYPL) is a company that provides digital payment services through several brands, including PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy. In August 2022, PayPal Holdings, Inc. (NASDAQ:PYPL) declared that its customers can send cryptocurrency from their PayPal accounts to other external crypto addresses without any fees, making it one of the premier cryptocurrency stocks to invest in. On February 13, BMO Capital analyst James Fotheringham assigned an Outperform rating to PayPal Holdings, Inc. but lowered the firm’s price target on the shares to $108 from $117. 

According to Insider Monkey’s fourth quarter database, 115 hedge funds were long PayPal Holdings, Inc., compared to 126 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 6.75 million shares worth $481 million. 

RiverPark Large Growth Fund made the following comment about PayPal Holdings, Inc.  in its Q4 2022 investor letter:

“PayPal Holdings, Inc.: PayPal shares were a top detractor for 4Q, reporting slightly weaker than expected 3Q payment volumes and 4Q payment volume guidance. The company nevertheless reported better-than-expected EPS on improved margins. PYPL operates at significantly lower margins than its payment competitors Visa and Mastercard, and 3Q results and 4Q guidance show early improvements in its margins and ability to drive higher cash flow growth in the near term. For 3Q, PYPL reported $1.8 billion of FCF, the highest quarterly FCF number in its history, representing 37% growth. The company expects continued operating margin expansion for 4Q and full year FCF of more than $5 billion, representing a 6% FCF yield.

PayPal is the most accepted digital wallet – with almost triple the acceptance of Apple Pay, the number two digital wallet. PayPal is a key beneficiary of the ongoing shift to e-commerce driven digital payments, as well as consumer-to-consumer payment trends through its Venmo peer-to-peer (P2P) payment service. With a 3Q non-GAAP operating margin of 22%, PYPL also has significant margin expansion potential given that competitors Adyen, Visa and Mastercard have 50%-65% operating margins. We believe the combination of secular growth, expanding operating leverage and the strategic use of the company’s significant and growing cash balance should fuel high teens earnings growth over the next five years. This, to us, presents an excellent risk/reward given that PYPL trades at a below market multiple.”

1. Cardano

Cardano is a blockchain platform that utilizes proof-of-stake and aims to empower individuals who aspire to make a positive impact on the world. The platform was established in 2017 and was named after Gerolamo Cardano, a renowned Italian polymath from the 16th century. The native token of Cardano, ADA, is named after Ada Lovelace, a well-known mathematician from the 19th century, widely regarded as the world’s first computer programmer. ADA allows its holders to participate in the network’s operation and vote on any proposed software changes. Various industries, such as agriculture, education, and retail, use Cardano to track produce, store credentials, and prevent the distribution of counterfeit goods, among other things.

Apple Inc. (NASDAQ:AAPL) has made it possible for its users to trade cryptocurrencies using Apple Pay, and the company has recently added support for the Ripple Interledger Protocol. In addition, there are speculations that Apple might explore the possibility of allowing users to mine cryptocurrencies on their IOS/OS devices. As a result, Apple Inc. has become a popular choice for smart investors looking to invest in cryptocurrency stocks. On March 5, Goldman Sachs analyst Michael Ng initiated coverage of Apple Inc. with a Buy rating and a $199 price target, citing strong hardware design and customer loyalty that have resulted in a growing user base, providing better visibility into revenue growth.

According to Insider Monkey’s fourth quarter database, 135 hedge funds were long Apple Inc., compared to 140 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with more than 895 million shares worth $116.30 billion. 

Here is what Distillate Capital has to say about Apple Inc. in its Q3 2022 investor letter:

“The largest new purchase was Apple Inc., which after underperforming saw its valuation improve significantly. Over the course of the last year, Apple’s consensus estimated forward free cash flows rose modestly, while its enterprise value fell by around 30%. Apple ranks below the 25th most attractive name in the portfolio and so its weight is capped at 4% vs. 6% for names in the top quartile.”

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This article is originally published at Insider Monkey.