Investing in crypto without investing in crypto: three popular stocks

Are you curious about crypto investing but concerned about India's regulatory landscape? You're not alone. Over 107 million Indians now engage with crypto assets, yet many remain cautious about direct crypto investments.

Here's the solution: you can gain exposure to the crypto market without directly buying Bitcoin or Ethereum. How? Through investing in cryptocurrency-related stocks listed on US exchanges.

India's crypto landscape in 2025

Let's begin with India's current stance on cryptocurrency regulation. Yes, cryptocurrency trading is legal in India as of 2025. You can buy, sell, and hold Bitcoin, Pi coins, and other cryptocurrencies. However, crypto is not recognised as legal tender.

The current framework includes:

• 30% capital gains tax
• 1% TDS (Tax Deducted at Source)
• KYC/AML compliance requirements

India is expected to maintain a cautiously supportive stance toward cryptocurrencies in 2025. While it does not recognise crypto as legal tender, it permits ownership, trading, and innovation under tight compliance frameworks.

The regulatory journey has been complex. The RBI banned crypto transactions in 2018, but the Supreme Court lifted this ban in 2020. The Supreme Court's 2020 judgment (IAMAI vs RBI) continues to protect crypto trading by preventing banking bans.

Despite this progress, many investors prefer the clarity and familiarity of stock market investments. This is where crypto stocks become attractive.

Why crypto stocks make sense for Indian investors

Investing in crypto through US stocks offers several advantages:

Regulatory clarity: US stock investments have established frameworks in India. You avoid the uncertainty surrounding direct crypto investments.

Tax simplicity: Stock investments follow standard capital gains tax rules, not the complex tax framework for cryptocurrencies.

Familiar platforms: You can use existing brokerage accounts and investment platforms you already know.

Professional management: These companies have experienced management teams and business strategies that extend beyond simply holding crypto.

Three crypto stocks dominating 2025

Coinbase (COIN): riding the crypto wave

Coinbase remains the leading cryptocurrency exchange in the United States. The platform has undergone significant evolution since its 2021 IPO, adapting to changing market conditions and regulatory requirements.

Current performance highlights:

• Continues to dominate US crypto trading volume
• Expanded into institutional services and custody
• Developed new products for retail and professional traders
• Maintained strong security standards

Why Coinbase matters for your portfolio: When crypto markets boom, Coinbase directly benefits from increased trading volumes. The company earns fees on every transaction, making it a pure play on crypto adoption.

The business model works:

• Users trade cryptocurrencies on the platform
• Coinbase collects transaction fees
• Higher crypto prices attract more users
• More users mean more trading volume and fees

Think of Coinbase as the "picks and shovels" play during the crypto gold rush. While individual cryptocurrencies may fluctuate in value, the exchange benefits from overall market activity.

Marathon Digital Holdings (MARA): the mining giant

Marathon Digital Holdings has established itself as one of North America's largest Bitcoin miners. Marathon Digital scores a Moderate Buy consensus rating. The average price target of $16.50 implies 10% upside. Shares have jumped over 338% year-to-date.

Recent developments: MARA reported Q1 2025 revenue of $213.9 million—an increase from $165.2 million the year prior—driven by a 77% jump in the average Bitcoin price.

The mining business model:

• Marathon operates powerful mining equipment
• They earn Bitcoin rewards for validating transactions
• Rising Bitcoin prices increase their revenue
• The company can sell mined Bitcoin for immediate cash flow

Strategic advantages:

• Lower operational costs than many competitors
• Modern, efficient mining equipment
• Strategic partnerships for energy sourcing
• Growing mining capacity

Why consider Marathon: Bitcoin mining companies directly benefit from rising Bitcoin prices. When Bitcoin's value increases, mining becomes more profitable, which can potentially boost the stock prices of companies involved in the mining process. Marathon offers pure exposure to Bitcoin's price movements without the complexity of directly holding cryptocurrency.

Riot Platforms (RIOT): the resilient miner

Riot Platforms has transformed from a small company into one of the largest publicly traded Bitcoin miners in North America. Riot Platforms is one of the largest publicly traded Bitcoin miners in North America.

Company evolution: Originally known as Bioptix, this company specialised in veterinary drugs and medical technology. The transformation to Riot Blockchain (now Riot Platforms) represents one of the most dramatic business pivots in recent history.

Current position:

• Operates large-scale mining facilities
• Focuses on efficient, sustainable mining operations
• Continuously upgrades mining equipment
• Maintains strong operational metrics

Recent performance: RIOT stock declined by more than 6%, extending its rough year-to-date performance, which is characteristic of the volatility common to crypto mining stocks.

Investment considerations: The high short interest in both names suggests that a short squeeze can't be ruled out at some point, with Marathon at 23% and Riot at 17%.

How do these stocks correlate with crypto?

The relationship between these stocks and cryptocurrency prices remains strong in 2025. Shares of major crypto companies, such as Coinbase, rose 8%-9%, while several crypto miners, including Bitdeer, CleanSpark, MARA Holdings, and Riot Platforms, posted double-digit gains.

Here's why the correlation exists:

Coinbase: More crypto trading means higher revenue from transaction fees. Rising crypto prices attract more users to the platform.

Marathon Digital and Riot Platforms: Higher Bitcoin prices make mining more profitable. These companies' mining operations become more valuable as the price of Bitcoin rises.

Market sentiment: When investors feel bullish about crypto, they often buy crypto stocks as a proxy investment.

2025 market dynamics

The crypto stock landscape has matured significantly. Throughout 2025, the stock has plummeted nearly 36% – a decline much deeper than Bitcoin's price drop of approximately 10% over the same period. This performance gap suggests that investors are growing increasingly cautious about crypto-mining stocks.

This performance gap suggests that investing in coin stocks requires careful consideration of company-specific factors, not just crypto price movements.

Key factors affecting crypto stocks in 2025:

• Bitcoin halving effects on mining profitability
• Regulatory developments in the US
• Institutional adoption rates
• Energy costs and sustainability concerns
• Competition from new mining operations

Benefits of crypto stock investing

Regulatory compliance: Traders must adhere to KYC/AML norms for direct crypto trading, while stock investments are subject to established regulations.

Professional management: These companies have experienced teams making strategic decisions about operations, expansion, and capital allocation.

Financial transparency: Public companies are required to file regular financial reports, providing clear visibility into their performance.

Liquidity: These stocks trade on major exchanges with high liquidity. You can buy and sell easily during market hours.

Diversification: You can include crypto stocks as part of a broader investment portfolio.

Risks to understand

Volatility remains high: Crypto stocks can be as volatile as cryptocurrencies themselves. The next resistance lies near $16.70; a breakout there could propel MARA above $17 for the first time since mid-February, signalling a bullish continuation.

Operational challenges: Despite today's bounce, US mining operations face challenges from tariffs and potentially slowing growth.

Market correlation: While these stocks generally move with crypto prices, they can also decline independently due to company-specific issues.

Regulatory changes: Changes in US crypto regulations could impact these companies significantly.

Competition: New entrants in the crypto mining and exchange sectors could impact market share and profitability.

Getting started with crypto stocks

Research thoroughly: Study each company's business model, financial health, and competitive position. Don't invest solely based on crypto hype.

Start with small positions: Given the volatility, consider these stocks as a focused portion of your overall portfolio.

Monitor company fundamentals: Track revenue growth, operational efficiency, and strategic developments, not just Bitcoin prices.

Diversify your approach: Consider mixing exchange stocks (such as Coinbase) with mining stocks (like Marathon and Riot) to achieve different types of crypto exposure.

Stay informed: Follow both company news and broader crypto market developments that could affect these businesses.

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Investment strategy for 2025

Consider your risk tolerance: Crypto stocks are suitable for investors who are comfortable with high volatility in exchange for potentially high returns. They're not ideal for conservative investors seeking steady income.

Time horizon matters: Short-term trading in crypto stocks can be highly volatile. Longer-term investors may benefit from riding out market cycles.

Dollar-cost averaging: Consider gradually building positions over time rather than making significant one-time investments.

Rebalancing: Regularly review your crypto stock allocation, as these volatile investments can quickly become oversized or undersized in your portfolio.

The path forward

Investing in cryptocurrency through US stocks offers a compelling alternative to direct crypto investments in India. You gain exposure to the crypto revolution while working within established investment frameworks.

While cryptocurrencies like Bitcoin are not recognised as legal tender, they operate in a regulatory grey area with evolving tax and compliance frameworks. This uncertainty makes crypto stocks an attractive middle ground for many investors.

The cryptocurrency industry is expected to continue evolving rapidly in 2025. New technologies, clearer regulations, and growing institutional adoption will shape the futures of these companies. The businesses that adapt and execute well could provide substantial returns for patient investors.

These three stocks—Coinbase, Marathon Digital, and Riot Platforms—represent different ways to participate in the cryptocurrency economy. Coinbase offers exchange and platform exposure, while Marathon and Riot provide direct exposure to Bitcoin mining.

The legal clarity around US stock investments, combined with the growth potential of the crypto sector, makes this approach attractive for Indian investors. You can't escape the volatility of the crypto asset class, but the transparency and regulatory framework of public companies provide additional comfort.

Remember that investing in crypto coin exposure through stocks still carries significant risks. The sector's rapid evolution means today's leaders might not be tomorrow's winners. Stay informed, invest wisely, and never invest more than you can afford to lose.

Frequently asked questions about cryptocurrency?

1) What are the three best cryptos to invest in?

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are widely regarded as top choices due to their strong adoption, advanced technology, and market leadership.

2) What is the 3rd most popular crypto?

Tether (USDT) is the third most popular cryptocurrency by market cap, valued for its stability as a leading stablecoin.

3) What to invest in instead of crypto?

Consider stocks, gold, real estate, mutual funds, or government bonds for more traditional and regulated investment options.

4) What are the big three crypto exchanges?

Binance, Coinbase, and Kraken are the top global cryptocurrency exchanges, renowned for their high trading volumes, robust security, and user trust.

Disclaimer: This is not investment advice. Crypto stocks are volatile. Do your own research before investing.

Contributed by Denila Lobo

Denila is a content writer at Winvesta. She crafts clear, concise content on international payments, helping freelancers and businesses easily navigate global financial solutions.