It is estimated that by 2020 66% of banks will use blockchain tech and by 2021 the blockchain technology market size will be $2.3 billion and grow by 61.5% CAGR.

Many cryptocoin creators and early adopters have switched thier focus to investing in companies creating products that use blockchain or are actively mining an assortment of cryptocurrencies. If those people are, and you are sitting on a huge pile of crypto gains, it might be prudent to start diversifying a little - if still sticking in the Blockchain technology sector.

The list of mega-cap companies venture funding blockchain startups is full of big names: Citigroup (C), Goldman Sachs (GS), Google (GOOGL), and Cisco Systems (CSCO) are just a few, says research firm CB Insights.

The momentum gathering behind blockchain isn't simply a matter of venture capital either. Large technology companies such as Microsoft (MSFT), IBM (IBM), Oracle (ORCL), Intel (INTC) and Accenture (ACN) — have jumped in heavily. Their starting efforts include creating blockchain tools for cloud services and taking part in consortiums developing blockchains for specific sectors.

While investing in private start-ups is mainly for those with the deepest of pockets, the rest of us can still get in on the early days of the Blockchain revolution.

Here is my list, in no particular order until my top 5 blockchain picks, of investable blockchain and cryptocurrency companies. I've limited them to companies with a $1 billion dollar market cap or less.

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Cryptocurrency & Blockchain Stock Investments

eXeBlock Technology ($0.75/Sh) -Market Cap $33M @jonathan.bahai

• Designs custom blockchain platforms for businesses
• DApp developer with focus on 'per-use' revenue generation
• Will develop 4 DApps in the next 24 months for use on the PeerPlays Blockchain network
• First DApp eXe50/50 Draw lottery blockchain
• Freedom Ledger, allows those without cryptocurrency wallets to use DApps
• Owns approx 940,000 PeerPlay (PPY) tokens - a value of ~$16M

HIVE Blockchain - PRELF (~$3/Sh) -Market Cap $700M

• Heavily linked with Genesis Mining (30% owner of HIVE)
• Iceland + Sweden – expanding
• Projected 2018 Gross mining revenues of 30-43m USD

Glance Technology – GLNNF (~$1.65/Sh) -Market Cap $227M

• Mobile payment system using blockchain “Glance Pay”
• Glance smart token for customer loyalty and rewards
• Partially owned subsidiary CannaPay
• Expensive shares, not profitable, with little revenues but increasing
• $17.4m in the bank after selling shares for $3 CAN

Leonovus Inc. - LVNSF (~$0.25/Sh) -Market Cap $63M

• First mined Litecoin in 2014 from digital light bulbs of all things.
• Planned ICO in 2018
• Created Lenovus 3.0 – a blockchain-hardened data storage device that gives a second line of defense against unauthorized access
• Rather heavy debt load and no profits

AnalytixInsight Inc – ATIXF (~$0.50/Sh) -Market Cap $33M

• Announced blockchain initiatives pursuit
• Deep learning platform called CapitalCube, will pursue integrating blockchain
• 49% owned Marketwall to deploy mobile stock and banking app in Italy in 2018
• Had a profit in Q3 2017, first time

Social Realty Inc – SRAX (~$6/Sh) -Market Cap $56.7M

• Plans to be the first public company to deliver a transparent data management and distribution system through a secure blockchain platform, token reward, and open source governance structure
• BIG platform + token, enable customers to sell their personal data
• Intends to pay a one-time crypto dividend of BIG tokens
• Legacy social ad data business

Seven Stars Cloud – SSC (~$4.30/Sh) -Market Cap $268M

• Chinese company, was called YOU On Demand, was called Wecast Networks
• Aiming to become a next-generation and global Artificial Intelligence & Blockchain-powered disruptive financial services
• 60% owner of Red Coin Chain, 20% BBD Digital Capital Group, 27% Delaware Board of Trade Holdings, 51% NextGen Exchange Group
• Plans for 7 product engines grouped into 3 tech platforms, distributed by 2 networks all combined into 1 hub, an ambitious plan

Blockchain Power Trust - TNSTF (~$0.60/Sh) -Market Cap $26M

• Just changed name from Transeastern Power Trust
• Purchased a 45MW wind farm in Romania with plans to use that energy to mine cryptos, also owns hydro and solar in Eastern Europe
• Earnings of $2m after costs in Q3 2017
• Very interesting, green power plus upcoming crypto mining and SMALL cap
• Bit heavy on debt, but has the assets to back it up

Big Blockchain Intelligence Group – BBKCF - (~$1.35/Sh) -Market Cap $76M

• They are in the blockchain policing niche
• Providing data analytics and monitoring to help catch the crooks who are using cryptocurrencies in their operations.

Black Cactus Global – BLGI (~$0.50/Sh) -Market Cap $77M

• Just changed name from Envoy Group
• global blockchain development company building applications for fintech, media and supply chain applications.
• Acquired World on Wireless, a provider of payment systems and services
• Owns BitReturn, a Canadian crypto miner

DigitalX – DGGXF (~$0.30/Sh) -Market Cap $134M

• Blockchain and ICO Advisory services
• Crypto trader, taking advantage of arbitrage opportunities
• AirPocket app, a mobile payment service
• JV to develop Bitcoin ATM's to both buy and sell the crypto

Internet of Things Inc – INOTF - (~$0.09/Sh) -Market Cap $14.5m

• Acquisition of Weather Telematics, autonomous vehicle weather technology co
• Subsidiary called Blockchain of Things Inc, pursuing blockchain acquisition
• JV with New Hope Group, Chinese firm with $15.5 billion in revenue “Intelligent Plant”
• Current Focus is Industrial IoT, Big Data

MGT Capital Investments – MGTI ($4.75/Sh) -Market Cap $230M

• Leadership Team's Chief Cybersecurity Visionary is John McAfee
• Cybersecurity technology focused
• 5,000 Bitmain S-9 mining rigs in operation + at least 500 more on order
• Projected to have revenues of $2m/month

Net 1 UEPS Technologies - UEPS (~$12.50/Sh) -Market Cap $715M

• Partner of Bitstamp cryptocurrency market to process customer payments

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Cryptocurrency and Blockchain Investment Financing Companies

Block One Capital Corp – BKPPF (~$1/Sh) -Market Cap $57M

• Seeks to invest in blockchain and cryptocurrency opportunities
• Acquired 40% of Finzatt LLC a small mortgage blockchain developer
• Acquired 905 of TG12 crytominer, 2000 S9 Antminers for Bitcoin mining
• Estimates nearly $26m US in revenue when operational
• Previous investments appeared to be losers

Global Blockchain Technologies – BLKCF (~$1.40/Sh) -Market Cap $23M

• Recently acquired a 49.9% stake in Coinstream (cloud miner) for $10m US
• Purchased 6,666 S9 Antminers for investment purposes (not to mine with)
• Planned Distributed mining platform – first up is xbox one
• Invest in ICO's and hold a portfolio of coins

BTCS Inc. - BTCS (~$0.18/Sh) -Market Cap $36M

• Planned merger with private co Blockchain Global, a funder of DigitalX

Coinsilium Group Ltd – CINGF (~$0.25/Sh) -Market Cap $30M

• Coinsilium is an accelerator that finances and manages the development of early-stage blockchain technology companies
• Acquired a 30 percent interested in StartupToken Limited
• Owns Terrastream, which aims to build an enterprise standard blockchain-powered platform for token-based alternative funding solutions

Victory Square Technologies – VSQTF -Market Cap $143M(~$2.30/Sh)

• Invests in blockchain and holds crypto
• CEO of BTL Group is an advisory member and VSQTF was an early BTLLF funder

FRMO Corp - FRMO - (~$10/Sh) -Market Cap $452M

• Holding corp with many traditional investments
• Invested in Digital Currency Group, Genesis, Grayscale, and Coinbase

Metropolitan Bank Holding Corp – MCB (~$46/Sh) -Market Cap $375M

• Offers Shift Bitcoin debit card for Coinbase customers
• Fast growing

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MY TOP 5 BLOCKCHAIN STOCK PICKS

While I believe in the long-term value of these companies, they all have plenty of risk. It is important to know your risk tolerance before you invest.

Another thing to keep in mind is to buy at the right price. It can really kill your returns if you buy a good stock at a high price. Often these companies have large price swings you can take advantage of. Strike when the opportunity is right. For instance, I like BTL Group but they are quite pricey at $11/Sh. However, at say $8 it gets interesting.

# 5: BTL Group – BTLLF (~$11/Share) -Market Cap $233M

• Custom Enterprise-level 3rd gen Blockchain platform called InterBit
• Successful tests with Visa and British Petroleum
• Master and slave chains to provide privacy and security
• 100,000's of transactions per second
• Patent filed on Oct 17th, 2017
• Interbit Launching Q1 2018
• Read my latest article on BTL Group HERE.

# 4: Goldmoney – XAUMF (~$5/Sh) -Market Cap $401M @goldmatters

• Created to copy Bitcoin but with gold
• Offers Anti-Money Laundering compliant cryptocurrency cold storage 'ColdBlocks'
• Investment jeweler 'MENE' spinoff announced
• JV to expand into China
• Revenues up and they are profitable

# 3: HashChain Technology – HSSHF (~$3 /share) -Market Cap $133M

• Dash coin focused, is a masternode
• 100 Dash mining rigs, 770 purchased, 5,000 more on Jan 4th – a target of 26,500 by Q1 2019
• Vancouver (power cost of just $0.04 Kwh)

# 2: DataMetrex AI – DTMXF (~$0.30 /Share) -Market Cap $51M

• Canadian Big Data company (legacy POS business)
• Recent acquisition spree – Nexalogy and Ronin Blockchain
• Integrate AI into blockchain
• Graph Blockchain JV with BitNine – measure electric vehicle usage and integrate blockchain into medical cannabis industry with Revive Therapeutics – patient data platform
• Graph Blockchain being prepared to spin out – 1 share per 20 of Datametrex
• Ronin Blockchain – 10 data centers in January 2018, +15 per quarter and all 90 by Q3 2019 to mine altcoins. Will switch between what is the most profitable.
• Read my latest article on Datametrex HERE.

# 1: QIWI Plc – QIWI ($17/Sh) -Market Cap $1B

• Qiwi has a profitable and growing payments network of 164,000+ kiosks.
• Qiwi has been committed to Blockchain technology for years now.
• Qiwi has a subsidiary named Qiwi Blockchain Technology [QBT].
• Qiwi is a member of R3, an enterprise consortium of banks and technology companies that have built Corda – a cross-border payments Blockchain platform.
• Qiwi's CEO, Sergey Solonin, is the head of the Russian FinTech Association. An initiative backed by the Russian Central Bank [RCB] to encourage innovation in Blockchain Tech.
• Qiwi's shares were put to a June 9th tender offer of $28/share by Otkritie Holdings, which was a 19% premium to the trading price. The tender ultimately failed.
• Now the Central Bank of Russia owns 47.53% of the shares
• Russia will launch the 'cryptoruble' QIWI created the initiative
• Qiwi's CEO meets the RCB head and Putin often
• I believe that Russia will only allow this blockchain so as to 'protect' its citizens
• Possible 3-bagger
• Read my recent article on QIWI HERE.

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STOCKS TO AVOID - SCAMS AND RED FLAGS

As with anything in life, there are plenty of people out there trying to get rich off of your expense. Here is my list of stocks to avoid as possible investments.

The Crypto Company (CRCW)

• Organized corner, stay away

Marathon Patent Group (MARA)

• Patent troll history
• Large amounts of share dilution

RIOT Blockchain (RIOT)

• Valued WAY more than its assets and operations are worth
• Was a failing biotech firm that pivoted
• Spent $12 million to acquire a two-week-old company with less than $2m in assets
• CEO recently gifted himself $8.5m worth of shares and sold 10% of those immediately before publicly notifying

Long Island Iced Tea (LTEA)

• Pivoting from selling iced tea to blockchain tech – 'nuff said

LongFin - LFIN (~$54/Sh)

• Way overpriced, went from $5 to $70 in a week

Bitcoin Services - BTSC (~$0.21/Sh)

• Company addresses are a house and a PO Box in a strip mall mail center

Global Arena Holdings Co. - GAHC - (~$0.03)

• Blockchain in elections
• CEO has had a lot of lawsuits filed against him and the Co.
• Huge amount of share dilution

Xunlei - XNET - (~$19/Sh)

• Unprofitable Chinese streaming video co
• Created Wanke coin
• Problems with Chinese government for having the coin
• Shares went from ~$4 to ~$20 in a month when coin was announced