Esports stocks – Find the best esports stocks in 2019
Investing in esports stocks allows you to take financial advantage of the global success of competitive gaming. In the past decade, we have seen esports brands like Twitch, ESL and Cloud9 become hugely valuable. Some of these companies allow you to buy stocks in them so that you can help invest in their future, whilst earning a profit share as they grow.
Most gamers will probably be more interesting in playing games rather than watching the price of esports stocks. But if you are keen to put your gaming knowledge to good financial use, then figuring out how to buy stocks in esports could be a wise move.
So, we are going to give you a quick guide to recognizing the best esports stocks, and take a look at some of the most valuable esports stocks 2019 has to offer.
What are esports stocks?
Esports stocks are shares that a gaming company puts up for sale. These represent a proportion of the total value of the company. By investing in esports stocks, you will get to earn a fraction of that company’s earnings.
Most companies start off as private enterprises. But when they grow in size, they might decide to go public by having an Initial Public Offering (IPO) that allows anybody to buy stocks.
As a company becomes more profitable, the value of your stocks would increase. But conversely, if a gaming company hit a downturn in their fortunes, you would see the value of your investment being reduced.
The value of stocks are constantly changing in correspondence to a number of factors. For example, if a gaming company announced plans to release a promising new product, you would see their share price rise. But if an esports brand revealed disappointing sales figures, then their stock price would fall.
By monitoring the market value of these shares, you will get a good indication of which esports stocks to buy and which to leave well alone.
Why should you start investing in esports stocks?
Making money from esports is the obvious reason why you might want to invest in the best esports stocks. This is because the stock market can offer you a much faster way to get a return on your money than other forms of investment.
Compared to opening a standard bank savings account, investing in stocks can see your money grow at a surprisingly fast rate. This is especially so in relatively new industries such as esports where fledgling brands can seemingly grow overnight into becoming billion dollar businesses.
The relative liquidity of the stocks shouldn’t be underestimated, but it’s important to remember that these kinds of shares can go up as well as down. As a result, buying even the best esports stocks can be a bit of a gamble. So be sure that you are 100% sure of your investment before you open yourself up to the risks of the volatile esports market.
How to buy stocks in esports
Most people tend to buy stocks online from share dealing platforms. By heading to one of these sites you should be able to buy shares from any esports or gaming company on the stock exchange.
In order to buy a share, you will need to set up and fund your trading account. From here, it’s just a matter of deciding which esports stocks to buy. Just remember that all share dealing platforms tend to include dealing charges that should always be factored into your investing.
Share dealing platforms cover the larger stock exchanges such as the London Stock Exchange. But if you want to figure out how to buy stocks in esports, you might need to use a specialist exchange-traded fund (ETF).
For example, NERD ETF is an exchange-traded fund that specifically deals in esports stocks. This uses algorithms and gaming industry experts who will build up your portfolio by only including shares in those companies who are directly exposed to esports.
What are the best esports stocks to buy?
Now that we’ve covered the basics of how to buy stocks in esports, it’s time to think about the best esports stocks 2019 has to offer. If you want to invest in some of the biggest names in esports, then it’s a good idea to look at which companies own these brands.
For example, Twitch is owned by Amazon, and YouTube is one of Google’s subsidiaries, and by getting shares in such companies, you will be investing in some of the biggest brands in the world. Such investments can often be seen as a safe bet, as such companies are well-established and their share price has a history of stability and growth.
Major game developers like Electronic Arts, Activision Blizzard and Take Two also offer a fair degree of stability. Plus gaming hardware brands like Logitech and Nvidia could be worth a look. Don’t forget that China has the world’s biggest esports market, and shares in companies like Tencent and NetEase could also prove to be shrewd investments.
But if you are looking for esports stocks to buy that could give you a faster way to make larger profits, then it could be worth looking at some smaller companies. You might also find that the owners of many esports teams might have stocks for sale.
Esports organisations like Immortals Gaming tend to be owned by massive entertainment companies like Anschutz Entertainment Group who own many other famous brands and could offer a decent way to invest in the esports phenomenon.
Why even the best esports stocks could be a risky investment
If you are looking for esports stocks, 2019 has plenty of options. There is an incredible amount of hype surrounding the industry that’s expected to hit $1 billion in revenues this year.
Despite this, many people have been predicting that the esports bubble will burst soon. So be sure to think carefully about how much risk you are exposing yourself to when you decide to invest in esports stocks.
Not a big fan of Stocks? Betting with bitcoins is another way to make money with esports. Read our guide.