With penny stocks, there are plenty of factors that can affect day-to-day price trajectories. This includes news, social media, and fundamentals among others.
Right now, investors are intent on finding penny stocks working in the blockchain and cryptocurrency industry. This is partly due to their potential, and partly due to the rise of cryptocurrencies like DogeCoin, Ethereum, and Bitcoin. Additionally, we have to factor in the effect of retail investing on platforms like Robinhood.What Are Robinhood Penny Stocks?
In case you haven’t heard, the Robinhood app is one of the most popular platforms for trading penny stocks. Since 2015 its user-friendly platform has led the younger generations to start investing at an earlier age. More are inclined to use Robinhood for day-trading and swing-trading because of its commission-free offerings.[Read More] Best Penny Stocks to Buy Now? Check These 3 Tech Stocks Out
This has significantly benefitted those who with to buy penny stocks, and specifically those in the cryptocurrency industry. Although there have been recent accounts of technical issues and the general complaint of a lack of OTC stocks, it is still one of the most popular trading apps amongst newer investors.Finding The Best Blockchain Penny Stocks to Watch
Like everything, making a list of penny stocks should follow trends and recent news. The speculative nature in which they are traded makes them enticing for day and swing-trade investors. A recent trend seen in the trailing months across markets is the bullish sentiment in the crypto sector.
New penny stocks to watch with a relationship to crypto are being listed daily. Many are involved in everything from crypto mining and computer chip manufacturing to real estate for data centers and more. As you can see, there is a broad range of cryptocurrency and blockchain penny stocks to buy.
It’s no question that as inflation rises and our markets begin to recover, a lot of opportunity across the market. While those looking to make quick gains usually shy away from ETFs such as the S&P 500, penny stocks offer the potential to see large intraday price swings. The decentralized system offered by digital currencies is appealing to many investors whether directly or indirectly.[Read More] Which Blockchain Penny Stock Saw A 166% Move This Month?
As an investor, you have the option to trade cryptocurrencies, but, because of their complex nature, it can be difficult to navigate how to trade them. Crypto penny stocks on Robinhood have granted investors like yourself the opportunity to still be a part of the increasing blockchain and crypto markets by investing indirectly through physical businesses.
Rising interest in cryptocurrencies like Dogecoin and Etherium has promoted a “risk-on” approach to trading. While making a 10% increase over the year is nice through standard ETFs, it’s nothing like the breakouts crypto-related penny stocks have seen.
There is, of course, a higher risk that comes with the potential for massive gains (and losses). But coping with risk and higher volatility can be mitigated through research and planning. The recent sell-off seen in the markets has provided a window of opportunity to buy in at a more reasonable price. Here are a few crypto penny stocks to add to your watchlist.4 Blockchain Penny Stocks To Watch Right Now
- Sos Ltd. (NYSE: SOS)
- Uxin Ltd. (NASDAQ: UXIN)
- ZW Data Action Technologies Inc. (NASDAQ: CNET)
- Future Fintech Group Inc. (NASDAQ: FTFT)
As 2021 began, cryptocurrencies such as Bitcoin and Etherium were well on their way to making record-breaking highs. It’s no surprise that during this time Sos Limited, a company engaging in blockchain technologies was also increasing tremendously.
For the past few months, as Bitcoin has consolidated, SOS has been seeing a price per share decrease. Now back at a penny stock price point, some are considering it again. When looking at penny stocks to buy it’s important to review the financials, which in this case can be seen as encouraging.
SOS saw a 333.6% increase in its total revenue since 2019 and a gross profit of $13 million, a 513.5% increase since the previous year. This does not follow the bearish sentiment it has seen and might actually provide investors with a potential value opportunity.
As a company engaging in many businesses, its crypto mining has been its most profitable endeavor. With only phase 1 of several complete, SOS aims to increase its Ethereum mining.
“The overall plan of SOS’ digital currency business is systematically designed around blockchain technology. Leibodong project is a model for us to obtain low-cost electricity in Sichuan and other southwest regions, rich in renewable energy resources to expand our digital currency mining operations.
The completion of the Phase I construction and the delivery of 575 ETH mining machines lay a solid foundation for the further success of our cloud cryptocurrency mining center in Leibodong. We expect our mining in Leibodong will provide us with multi-faceted experience to continue our research, development, and commercialization of blockchain technology.”Mr. Yandai Wang, CEO of SOS
Considering this, SOS remains a pure-play blockchain penny stock that could be worth watching.Uxin Ltd. (NASDAQ: UXIN)
Another penny stock to add to your watchlist this May is Uxin Limited. UXIN is a business that operates within the used car market in China. It offers an online platform for used car auction, retail, and financial derivative services. Its all-encompassing car-buying website has transformed the used car buying process in China for the better.
UXIN has seen an increase of over 95% this past month mostly due to its reported third-quarter earnings. This growth is due to the positive future speculation about the company from investors. UXIN’s strong underlying data analytic capabilities can cover the extensive network of over 260 cities it operates in.[Read More] Top Penny Stocks to Buy? 4 Biotech Stocks to Watch Before May 2021
Its currently sitting at a 52-week high, increasing by over 97% this year alone. With used cars in high demand currently and positive quarterly earnings many believe it to be in a strong position for the coming months.
Remember, supply and demand is what drives sales and increases profit margins. And as always, fundamentals play an important role in whether or not a company could have a long-term future. Given this information, do you think UXIN is a good penny stock to watch?ZW Data Action Technologies Inc. (NASDAQ: CNET)
Another digital-focused penny stock company that is worth looking at is ZW Data Action Technologies. It provides advertising, precision marketing, and the combination of online and offline sales channels for small to medium size businesses.
In a recovering market, advertisement companies will be at the forefront of increased retail sales. The rising competition for the spotlight will heavily depend on marketing in the coming months. And as Covid cases have declined, retail numbers in the U.S. have increased dramatically over the past few months.
While it did see a correction around mid-February, some investors are waiting for a fair buy-in opportunity. Given that it has dropped in value by over 72%, investors are looking at whether or not CNET could be approaching value levels. Having reached a 52-week high of $6.19 per share, its current price of $1.69 might be something to consider when forming a penny stock watchlist.
Additionally, many investors consider ZW to be a reopening penny stock due to it benefitting from the loosening of economic restrictions. One thing to keep in mind is that CNET stock is quite volatile. But, if you know how to use volatility to your advantage, CNET could be worth keeping an eye on.Future Fintech Group Inc. (NASDAQ: FTFT)
We have been talking about Future Fintech Group for the past couple of weeks. FTFT is a blockchain-related company that engages in blockchain-based online shopping. Its online mall platform operates with both e-Commerce technology as well as financial technology.
As an innovator in the world of online retail, FTFT also recently acquired Khyber Money Exchange Ltd, a money transfer company that will provide better net profit opportunities.
“We believe that this is a high margin business that will enable us to capitalize upon an increasing level of international money flows and that it could ultimately be synergistic with the Chinese payment settlement services company, Hi-Card Business Service Co., Ltd., in which we are planning to acquire a 60% interest pending due diligence and final negotiation.”Shanchun Huang, CEO of FTFT
In the blockchain industry, mergers and acquisitions can be a fast-paced route to growth. And because there is so much competition, companies like Future Fintech Group Inc., are working hard to make a name for themselves.
FTFT is run out of Florida and has taken advantage of this recent increase in blockchain and crypto interest by implementing digital finance technology with its Chain Cloud Mall (CCM) services. By challenging the operations of our ever-changing online retail system, do you think Future Fintech Group has a place on your watchlist? And, considering it’s almost at a 3 month low, is FTFT stock worth considering for your portfolio?Are Blockchain Penny Stocks Worth Buying?
Finding blockchain penny stocks can be difficult if you don’t know where to look. But, with the right tools and research in hand, investors can make their penny stock watchlists competitive with even the best traders out there.[Read More] 3 Hot Penny Stocks To Buy With Analysts Expecting Up To 383%
With blockchain stocks, in particular, it’s important to consider what role and how pure-play the company is. While some companies directly mine cryptocurrency, others produce software or hardware used in mining or create alternative products using blockchain technology. With all of this in mind, are blockchain penny stocks worth buying?