There is still time to get in on the ground floor of the blockchain phenomenon. Many of the leading securities in the space are still trading in penny stock territory. We’re already buying houses, funding charities and reducing crime with blockchain tech, but the concept has yet to break into the mainstream. A technology that has proven its utility but still has plenty of room to be implemented is usually a great candidate for growth.
If you want to make quick profits in this market, those opportunities are available as well. We’ll go over some of the best bets in blockchain to help inform your next trading decision.
Highlighted Blockchain Penny Stocks:
| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
Biggest Blockchain Penny Stocks Movers of the Day
Big volatility means plenty of opportunity to trade for short-term profits. Here is a list of big movers that you may be able to take advantage of.
Stock Movers
Gainers
| Ticker | Company | ±% | Buy Stock | |||
|---|---|---|---|---|---|---|
| GBTC | Grayscale Bitcoin Trust (BTC) Common Units of fractional undivided beneficial interest | $58.27 | 0.29% | 5.2M | Buy/Sell | |
Loser
| Ticker | Company | ±% | Buy Stock | |||
|---|---|---|---|---|---|---|
| USD | ProShares Ultra Semiconductors | $117.67 | -12.5% | 474.9K | Buy/Sell | |
| HUT | Hut 8 | $17.98 | -9.63% | 5M | Buy/Sell | |
| SQ | Block | $61.78 | -7.64% | 7.5M | Buy/Sell | |
| NVDA | NVIDIA | $114.23 | -6.82% | 379.2M | Buy/Sell | |
| GOOGL | Alphabet | $172.45 | -5.14% | 25M | Buy/Sell | |
| MARA | Marathon Digital Holdings | $20.67 | -4.53% | 48.1M | Buy/Sell | |
| V | Visa | $254.40 | -3.93% | 8.1M | Buy/Sell | |
| FTEC | Fidelity MSCI Information Technology Index ETF | $166.56 | -3.93% | 216.3K | Buy/Sell | |
| INTC | Intel | $31.68 | -3.86% | 49.1M | Buy/Sell | |
| BLOK | Amplify Transformational Data Sharing ETF | $37.21 | -3.86% | 190.3K | Buy/Sell | |
Overview: Blockchain Penny Stocks
Blockchain technology, the use of digital time stamps for ordering transactions, has been around since 1991. Researchers W. Scott Stornetta and Stuart Haber were looking for a way to create better document timestamps, but blockchain first produced a widespread real world utility as the underlying framework for Bitcoin in 2009. Not too long later, as an objectively better way to record transactions and prevent fraud, the concept of the blockchain is already a part of many mainstream companies behind the scenes.
Identifying when the first blockchain stock appeared is difficult. As Bitcoin began to expand, many small tech companies already on exchanges simply slid over into researching and producing blockchain technology. It is also true that many penny stocks who claim blockchain are using the lexicon strictly for marketing purposes. Speculative tech is a relatively unregulated business space that many government regulators don’t even have the training to understand.
The first well-publicized blockchain stock offering was conducted by Overstock (NASDAQ: OSTK) in 2016. The first blockchain ETFs showed up in the U.S. in early 2018 following the Q4 2017 Bitcoin mania (1 BTC ≈ $20,000). Since 2018, the crypto securities market continues to expand as crypto’s market cap consolidates between a range of $150 billion and $330 billion.
Today, blockchain stocks tend to rise and fall in tandem with the volatility in Bitcoin and other major cryptocurrencies. Some experts have guessed that the connection is because low-information casual investors are making their way into the market. Others think that “blockchain” is being used more like a marketing catch-all to attract new investors.
The overlap of these theories may be the most interesting point: They both benefit from nontechnical investors who may not be interested in blockchain as anything more than a framework for a method of currency exchange. They are less interested in anonymity or security, and they may not need to know that companies like IBM, Oracle and Amazon are already using blockchain in their digital transformations. Smart investors, however, follow the implementation of the technology in companies large and small. Blockchain has implications for how businesses will conduct daily commerce in the next few years.
Best Online Brokers for Blockchain Penny Stocks
The tools and execution you receive from a good broker can make all the difference in penny stock trading. Here’s what you need to know about top brokers in this space.
Blockchain Penny Stocks to Watch
Some traders love ETFs for instant diversification; others like to pick individual stocks. If you love the challenge and rewards of picking winners out of the blockchain penny stock market, let’s take a look at three tickers that have shown promise.
First Bitcoin Capital Corporation (OTCMKTS: BITCF)
| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
Based out of Vancouver, First Bitcoin Capital Corporation provides online services that facilitate consumer transactions. It also offers bitcoin and other cryptocurrency-based services.
First Bitcoin Capital Corporation has a market cap of $36 million and low liquidity with an average daily trade volume of 2,002 shares. The blockchain stock has a 52-week low of $0.04 and a 52-week high of $1.39.
Riot Blockchain Inc. (NASDAQ: RIOT)
| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
Riot has the biggest mining network of any public company. This will become increasingly important in future Bitcoin halvings, which make Bitcoin an even rarer commodity than it is now (only 1% of the world’s population owns it). Smaller miners will move away from mining as the practice becomes less profitable, giving companies like Riot unfettered access to even more market share.
Riot uses its holdings to develop blockchain tech and invest in cryptotech, including the highly successful Canadian crypto exchange Coinsquare. The company’s other investments include Tesspay, an escrow service for the wholesale telecommunications industry based on blockchain tech; and Verady, a service that provides audit technologies and cryptocurrency accounting through VeraNet.
A large part of crypto’s expansion will be about making crypto easier for non-techies to use. Companies like Riot on the leading edge of those technologies (with the ability to create their own financing through the mining operation) have the potential to perform quite well in the next few years.
MGT Capital Investments (OTCQB: MGTI)
| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
MGT Capital Investments is a crypto-currency miner. It is involved in mining bitcoin and ethereum. MGT Capital Investments earns revenue by solving blocks to be added to the blockchain. It has partnered with Bitmain Technologies and uses its Bitmain 59 Antminers. The company owns and operates 7,000 Bitmain 59 mining rigs and 50 ethereum mining machines.
The blockchain stock has a market cap of $6.16 million. It has high liquidity with an average daily trade volume of 500,000 shares.
Last year, MGT Capital Investments announced that it had ordered 1,100 Bitmain S17 Antminers from Bitmain. Each miner uses 2,860 W of electricity per hour, allowing much greater efficiency compared to its current inventory of Bitmain S9 miners.
Finding a Needle in a Haystack
There can be a lot of untapped value in low-priced stocks, especially those with innovations in an industry that is on the verge of mainstream use. Be sure to do your due diligence, however. Smart money is betting on the blockchain as a long-term play, but you can get chopped up in short-term volatility if you are not careful.