Best Blockchain Penny Stocks

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.

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Contributor, Benzinga
April 26, 2022

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Bit Digital (XNAS:BTBT)

Bit Digital Inc is engaged in the bitcoin mining business. Its mining platform operates with the primary intent of accumulating bitcoin which may sell for fiat currency from time to time depending on market conditions. It generates revenue from cryptocurrency mining.

Bit Digital
(XNAS:BTBT)
$1.18
-0.05[-4.07%]
Last update: 4:00PM
Day Range1.18 - 1.2252 Wk Range1.12 - 6.37Open / Close1.2 / 1.18Float / Outstanding- / 82.4M
Vol / Avg.522.1K / 2.2MMkt Cap97.3MP/E-50d Avg. Price1.46
Div / Yield-Payout Ratio-Total Float-EPS-

(HVBTF)

HIVE Blockchain Technologies Ltd is in the business of providing infrastructure solutions in the blockchain industry. It focuses on the mining and sale of digital currencies. Its geographical segments include Canada, Sweden, Iceland, Switzerland, and Norway, out of which the majority of the revenue comes from Canada.

(HVBTF)
Day Range- - -52 Wk Range- - -Open / Close- / -Float / Outstanding- / -
Vol / Avg.- / -Mkt Cap-P/E-50d Avg. Price-
Div / Yield-Payout Ratio-Total Float-EPS-

Sphere 3D (XNAS:ANY)

Sphere 3D Corp delivers virtualization technology and data management solutions. It operates in one segment, which is providing data management and desktop and application virtualization solutions for small and medium businesses and distributed enterprises. The company’s portfolio includes HVE Converged & Hyper-converged Infrastructure, G-Series Appliance & G-Series Cloud, and SnapServer. It derives revenue primarily from solutions for standalone storage and integrated hyper-converged storage, professional services, and warranty and customer services. Its geographical segments are the Americas, Asia-Pacific, and EMEA (Europe, the Middle East, and Africa).

Sphere 3D
(XNAS:ANY)
$0.425
-0.0339[-7.39%]
Last update: 3:59PM
Day Range0.43 - 0.4652 Wk Range0.42 - 3.81Open / Close0.45 / 0.43Float / Outstanding- / 66.5M
Vol / Avg.1.2M / 1.1MMkt Cap28.3MP/E-50d Avg. Price0.62
Div / Yield-Payout Ratio-Total Float-EPS-

DatChat (XNAS:DATS)

DatChat Inc is a communication software company. It is focused on its mobile messaging application that provides a traditional messaging platform while providing users with complete privacy and control features for their sent messages. Its mobile messaging application is called DatChat Messenger which is a free messaging application.

DatChat
(XNAS:DATS)
$0.7384
-0.0312[-4.05%]
Last update: 4:00PM
Day Range0.73 - 0.7652 Wk Range0.6 - 4.14Open / Close0.74 / 0.74Float / Outstanding- / 20.6M
Vol / Avg.62.9K / 232.6KMkt Cap15.2MP/E-50d Avg. Price0.99
Div / Yield-Payout Ratio-Total Float-EPS-

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.

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.

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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.