Best Blockchain Penny Stocks to Watch as Cryptocurrency Flies Sky High
As penny stock investors continue to remain interested in high volatility stocks, cryptocurrencies also have become extremely popular this past year. As the world moves further and further into the digital age, we are seeing a transition from normal paper currency to digital. This transformation is also a major benefit to penny stocks involved in the crypto market.
There are many reasons for this change that we will go into shortly. But first, it’s important to mention that, as investors, trading penny stocks with an open mind can offer many opportunities for portfolio growth.
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The first reason for this currency transition is due to online e-commerce and banking. With new systems such as Apple pay, Venmo, and Zelle there is little reason for a person to carry cash. The second reason being, that rising rates of inflation and debt, have many worried about the dollar value in the short term. And overall, this has led to the public wanting a decentralized way to purchase goods.
As cryptocurrency grows it opens up the opportunity for many other investment opportunities. Namely, blockchain penny stocks. Many businesses have formed in the wake of the crypto revolution, creating more value with penny stocks under $5. There are many areas that these companies work in. This includes property for data mining, software development, or assisting other businesses to implement digital currency.
In addition, the rise of cryptocurrencies like DogeCoin, Bitcoin, Ethereum, and a whole slew of altcoins, has helped to bring in all new investors into the crypto space. Simultaneously, many companies have begun investing in blockchain and cryptocurrency-related products.
Without a doubt, the innovation that spurred by the crypto market shows promise for many penny stocks to watch. With this, here are four crypto and blockchain-related penny stocks that are must adds to your May watchlist.
4 Cryptocurrency Penny Stocks to Watch in May 2021
- ZW Data Action Technologies (NASDAQ: CNET)
- SOS Limited (NYSE: SOS)
- Uxin Limited (NASDAQ: UXIN)
- Ebang International Holdings Inc. (NASDAQ: EBON)
1. ZW Data Action Technologies (NASDAQ: CNET)
Over the past few weeks, we have been covering ZW Data Action Technologies. It has returned over 110% this past year and continues to show potential as we move into the 2021 post-Covid-era.
CNET is highly integrated with modern systems such as internet advertising as well as blockchain technologies. This penny stock specializes in clientele with small to medium-size businesses, providing services such as precision marketing, data analytics, and other blockchain-related integrations.
As the economy reopens and we move past in-person restrictions, the CNET CEO, Mr. Handong Cheng, is optimistic about future growth.
“We are also glad to see our first live streaming platform launched officially in December and many significant progresses on our blockchain-related developments. Going forward, we expect to leverage the improved COVID-19 situation in China and continue to explore viable strategic alternatives to strengthen our business.”
CEO of CNET, Mr. Handong Cheng
2. SOS Limited (NYSE: SOS)
When making a list of penny stocks there can be a lot of risk involved. Their volatility is heavily influenced by speculation as well as recent news. In times where the stock moves erratically, there are many opportunities to be had for day trading as well as swing trading. This is currently the case for SOS Limited.
Amid the recent market volatility, its valuation has seen a decline. Still up over 150% this year alone, with highs reaching over 850%, SOS has been rebounding due to crypto growth. This is because it is highly involved with blockchain technology, offering services such as marketing data, technology, and solutions for emergency rescue services in China.
Its research and development department focuses on big data, cloud computing, blockchain, and artificial intelligence (AI). The smart system it has integrated with Chinese emergency services has many investors still interested in its further implementation in 2021. Despite its recent performance, do you think SOS should remain on your penny stocks watchlist?
3. Uxin Limited (NASDAQ: UXIN)
Since early September, Uxin Ltd. has returned a gain of over 150%. As a leader in the retail market, UXIN is involved in the resale of used cars in China. During COVID many were not able to purchase cars due to tighter budgets or other reasons and as a consequence, the number of car sales declined.
In a more positive light, UXIN was able to increase its revenue per car sold due to a shift in its business model. This explains the high growth of the company, as speculative investors believe it will increase its profits in the following years. Despite selling fewer vehicles, its revenues only dropped by 31%, much lower than previously estimated.
UXIN operates as an online used car transaction service platform and is considered a penny stock under $3 as of mid-May. UXIN’s goal is to address current issues facing consumers in China when it comes to buying used cars.
Unlike in the U.S., there is a lack of selection that Chinese car buyers have to deal with. This makes it relatively inconvenient to buy cars, resulting in customers having to import vehicles from other cities and regions. Additionally, a lack of accessible transportation means that viewing cars in person is difficult.
The hassle-free online purchasing experience UXIN offers attempts to provide people in the market for used cars more confidence when shopping. As we move into 2021 it’s common to see more and more similar business models arise when one flourishes. What do you think of UXIN’s future potential? Make sure to keep an eye on this penny stock in the coming months.
4. Ebang International Holdings Inc. (NASDAQ: EBON)
High volatility catches the eyes of many investors. It’s no secret that as blockchain technology improves, there will be more companies getting involved. Ebang International Holdings is another one of these businesses. EBON operates as a tech penny stock, engaging in the research and development of crypto mining-chip technology.
As demand vastly outgrows supply, EBON is taking advantage by manufacturing bitcoin mining machines. Its ASIC chip technology is in use throughout blockchain applications across China, one of the largest holders of crypto in the world.
This recently founded company has already seen its fair share of stock price movement. This includes 52-week highs of $14.95 and 52-week lows of $2.37. As investors, we should be cognisant of these large price swings, as they could present current and future opportunities. Currently trading at around $2.65 per share, UXIN should find its place on your blockchain penny stocks watchlist.
Blockchain Penny Stocks: Worth it or Not?
Without a doubt, the world is moving towards a digital economy. How and when that happens is still a mystery to most. By creating a penny stock watchlist that involves cryptocurrency and blockchain technologies, investors have the best chance at seeing gains from this burgeoning industry.
Many penny stocks in the cryptocurrency and blockchain sectors have seen tremendous growth and volatility over the past year. With integration increasing every day, valuations of different and new cryptocurrencies like DogeCoin are also shooting up.
The rise of blockchain penny stocks, however, is an important indicator that it’s a growing field and that you, as a penny stock investor, should be ready.