Are These Penny Stocks Moving Up Because of Crypto?
Two seemingly unrelated assets that are showing solid performance are penny stocks and cryptocurrency. Many investors do not realize that we can draw several comparisons between these two unique asset classes. To understand why these two are similar, let’s take a closer look at some similarities.
Most cryptocurrencies are relatively cheap, with the exception of those like Bitcoin and Ethereum. However, the majority of popular cryptos are under $5. Penny stocks are defined as assets that trade under $5. While this may seem oversimplified, the price correlation between the two means that they can be comparable assets.
When it comes to penny stocks and cryptocurrency, there are also risks that investors should consider. Both of these assets often see large price swings during daily trading. This could lead to either large gains or significant losses. For example, it’s rare to see a blue-chip stock go from $50 to $100 in a single day. Yet it is likely to see penny stocks jump from $0.50 to $1.00 for example, during a given trading day.
If risk is not your thing, there are ways to help mitigate the fear of large intraday swings. The best way to invest in either cheap stocks or cryptocurrency is to develop your own strategy. This could be either holding a long-term position and taking profits every so often or day trading/swing trading. Both strategies can be valuable, but it truly depends on your investing style.
When developing your strategy, it is important to include proper research as well. Looking at recent financial reports, news, and rumors are all things that could help you find penny stocks to buy. If you are long-term investing, you might want to look for a multi-faceted company with several opportunities in its pipeline.
If short-term investing is your niche, you might want to look for factors that could impact a company’s value in the short term. No matter how you invest, there is no denying the link between penny stocks and cryptocurrency right now. Considering this, let’s take a look at three penny stocks to buy as cryptocurrencies rally upwards.
3 Crypto Penny Stocks To Watch Right Now
- SOS Limited (NYSE: SOS)
- Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV)
- HUMBL Inc. (OTC: HMBL)
Cryptocurrency is a big driving factor for many penny stocks right now. One example of this is SOS Limited, which just made several large announcements. Before we go any further, let’s talk about what the company does. SOS is a blockchain-based solutions provider and cryptocurrency mining operator. It has offerings for emergency rescue services, corporate needs, and individual security products.
On April 20th, the company announced that it has entered a purchase agreement for 575 cryptocurrency mining rigs. The rigs in question are for mining Etherum which has had a major rally in the past few weeks. These rigs will be delivered to SOS in a few weeks, which is something investors should consider.
This will also help to solidify SOS’s cryptocurrency mining strategy. Globally, there has been a mining equipment shortage as more and more companies work to find a place in the crypto industry. Because of this, investors in SOS are more than pleased about this announcement.
Yandai Wang, the CEO of SOS stated, “We are optimistic about the future of cryptocurrencies and Etherum in particular. This is part of our overall strategy to develop blockchain-based environments and services which will be a core part of our growth in 2021 and beyond”. This announcement resulted in a solid single-digit percentage gain upon its release. So, as crypto prices continue to rally upwards, SOS stock could be worth watching.
Hall of Fame Resort & Entertainment Company
If you’ve opened the internet in the last 2 months, you’ve likely heard of non-fungible tokens or NFTs. NFTs are digital contracts that provide ownership through the use of blockchain technology. Companies involved in NFTs have seen large increases in publicity in the past few months. Interestingly enough, Hall of Fame, a hospitality and entertainment company, has now entered into the NFT space.
Hall of Fame Resort & Entertainment Company has partnered up with Dolphin Entertainment and H2H to offer NFTs. The companies will work together to develop, market, promote, and sell these NFTs. Hall of Fame announced that the first offerings will be sold to H2H Legends, which is a group of some of the greatest athletes to ever step foot on a football field.
President and CEO Michael Crawford added, “The demand for NFTs associated with sports has already been overwhelming. Given the brand partnerships we have with entities like the NFL Alumni Association, the Pro Football Hall of Fame and many others, we will continue to create a strong pipeline of content that will excite consumers for years to come.”
The rapidly growing crypto market has put NFTs into mainstream media. Many believe that this technology is the future of art and could have a variety of valuable uses. Considering HOFV stock is up more than 83% this year, it seems as though investors agree that this move was a positive one. Additionally, Hall of Fame has many facets that could make it a penny stock to watch moving forward.
HUMBL Inc. is another company working directly in the blockchain and crypto industry. It offers a digital money network that pairs consumers and merchants for commerce-related purposes. On April 1st the company announced the launch of the BLOCK Exchange Traded Index (ETX) products in the United States. This product will simplify digital asset investing, which could help its mainstream adoption. The Block ETXs will work with customers using Coinbase, Bittrex, or Binance.
In addition to this recent news, HUMBL announced the launch of the HUMBL Pay mobile application on April 16th. The application is for purchasing live event tickets, HUMBL financial services, credit, and more.
Despite shares of HMBL dropping in several recent trading sessions, the company has a lot going for it in the long term. Volume for HMBL stands at well over its average as of the week of April 19th, 2021.
On April 14th, HUMBL closed on a $3,000,000 bridge note from Brighton Capital Partners. The pair have also executed on an equity financing agreement for Brighton to purchase up to $50 million in HUMBL stock. This could be another explanation for the high volume that HUMBL stock is seeing right now. So with this in mind, will HMBL be on your penny stock watchlist?