There is still time to get to the heart of the blockchain phenomenon. Many of the industry’s top stocks still trade in penny stock territory. We are already buying homes, funding charities, and reducing crime with blockchain technology, but the concept has not yet been widely used. A technology that has proven useful but still has plenty of room for implementation is usually a great candidate for growth. That brings us to this article: the best blockchain penny stocks for your investment portfolio.
If you want to make quick profits in this market, these opportunities are also available. We’ll review some of the best bets on blockchain to help inform your next business decision.
Quick Look at the Best Blockchain Penny Stocks:
Overview: Blockchain Penny Stocks
Blockchain technology, the use of digital timestamps to order 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 utility widely distributed in the real world as an underlying. framework for Bitcoin in 2009. Shortly after, as an objectively better way to record transactions and prevent fraud, the concept of blockchain was already part of many traditional businesses behind the scenes.
It is difficult to identify when the first blockchain title appeared. As Bitcoin began to grow, many small technology companies already in the stock market simply shifted to researching and producing blockchain technology. It is also true that many penny stocks that claim blockchain use the lexicon purely for marketing purposes. Speculative technology is a relatively unregulated business space that many government regulators don’t even have the training to understand.
The first high-profile blockchain stock offering was by Overstock (NASDAQ: OSTK) in 2016. The first blockchain ETFs appeared in the United States in early 2018 following the Bitcoin craze of Q4 2017 (1 BTC ≈ 20 000 $). Since 2018, the crypto securities market continues to grow as the market capitalization of cryptocurrencies consolidates between $150 billion and $330 billion.
Today, blockchain stocks tend to rise and fall in tandem with the volatility of Bitcoin and other major cryptocurrencies. Some experts speculated that the link was due to uninformed casual investors finding their way into the market. Others believe that “blockchain” is used more as a marketing catch-all to attract new investors.
The overlap of these theories is perhaps the most interesting point: they both benefit from non-technical investors who may not be interested in blockchain as anything other 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. Savvy investors, however, are following the implementation of technology in companies large and small. Blockchain has implications for how businesses will conduct daily business activities over the coming 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 the best brokers in this area.
Finding a needle in a haystack
There can be a lot of untapped value in low-priced stocks, especially those that offer innovation in an industry that is on the cusp of mainstream use. Be sure to do your due diligence though. Smart money is betting on blockchain as a long-term play, but you can find yourself falling victim to short-term volatility if you’re not careful.
Frequently Asked Questions
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Blockchain penny stocks are low-value stocks owned by blockchain-related companies.
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Blockchain continues to grow, so blockchain stocks are considered a good investment.
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To find Benzinga’s recommendations, see the list above.
