Crypto penny stocks offer a low investment threshold and the potential for high returns if you pick the right company. If you believe in blockchain technology’s potential, read on to learn about some of the best crypto penny stocks to invest in.
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units.
They are quickly becoming more popular with each passing day, leading to an increase in the number of companies that offer crypto and blockchain-related services.
In addition, people around the world are starting to replace their traditional currency with cryptocurrencies.
Even better, you can invest in the blockchain without a crypto exchange, as there are plenty of publicly listed companies that dabble in this tech.
Keep reading for our list of the best crypto penny stocks to watch out for while the iron is hot.
Best Crypto Penny Stocks To Buy
DatChat Inc. (NASDAQ: DATS)
DatChat, formerly known as Yssup, is a tech company focused on blockchain and cybersecurity and is listed on the NASDAQ with a market cap of $22.15 million.
The company is currently working on several projects, including a social media platform (Private Social Network) and a messenger app (DatChat Messenger) that uses blockchain tech to ensure data security. It’s also dabbling in VR and the Metaverse with the Habytat brand.
DatChat recently acquired the Avila Security Corporation, a move intended to expand its portfolio into the NFT security space.
The acquisition made the company’s share price soar more than 40% after it was announced and will give DatChat an even greater intellectual property portfolio, including blockchain-based technologies for managing and sharing digital rights.
With NFT sales increasing, so are theft and fraud in the industry.
This results in high demand for greater digital security when it comes to digital asset storage and management, and DatChat is well-positioned to capitalize on this demand.
Even though there’s no incoming revenue yet, DatChat looks like it could be a strong company with a bright future.
Exela Technologies (NASDAQ: XELA)
Exela Technologies is a business process automation firm situated in Houston.
Human resources, accounting, and blockchain solutions are covered by the company’s services and software.
Because Exela is in the midst of a big expansion phase, we placed it on our list of the best blockchain penny stocks to purchase right now.
The company recently extended its partnership with Mastercard to help automate 11 million payments and online merchant gateways in Norway.
Although Exela missed its second-quarter 2022 numbers by a small margin, the venture has been profitable for quite some time now.
It continues to expand during 2022, with more than 4000 customers in 50 countries around the world.
Investing in companies like Exela may be a smart move since this publicly traded tech company caters to a variety of segments.
Sphere 3D (NASDAQ: ANY)
Sphere 3D is a company that focuses on data storage and data management solutions, providing software-defined storage, virtualization, and cloud services.
The company’s products include 3D Storage for primary storage, 3D Archive for long-term data retention, 3D Protect for data security, and OpenDataPlane (ODP) for software-defined networking.
Sphere 3D is relatively new on the scene but has already made a name for itself in the data storage industry.
The company took the plunge into the realm of digital currencies and hasn’t looked back since.
Although Sphere 3D mutually terminated a merger agreement with Gryphon Digital Mining earlier this year, the two organizations plan to continue a partnership.
This allows Sphere 3D to ramp up its Bitcoin mining capacity, signaling a good opportunity for growth.
If you’ve been following the Bitcoin mining tale, you can recall that the demand on the electrical grid prompted some people to avoid Bitcoin mining altogether.
The ESG community was not pleased with higher emissions due to higher electricity demand.
Firms like Sphere and Gryphon are now figuring out how to increase mining sustainably while reducing the environmental impact.
Top Crypto Penny Stocks
Canaan Inc. (NASDAQ: CAN)
Canaan is a cryptocurrency mining hardware manufacturer of application-specific integrated circuit (ASIC) chips used for Bitcoin and other digital currency mining.
The company was founded in 2013 by Naveed Sherwani and Micree Zhan, two of the earliest pioneers in Bitcoin mining.
Canaan’s flagship product is the AvalonMiner, a line of ASIC miners among the most popular and efficient on the market.
The company has also developed an AvalonBox, a self-contained Bitcoin mining machine that can be used in homes and businesses.
Canaan has been one of the most successful cryptocurrency mining companies in terms of revenue and profitability.
It generated $1.65 billion in revenue for Q2 2022, a 52% increase from 2021 numbers.
Canaan’s net income was also sharply up last year, reaching $609 million.
The company’s strong performance has been reflected in strong growth last year, even though things are a bit quiet at present.
The increase in overall processing power sold accounted for a large portion of this expansion.
Its computing power was sold at a rate of 7.7 million terahashes per second, increasing 15% year over year.
This made CAN one of the top-performing tech and blockchain companies last year.
Bit Digital, Inc. (NASDAQ: BTBT)
Bit Digital Inc. focuses on the production of Bitcoin and the development of blockchain technology.
The Bitcoin company’s financials have been among the greatest in the stock market.
It’s currently inexpensive, settling into a lull as revenue numbers skipped a beat in Q2.
However, history indicates the company’s mining operations are becoming increasingly profitable.
Management is currently focused on migrating its entire mining fleet in North America.
As of July 1st, Bit Digital owns 39,081 miners for Bitcoin and Ethereum and has a high hash rate.
A high hash rate means that the company can produce more Bitcoins, which is good news for investors.
Because Bit Digital primarily targets big fish on the blockchain, you might not have to worry as much about the added volatility that comes with many penny cryptocurrencies.
The company has been profitable every quarter since it began mining in early 2017.
This consistent profitability is a sign that Bit Digital is doing something right and its business model is sustainable.
Penny Crypto Stocks That Could Explode
Bitfarms Ltd. (NASDAQ: BITF)
Similar to Bit Digital, Bitfarms Ltd. is a Canadian cryptocurrency mining company, and it’s one of the largest in the world.
Founded in Quebec in 2017, the company mines Bitcoin, Ethereum, and other major cryptocurrencies.
Like Bit Digital, Bitfarms doesn’t seem to be too focused on penny cryptos.
It secured 60,00 new generation miners last year and controls more than 3.6 EH/s of computing power.
According to its most recent financial statements, the firm has $45 million in cash.
Some of this money is leftover from a sale of 1,500 Bitcoin to boost liquidity.
This could make BITF a good investment because it has a lot of cash to sustain its mining operations, and the value of its BTC stockpile could continue to go up as the price of BTC rises.
But the possible major catalyst of its surge is its mining expansion that will be funded by its recent $32 million financing agreement with BlockFi Lending LLC.
This funding will boost the company’s mining output by 50% and help it become the leading cryptocurrency miner in the world.
Although cryptocurrencies are incredibly volatile, the long-term potential of BITF is too good to ignore.
Meta Materials (NASDAQ: MMAT)
Cryptos and NFTs aren’t the only things causing a stir on the stock market today.
As conversations about metaverse activities in the virtual ecosystem heat up, Meta Materials is gaining traction.
Although the company is not directly related to blockchain tech or crypto mining, its innovative products are drawing the attention of some of the top minds in tech and beyond.
MMAT creates “metaverse” hardware-related functional materials.
For example, its ARfusion for Smart AR Eyewear delivers wearable AR technology in the form of spectacles.
In addition, its most recent full-year earnings report showed that revenue had increased by 430% from the previous year, primarily due to the increasing demand for AR hardware and glasses.
Meta Materials is currently in the process of scaling up production to meet this demand.
Investors are bullish on Meta Materials because they see great potential in the metaverse market, as the global market for AR hardware is expected to grow from $2.5 billion in 2021 to $29.5 billion by 2025.
That’s a compound annual growth rate of 44%.
Although this growth depends on if the metaverse industry explodes this year, Meta Materials, being one of the few companies specializing in AR-related hardware, is still well-positioned to capitalize on this.
Should You Buy Penny Crypto Stocks?
Crypto penny stocks are not as well-known as regular cryptocurrencies, but that doesn’t mean they aren’t worth your time.
In fact, some blockchain stocks may be a great investment.
It’s even more appealing when you consider that you don’t need to join any crypto exchanges to start investing.
A word of caution: before you invest in crypto penny stocks, do some serious research — not all of them will be worth your time and money.
So, how do you know which ones are worth investing in?
First, look at the company’s fundamentals. How solid is the company? Is it profitable? What is its track record like?
Second, look at the market cap. This will give you an idea of how big the company is and how much money it could potentially make.
And finally, look at the price. Is the stock priced fairly? Or is it overvalued?
If you can find a company with good fundamentals, a reasonable market cap, and a fair price, it may be worth investing in – just make sure to do your research first.
Where to Buy Crypto Penny Stocks
There are tons of solid trading platforms to choose from, but some stand out among the pack in terms of accessibility.
If you’re new to investing, you might want to check out these platforms.
Webull is a free stock trading platform that offers a wide variety of penny stocks.
You can open a free account with Webull and start trading penny stocks immediately.
Another excellent option for buying penny stocks is Robinhood.
It’s an online broker that offers commission-free stock trading.
The only downside to Robinhood is that it does not offer as many penny stocks as Webull.
You can, however, trade cryptos on the platform, including the penny cryptocurrency and payment token for tipping online DOGE.
So if you’re a crypto trader, this might be the first place you want to look.
eToro is a social trading platform that allows you to buy and sell penny stocks.
It’s different from Webull and Robinhood in that it allows you to copy the trades of other traders.
This can be a great way to learn about penny stocks while making money.
Stockpile is another great platform for investors. It is a commission-free trading platform offering access to stocks and ETFs.
It has a beginner-friendly interface and is a perfect fit for newbie investors.
It offers ETFs and fractional stock purchases as well as mini-lessons on how the market works. You also get a mobile app to track your progress.
But Stockpile is not ideal for every investor. It has a limited lineup and thus, is not suitable for advanced traders who want to swap derivatives, forex, crypto, etc.
Crypto Penny Stocks: Final Words
It’s useful to be aware of many possible triggers when compiling a list of penny stock companies to purchase.
In most situations, the news is insufficient.
However, looking at factors like option volume, analyst opinion, and overall market or sector trends might help you deepen your study.
As we head to a more digital future, cryptocurrencies and blockchain technology are expected to play a significant role.
Want Even More Crypto Picks? There are knowledgeable Gurus who tackle under-the-radar cryptocurrencies.
If you’re looking for even more quality insights, check out our:
Crypto Penny Stocks FAQ
Can You Buy Crypto Stocks?
If you’re looking to invest in a company with tangible assets and services but still want to venture into the world of crypto, then check out Bitcoin mining companies, exchanges, or consultancies. Alternatively, you can invest in penny stocks of companies that have announced plans to enter the crypto space.
How Do You Buy Penny Stocks?
The best way to buy penny stocks is through online brokers like Robinhood, Webull, and E*TRADE. While some brokers do not offer penny stocks, many larger firms do. Of course, you can also purchase them through your regular stockbroker, but you will likely pay a higher commission.
What Is the Biggest Crypto Mining Company in the World?
The biggest crypto mining company may just be Canaan Inc., with a market cap of $702.90 million. Its hash rates reach as high as 90TH/s.
What Is a Good Crypto Penny Stock to Invest In?
There is no one-size-fits-all answer to this question, as the best crypto penny stock to invest in will vary depending on the individual investor’s risk tolerance and investment goals. However, some good options to consider include Canaan Inc. (NASDAQ: CAN), Sphere 3D (NASDAQ: ANY), and DatChat Inc. (NASDAQ: DATS).
What Are the Risks of Investing in Penny Stocks?
Penny stocks come with a higher risk than more traditional stocks because they are not as tightly regulated by the Securities and Exchange Commission, and there is often less information available about them. As such, it can be difficult to assess their actual value.