There is still time to get in on the ground floor of the blockchain phenomenon. Many of the leading securities in this space still trade in penny stock territory. We are already using blockchain technology to buy homes, fund charities, and reduce crime, but the concept has yet to penetrate the mainstream. Technologies that have proven usefulness but still have plenty of room for implementation are usually good candidates for growth. Which brings us to this article, the best blockchain penny stocks for your investment portfolio.
If you want to make quick profits in this market, you can also take advantage of such opportunities. Let's take a look at some of the best bets in blockchain to help you decide on your next transaction.
Let's take a quick look at the best blockchain penny stocks:
Overview: Blockchain Penny Stock
Blockchain technology, which uses 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, and blockchain first produced widespread underlying real-world utility. Not long after, the concept of blockchain has already become part of many mainstream companies behind the scenes, as an objectively better way to record transactions and prevent fraud.
It is difficult to pinpoint when the first blockchain stocks appeared. As Bitcoin began to expand, many small technology companies that were already present on exchanges moved directly into blockchain technology research and production. It's also true that many penny stocks that make blockchain claims only use that glossary for marketing purposes. Speculative technology is a relatively unregulated business area, and many government regulators are not even trained to understand it.
The first well-known blockchain stock offering was conducted by Overstock (NASDAQ: OSTK) in 2016. The first blockchain ETFs appeared in the US in early 2018 following the Bitcoin mania in Q4 2017 (1 BTC ≈ $20,000). Since 2018, the market capitalization of cryptocurrencies has settled in the range of $150 billion to $330 billion, and the cryptocurrency securities market continues to expand.
Currently, blockchain stocks tend to rise or fall in line with the volatility of Bitcoin and other major cryptocurrencies. Some experts speculate that this is because more casual investors with less information are entering the market. Some believe that “blockchain” is being used like a marketing catchall to attract new investors.
The overlap between these theories may be the most interesting. Both can benefit from non-technical investors who are not interested in blockchain as more than a framework for a currency exchange method. They don't really care about anonymity or security and may not need to know that companies like IBM, Oracle, and Amazon are already using blockchain for digital transformation. But smart investors track the adoption of technology in companies both large and small. Blockchain will impact how companies conduct day-to-day commerce in the coming years.
Best Online Brokers for Blockchain Penny Stocks
The tools and execution provided by a good broker can make a big difference in penny stock trading. Here's what you need to know about the top brokers in this space.
find a needle in a haystack
There can be a lot of untapped value in low-priced stocks, especially those that innovate in industries that are becoming mainstream. However, be sure to do your due diligence. Smart money is betting on blockchain as a long-term strategy, but short-term volatility can get you chopped if you're not careful.
FAQ
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Blockchar, a penny stock, is a low-value stock of a blockchain-related company.
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As blockchain continues to grow, blockchain stocks are considered a good investment.
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See the list above to find Benzinga's recommendations.
