Stock Market

7 Cryptocurrency Related Penny Stocks

There are many ways for shrewd investors to profit in cryptocurrency markets. Of course, the most obvious is to buy a currency at a low price and then sell it at a high price. But there are other ways to profit as well, including these crypto related penny stocks.

Bitcoin (CCC:BTC-USD) has become synonymous with blockchain and cryptocurrency.  This should come as no surprise. It was the first crypto and it is still the largest by far. All other cryptocurrencies are based blockchain’s structure and design. They can all be viewed as Bitcoin with an added feature or features.

There are many publicly traded companies that are involved in the crypto markets. If traditional investors don’t want to invest directly in cryptocurrencies, they can consider investing in some of these stocks. These are risky companies and many have already disappeared. But there will be a few that survive. Some will even go on to prosper.

These seven companies are all involved with cryptos and blockchains. They are all publicly trading as penny stocks. Investors who like this risky part of the stock market and want to gain exposure to the cryptocurrency markets should have them on their radar screens.

  • BIGG Digital Assets (OTCMKTS:BIGG)
  • Hive Blockchain Technologies (OTCMKTS:HVBTF)
  • Neptune Digital (OTCMKTS:NPPTF)
  • First Bitcoin Capital (OTCMKTS:BITCF)
  • Blockchain Industries (OTCMKTS:BCII)
  • ZW Data Action (NASDAQ:CNET)
  • MGT Capital (OTCMKTS:MGTI)

Cryptocurrency Related Penny Stocks: BIGG Digital Assets (BIGG)

Chart by TradingView

BIGG Digital operates in different areas of the digital assets and blockchain technology industries. Its primary focus is on security and intelligence.

The company develops a search and analytics engine. The intended customers are police and law enforcement, regulars, and the government.  The engine allows them to monitor and track digital currency assets.  The company also puts risk ratings on digital currencies that enable banks, retailers, ATMs, and exchanges to meet their compliance requirements.

BIGG also developed software that is used for brokerage and investments with a focus on safety and compliance. It makes them accessible to the mass consumer and investor bases.

As you can see on the above chart, shares of BIGG have performed exceptionally well. Since the beginning of the year, they have gained about 500%.

The company was formerly known as BIG Blockchain Intelligence Group, but it changed its name in September 2019. BIGG Digital Assets is based in Vancouver, Canada.

Hive Blockchain Technologies (HVBTF)

Chart by TradingView

HIVE Blockchain Technologies is a cryptocurrency mining company.  It is involved in the mining and sale of digital currencies, such as Ethereum (CCC:ETH-USD) and Bitcoin.

Bitcoins are created by miners. As an incentive to do this, miners are rewarded with small amounts of the coins that they developed. They profit by selling them.

As you can see on the above chart, this stock has held up better than most penny stocks. Many of them have crashed or are in the process of crashing. After briefly reaching the $5.75 level, the shares have given back some of these gains. They fell to $3 but staged a rebound and are now trading around $4.

The company was formerly known as Leeta Gold Corp. It changed its name to HIVE Blockchain Technologies in September 2017. The original company was incorporated in 1987. It is based in Vancouver, Canada.

Neptune Digital (NPPTF)

Chart by TradingView

Neptune Digital Assets Corp  invests in and manages a portfolio of cryptocurrency assets. These assets include market cap tokens, proof-of-stake cryptocurrencies, decentralized finance, and other associated blockchain technologies.

As you can see on the above chart, shares of NPPTF spent most of last year trading around 5 cents. Then it was targeted by day traders and the Reddit crowd. By February the stock almost reached 90 cents a share. They have given back some of their gains and are now trading around 65 cents.

There is a chance that shares will continue to trend lower. The company has lost money over the past few years. In addition, the company isn’t followed by any of the Wall Street investment banks.

The company was formerly known as Neptune Dash Technologies Corp. It changed its name to Neptune Digital Assets Corp. in December 2020. It is based in Vancouver, Canada.

First Bitcoin Capital (BITCF)

Chart by TradingView

First Bitcoin Capital is in the business of digital cryptocurrency and blockchain development. It owns and operates various digital assets.

These include First Bitcoin Incubator. This product is designed to help startups with fundraising, partnerships, networking, advice, and other services to help establish their businesses.

First Bitcoin also owns and operated CoinQX. This is a cryptocurrency exchange that offers traders the option of creating digital wallets to begin trading. It also owns and operates ALT Coin Market Cap. This is also a currency exchange.

The company also owns and operates iCoinNews. This is an online news platform that gathers real-time news and stories about bitcoin and blockchain technology.

Shares of BITCF have trended lower over the past year. They are trading around 7 cents a share.

The company used to be known as Grand Pacaraima Gold Corp.  It changed its name to First Bitcoin Capital Corp. in February 2014. The original company was founded in 1989 and is based in Israel.

Blockchain Industries (BCII)

Chart by TradingView

Blockchain Industries operates as a merchant bank. Its area of specialty is the international blockchain and cryptocurrency sectors.

Its plan is to offer a wide range of services and products. These include investment management for blockchain assets, advisory services such as token structure and issuance, consulting, writing white papers, software development, and marketing. The company also plans on investing in, partnering with, or acquiring media streams and news outlets.

Additional plans include possible partnerships with educational institutions that will train blockchain developers. There are also plans to set up cryptocurrency mining facilities.

As you can see on the above chart, shares did spike higher in the recent day trading frenzy. However, closing prices didn’t reach the levels around $3 where they peaked during last May. Shares are currently trading around 82 cents.

The company was formerly known as Omni Global Technologies. In November 2017 it changed its name to Blockchain Industries, Inc. The original company was founded in 1995 and is based in San Diego, California.

ZW Data Action (CNET)

Chart by TradingView

ZW Data Action Technologies provides advertising, precision marketing, and data analysis services. The company is based and operates in the People’s Republic of China.

As you can see on the above chart, between January and late February shares spiked higher from around $1.10 to over $6 a share. They have since given back most of these gains and are currently trading around the $2.50 level.

They may continue to trend lower.

The reason for this move was the Reddit crowd. They target the stock for no other reason than that it is in the blockchain industry.

Being a Chinese company, it is hard to find information on ZW Data. None of the Wall Street Investment banks follow the company and produce research on it. However, it is clear that the company is losing a lot of money. It doesn’t seem like that will change anytime soon.

MGT Capital (MGTI)

Chart by TradingView

MGT Capital Investments owns and operates Bitcoin miners.

In order to create new coins, miners must solve incredibly complex cryptological puzzles. Miners in the worldwide Bitcoin network are in a constant race. Only the miner that first solves the puzzle can be rewarded with new coins.

These miners need incredibly large amounts of power to solve these puzzles. This is why the Bitcoin network uses more power than some countries. This is why some analysts believe that in the long run, Bitcoin will end up being replaced by different cryptocurrencies.

As you can see on the above chart, shares were targeted by the day traders. From November through February, shares climbed from 2 cents to 18 cents. They have given back some of these gains and are now trading around 7 cents.

MGT Capital’s miners are located in LaFayette, Georgia. The company was incorporated in 1977 and is based in Durham, North Carolina.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed 

At the time of this publication, Mark Putrino did not have any positions (either directly or indirectly) in any of the aforementioned securities.