4 Crypto Penny Stocks to Watch Right Now
Penny stocks are volatile. For as many highs that we see, there are twice as many lows. Picking the right penny stocks from the thousands on offer is the challenge. Successful investment decisions can still occur with proper research and taking relevant trends seen in the market into consideration.
However, when considering penny stocks to buy, some trends can also be misleading. This can result in buying in at overvalued price per share and ending in even greater losses.
Many instead consider investing during dip periods. This typically occurs when a stock price drops to a previous low or resistance value where the stock becomes undervalued. Another method investors are using during price downturns is averaging down.
A current market downturn being seen is in cryptocurrencies. As more banks buy large stakes in different digital currencies it further verifies their legitimacy for future implementation.
Many have been fighting it, but this decentralized way to perform transactions, both domestic and internationally, is the way of the future. investing in blockchain penny stocks has seen tremendous growth over the past year. And while there is a correction currently in play, this most likely will be short lived.
As cryptocurrencies begin to correct, many associated crypto penny stocks have been doing the same. During this period of consolidation, investors are looking to predict which penny stocks to watch will offer the best opportunity for buying in for the following months.
The expected rebound has many excited. For those waiting for the opportune time, creating a penny stocks watchlist has never been more important.
It’s very natural to see up and down periods in the markets, especially when it comes to penny stocks. To trade these highly volatile companies is not for everyone. One must have a high tolerance for risk and not shy away from frequent dips. The high price volatility is something we are seeing throughout the past few weeks of trading.
In order to have a greater chance at success when buying into penny stocks at a dip period, there are two very important things to consider. The first is speculation. Has there been recent news about the stock? Is the news optimistic or pessimistic about its future growth?
The other thing to consider is what is its value at the current level it is trading at. This tells investors the thresholds for overvaluation and undervaluation. Taking this into consideration, here are four crypto penny stocks that you should add to your watchlist as the markets take a dip.
4 Crypto Penny Stocks to Watch During the Dip
- Sos Limited (NYSE: SOS)
- Uxin Limited (NASDAQ: UXIN)
- Ebang International Holdings Inc. (NASDAQ: EBON)
- Atari SA (OTCMKTS: PONGF)
Sos Limited (NYSE: SOS)
Although cryptocurrency markets are in a decline at the moment, Sos Limited is working to stay afloat. As of yesterday, SOS announced that the 6,039 mining rigs it has received during the past month are now all operational. This includes 575 Etherreum rigs that should generate 400 GH/s, and the other 5,464 rigs that will produce 177 PH/s via Bitcoin mining.
In total, SOS will be able to generate 1,456 GH/s for ETH mining and an astonishing 527 PH/s for BTC mining. With recent concerns over energy consumption, it’s important to note that 90% of SOS’ energy comes from renewable s.
The core of SOS surprisingly does not lie in crypto mining, rather it’s a cloud SaaS platform that provides for emergency rescue services. Its basic cloud, cooperative cloud, and information cloud system offer marketing solutions for its clients.
“With the completion of Phase I of the Leibodong mine and continued expansion of our mining fleet, we are pleased with the progress on our digital currency business plan, based on blockchain technology. The launch of our mining business has provided valuable experience to our team, and is expected to be an important driver of growth in 2021 and beyond.”
CEO of SOS, Yandai Wang
Considering this, will SOS be on your list of penny stocks to buy?
Uxin Limited (NASDAQ: UXIN)
We have covered Uxin Limited quite a few times in the past several months. This Chinese investment firm was founded in 2011 and runs the majority of its operations out of Beijing, China. As a tech penny stock, UXIN operates in the motor vehicle industry.
Its online e-commerce site is known for the buying and selling of used cars as well as selling related car products and services. Additionally, its online platform offers used car auctions, online retail, and financial derivative services.
Currently, with a market cap of $884 million, UXIN reported a recent revenue of $49.5 million, a growth of 30% from last year. A reason for this gain could be attributed to UXIN’s recent opening of its first inspection and reconditioning center in Xi’an. Yet, due to COVID-19, there has also recently been an increase in used car pricing in general.
This price increase seen in UXIN could be due to the higher demand in used car sales as well. Because new car sales have decreased in accordance with the pandemic, people are holding onto their own vehicles, driving the supply and demand ratio to change. Having a previous all-time high of $10.40, could buying in at its current price of near $3.30 be considered?
Ebang International Holdings Inc. (NASDAQ: EBON)
With strong ties to the cryptocurrency prices, Ebang International Holdings has seen a 70% decrease these past three months. Since it works directly with digital currency infrastructure, rather than a specific coin, investors can expect high price fluctuations.
Its core business is in the realm of application-specific integrated circuits (ASICs). Within this, it deals with energy-intensive proof of work protocols such as Bitcoin. With the high volatility and increasing interest in crypto, EBON still has much runway left in the coming years. Investors might take this opportunity to learn about its operations. This will help to see if its current price is worth buying at.
Its work in the blockchain technology sector is what separates it from the rest. So, a long-term investment with EBON could be worth taking into consideration. With this in mind, will EBON be on your blockchain penny stock watchlist?
Atari SA (OTC: PONGF)
Atari SA is another global penny stock that has seen a correction this past month. With previous highs of $1.15, its current price makes many consider it as a potential buy. Atari SA consists of subsidiaries that come together to form a global interactive entertainment and multi-platform business model.
It has a strong portfolio of more than 200 games and franchises and is still developing more. With strong ties with Microsoft, Sony, and Nintendo game consoles, PONGF leverages its business through partnerships with other platforms.
Recently PONGF announced its partnership with Chain Games and Hello There Games to bring about the new game Beat Legend: AVICII. This new player vs player game will integrate on the Chain Games Esports platform which utilizes blockchain at its core. This platform allows players to compete in tournaments and one-on-one matches with the incentive to win cash and crypto rewards.
“We are excited to expand our partnership with Atari, one of the most recognized consumer brands in the video game and entertainment space, and are honored to continue to support Avicii’s legacy.”
CEO of Chain Games
PONGF remains a strong candidate for any blockchain penny stock watchlist. However, its wide range of operations mean that investors should consider it wholly.
Are Blockchain Penny Stocks Worth Buying During the Dip?
Taking this all into consideration, buying the dip with penny stocks can be a good strategy. This is especially true considering the situation that the market is in right now. With pullbacks in the crypto market, we must ask ourselves what we envision 10 years from now.
Are crypto penny stocks going to exceed current expectations, or are they going to become irrelevant? As more large companies take investment stakes in cryptocurrencies, it seems as if this may only be a short consolidation period.