There’s been a ton of buzz around cryptocurrency and crypto penny stocks this past year.
Check it out … In March 2020, Bitcoin (BTC) traded for around $7,000. At one point in March 2021, people paid over $61,000 per coin!
I used to think cryptocurrency was just another fad. But recently, large-cap moguls like Tesla are buying billions worth of bitcoin. I may have underestimated cryptocurrency, but there’s no need to stress.
Hot cryptocurrencies can create hot crypto penny stocks. Some traders refer to these runners as sympathy plays, and you’d be wise to study them.
Penny stock sympathy plays can offer some of my favorite trading patterns.
But remember, these stocks tend to react to the performance of the sector leader. For cryptocurrency, that’s BTC. So if BTC’s price takes a dive, some of these runners could likely do the same.
You can learn how to trade crypto penny stocks. Start by studying up and making a watchlist. I’ve got one started…
Top Crypto Penny Stocks to Watch
Keep in mind that some crypto penny stocks only run when big tokens like BTC make new highs or recover from a big price dip.
With that being said, many crypto penny stocks are currently in a consolidation phase.
That’s because bitcoin is also consolidating. And these stocks can sell off more aggressively than the actual cryptocurrencies. That’s because many buyers aren’t confident in holding penny stocks long term.
That’s smart — and the type of mentality comes with the territory. This is one of the reasons that I look for quick moves when I trade. I want to be in and out, minimizing my risk as much as possible.
If cryptocurrency keeps growing at this pace, these crypto stocks could give us great opportunities in the future.
Note that this list is only a watchlist. These are in no way a recommendation to buy or trade. Always do your own research. And only trade a stock if you have a plan and it fits your setup.
Crypto Penny Stock #1: MGT Capital Investments, Inc. (OTCQB: MGTI)
MGTI is a pretty popular stock that trades on the OTC. It had a nice breakout around 5 cents when BTC was pushing to new highs.
It’s been selling off since bitcoin pulled back, but I think there could be room for a potential bounce. I’ll watch for major BTC news or potential new highs.
This one can move quickly, so I won’t chase it. If I miss the entry, I’ll stay strict and look for the next best opportunity.
Crypto Penny Stock #2: LM Funding America Inc. (NASDAQ: LMFA)
There are a few things to like about LMFA…
One is that it’s consolidating in the low $1 range, and I love low-priced penny stocks. Second, it trades on the Nasdaq instead of the OTC markets, which can mean better liquidity.
That also means, to some extent, it could be more legit than OTC blockchain companies. But all that could be meaningless without sector momentum. I’d want to see Bitcoin make a big move before plotting a trade.
Crypto Penny Stock #3: HIVE Blockchain Technologies Ltd. (OTCQX: HVBTF)
One thing I notice right away when I look at a daily chart? Minimal overhead resistance.
HVBTF is consolidating well above most of the previous resistance from 2017. If the big tokens create momentum, it could potentially have a nice breakout.
And once it’s over the recent resistance, who knows where it could go next.
Crypto Penny Stock #4: Digitrade Financial Corp. (OTCPK: DIGAF)
Normally I don’t like trading sub-penny stocks. But DIGAF is consolidating right around 1 cent, and it was a nice multi-day runner in the past. So I think it’s worth putting on the list.
When I see this chart, I can’t help but think “bounce.” DIGAF is approaching some potential support from the recent run. Let’s see if it can hold up.
If the market heats up and DIGAF has a massive first green day, I’d consider being more patient with it. If it wants to go on another multi-day run, I’ll likely want to be involved.
Crypto Penny Stock #5: BTCS Inc. (OTCQB: BTCS)
The story here is similar to some of the others. BTCS is a previous OTC runner currently consolidating near $1. It’s more tied directly to bitcoin than other tokens.
It looks like there could be a big wedge forming on the daily chart, which can indicate it’s finding support.
This was another aggressive multi-day runner. I’ll be looking for that same type of price action in the future.
Crypto Penny Stock #6: Bitcoin Services Inc. (OTCPK: BTSC)
This daily chart is one of the less attractive of the bunch. It mostly looks like a failed breakout, but attention to detail is key.
When BTSC had its most recent breakout over 12 cents, there wasn’t much volume. And the overall sector was starting to pullback.
For these reasons, I think it could have more potential to run in the future. I’ll definitely keep this one on watch.
Crypto Penny Stock #7: Blockchain Industries Inc. (OTCPK: BCII)
This recent runner went from 50 cents to $2.50 in just a few days. Now on a daily chart, BCII is holding up well near 90 cents.
After recovering from the big sell-off in February, it’s been trading in a very tight channel. That could mean fewer sellers.
If it keeps consolidating like this, it could end up being a great play. It’s definitely watchlist worthy.
Crypto Penny Stock #8: Neptune Digital Assets Corp. (OTCPK: NPPTF)
Unlike some of the other watches, NPPTF hasn’t given back much after running from around 38 cents to $1. It’s now consolidating around 71 cents.
If NPPTF finds its footing, it could potentially move before some of the other stocks on this list.
If it breaks out over the $1 high, the sky’s the limit.
Crypto Penny Stock #9: AirNet Technology Inc. (NASDAQ: ANTE)
Here’s another Nasdaq ticker for all you liquidity hounds out there. In February it ran from around $2.50 to $7.
AirNet Technology is an internet-provider based in China, but it’s recently gotten involved with cryptocurrency.
This is the first year ANTE has gotten any attention. I think it needs to keep consolidating and create a support level. But if we get some sector momentum in the future, I’ll keep tabs on this one.
Crypto Penny Stock #10: ZW Data Action Technologies Inc. (NASDAQ: CNET)
CNET is another listed stock making its way into the blockchain industry. It’s been an impressive runner this year, going from $1.50 to over $6.
I love former runners. They can give buyers the expectation that what happened before, can potentially happen again. And that can become a self-fulfilling prophecy. You must be ready with a plan, though.
If we get breaking news in the crypto world, this stock will be waiting on my list.
See the Stocks I’m Watching
I want to help you as much as possible, which is why I offer a NO-COST watchlist.
Will you find crypto penny stocks on my list? That depends. I go where the hottest market action is.
Subscribe to my weekly watchlist to see what makes the cut. I round up my top watches every week and send them to you. Use these stocks to study the trading patterns, catalysts, and price action. Then build a trading plan of your own.
Know that I’m not recommending you to trade the stocks on my watchlist. There’s no guarantee I’ll trade any of these stocks. I’m simply WATCHING them for potential future setups.
Never blindly follow alerts or hot picks. Ever. Do your own research. Your goal is to eventually become confident in your own trading plan.
Conclusion
When you’re looking for hot crypto penny stocks, keep in mind…
These stocks tend to move together on sector momentum. Don’t jump into these stocks before the markets give you a reason.
And keep your goals reasonable. Don’t go swinging for the fences. Aim for singles.
Watch for major news in the cryptocurrency industry. These stocks probably won’t run without a catalyst.
Learn to be patient and wait for your best setups to come to you. That’s what I teach in my Trading Challenge. If you want to become a self-sufficient trader, consider applying today.
What’s your take on crypto penny stocks? I’d love to read about it in the comments!
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