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The post Best Blockchain Penny Stocks by Chris Davis appeared first on Benzinga. Visit Benzinga to get more great content like this.
There is still time to get in on the ground floor of the blockchain phenomenon. Many of the leading securities in the space are still trading in penny stock territory. We’re already buying houses, funding charities and reducing crime with blockchain tech, but the concept has yet to break into the mainstream. A technology that has proven its utility but still has plenty of room to be implemented is usually a great candidate for growth. This leads us to this article: the best blockchain penny stocks for your investment portfolio.
If you want to make quick profits in this market, those opportunities are available as well. We’ll review some of the best bets in blockchain to help inform your next trading decision.
Quick Look at the Best Blockchain Penny Stocks:
Contents
Overview: Blockchain Penny Stocks
Blockchain technology, the use of digital time stamps for ordering transactions, has been around since 1991. Researchers W. Scott Stornetta and Stuart Haber were looking for a way to create better document timestamps, but blockchain first produced a widespread real world utility as the underlying framework for Bitcoin in 2009. Not too long later, as an objectively better way to record transactions and prevent fraud, the concept of the blockchain is already a part of many mainstream companies behind the scenes.
Identifying when the first blockchain stock appeared is difficult. As Bitcoin began to expand, many small tech companies already on exchanges simply slid over into researching and producing blockchain technology. It is also true that many penny stocks who claim blockchain are using the lexicon strictly for marketing purposes. Speculative tech is a relatively unregulated business space that many government regulators don’t even have the training to understand.
The first well-publicized blockchain stock offering was conducted by Overstock (NASDAQ: OSTK) in 2016. The first blockchain ETFs showed up in the U.S. in early 2018 following the Q4 2017 Bitcoin mania (1 BTC ≈ $20,000). Since 2018, the crypto securities market continues to expand as crypto’s market cap consolidates between a range of $150 billion and $330 billion.
Today, blockchain stocks tend to rise and fall in tandem with the volatility in Bitcoin and other major cryptocurrencies. Some experts have guessed that the connection is because low-information casual investors are making their way into the market. Others think that “blockchain” is being used more like a marketing catch-all to attract new investors.
The overlap of these theories may be the most interesting point: They both benefit from nontechnical investors who may not be interested in blockchain as anything more than a framework for a method of currency exchange. They are less interested in anonymity or security, and they may not need to know that companies like IBM, Oracle and Amazon are already using blockchain in their digital transformations. Smart investors, however, follow the implementation of the technology in companies large and small. Blockchain has implications for how businesses will conduct daily commerce in the next few years.
Best Online Brokers for Blockchain Penny Stocks
The tools and execution you receive from a good broker can make all the difference in penny stock trading. Here’s what you need to know about top brokers in this space.
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Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments.
Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.
Best For
- Traders looking for a smooth mobile experience
- Great mobile app
- Low spreads and commissions
- Unlimited demo account
- Only derivatives are available
- Not open to U.S. residents
Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.
Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research.
Best For
- Stock and ETF investors
- Crypto investors
- Investors looking to diversify with alternative assets or bonds and options
- Commission-free stock and ETF trading
- Fractional share investing
- Advanced data, tools, and insights with Public Premium
- You can’t transfer crypto to another wallet
- No mutual funds or precious metals
- At this time, only offers individual brokerage accounts and not IRAs
Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.
Best For
- Beginners looking for simplicity
- Mobile-first investors
- Commission-free trades
- User-friendly mobile app
- Instant double
- Cash management
- Access to cryptocurrencies
- Limited research tools
- No mutual funds available
- Basic customer support options
TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.
Best For
- Traders seeking high transparency and mobility in a stock trading program
- Those attracted to commission-free trades
- Those seeking a free version of a high-quality trading program
- 24/7 live customer support
- Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
- Mobile app allows users to access stocks and trade in real-time while on the go
- Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
- Mobile app could offer more features
Finding a Needle in a Haystack
There can be a lot of untapped value in low-priced stocks, especially those with innovations in an industry that is on the verge of mainstream use. Be sure to do your due diligence, however. Smart money is betting on the blockchain as a long-term play, but you can get chopped up in short-term volatility if you are not careful.
Frequently Asked Questions
What are blockchain pennty stocks?
Blockcha in penny stocks are low-value stocks in companies related to blockchain.
Is blockchain a good investment?
Blockchain continues to grow, so blockchain shares are considered a good investment.
Which blockchain penny stocks are a good investment.
To find Benzinga’s recommendations, see the list above.
The post Best Blockchain Penny Stocks by Chris Davis appeared first on Benzinga. Visit Benzinga to get more great content like this.
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