Trading penny stocks in 2021 is extremely popular among all types of investors. For those unfamiliar, there are a few things you can do to prepare yourself. First, it’s important to remember to always keep a strong resolve in your research and try to avoid FOMO (fear of missing out) trading.
Across the internet, ‘investors’ tell you where to invest or how to get rich quick, but real trading is done with hard work and education. When it comes to investing, it’s important to read up on recent events, look over financial statements, and consider price volatility.
Next, it’s crucial to consider your financial risk. The high volatility associated with many penny stocks makes investors more inclined to day or swing trade rather than hold for the long-term. However, this higher volatility is what attracts so many to invest in penny stocks. Large profits (and losses) can be made in short periods, so it’s not uncommon to see penny stocks under $5 in many investors’ portfolios.
Another important thing to consider when looking at penny stocks to buy is market trends. Is the market favoring one sector and are certain areas showing high value? For example, the crypto market as of late has been at the forefront of investor interest.
The highs seen this year alone have encouraged many to try trading cryptocurrency and crypto penny stocks. Even large banks and mutual funds have invested large percentages of their finances into crypto. This has provided stronger foundational support for the market as a whole due to the institutional support.
All of this translates into more and more companies involving themselves in crypto-related businesses. Additionally it offers more opportunities for investors to get involved in the crypto market. Due to the high circulation of coins many investors choose crypto stocks instead of individual coins. This can be done through investing in crypto penny stocks or those working on blockchain-related ventures.
These companies can be involved in anything from blockchain tech to crypto mining and more. More often than not, many of these companies share a high correlation with the crypto market. However, recently we’ve seen a trend of companies in both renewable energy markets and NFTs, which also are related to crypto.
If you want to invest in penny stocks, the following list could provide some inspiration for your watchlist. Considering this, here are three crypto penny stocks for your list in June3 Crypto Penny Stocks For Your June Watchlist
- Sos Ltd. ADR (NYSE: SOS)
- Hall of Fame Resort & Entertainment Co (NASDAQ: HOFV)
- Xunlei Ltd (NASDAQ: XNET)
While cryptocurrencies bounce up and down, Sos Limited has shown some decent steady momentum. By implementing new mining rigs into its operations, its expansion plan is so far going well. It has added over 6,000 Ethereum and Bitcoin rigs, increasing its hash rate tremendously. Bitcoin mining is the act of running computing rigs that ‘mine’ Bitcoin as a reward for completing “blocks” of verified transactions. These transactions then become a part of the blockchain ecosystem.
While it is a part of its business, crypto is not at the core of SOS’s main operations. It rather specializes in the implementation of cloud SaaS platforms. This service is made to provide emergency rescue services with a cooperative cloud and information system that generates solutions. This technology was developed using novel methods such as AI and machine learning and is meant to integrate offline business with more digital solutions.
Most of its clientele is made up of insurance businesses, healthcare operations, and financial institutions. With thousands of new mining rigs and its modern business model, SOS is on track to be one of the most interesting crypto penny stocks to watch right now. What do you think, is adding SOS to your watchlist worth it?Hall of Fame Resort & Entertainment Co (NASDAQ: HOFV)
Another crypto-related penny stock to consider is Hall of Fame Resort & Entertainment. This company specializes in the entertainment business. HOFV leverages the power and popularity of pro football players through its partnership with the Football Hall of Fame. It’s worth noting that it also owns the Hall of Fame Village, which is a multi-use sport and entertainment arena located conveniently to the Hall of Fame itself. This allows it to be quite a diverse company in its operations.
Recently, HOFV has made a considerable effort to stay with the times by implementing NFTs into its business model. This comes at the perfect time as current market trends have been in favor of promoting the ownership of digital assets. Because of its ties with the NFL, HOFV is optimistic about its future by creating and marketing its own NFTs.
“As an organization that operates at the intersection of sports and entertainment, it is our responsibility to leverage the access we have to unique content to build one-of-a-kind fan engagement opportunities across all of our business verticals.
The demand for NFTs associated with sports has already been overwhelming. Given the brand partnerships we have with entities like the NFL Alumni Association, the Pro Football Hall of Fame, and many others, we will continue to create a strong pipeline of content that will excite consumers for years to come.”Michael Crawford, CEO of HOFV
These NFTs will utilize some of the most well-known football players of all time to draw attention to it. And, this could also not come at a better time. While NFTs are a recent fad, it looks like they may be here to stay. Considering this, is HOFV stock worth adding to your watchlist?Xunlei Ltd (NASDAQ: XNET)
Xunlei Ltd. is another crypto penny stock pushing up in many recent sessions. This company is a leading innovator in the computing field since its inception in 2003. XNET as a business operates in the cloud computing and blockchain technology space.
Based out of China, it works with clients from all over the world to provide a variety of products and services. These include cloud acceleration, blockchain implementation, shared cloud computing, and even digital entertainment services. All of this adds up to allow the company to deliver a better overall internet experience.
Mr. Weimin Luo, former COO of XNET, recently announced his resignation from the role of chief operating officer for personal reasons. Mr. Luo will however continue to support as its strategy consultant in the future. Mr. Jinbo Li, CEO of Xuneli stated, “I would like to thank Mr. Weimin Luo for his contributions to the Company and wish him well and continued success in his future endeavor.”
This all comes at an interesting time for the company. As of yesterday and moving into today, XNET was trading at over the $5 penny stock cap. This is exciting for investors because it means the company is moving out of penny stock territory and could become a blue chip if it remains above $5. Additionally, leadership changes are always exciting for companies and investors alike. They allow a company to reposition itself and potentially develop a new strategy. Whether this makes XNET stock a penny stock to watch, however, is up to you.Are Crypto Penny Stocks Worth Watching?
As we continue into 2021, crypto penny stocks are definitely worth watching. The recent spike a few weeks ago shows that many believe in the future success of cryptocurrencies. By investing in penny stocks related to these novel technologies, investors have the opportunity to avoid large price fluctuations that come with digital currencies.
Instead, crypto penny stocks provide an alternative method to invest in this budding industry. Additionally, it’s worth noting that El Salvador recently became the first country to legalize Bitcoin as a currency. This is another win for crypto and shows just how useful it can be. With all of this in mind, which crypto penny stocks are you watching?