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The Best Crypto Penny Stocks to Watch Now

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Written by Timothy Sykes
Updated 9/13/2022 10 min read

Top Crypto Penny Stocks to Watch: Key Takeaways

  • Crypto looks like it’s basing … these penny stocks might be too!
  • Stock #1’s a PR pump machine, and lately it looks like it’s back from the dead…
  • OTC spikers are back — and that’s good news for crypto penny stocks…

Get The #1 Crypto Trade For September 2022 For Just $5!

Things have looked bad for crypto … and the penny stocks that run with it.

My students know to never “hold and hope” — yet that’s what so many newbies are doing now. The smart move is to respect price action, and take bitcoin winter as a time to prepare. What’s the best way to prepare? Build your watchlists, so you can be prepared for the sector’s next move!

What Are Crypto Penny Stocks?

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Crypto penny stocks are stocks of companies that mine, hold, or invest in bitcoin (BTC), crypto altcoins, or blockchain technology. These can include companies entering the metaverse and NFT space since both use blockchain technology.

Crypto stocks went on an insane run in 2017. But they consolidated for years until bitcoin broke out to new highs in late 2020.

Over my 20+ year career trading penny stocks, I’ve seen plenty of hype around new potential hot sectors…

I made my first million in college during the dot com boom. (Read all about it in my NO-COST book “An American Hedge Fund.”) And hot sector hype returned with weed stocks in 2018, and again in 2020 with mask and biotech stocks. Now crypto’s the new kid on the block.

But I don’t look for the best cryptocurrency to buy, or trade sketchy cryptocurrencies like Shiba Inu or SafeMoon. I focus on trading sympathy plays in crypto penny stocks. Here’s what I’m watching…

Top Crypto Penny Stocks to Watch

The stocks on my watchlist aren’t recommendations to buy. Heck, I don’t know if I’ll even trade them all. But I’m always looking 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.

Crypto Penny Stock #1: One World Universe Inc. (OTCPK: OWUV)

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Last time I published this list was way back in Bitcoin’s December glory days…

Guess which stock led the roundup? That’s right — OWUV.

One World Universe Inc. specializes in sports related businesses, distressed assets, business “emerging industries,” the metaverse, and humanitarian efforts in over 185 countries. Basically it takes on anything that can feed the press release machine.

Key points on OWUV…

  • These press releases still produce results. The penny stock spiked 430% over a week in July, and 80% in early August.
  • I traded it for over $3,100 at the end of its July run. Then I lost $1,100 in two more trades. It’s not the first time I’ve seen this stock totally fall apart.
  • PR isn’t the only thing moving this stock. That’s why I tell my students to study their charts! The market knows that this junky stock can capitalize on volume … and collapse just as quickly.

When OWUV post 2,000% gains last December, a lot of newbies got swept up in the excitement. They’re now waiting to sell their junky HODLings into any spike. Despite that, this stock can run with the best of them.

Crypto Penny Stock #2: Riot Blockchain Inc. (NASDAQ: RIOT)

RIOT is one of the big names in the bitcoin mining business. As of December 31, 2021, it operated approximately 30,907 miners.

Key points on RIOT…

  • RIOT runs when bitcoin runs. That’s why it’s a sector leader. That’s also why it’s lost 550% of its value since last November.
  • This year, it learned a new trick — selling power, not using it to mint bitcoins. This helped its sales equal what they would’ve been if bitcoin was still at $40,000!
  • As of the end of May, Riot still held about 6,536 bitcoin — enough to ensure it will bounce when bitcoin does.

Despite the differences, crypto charts can look pretty similar to penny stocks.

That’s also true of a stock like RIOT. You don’t get a 3,500% run like RIOT had leading up to February 2021 on fundamentals.

Now, RIOT is just above penny stock threshold. When bitcoin heats up, expect this stock and Marathon Digital Holdings Inc. (NASDAQ: MARA) to get frothy.

Crypto Penny Stock #3: Exxe Group, Inc. (OTCPK: AXXA)

Let’s get back to the OTC spikers. Exxe is a “diversified” fintech, private equity, and real estate company. They diversify into whatever fills their press releases!

Key points on AXXA…

  • I’ve traded this penny stock for almost $7k since 2018. It’s had some awesome spikes, but it’s a total scam.
  • The catalyst for AXXA’s January run was the Metaverse. A few months later, it was a crypto exchange.
  • Four years ago, I sold my AXXA shares for $0.29 each. In my latest trade, they were down to $0.02. See why holding these stocks is a losing strategy?

I last traded AXXA for a $562 profit in mid-August (starting stake $5,469). It was a textbook case of how former runners can run again — and proof that studying a stock’s chart can pay off!

Crypto Penny Stock #4: Bitfarms Ltd. (NASDAQ: BITF)

Bitfarms is a Canadian crypto miner.

Key points on BITF…

  • This is a listed stock. Its chart is far more consistent than OTC crypto penny stocks.
  • It hasn’t pivoted to power production like other bitcoin miners. Despite rising mining costs, it mined more bitcoins in the first half of 2022 than sector leader MARA!
  • Lately, it’s been getting good press on its fundamentals.

BITF doesn’t have the volatility of the crypto penny stocks I’ve historically traded. It can still make runs — like the 86% climb it had from mid-July to mid-August.

Crypto Penny Stock #5: Canaan Inc. (NASDAQ: CAN)

Canaan is a Chinese crypto mining firm specializing in backend operations. It designs and sells bitcoin mining equipment.

Key points on CAN…

  • CAN is another listed stock. It’s held up better than most crypto stocks in the past six months.
  • It’s what passes for a defensive stock in the crypto sector. Even when the price of bitcoin is going down, crypto miners still need CAN’s services! This has also helped CAN survive China’s crypto mining crackdown.
  • CAN had a similar mid-August rise-and-fall to other crypto penny stocks. It reported good earnings, but reports suggest CAN is still in the shady penny stock category.

If crypto has a resurgence, Chinese stocks will be a part of it. I like CAN’s chances to ride the wave.

See the Hottest Stocks I’m Watching

top penny stocks list September 13, 2021 Tim Sykes drinks coffee in Positano Italy working on Mindset Master
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Check out the stocks I’m watching each week for no cost — subscribe to my weekly watchlist here.

Will you find crypto penny stocks on my list? That depends. I go where the hottest market action is.

What’s even better than my weekly watchlist? You can get my full watchlist EVERY trading day with a Profit.ly subscription. Choose the best subscription for your dedication level here.

My goal with every watchlist is to help you learn. Use my watchlists to study the patterns, catalysts, and price action. Then build a trading plan of your own.

Crypto Penny Stocks: The Bottom Line

Crypto penny stocks tend to move together based on sector momentum.

NEVER try to predict the market or a hot sector — react to what the market shows you.

Watch for major news in the crypto industry. StocksToTrade’s Breaking News Chat alerts the top crypto penny stock news every trading day. Grab your 14-day trial for only $17 here.**

And keep your goals reasonable. Swing for singles. Learn to be patient and wait for your best setups to come to you. That’s what I teach students in my Trading Challenge

Ready to put in the work to become a self-sufficient trader? Apply today!

What do you think about these crypto penny stocks? Let me know in the comments below!

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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”