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The Best Crypto Penny Stocks to Watch Now

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ben Sturgill
Updated 12/5/2024 12 min read
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Top Crypto Penny Stocks to Watch: Key Takeaways

  • Bitcoin has broken its $100,000 resistance, and it’s taking these crappy penny stocks along with it…
  • 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…

Things look great right now — but remember how it all ended last time.

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 stick a disciplined trading plan. What’s the best way to prepare for opportunites? 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.

With Trump’s election, crypto stocks are on the biggest run since 2020. What’s more — Bitcoin just shattered the $100k mark!

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: Bluesky Digital Assets (OTCQB: BTCWF)

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Bluesky Digital Assets is poised for a big transformation as it prepares to launch its AI-powered BlueskyINTEL Web Engagement Platform (WEP) in January 2025. This platform uses an AI-driven matchmaking service to connect businesses with blockchain and AI technology providers. A successful soft launch earlier this year has already drawn interest from major players like Amazon AWS.

Key Catalysts:

  • The platform is on track to generate subscription and partnership revenue starting in January 2025.
  • Strategic interest from Amazon AWS could boost investor confidence.
  • The AI-powered service is already showing strong engagement metrics, though revenue generation is still months away.

Trading Strategy:

  • Watch for volume spikes ahead of the January launch. Pre-revenue status could create volatility, so focus on well-timed entries around key support levels.
  • Bitcoin’s performance remains a strong indicator. If Bitcoin continues its rally, BTCWF could gain momentum as a sympathy play.

Crypto Penny Stock #2: BTC Digital Ltd. (NASDAQ: BTCT)

BTC Digital went supernova last week, rallying 316% in a single session, fueled by Bitcoin’s upward trajectory and BTCT’s newfound meme status. The company, which operates as a Bitcoin miner, has a small market cap of just $68 million, making it highly sensitive to price moves in the broader crypto market.

Key Catalysts:

  • A massive rally in Bitcoin (up 50% in the past month) has reignited interest in crypto mining stocks like BTCT.
  • The stock remains volatile after its recent surge, with potential for additional momentum now that Bitcoin has broken above $100,000.

Trading Strategy:

  • Watch that it holds support around the $12 level. A breakout above $20 with strong volume could trigger a new rally.
  • Be cautious of speculative behavior. Without clear fundamentals driving the spike, focus on short-term trades and set tight stop-loss orders.

More Breaking News

Crypto Penny Stock #3: BTCS Inc. (NASDAQ: BTCS)

BTCS has delivered impressive gains recently, climbing 211% in the past month. The company is capitalizing on blockchain’s growing adoption, making it an attractive pick for traders.

Key Catalysts:

  • A transition to profitability has driven renewed investor interest in this crappy penny stock, which sets the table for a multi-day run.
  • Positive financial results and broader market sentiment around crypto have pushed BTCS into the spotlight.

Trading Strategy:

  • Look to see if support holds around $3 and target resistance above $5. Scalping small gains in this environment can be a smart strategy.
  • Use Bitcoin’s price movements as a guide—BTCS often mirrors broader crypto trends.

Crypto Penny Stock #4: Hut 8 Corp. (NASDAQ: HUT)

Hut 8 Corp. (HUT) is a leading Bitcoin mining company that leverages sustainable energy sources and innovative financial strategies to maximize shareholder returns.

Key Catalysts:

  • Sustainable Operations: Hut 8 utilizes a mix of wind, solar, and natural gas for its mining activities, addressing environmental concerns and appealing to eco-conscious investors.
  • Innovative Financial Strategies: Instead of selling mined Bitcoin immediately, Hut 8 engages in yield farming by lending out its Bitcoin holdings, compounding returns and enhancing profitability.
  • Capital Expansion: The company has announced a $500 million at-the-market (ATM) equity offering to fund operations and Bitcoin purchases, alongside a $250 million stock repurchase program, signaling confidence in its growth prospects.

Trading Strategy:

  • Look for support around the $25 level and potential resistance near $30. Given the stock’s volatility, consider short-term trading opportunities, setting tight stop-loss orders to manage risk effectively.
  • Stay informed about regulatory developments and Bitcoin’s market trends, as these factors can significantly impact HUT’s stock performance.

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

Canaan is a Chinese crypto mining firm specializing in backend operations. It specializes in designing high-performance application-specific integrated circuit (ASIC) machines for Bitcoin mining.

Key Catalysts:

  • Advanced Technology: Canaan’s Avalon ASICs offer tens of trillions of hash guesses per second, providing miners with efficient and powerful tools essential for competitive Bitcoin mining.
  • Rising Demand: The recent rally in Bitcoin’s price has led to heightened demand for mining equipment, boosting Canaan’s sales and revenue.
  • Strategic Positioning: By focusing on affordable and energy-efficient devices, Canaan appeals to a broad range of miners, from large-scale operations to individual enthusiasts.

Trading Strategy:

  • Identify support around the $2.00 mark and resistance near $2.50. Given the speculative nature of the stock, focus on short-term trades, utilizing technical analysis to time entries and exits.
  • Implement strict risk management practices, including setting stop-loss orders, to navigate the inherent volatility in the cryptocurrency and mining hardware markets.

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.

Why Bitcoin’s Rally Matters for Crypto Penny Stocks

Bitcoin’s climb to nearly $100K is more than just a big round number—it’s a catalyst driving widespread interest in the cryptocurrency sector. As Bitcoin pushes higher, it often pulls smaller, related stocks along for the ride. Here’s why:

  1. Market Sentiment: Bitcoin’s gains create excitement across the sector, encouraging speculative trading in crypto-linked stocks.
  2. Sympathy Plays: Smaller stocks like BTCWF, BTCT, and BTCS often benefit as traders look for low-cost ways to participate in the broader rally.
  3. Volatility Opportunities: High volatility in Bitcoin can translate to sharp, tradeable moves in crypto penny stocks

Tips for Trading Crypto Penny Stocks

  1. Follow Bitcoin Closely: Crypto penny stocks often mirror Bitcoin’s price action. If Bitcoin breaks key resistance levels, related stocks could follow suit.
  2. Avoid Chasing Spikes: Wait for consolidation or pullbacks before entering trades to avoid overpaying.
  3. Take Quick Gains: Volatility works both ways—aim for 10-15% profits and follow your trading plan.
  4. Cut Losses Quickly: If a trade isn’t working, GET OUT. Your number one job is to protect your account.

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.

Follow the latest developments in Bitcoin and crypto stocks to stay ahead of the curve. Don’t get fooled by all the hype. The Donald Trump-Bitcoin catalyst will fade at some point, and you don’t want to be the one left holding the bag.

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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* 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”