Penny stocks are basically stocks that are very cheap to buy. They can grow to really boost your portfolio. Or they can crash and burn. Like all stocks.

Why should you consider penny stocks?

I don’t believe in just going for one type of stock — I like to have a whole range in my portfolio, so I hold stock in Tesla, Amazon and standard companies, along with Etherium, Bitcoin and Ripple. But I do like to invest in the more risky penny stock companies at a really low level. I tend to aim for technology companies who in the future may make a huge impact on their work.

Research the companies first.

You can use tools like TradingView to look at charts. But that is normally not enough. You need to know WHY the price is so cheap.

  • Has the company only just been listed?
  • Has there been some bad press?
  • Are they subject to some regulation that is limiting their ability to function?
  • Does this product have a future in 5 or 10 years?
  • Has the company just diluted their stock (this is where they issue more shares to raise capital, but this will devalue the existing stock).

I do like Penny stocks in my portfolio. Mainly because I want to support small companies as well as building up my families wealth in the future.

https://www.ukbitcoinblog.com/general-info/what-are-penny-stocks-and-should-you-trade-them/

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Writing about Trading, Currencies and shares

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