Investing in stocks has always been a risky job, and some people happen to naturally be good at it. Plus, the way we choose to invest and buy stocks has also changed overtime, and now buying online stocks through cryptocurrency has become very popular and is something being practiced all over the world, with a lot of people and companies managing to rake in millions of dollars every month. If you check Tim Sykes Forbes.com, you will find that he is listed to be amongst one of the many people who have managed to earn million by trading through penny stocks, a newer form of trade.
While traditional stocks do happen to carry risks with them, penny stocks are considered to be even riskier, and it is because of the high risk that comes with penny stocks that a lot of people tend to avoid them. However, penny stocks happen to carry a lot of advantages with them, and this ends up attracting a lot of people as well.
Penny stocks involve you buying shares from small, new companies, so there is a risk that comes with investing in smaller, lesser known companies since your shares can end up setting you up for failure. This is because penny stocks are very volatile, so they fluctuate really quickly. For instance, there can be up to a 100% increase in the first 24 hours after you invest, and then a sudden drop in the stock out of nowhere. However, if you manage to sell before the drop, you are able to bring in a lot of money at once. There is also the fact that since penny stocks only require you to pay $5 to buy a single share, you are able to buy a number of shares in a lot of different companies.