Crypto Academy Season 2 Week 6 Homework Post for (@pelon53) - Penny Cryptocurrency by @abu78

Introduction

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Greetings to all and sundry on this great platform, I am very much excited to write to submit my homework post for prof @pelon53 for this week's wonderful lecture taught.

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source

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Explain Penny cryptocurrencies in your own words. Advantages and disadvantages

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Penny cryptocurrencies as the name suggest referring to cryptocurrencies that have a very low market price usually less than $1 in the coin market. Penny cryptocurrencies are a good investment to multiply your capital due to high fluctuations in their market price. This can increase the capital of one's investment by 10X or more than that concerning the fluctuation rate.

Dogecoin is now the leading coin among the penny cryptocurrencies in the market.
Below screenshots list some examples of these penny cryptocurrencies in the coin market. Dogecoin's price value was somewhere around $0.0023 but currently, at the time of writing this article from https://coinmarketcap.com, we can see that the price of Dogecoin is now $0.3917. Wow, this is really a high fluctuation rate as we can see. It is a really good coin for investment.

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Examples of Penny cryptocurrencies

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Dogecoin market data

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Advantages of Penny Cryptocurrencies

1. It is a good currency to be added to one's portfolio. It is very good to add at least one penny cryptocurrency into your portfolio for it will help save your portfolio when the market price of the other currencies is going down.

2. It enables investors/traders to gain huge profits. Penny cryptocurrencies make traders earn huge profits when fluctuation increases in favor of the coin. Taking Dogecoin as an example is one of the currencies that has rapidly increased market price within a short period of time.

3. Low Investment Capital: Penny cryptocurrencies don't need huge capital before one can earn huge profits as a result but instead low capital can be invested and at the end of the day, the investor harvest a huge amount of profits. On the contrary, when we take the other currencies such as BTC, ETH, and those high currencies, before one can get high profits unless he/she has invested a huge capital into it and this is not the case as in penny cryptocurrencies.

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Disadvantages of Penny Cryptocurrencies

1. It is not a good seasonal crypto investment: Penny cryptocurrencies are not good enough to be left for a long season of trading. It is good when the fluctuation goes in favor then you withdraw the profits and invest in other currencies.

2. High Fluctuations: Because the fluctuations that occur in penny cryptocurrencies are very high, it can really disappoint you at once, especially during the time of bearish trends in the crypto market.

3. There is a high number of useless coins present in the cryptocurrency market and one should take good note of them before investing in such coins. It is very advisable to make a good research on any penny cryptocurrency before investing in them.

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For you: What will be the best Penny to invest in 2021? Explain and show evidence.

Before one would invest in any penny cryptocurrency, the following criteria should be met;

1. Listed among the popular exchanges
2. have a good project
3. have been on the market for long
4. 24 hours trading volume
5. listed among top 200 in the market

To me, I would prefer to invest in DENT cryptocurrency this year (2021).

DENT Penny Cryptocurrency

The statistics of DENT Cryptocurrency

Coinmarketcap Data for DENT cryptocurrency

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Overview	Statistics
Market Price	$0.004352
Trading Volume	583,534,683
Circulating Supply	9800B DENT
Fully Diluted Market Cap	$439,264239
Market Cap	$426,527,457
Market Rank	#123

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From the above statistics of DENT cryptocurrency, we can see to it that the criteria that to be met before investing in any penny cryptocurrency are all set.
Dent Currency was founded in the year 2017 and has since then been in the crypto market to date. Dent coin was created to find answers to problems regarding mobile communication and data services projects. Dent coin is ranked #123 in the crypto market and this shows that it is not a risky coin to invest in. Dent cryptocurrency is also among the famous exchanges we know such as Binance, Kraken, Bittrex, and KuCoin. Dent coin has the chance of an increase to $0.1 looking at the price of Dent in 2018.

I think the DENT coin is a good penny cryptocurrency to invest your capital in this year.

DENT Chart

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Do a Ripple (XRP) analysis. Show screenshots. Would you invest right now? Explain

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Coinmarketcap market data for XRP

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Ripple's (XRP) Statistics

Overview	Statistics
Market Price	$1.15
Trading Volume	$10,049,780,359
Circulating Supply	4614B XRP
Fully Diluted Market Cap	$116,216,093,583
Market Cap	$52,636,937,809
Market Rank	#6
Market Dominance	2.97%

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From the above statistics of XRP currency hits the highest peak on January 04, 2018, at the price of $3.84 and since then the price of XRP started to fall till its now $1 price. Now, let's take the technical analysis of XRP for the near future.

Fundamental Analysis of XRP

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XRP Chart

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As we can see from the XRP chart above, the current support level is at $1.1303 and the resistance level is at $1.9750. This indicates that before the price of Ripple would rise unless it has been able to cross over the resistance level or go beyond it. We can also notice from the chart that its current price is not stable and it is just an up/ downtrend that is not in a constant state to trade.
Its price currently closer to the support level and it's a good decision to make a purchase or go in for a buy position now.

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Technical Analysis of Ripple (XRP) Using MACD indicator

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XRP Chart with MACD indicator

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From the above chart, we can from the MACD indicator that, currently the MACD line is moving away from the signal line and there is no indication of cross-over with the signal line currently with the histogram also increasing below the zero line. The histogram increasing below the zero line indicates a downtrend of the price of Ripple. This indicates that Ripple is not in a good position to go for a buy option.
The Direction of the MACD line indicates that the price of ripple will continuously decrease for a while and these are my reasons for not investing in Ripple (XRP) currency now.

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Present in detail a possible investment of 5 penny crypto assets. Explain and present data confirming your choice.

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My Portfolio

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As indicated above in my portfolio, I have made $100 in each penny cryptocurrency which sums up to $500 in all. This was a virtual investment but not real money I used. I shall be checking on them with time to find out the one with high profits and the one with the most loss with a specific period of time.

The currency I invested in are; Dogelon Mars, SHIBA INU, Dogecoin, WINKLink, and Dent. I selected those currencies by considering certain factors which include the following; trading volume above $30 million, must be among the top 200 coins in terms of market price, its fame, and recognition on social media platforms and beyond.

Dogelon Mars (ELON)

I chose ELON currency because of how popular it has become in just a few months. Looking at the Twitter community, for instance, Dogelon Mars has hit 94.1K followers in just less than a month after joining Twitter social media. Wow, this is very amazing. Dogelon MArs joined Twitter just on April 2021, and its currently having followers of about 94.1K, this is just an impressive performance. The increase of followers within such a short period would help boost the price/value of Dogelon Mars currency within some short period. And this is what boosted me to add to my portfolio. It is currently on two popular exchanges that are Poloniex and Uniswap.

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DENT

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Dent currency as already elaborated in my previous question is also one of the penny currencies I have chosen to be added to my portfolio. The factors for me choosing this currency includes the following; ranked among the top 200 coins in terms of market value, a perfect daily trading volume is listed among the popular exchanges, having a good potential of rising in the coming years, and also because of the good project they came out with.

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Price chart of DENT

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SHIBA INU (SHIB)

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SHIBA INU is currently ranked at #37 in the coinmarketcap with a market value of $0.00000929 and and trading volume of $1,688,572,171.

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SHIBA INU Chart

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SHIBA INU is currently booming on social media platforms such as Twitter and others. SHIBA INU has about 84.3K followers on Twitter in just a few months after joining Twitter. SHIBA INU joined Twitter social media on January 2021 and has just had such a huge sum of followers.

Penny cryptocurrency has good plans of changing millions of lives of people in the crypto market. This was a piece of news on their Twitter social media platform that was passed on the 4th February 2021.

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Dogecoin

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Dogecoin Data at the time of writing this article

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Dogecoin has been the leading penny cryptocurrency and it is still the leading currency. It started to rise hugely when Elon Musk came out to call himself the "DogeFather". It's just currently dogecoin had a bit fall in price when the bearish season just started. I added dogecoin to my portfolio because Elon Musk has given a hint that Dogecoin is likely to hit $1 dollar by the end of the year. Dogecoin joined Twitter Social media in 2013 December and is currently having about 1.5 Million followers. This indicates it's genuinely in the crypto market.

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Dogecoin Chart

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It can be noticed that the price of dogecoin is currently at the support level and any rise in price would boost it towards the resistance. Its current position gives it a good position of a buy option.

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WINkLink (WIN)

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WIN is ranked at #185 in the cryptocurrency market at the time of writing this article. WIN cryptocurrency has the aim of giving solutions to its platforms. It is being supported by the Tron time. The first time its hits the price peak was just recently in somewhere in April. It is also listed among the most popular exchanges we all know. I chose this coin because of its trading volume which is over $60 million.

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WIN Price Chart

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Show an investment (starting at $ 5) that you have made this week in Penny cryptocurrencies. List the steps you took.

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I will be trading on Dogecoin and the following are the steps taken to trade it;

STEP 1
Search and Open Binance account and I logged into my account.

STEP 2
Click on Trade from the bottom

STEP 3
I will be trading with BTC so I searched for DOGE/BTC pair and selected it

STEP 4
from the buy option, I entered the amount of Dogecoin to purchase, that is 100 DOGE which is worth $35

STEP 5 I then clicked on buy to place an order.
In a few seconds, the order was bought.

STEP 6
Click on wallets to confirm the trade. As we can see the transaction was successfully completed.

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Home interface of Binnce

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Conclusion

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Penny cryptocurrencies are very important to every trader and at least a trader or an investor should have one or two penny cryptocurrencies in his/her portfolio so s to help boos the portfolio when other currencies are falling down. I am very excited to have learned about penny cryptocurrency this week. It is very necessary to invest in penny cryptocurrencies but one should be very careful in doing so and should make more research about the currency before investing in it.

Thanks to all for reading and passing by my post. I would like to appreciate the good efforts of prof @pelon53 for this great lecture taught this week.