Crypto Academy Week 14 - Homework Post for [@pelon53] // PENNY CRYPTOCURRENCIES

Hello prof @pelon53 !

I am pleased to have participated in this week's crypto academy lessons; in fact, you have been assisting us with your weekly lessons to better understand the concept of crypto currency; this week, I will be explaining all of the questions posed by crypto prof @pelon53 in my own way so that any beginner who opens this post can easily read and understand it.

” Explain the Penny cryptocurrencies in your own words. Advantages and disadvantages.

PENNY CRYPTOCURRENCIES

The name of these cryptocurrencies provides a clear definition; in English, the word penny refers to a smaller amount of money (or things) that makes a dollar or pounds; on that note, I will say Penny Cryptocurrencies are coins with a value less than one dollar ($1), and they are known to be very cheap.

Using coinmarketcap, one can easily identify penny cryptocurrencies by looking at the value of the coins listed. In the image below, I was browsing through my phone using coinmarketcap to identify penny coins, and the ones I identified are highlighted in red.

(screenshort from coinmarketcap mobile APP)

Most traders I've met believe that any coins between $ 0.02 and $ 0.0004 are all penny coins, and that they are a different type of investment that provides high and quick profits regardless of the risk involved.These coins are more volatile than any other type of cryptocurrency, and they can be easily manipulated through the pump and dump scheme.

ADVANTAGES OF PENNY CRYPTOCURRENCIES

• They are sold at such a low price that anyone can invest in them because it provides the opportunity to invest in crypto without spending a lot of money, potential investors also get the chance to explore the crypto market and there will be no panic if they lose because the money they invested isn't large.

• They offer high risk rewards; these coins are extremely volatile; they can increase by as much as 1000 percent in a single day, but if proper analysis is followed, an investor can make a fortune with small investments.

• It reduces the risk of people losing money in trading; potential traders do not need a large sum of money to begin trading if they want to experiment with penny coins; there is a key piece of advice to follow before investing in penny coins; use money that will not affect your budget.

DISADVANTAGES OF PENNY CRYPTOCURRENCIES

• RISKY MARKET: Penny cryptocurrency are one of the riskiest things in the market; their volatility is high, so the price can fluctuate at any time and cause you to lose a lot of money.

• It can easily turn you into a bug holder, so we don't invest as much money in it as we do in coins with a good reputation in terms of market cap and value, because most penny coins can turn into shit coins at any time.

• They occasionally record a low liquidity rate, which may make it difficult to sell due to a lack of buyers in the market.

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

In my trading experience, I would like to invest in Doge coin right now. I have been following its chart and news for a few days now, and I have discovered that Doge is currently the sixth most valuable cryptocurrency by coin market cap, Considering it market stats Doge coin is doing very well, as at now it has a market cap of: $46.114 Bn and 24h volume of $15.247 Bn as shown below:

(screenshort from coinmarketcap mobile APP)

Doge coin had a value ranging from $0.002278 to $0.002341 a few years ago, and now in 2021 it has increased by more than 200 percent, with a current value of $0.3618. Doge coin had a value of $0.6 a few weeks ago, and it was on its way to $1.
When you look at the current state of affairs for this penny coin, you can see that it has more potential because more investors are coming in, and the most popular news that is making the grounds very strong is Elon Musk's involvement in Doge coin.

(screenshort from coinmarketcap mobile APP)

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

In this analysis, I will be using the XRP/USDT pair on Binance, where I have been able to identify a support and a resistance as a short time trader. I will be using a 1 day candle stick chart, a supertrend indicator, and a moving average.

SOURCE

• In the chart above my support is at $ 0.9975 represented by a yellow line

• And I spotted a resistance at $1.6540 represented by a red line

• As well all know it is hard for a coin to break the support line , so did XRP bounce back after testing the support I set

• The super trend is also indicating a buy signal

• The M.A is still above the price indicating sell but this because of the setting I am using it will change after 7 margin different to give me my third confirmation to invest in this coin.

The question is will you invest it this coin right now?

Yes, I will because all of my analyses show an uptrend movement, the price failed to break the support line, and my technical indicators also show an uptrend movement, so investing in XRP at this time is the best decision to make, and I will study the chart and take profit whenever possible.

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

Based on the lessons I learned at Crypto Academy last season, I was able to target some penny coins that I was able to invest in today with the little money I had, because I am still learning how to trade, so exploring the market with five of the penny coins was the best option for me.

Let look at the five coins on my portfolio:

(screenshort from coinmarketcap mobile APP)

• Doge, as previously stated, this coin is a hot cake right now; I invested in it at 0.2453 and withdrew some when he price shot up currently the price is 0.3606. I am actually clinging to my position, expecting it to surge higher. The action of the Doge coin can also be attributed to Elon Musk, the billionaire who frequently discusses this coin on Twitter.

• Tron ( TRX ) : this coin is known to be running on the active blockchain in the market right now , it run on block chain that can handle about 2000 TRX per second unlike BTC that handles only six per second , and it mostly use now to build DApps by many developers . TRX is mostly used in the entertainment industry and also provide a chance for content creators to connect with their audience straight without middle men, this token is unique and has much potentials in the future, currently it has a market cap of $5.982Bn and a 24hours volume of $4.839 Bn, due to volatility it has been down this week and I see to be an opportunity to invest more.

(screenshort from coinmarketcap mobile APP)

• Stellar (XLM) : this coin since it launched in 2014 has done so much well at the beginning of this year it was at $0.2 an today it has a doubled it value , I invested in this coin following it related news about some new deal that they are embarking which I believe will have a great impact on them in January 2021 stellar soars 40% after the ducking correlation the charges against Ripple affected this as well but then it began to show some positive movement , so I took advantage of the market I am now in a double up capital lead , right now the price is down but it is advisable to buy it now and wait.

• Zilliqa (ZIL) : I just discovered this coin on March 16th, 2021 and based on my analysis, I was tempted to invest a few dollars. The price has been playing with my investment a little, but based on the fundamentals and analysis I made, I am hoping for more profit. Right now, I am still holding on to my position, expecting a pump up.

• DENT: This is another token I discovered recently, and based on its chart, I believe traders are starting to understand its user case to promote mobile communication. After adding Dent to my portfolio at $0.003877, the price increased within a few minutes to $0.004345, indicating that this is another good place to trade.

(screenshort from coinmarketcap mobile APP)

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

• First of all go to wallet then click on spot wallet

(screenshort from coinmarketcap mobile APP)

• You from the above you can see the tokens I am holding on Binance

• The penny coins I want to invest in is Doge coin so I will have to search for it

(screenshort from coinmarketcap mobile APP)

• Select the pair DOGE/USDT and now fill in the order form

(screenshort from coinmarketcap mobile APP)

• Kindly enter the amount you can purchase

(screenshort from coinmarketcap mobile APP)

• Then click buy

• The order will be created wait for a while to confirm you transaction , go to your wallet and check in the spot you will see the Doge coin listed

(screenshort from coinmarketcap mobile APP)

In conclusion, I'd like to thank the crypto academy team for always being there for us by allowing its capable professors to impart more knowledge on us. I'd also like to thank @pelon53 for this wonderful lesson, as penny coins are currencies I'd like to experiment with.