CryptoAcademy week 14 homework post for @pelon53 | cryptocurrency penny

Hello steemians, today brings us to another episode in the crypto Academy community. Before I present my homework post, I would like to acknowledge @pelon53 and the crypto Academy community for making such an educative lecture possible. And all the professors as well. Today's topic is quite interesting and very important as well. Cryptocurrency penny.

Without wasting enough time, I would present my homework post systematically based on the questions.

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

Penny Cryptocurrencies

Basically when we talk about penny in the crypto world, it refers to the small valued Altcoins. Any cryptocurrency which is less than the value of a dollar($1) is a penny. A typical example of a penny are dogecoin, harmony, shiba inu etc. They are all penny crypto because of thier value. Penny cryptos looks attractive for investments because of thier value. Investors usually prefer the penny cryptos because penny cryptos usually multiply in value very faster which would yield more profits compared to the others. However, penny cryptos are highly volatile. They could easy rise and fall at anytime.

Screenshot from coinmarketcap app

Looking at the shiba inu chart, the price has rised over 500% within a month. which could even be greater in the future.
Perhaps the price could sink because of the high volatility in the penny cryptos

Advantages of Penny Cryptocurrencies

• It could generate a lot of profit in a short while. Since the prices are very low, it usually multiply when the value increases which could be very profitable. Investors who invest in the penny generate more profits compared to the other cryptos.

• It has relatively low market capitalization. when crypto has low market capitalization, it means the percentage in circulation is small. And hence when the coin is in demand, the price could increase which would increase the profits of an investor.

• Investors with small capital could still be able to hold millions of the coin. Due to the low value of the penny cryptos, anyone could reasonable amount to hold.

Disadvantages of PennyCryptocurrencies

• High volatility. As we are all aware the penny cryptos could rise very high in a short while, its the same way it could sink very quickly too. The penny cryptos are not stable and could change at anytime. Hence the penny cryptos are not sorely reliable.

• weak project : the penny cryptos may not have solid basis and might colapse. Since they are new projects, anything little or false informations could collapse the project. Moreover, many of the new projects are scams. Very few have the strong bases.

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

Generally, many altcoins shows great potentials of mooning in the future. Depending of the coins teams projects, some of them are very reliable. Looking at the dogecoin, steem, trons etc. They all have relevant information backing them to rise in the future. But for 2021, I choose the Shiba-inu.

Shiba-inu

Ryoshi created the shiba inu coin (SHIB token)which is named after a breed of dog in August 2020. The SHIB token is an ERC-20 token built on the Ethereum blockchain platform.

Screenshot from coinmarketcap app.

Looking at the SHIB charts, the price from the last 3 months has move very significantly.
171,818.25%. From my knowledge, no other coin come closer in 2021.

The shiba inu is the first crypto which allows users to hold over billions and trillions of thier coin. Its currently in the top 100 Altcoins despite the fact that it was recently created.

source

Most experts have explained the Roadmap and the whitepaper in details to approved the project.

Looking at the chart, investors have made a lot of profit and are still making more with the Shiba-inu coin. It also has its own decentralised platform known as the shibaswap. With a great team of management.

looking at the value and the strong team behind it, SHIB would be the best Penny Cryptocurrency to invest in 2021

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

The Ripple platform is an open source protocal used for transactions. The Ripple is a Centralised platform that allows faster and affordable transactions which attracts more customers. The Ripple works on the Ripple protocol Consensus Algorithm (RPCA).

Considering the use of the XRP

• Ripple is used for global transactions. The Ripple is widely accepted and used globally as a means of transaction.

• Ripple is used for exchange of currencies pairs. from one coin to the other.

• Ripple can be used as tradings pairs.

Ripple (XRP) CHART

Screenshot from coinmarketcap app

Crypto investments basically comes in two from. Either holding or Trading. Looking at the current price of the Ripple, I can't tell by any criteria that it would rise or fall in the next minutes of hours. But however, from the current value XRP is showing there could be a potential of it rising in years to come.

Ripple has over 160% percentage increase over the past 3 months and still showing some potential in rising.

When Bitcoin dominance falls but its price increases, you should buy Altcoins . Since both dominance and price of the BTC is falling now, I don't think its advisable to by the XRP for short term.

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

1

• Shiba Inu As we said earlier, the Shiba-inu is one of the most reliable penny cryptos currently. Showing some great potentials in the future. Looking at the percentage increase of the coin, It prove that shiba inu is worth it.

2

• FEG token the feg token is one of the most vulnerable penny cryptos with high potentials. The main motive of the FEG token is to create a decentralised transactions network to operate on the Ethereum blockchain. The token has increased about 70000% of its initial value.

3

• Steem The steem is a blockchain that creates earning opportunities for its users. As we all know, steem has become a very reliable investment from the previous year (2020). The steem project is growing stronger with time. Which proves to be a good investment. Initially when steem was created, the value was bigger. But the value reduced and it now getting into its original shape gradually.

4

• Tron The tron is a blockchain based operating system. Looking at the wide use of the tron decentralised blockchain network, the tron has increased significantly over the years. This platform has low fee charges. Hence more people prefer the tron platform to the Ethereum. However, there are few tokens compared to tge Ethereum blockchain platform.
  The Tron has increased about 3000% and still showing more potentials. Day in and day out, relevant informations about tron are increasing. Which signifies a good investment in the future.

5

• BitTorrent The bittorrent token was purchased by the tron blockchain platform. The bitTorrent has increased 400% and still showing more potentials.

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

Step 1

Open your trust wallet

Step 2

click on pancakeswap from the top

step 3

click on the binance logo at the top and choose smart chain

Step 4

click on select currency and choose your preferred penny

Step 5

we choose FEG token

Step 6

confirm the transaction

Step 7

confirm transaction from binance

CONCLUSION

The penny cryptos could be very profitable investment. Some of them a worth investing in. Do a very wide research on the whitepaper and the Roadmap before investing.