Steemit Crypto Academy Homework Post for @pelon53

Hello everyone to my submission for homework post on Penny Cryptocurrencies.

Introduction.

I am very excited to be part of this class because I am learning new things. We have been lectured on token and its types in the last lectures and in this week's lecture we have been introduced to penny cryptocurrencies.

What are Penny Cryptocurrencies?

Examples of penny cryptos from coin market cap

Penny Cryptocurrencies are the cryptocurrency coins that cost under one dollar ($1). These kind of cryptocurrencies are a lot in the cryptocurrency world which have the potential of making you wealthy but they also have the potential to milk you dry.

This is because some of them are scams and not real.

The cryptocurrency world is a risky place whether you are investing in the established BTC or penny cryptocurrency like DOGE. That is why we are often advised to invest with money we are comfortable losing.

Penny Cryptocurrencies are such that once you invest you should consider them as donations to charity because in 8 out 10, you wont get any returns.

However, penny cryptocurrencies are very good to invest in because they offer diversification. There cryptocurrencies are very volatile that you can get up to ten times or more of your investment.

A popular example is the dogecoin that cost about $0.002177 in January 2019 and now cost $0.3928 as of the time of doing this work. It has increased more than 200 times and investors who invested then would be smiling now because they have made so much profit. Investing in penny cryptocurrencies requires a lot of personal studies to determine which is right for you.

Advantages of Penny Cryptocurrencies.

First of all, Penny Cryptocurrencies do not require investments of large sums. Because they cost so little, you do not need to invest large sums of money to get a lot in your crypto portfolio. An example is Dogecoin which cost $0.3928. This is better than investing in the high profile coins like BTC and Ether that require large sums.

Secondly, it offers diversification. In order to make good returns in the cryptocurrency world you need to build a portfolio that is made up of at least 7 or 8 different coins. It is not all the time that at the same time, all the coins significantly drop in value. So due to this diversification, one could benefit from at least one of these 7 or 8coins when the others are crushing. And should all increase, you make a lot of profit.

In addition, Penny cryptocurrencies can allow you to earn huge profits. An example like already stated is the dogecoin whose price has increased over 200 times.

Finally, penny cryptocurrencies can serve as financial absorbers or relief. Due the high volatility of the high profile coins like BTC, owning these coins can offer some kind of financial relies when all your high profile coins are decreasing in value.

Disadvantages of Penny Cryptocurrencies.

Firstly, the risk involved in penny currencies is a major disadvantages. Some of these penny currencies are scams while others are not able to achieve what they set out to achieve. Because of this, it is difficult to know which is legit and when you end up investing in the wrong kind, you your money.

Secondly, penny cryptocurrencies can turn into shit coins. Because of their low value and uncredibility they can overtime turn into shit coins causing you to have in your possession coins that would turn worthless. The term used for this is bug holder.

Also, coins may get lost during bearish or downward market trends. Because of their low value already, when there is a bearish trend, these coins can get lost.

Lastly, during the bear seasons, investors could end up not earning anything due to their low price value.

The Best Penny To Invest In 2021 for Me.

DOGECOIN

Having been following cryptocurrencies lately, I would say the next to invest in 2021 is the Dogecoin. Dogecoin is currently ranked 7th according to coin market cap at the time of doing this homework.

A good penny cryptocurrency should have been in the market for quite some time, proven to be credible, have a good market and daily volume, among others. Not only does the dogecoin meet all these terms, its price has been known to increase over 200 times in the last 2 to 3 years.

It has also gained recognition from very popular people in the world like Elon Musk who calls himself the "Dogemaster". It is still under $1 which is a good penny to invest in.

As already stated, Doge had a value of $0.002177 In January 2019 and now is at $0.3928 as at the time of doing this work.

This has more potential to increase in value significantly in value because of the number of people investing in it and the involvement from Elon Musk.

Ripple (XRP ) Analysis.

Ripple was introduced in 2012 by Chris Larsem and Jed McCaleb as co-founders. It is a centralized system that uses distributed consensus ledger that uses XRP as cryptocurrency tokens. Ripple has been among the best cryptocurrencies especially when it peaked to a value of $3.84 in 2018.

It an be seen in the chart from coin market cap that XRP in 2018 was on a rise reaching a peak of $3.84. It then went on a downward trend and fell to $1.65.

Currently, it is located near its strong resistance which is $1.96 which it seeks to break and break its resistance line.

Is It Possible To Invest In XRP?

Given that XRP is currently in a bearish or downward trend, its value its low and you can invest and hope that it rises. Also Ripple has an ongoing court case against 2 of its executives which has somehow brought bad name to them.

That court case is one of the reasons why it has been in a bearish trend. But it looks like the court case is in Ripples's favor at the moment which could see it rise back to fame if they win that case.

When this happens and the market value of the high profile coins like btc and eth increase, XRP is likely to break its strong resistance of $1.96.

So I would say it is possible to invest now not only for my seasons above but also because it is currently ranked 7th on coin market cap with a market dominance of 2.95%. Its trading volume is very high as well as shown below.

A Possible Investment Of 5 Penny Cryptocurrencies.

The 5 possible penny cryptocurrencies I can invest in are the;

I used this class an opportunity to research and invest in these coins

Dogecoin,

Dent,

Tron,

Shiba Inu and

Stellar.

Dogecoin: It is only right I start with the Dogecoin as I have mention severally in my previous paragraphs. Doge is backed by Ellon Musk and at the time of doing this homework task was 7th on coin market cap. It has a market dominance of 2.95% and a trading volume of $8,479,977,406.

It has been listed in exchanges like binance and is known by many investors. It has been on a downtrend recently but was a on bullish trend especially anytime Ellon Musk made a positive statement about it. There are hopes that it would certainly increase in value.

Dent: On the coin market cap, Dent is explained as a revolutionary digital mobile operator offering eSim cards, mobile data plans and roaming free services. Dent was launched in 2017 and runs on a blockchain technology.
Like already stated, for a coin to be considered good for investment it should have a good name among investors and Dent having over 25 million users says it all.

Dent is based on ERC-20 token and uses the proof of work consensus algorithm. At the time of writing this homework, it was ranked 126 on coin market cap, had a market capitalization of $336.73 M, a circulation supply of 98.00 billion, a
volume of $52.66 million.

Tron: Tron was founded by Justin Sun is a decentralized platform. Tron is ranked 23rd on the coin market cap at the time of doing this homework which means it is a reliable coin. It is currently at the value of $0.07471 with a coin market cap of $5.35 billion. It has a volume of $2.59 billion as at the time of doing this task. Tron has a circulating supply of 71.66 billion.

It is listed on exchanges like Binance. A good cryptocurrency is one that makes its plans public and Tron has made its plans known to all. Investors believe that the value of Tron will increase significantly over the years and could cross the $1 mark.

Shiba Inu: Shiba Inu is a penny cryptocurrency currently worth $0.00000734. Shuba Inu (SHIB ) is based on the Ethereum blockchain and uses the proof of work consensus algorithm.

At the time of doing this task, it was ranked 35th by coin market cap with a market cap of $2.95 billion and a 24h volume of $1.43 billion. It has a circulating supply of 394.80 trillion and a total supply of 1000 trillion.
SHIB is listed on the Binance, Uniswap, etc exchanges.

Stellar: Stellar is another cryptocurrency I think is worth investing in with a current value of $0.393. There are predictions that Stellar might reach $5 by the end of 2025. It currently has a market cap of $9.10 billion, a circulating supply of 23.11 billion, total supply of 50 billion and a 24hr volume of $2.14 billion.

Stellar ( XLM ) is currently ranked 16th on coin market cap. XLM was released in 2014 with the aim of boosting financial inclusions. Jed McCaleb is the founder of Stellar. XLM has very low transaction costs.

An Investment I have Made This Week In Penny Cryptocurrencies.

For the purpose of this homework task and because I have learnt how beneficial penny cryptocurrencies can be, I invested in 5 of them but I would be showing the steps involved in purchasing Dogecoin.

Step 1: I logged into my binance account.

Step 2: I clicked on wallet.

Step 3: I clicked on spot and searched for doge.

Step 4: I selected doge and clicked on the DOGE / BTC pair.

Step 5: I then changed from limit to market and inputed all my available BTC ( 0.0003179 ).

Step 6: I clicked on buy DOGE and waited for confirmation.

I now have 33.966 DOGE valued at $11.

I then used the opportunity to buy build my portfolio and buy other pennies which I have shown a screenshot of in the 5 penny cryptocurrencies to invest in above.

Conclusion.

I have learnt from this very informative lecture provided by prof @pelon53 that penny cryptocurrencies are risky coins to invest in but also good because they can make you wealthy when they increase in value. It is always good to invest with money you are comfortable losing just like in making any crypto investment.

Thank you.