Crypto Academy Week 14 - Homework Post for [Crypto Professor @pelon53 on Penny Crptocurrency // Homework done by @chilaw

Hello Friends, I am here again to participate in Prof @pleon53 homework task. I will be attempting them to the best of my knowledge. Stay tuned.

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

From the class and lectures so far, Penny cryptocurrency is just like every other cryptocurrency in the trade. They are basically assets which are determined by the value and worth at a given time. For Penny cryptocurrencies, they are digital assets with value less $1 though there are other school of thoughts that believed penny cryptocurrencies are coins between the value range of $0.0001 - $0.2. There are alot of these Penny cryptocurrencies listed in the coinmarketcap and they are mainly characterized with its excess in circulating supply, low market Cap in some cases, low asset dominance and low in asset value.

Viable penny cryptocurrencies are usually seen to have the attraction of the investors who make entry positions into this asset by acquiring a chunk value of it. Penny cryptocurrency really worth to be invested with potentials of turning the financial fortunes of the investor though it comes with higher risk.

ADVANTAGES

• It is an easy way to invest in this kind of cryptocurrency
• It is a long tern project with potentials of bringing in huge returns and yield to the investor.
• It allows investors to acquire huge investments at a time due to its low price
• It allows investors to spread its investments to other cryptocurrencies given to its low value acquisition.

DISADVANTAGES

• Some set of investors are disenfranchised from this kind of coins especially the short term investors given to its long-term investment plan needed to make good exit positions.
• Extreme high volatile trends may see to cause loss of assets. It is seen to be a risky investment venture.
• There are cases of scam and loss of assets seen in penny cryptocurrencies.

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

Given to the basic definition of what a penny cryptocurrency is; "Cryptocurrency assets with value less than $1".
My best PENNY to invest in this 2021 is my dear Steem and Tron. These are the only two cryptocurrency I have acquired by virtue of joining the steemit community and it happens that these coins were valued at NGN23 (Tron) and NGN105 (Steem) sometime early this year. This represents $0.0469 and $0.2142 respectively. They have since significantly grown over 300% in less than 3months of entry.

I see The Tron (TRX) as a highly potentially enriched penny cryptocurrency with large prospects seen in powering some of the smart contracts in its blockchain like the JustLend, Justswap etc. Currently, as at the time of this post, the TRX is $0.08323 with a trading daily volume of $2,328,603,631.03. Market dominance seen to be 0.36% with market rank of 23 in coinmarketcap listing. It currently has a market cap of $6,407,622,530.56 which clearly shows that the TRON (TRX) has enough potentials to grow over time with a better turn financial turnaround to its investors.

In 2018 this assets attained a high of $0.22 and has remained below this peak but was seen to be a bit closer in April 2021 with $0.17. It has so much prospects to grow given to its potentials.

Steem Chart Analysis

A little more analysis on the second preferred Penny Cryptocurrency (Steem). It is currently valued at $0.677 with a trading daily volume of $12,913,222.51. Has a market cap of $254,115,852.97, Market Dominance of 0.02% and market rank of 144 in the coinmarketcap.

In 2018, steem was seen to hit a records high of $8 and has since hasn't gotten to that level. In April 2021, it was seen to hit another high of $1.23 though not as what was seen in 2018. The steem coin has a very high potentials both for the short term investors and long term investors.

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

The Ripple is a firm and XRP is the native coin in which it operates and transacts with in its network. Ripple is a blockchain protocol designed to handle financial transactions. It is a typical payment system that enables financial transaction and facilitate the exchange of cryptocurrencies/Fiat seamlessly. Transaction verification process with the XRP is highly secured with ledgers owners agreeing before a transaction passes validation.

The Ripple blockchain in which the XRP is seen to be its native coin has a very low transaction fee which makes it investor friendly with transactions timeline of 5secs which makes it a bit of match for the conventional financial institutions. It doubles and executes transactions for cryptocurrency and fiat this makes it alittle non adherent to the decentralized platforms that does not have activities of the centralized functions. In so doing there are some form of limitations and authority from its Lab which is seen to control the circulating supplies in general.

Moreso in the coinmarketcap, the Ripple(XRP) is seen to be in the 7th position in market ranking with value price of $1.02, Market cap of $40,601,353,648, daily trading volume of $20,878,446,783 and a circulating supply of $35,108,326,973XRP. Its market cap and daily trading volume shows that the XRP is widely accepted and traded on my investors who believed in the potentials of the XRP.

For me, it is a YES to invest in the XRP but one has to be very careful and put all the fundamental analysis on ground given to fact that it is blockchain network that uses the services of the centralized network. Most of the centralized networks and maybe penny cryptocurrencies are saddled with litigation and hence the investor should be cleared of this before making any entry position.

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

• TRON (TRX) : It is one off my best 5 penny cryptocurrencies to invest in. TRX is the native coin used in the Tron blockchain protocol. My first touch of this coin was when it was attached to the steemit wallet as one of the rewards given to bloggers in the community.

I see The Tron (TRX) as a highly potentially enriched penny cryptocurrency with large prospects seen in powering some of the smart contracts in its blockchain like the JustLend, Justswap etc. Currently, as at the time of this post, the TRX is $0.08323 with a trading daily volume of $2,328,603,631.03. Market dominance seen to be 0.36% with market rank of 23 in coinmarketcap listing. It currently has a market cap of $6,407,622,530.56 which clearly shows that the TRON (TRX) has enough potentials to grow over time with a better turn financial turnaround to its investors.

In 2018 this assets attained a high of $0.22 and has remained below this peak but was seen to be a bit closer in April 2021 with $0.17. It has so much prospects to grow given to its potentials.

• BitTorrent (BTT) is a another penny cryptocurrencies that can exchange with other cryptocurrencies in the exchange platforms Example; the Binance exchange. BitTorrent is designed to enable the easy transfer of files over the internet with the use of the peer-2-peer system. The more this files shared over the internet the easier and faster it become to move files across devices. The BitTorrent token is used to rewards users who indulge in the this activity of moving files digitally.

The BTT is valued $0.00382 as at the time of this post with market cap $2,512,801,261.71and daily trading volume of $727,058,168.80. Its, market Dominance is 0.16% and ranked 44th amongst other coins in the coinmarketcap.

• Steem: This is my big shut and number one Penny cryptocurrency. The steem has grown and doubled its value over the months and it has continued to show strength and more potentials. This is great platform that has continued to its teaming authors and curators who participate in the community.

A little more analysis on the second preferred Penny Cryptocurrency (Steem). It is currently valued at $0.677 with a trading daily volume of $12,913,222.51. Has a market cap of $254,115,852.97, Market Dominance of 0.02% and market rank of 144 in the coinmarketcap.

In 2018, steem was seen to hit a records high of $8 and has since hasn't gotten to that level. In April 2021, it was seen to hit another high of $1.23 though not as what was seen in 2018. The steem coin has a very high potentials both for the short term investors and long term investors.

• Dogecoin: Great penny cryptocurrency which was recently seen to have had a bullish trend after a sentimental news from Telsa CEO_Ellon Musk sometime early May 2021. It is ranked amongst the top 10 coins ranking by coinmarketcap with a great market cap of $45,000,000,000 and daily trading volume of $14,000,000,000. Unlike so many penny cryptocurrency, it has a market Dominance of 2.76% which really shows that it is really making entry into the crypto-space. The Dogecoin is currently valued at $0.3198.

• SHIBA INU: This penny cryptocurrency is ranked amongst the top 30 coins in ranking with a market cap of $2,700,907,021 and daily trading volume of $1,307,905,434.20. It has a circulating supply of 394,000,000,000,000SHIB which happens to be one of the highest in the penny cryptocurrency. It is known that one of the major draw backs of value appreciation seen to affect the penny cryptocurrencies are its absorption of so much circulating supplies. It is logic that scarcity increase the value of an asset whereas over supply plays devaluing effect on an asset. Currently the SHIBA INU is valued at $0.00000661 with a market Dominance of 0.18%.

Show an investment from $5 that you have made this week in Penny cryptocurrencies. List the steps you took.

During this process, I logged into my Binance exchange platform to carry out the required steps. I would be selecting the TRX (Tron) as the cryptocurrency to be invested on. Since i already have some amounts in my BTC coin, I would be using the BTC to fund/buy my TRX coin

• Logged into the Binance exchange and clicked on SPOT and also search for the TRX from the list of coins. You can also see that the value of the TRX is zero.

• Click on the the TRX icon in the list. This would bring out another interface that displays the different TRX paring. Since I would be using the BTC for this transaction, i will click on the TRX/BTC pairs

• This gives me the next interface. Click on the buy icon, select the "market" options, select the amount of BTC that should be used for the transaction and then click on the BUY TRX button.

• This transaction was successful as shown below .

• To confirm this, you can go back to your wallet, on the spot icon to verify this. 52TRX was bought with 0.00011326BTC.

In conclusion, Penny cryptocurrency being a low value coin and we are always advised to use assets we wont feel its damaged should in-case they are lost due to its high risk level involved. They are long term investment which may not likely accommodate activities of short term traders but also allows a total spread of investment opportunities across different cryptocurrencies.

This is my submission Prof @pelon53