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

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

1. New Cryptocurrency: Majority of the freshly released coins and tokens have a relatively low market value, usually under a dollar. They are new cryptocurrencies whose developers are trying to market to the public and investors through their carefully crafted ICO. So they start at a small value, but as the project gains popularity, the value of these coins and token increases and they are no longer classified as penny cryptocurrencies.


2. Stagnant Cryptocurrencies: As the name implies, these coins and tokens have been in existence for a long period of time but failed to increase in value above $1. There are certain reasons which can cause a cryptocurrencies to remain a penny cryptocurrency for long, which can be a positive or negative indicator. An investor shouldn't just try putting his money into tokens because it is under a dollar and could get him more tokens for less, the token might actually be stagnant.


3. Crashing Cryptocurrencies: These cryptocurrencies are under a dollar because of a crash in their market value. Most investors might want to avoid them but this approach is not absolute. Sometimes, like in current times where there is a major crash in a lot of cryptocurrencies, it doesn't implies that the project is a failed one. When a lot of factors are put into consideration, they might be a good investment.

• Acquisition of larger number of Coins or tokens at minimal cost: Compared to buying non penny token at high prices, one could get a large number of a penny token at minimal cost. This becomes highly profitable especially when the coins or token increases in value.


• They have relatively high ROI: The return on investment on penny token is usually high due to its high volatility. If the token or coin project becomes successful, one could be in for a large return.
  
  
• Portfolio building: Acquiring penny cryptocurrencies is cheap, an investor can acquire large number of it to add to his portfolio.

• They could be scam tokens: Some of the Penny Cryptocurrencies out there are simply well crafted scam in order to defraud non-suspecting investors of their money. Hence it it essential that one does proper research before investing in any penny cryptocurrency.


• Lack of security: Due to their novelty, some things might be lacking in the project, such as a proper security. Token can easily be stolen if there is a loophole fraudster and hackers can use within the project.


• Developers can dump the project: After investing a huge some of money in a penny cryptocurrency, the developers can abandon the project which lead to a gradual death. Eventually, the investors loose their money.


• The project might not be transparent enough: This is another disadvantage with many penny cryptocurrencies. Transparency is an essential part of the blockchain.

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

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

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

• Tron: This is one of the popular penny cryptocurrency now, ranking 24 on Coinmarketcap. It was founded by Justin Sun in Singapore in 2017. It was built on the ethereum blockchain until it migrated to its own blockchain in 2018, becoming a direct competition with Ethereum. In The company soon acquired BitTorrent in July 2018, and collaborated with Tether in 2019 to launch Tether USDT on the Tron blockchain. These are all positive developments which proves the Tron Blockchain has a positive future potentials. The current price of Tron is $0.086 with a market capitalization of $6.2 billion. More than $3.2 billion Tron was traded today which show good user engagement.



• RavenCoin: It is ranked 96 on Coinmarketcap. The current value of ravencoin as at the time of writing this post is $0.099. The lowest value in 24 hours is $0.067, while the lowest in a year is $0.01. The coin was founded on the 3rd of January, 2018. It started initially on as a fork of bitcoin. RavenCoin is predicted to accommodate users who migrate from the ethereum blockchain, this is because of Ravencoin exceptionally low gas fees. There is a high leve of interest and discussion about the coin on social medias especially Twitter. With the likes of Bruce Fenton, Patrick Byrne and Tron Black who are smart visionaries behind Ravencoin, and collaboration with Overstock and Medici, Ravencoin is bound to be successful. It a coin worth investing in.



• REN: The REN protocol is an ethereum based decentralized finance platform that enables users to freeze coins and tokens into the REN network. In exchange, users get equivalent token in a 1:1 ratio. REN is ranked 111 on Coinmarketcap with a current value of $0.538. The highest price in 24 hours is $0.57 and lowest is $0.40.



• Zilliqa: ZIL is the official token of the Zilliqa network and is another penny cryptocurrencies worth investing in. Zilliqa is a network with sharded architecture originating from Singapore. It was launched in June, 2017 and in the same year raise $12 million worth of ETH in a private fundraising. It further held an ICO in Jan 2018 where it further raised $22 million dollars. ZIL has a total trading volume of $271 million and is ranked 63 in the crypto market. It is a token worth investing in.



• Dogecoin: This is another penny crytocurrency worth trying. It is ranked number 7non the coinmarketcap and presently valued at $0.4. It has a history of growing as high as 500% and dropping back to being a penny cryptocurrencies, however, there are predictions that the coin will be worth a lot in the nearest future.

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

• I invested 10 steem ($7.52) in the basic attention token (STEEM). I transferred 10 steem to my Binance exchange wallet. Below is an internal Binance mail I received confirming my 10 steem deposit.
  
  
  
  
• I clicked on the menu button on the right hand corner, I chose the Trade option, then the spot trade option. I need to convert my my steem to Btc then to BAT. This is because there is no direct steem/BAT pair.
  
  
  
  
• Then, I sold my 10 Steem for BTC at the current market price of the time I was performing this trade
  
  
  
  
• My order was filled, now, I had BTC to trade for BAT. Now i could change the trading pair to BAT/BTC pair because I now have BTC.
  
  
  
  
• Now, traded my BTC for BAT with the BAT/BTC pair on Binance.
  
  
  
  
• My order was filled and I had my BAT.
  
  
  
  
• Now, I have 8.99 BAT in my Binance wallet, with a total worth of $7.52. Now Ican hold the coin and wait till it increases in value.
  
  

Conclusion: