Crypto Academy Season 2: Week 6 – Penny Cryptocurrencies – by @pelon53

Source- Unsplash

Penny Cryptocurrency and What They are all About

Penny cryptocurrency are simply cryptocurrencies that are either a penny or under a penny or cent in dollars. Penny cryptocurrencies are considered a great opportunity for making high profit return on investment, which is why a lot of investors always look out for penny cryptocurrency gems that can generate high profit returns. While a lot of penny cryptocurrencies are low capital, some penny cryptocurrencies still fall under the mid capital for example Shiba Inu went from low cap to mid capital in a very short time some weeks ago.

Most penny cryptocurrencies are under low marketcap which means that their market capitalization is under #1 billion. Also, many penny cryptocurrencies are referred to as high-risk cryptocurrencies because of the high level of risk involved in investing in penny cryptocurrencies. However, on the positive side, penny cryptocurrencies also offer tremendous high reward, that is why most penny cryptocurrencies are also known as high-risk high-reward cryptocurrency gems. A typical example of penny cryptocurrencies are Bittorrent BTT, Holochain Hot, Shiba Inu SHIB, etc.

Advantages

• Penny cryptocurrencies have the potential to be very profitable in the short term. This is one of the benefits of penny cryptocurrencies.

• Penny cryptocurrencies have a higher reward margin. This can be a great investment especially for investors who likes to take risk for high returns.

• Penny cryptocurrencies are great for traders looking for quick profits. Traders who enjoy trading penny cryptocurrencies because they can make a lot of profit in a matter of hours.

• Penny cryptocurrencies can be great short term investments. This category of cryptocurrencies can be a great short term investment because they can increase the value of an investor’s portfolio in a very short time.

Disadvantages

• Penny cryptocurrencies can lead to loss of whole investment capital. This category of cryptocurrencies are very risky and as such, they can lead to loss of whole investment capital.

• Penny cryptocurrencies are easily manipulated in the market. This category of cryptocurrencies are very cheap to buy and because of that, it is easier for large coin holders to manipulate the market.

• Penny cryptocurrencies can easily be dumped. They are very cheap and because of that, there are whales who hold a very large amount. Once the price increases, there is a big possibility that the large holders would dump the coins.

• There are so many scam projects in the penny cryptocurrency category. This is a big disadvantage of penny cryptocurrencies. There are a lot of scam cryptocurrency projects that are penny cryptocurrencies which would most likely lead to loss of investment funds.

Best Penny Cryptocurrency to invest in this 2021

Bittorent (BTT)

In my opinion, Bittorent BTT is one of the best penny cryptocurrencies to invest in 2021. The torrent community is a very large community with millions of users worldwide. Bittorent is a working product and has been around even before the integration to the tron blockchain. Bittorrent is simply a peer-to-peer file sharing platform that is done in a decentralized way. For me, it is a very interesting project with so much potential. The project is still relatively new because it has been around for about 3 years now, so there is still more to come from Bittorrent.

Bittorrent token BTT tokenizes the bittorrent platform and ecosystem which aims to become the largest decentralized protocol for file sharing and transfer. BTT is a tron-based token also known as TRC-20 token on the tron blockchain. It is the utility token that powers the feature of the bittorrent platform. Bittorrent BTT current price is $0.003831, with a marketcap of $2,542,427,673 ranking number 45 on coinmarketcap, has a circulating supply of 659.95 Billion BTT, fully diluted marketcap of $3,792,408,375 and a total supply of 990,000,000,000 BTT.

Bittorent being on the tron blockchain means that it benefits from the fast transaction speed and low transaction fees of the tron blockchain. I have to say, this project has a huge growth potential because of the millions of users who are making use of torrent platforms to share and transfer files. Being on the tron blockchain is great for the project because of the speed and low fees associated with the tron blockchain, this makes transactions using the tron blockchain fast and great user friendly experience for the millions of torrent users adopting Bittorrent. BTT has the potential to climb into the top 10 based on marketcap if it is adopted by most of the bittorrent community and users.

From the coingecko chart, you can see the marketcap of BTT which means that it still has room to do over a 3x to even enter into the top 10. Also, BTT is far off its all-time high which means that investing now can be a great idea to make profit when BTT reaches its all-time high again or surpasses its all-time high.

Analysis of Ripple (XRP)

When it comes the big cryptocurrency projects, Ripple XRP is one of them. Ripple is a top cryptocurrency project that has been around for over 7 years now. Ripple is the company that created Ripplenet which is the payment platform and XRP as the blockchain payment solution, XRP being the currency of the XRP blockchain. XRP was created to be a cryptocurrency payment solution for the banks and other financial institutions to send and receive moment over a long distance faster. We all know how slow it can be to send money from one country to another, that is why Ripple XRP was created to solve that problem, a payment solution used to send and receive money faster. XRP has remained one of the top ranking cryptocurrencies by marketcap, ranking 6th on based on market capitalization.

Looking at how XRP has performed over the years and the company behind the project, it is okay to say that XRP has the potential to double or triple its current market capitalization. The main idea behind XRP is to become the global cryptocurrency for the conventional financial institutions as a digital payment solution for sending and receiving money faster and more conveniently. XRP current price is $0.9134, with a marketcap of $42,141,640,980 ranking number 7 on coinmarketcap, currently has a 24hr volume of $11,966,947,530, has a circulating supply of 46.14 Billion XRP, fully diluted marketcap of $91,406,465,131, a total supply of 99,990,461,026 XRP and a mas supply of 100,000,000,000 XRP.

For my technical analysis of XRP, I will be using coingecko as my price aggregator tool and tradingview to analyze the XRP charts. From an investment and trading point of view, XRP is considered a good cryptocurrency with less risk because of the high market capitalization. As an investor, investing in XRP can yield profit in the long term as there is still room for XRP to at least double its current market capitalization. As a trader, trading XRP is also good because XRP is still far off its all-time high. A trader can also capitalize on the market fluctuations and make profits using financial products like futures.

XRP chart on coingecko

10days, 20days and 30days EMA of XRP/USDT pair

XRP/USDT chart on tradingview

I made use 10days, 20days and 30days exponential moving average indictor to analyze the prize movements of XRP in the last 30 days. The chart shows that XRP has been on the downtrend in the past 30days which means that there is a big chance for it to change direction and become bullish in the uptrend. In my opinion, this is a great buying opportunity because very soon, XRP will swing back to the uptrend. My prediction for the next few weeks for XRP is around $1.2 - $1.35

Investment of 5 penny cryptocurrencies

Nimiq (NIM)

Nimiq NIM is the first on my list and is probably my favorite lowcap penny cryptocurrency at the moment. I consider this project highly undervalued because of what can do and what the team behind the project are aiming to accomplish. I have to say, Nimiq is one of those amazing projects that have been under the radar without a lot of attention but with constant development and huge potential. Nimiq is simply a blockchain platform that is aimed to bring simplicity and ease of use to blockchain technology. It is a blockchain platform that runs on the browser, which makes it easy for anyone to make use of it.

NIM is the coin of the Nimiq blockchain network. NIM can be utilized and sent from the browser making it one of the most user friendly blockchain platform and cryptocurrency. NIM current price is $0.006641, with a marketcap of $51,905,506 ranking number 464 on coinmarketcap, has a circulating supply of 7.79 billion NIM, fully diluted marketcap of $140,333,647 and a total supply of 8,454,986,736 NIM and a max supply of 21,000,000,000 NIM. With NIM still very much under-valued, there is still a big potential for NIM in the future

10days and 30days EMA with MACD

NIM/USDT pair

Bittorrent (BTT)

Bittorent BTT is in my list of 5 penny cryptocurrency investments. Bittorrent is simply a peer-to-peer file sharing platform that is done in a decentralized way. For me, it is a very interesting project with so much potential. The project is still relatively new because it has been around for about 3 years now, so there is still more to come from Bittorrent. BTT has the potential to climb into the top 10 based on marketcap if it is adopted by most of the bittorrent community and users.

Bittorrent token BTT tokenizes the bittorrent platform and ecosystem which aims to become the largest decentralized protocol for file sharing and transfer. BTT is a tron-based token also known as TRC-20 token on the tron blockchain. It is the utility token that powers the feature of the bittorrent platform. Bittorrent BTT current price is $0.003831, with a marketcap of $2,542,427,673 ranking number 45 on coinmarketcap, has a circulating supply of 659.95 Billion BTT, fully diluted marketcap of $3,792,408,375 and a total supply of 990,000,000,000 BTT.

BTT/USDT pair

Holochain (HOT)

The holochain HOT is next on my list of penny cryptocurrencies. Holochain has been on a rise in the past few months and reaching all-time highs. Holochain is simply a blockchain platform that aims to fully decentralized and make faster on anything blockchain. Also, holochain is a decentralized peer-to-peer blockchain platform for hosting DApps built using holochain. Its main goal is to become the platform that bridges tha gap between the everyday internet and decentralized applications built using holochain.

Holochain token HOT is the token of the holochain network. Holochain current price is $0.007489, with a marketcap of $1,293,184,308 ranking number 68 on coinmarketcap, has a circulating supply of 172.67 Billion HOT, fully diluted marketcap of $1,341,831,962 and a total supply of 177,619,433,541 HOT.

HOT/USDT pair

Dent (DENT)

Dent DENT is the forth on my list of penny cryptocurrencies. This project was one of the first project that I came across back then when it came out with its application for purchasing airtime and internet data with the DENT token. Even though the price of DENT has gone down a lot since its all-time high, I still think that Dent is a solid project with a great ideas and vision. Dent is a platform that is bringing innovative products using blockchain technology and creating blockchain solutions for the mobile technology industry.

Dent already have a working application where users can purchase airtime and data with amazing features to bring improvements in the mobile tech industry using blockchain technology and cryptocurrency. DENT is the utility token of the DENT platform and can be used across the DENT ecosystem of products to purchase different products and services. DENT current price is $0.003603, with a marketcap of $351,792,905 ranking number 127 on coinmarketcap, has a circulating supply of 98.00 Billion DENT, fully diluted marketcap of $360,336,626 and a total supply of 100,000,000,000 DENT. With DENT still not reached its previous all-time high, there is still a big potential for DENT in the future.

DENT/BTC pair

Shiba Inu (SHIB)

The third on my list is Shiba Inu SHIB. Shiba Inu is one of those projects that popped out of nowhere and was among the top leading meme tokens few weeks ago when meme tokens where shinning. Shiba Inu is simply a meme token project created as a meme token with use cases and utility. At the moment, there are a couple of products in the shiba inu ecosystem with shibaswap coming soon. Shibaswap aims to be another DEX alternative to the already popular uniswap but with added features and improvements.

The aim of shiba inu was to become the strong competitor to dogecoin and was also created as a meme token that runs on the ethereum blockchain. It didn’t take long for shiba inu to become popular and attract the interest of a lot of people and investors in the crypto space and skyrocket in price. At the moment, SHIB has done over 10x in price increase since it was first launched a few months ago. Shiba Inu token SHIb is the token of the shiba inu platform. SHIB current price is $0.000007629, with a marketcap of $2,851,002,452 ranking number 35 on coinmarketcap, has a circulating supply of 394,796.00 Billion SHIB, fully diluted marketcap of $7,629,487,656 and a total supply of 1,000,000,000,000,000 SHIB.

SHIB/USDT pair

Show an investment - SHIB Penny Cryptocurrency Investment

I did an investment on SHIB because it has a potential of high reward and since I am using a small amount as a risk management, I decided to invest in a cryptocurrency with a high ROI potential. I bought SHIB on binance. I chose Binance because of the high volume on the Binance exchange. The step I followed are;

I logged in to my Binance account, clicked on wallet tab and selected fiat and spot.

Next, on my spot account, I searched for shiba on the search box. I clicked on trade and selected the SHIB/USDT pair.

On the SHIB/USDT pair exchange, I entered the amount of SHIB I wanted to buy based on the available USDT on the buy section using limit order trading. After that, I clicked on buy SHIB button. The purchased SHIB tokens can be found on the trade history.

Conclusion

Penny cryptocurrency can become a very good investment when the invested in the right project with great potential. For me, I like to add penny cryptocurrency in my portfolio because it has the highest potential to make the most profit from the investments. However, it is important to know that penny cryptocurrencies can be very risky that is why it is good to make the right investment decisions when investing in penny cryptocurrencies.

My task post for @pelon53