Crypto Academy Week 14 - Homework Post for [Crypto Professor @pelon53]

Bitcoin can feel comfortable at the top with dominance in the crypto market. The presence of other cryptocurrencies(altcoins) having a portion of the market cap called penny cryptos.

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

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What are penny cryptocurrencies?

From the name penny, these are digital assets that can be traded for under $ 1. The low market price attracts a good number of investors to purchase the assets. Penny crypto can be divided into plentiful, newly minted, fallen, and stagnant cryptos.

From the difference categories;

• Plentiful are crypto that is heavily supplied in the market.
• Newly minted are crypto that is new in the market and not popular.
• Fallen are crypto that is losing their market position.
• Stagnant are cryptocurrencies whose market prices not changing and have been in the market for a long.

Like I mentioned above because the asset cost a penny. Many investors have turned to interest into penny assets because of the price and huge growth prospects. Penny currencies are worth investing thought with the high risk.

Advantages and disadvantages

The disadvantage overweights the advantages, but it always worth the risk.

Disadvantages

• lack of information about most of this penny crypto makes it scary for investors to invest in.
• Due to the low price, it makes it easy for fake creation and pumping of fake crypto into the market.
• Due to the volatile nature of cryptocurrencies, many penny investors have had huge losses in penny currencies.

Advantages

• assurance to be a winner in the future, investors look at punny crypto as a long-term investment. Due to the huge growth prospect attach to them, they easily yield rewards.
• Due to the low price, investors can make huge profits from small investments
• Easy to invest in more than one cryptocurrency, making it difficult for an investor to completely crash down at once.

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

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Under $ 1, we will be looking at cryptocurrencies like Dogecoin(), Tron(), Steem() etc. They many other penny currencies to check on and could be more promising than this above.

I will look at investing in Tron as the best to invest in 2021.

From late last year, early this year. Tron token did a growth of about 2000% in some weeks. Because of this trend, the Tron token became popular. Within the same time the integration of the tron to the steemit platform. Coming into the crypto market in 2017, Tron has shown a fast-growing nature on the market chart. Comparing to the second on the chart ( Ethereum), Tron is been able to enable Dapp developers to utilize protocol via smart contracts.

For the past couple of months, I have been taking a good look at the trending nature of the tron token. The value of the tron token is very encouraging and promising.

Screenshot (date: 2021/05/18)^Source

Like I always tell my friends how I look at things on a personal basis. The founder and CEO of the tron foundation Justin Sun is a citizen of the people's Republic. I see China taken over in some years to come, and give that they love to cherish their own. It with no thought that Tron is going to take over more percent of the market cap. I will not want to watch but be among lol.

Tron at the moment of the chart above ranked position 22 with a market-dominant of 0.41% and a market cap of ~$ 8,419,758,893 as compared to the market cap on the 1st of January(~$ 1,930,480,208). Having a penny at such value is hope for better days ahead.

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

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Ripple is a blockchain network designed to solve financial transactions for financial institutions. The Ripple issue the XRP cryptocurrency which works on the network. The cryptocurrency (XRP ) is ranked among the top ten cryptocurrencies with position seven as on the chart below.

Screenshot ^Source

In simple words, Ripple is a payment system that processes transactions worldwide. This network can give the possibility of exchanging more than one fiat currencies or cryptocurrencies like the bitcoin network.

Every transaction on the Ripple network is run using XRP. XRP was developed by Jed McCaleb, David Schwartz, and Arthur Britto. XRP can be bought and sold like any other cryptocurrency. How these transactions are done on the Ripple network is quite different from the other networks. XRP transaction verification is not open to anyone and the majority of the ledger holders most agree. This gives the transaction a very high secure nature.

^Source

XRP tokens are released into the cryptosystem periodically by the Ledger holders. This is done on the purposed that it aims the token value to grow and successful over time.

Advantages

• very low-cost fee for transactions
• very fast transaction(~5seconds) as compare to the bank to bank transactions
• the network can process the transaction of other fiat currencies and other commodities( cryptocurrency and gold)
• the network is used by big financial institutions for their transactions (example Yes Bank)

Disadvantages

• Given that the backbone of the crypto world is the fact that it runs on a decentralized system, the case is different here. Ripple network is a centralized system.
• the amount of XRP token in circulation is been controlled by Ripple lab. The Lab decides when and how much quantity to release, this action can greatly influence the value in the market.
• with the lawsuit on for the company to register, it creates instability and trust with worries about the longevity of the token.

Well, with the present situation of the lawsuit, I will not invest my money in this token. I advise any investor to wait until this lawsuit is sorted out before they invest in XRP. Well that my point, if you think Ripple will eventually win the case, then now is the right time to invest in XRP.

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

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• VeChain (VET)

VeChain blockchain network permits businesses to build and run applications for their operations. These applications are decentralized applications (Dapps) that help to provide efficient management of operations. VeChain has boosted the way businesses using the network track and collect data. Vechain is not a fully decentralized network making it different from other projects. The main aim of this project was to create a balance between decentralized and centralized platforms. By so doing developing a platform that will be transparent, efficient, and high-speed transfer. VeChain issues the token VET, which can be bought and sold like any other cryptocurrencies. At the moment of this post date (2021, May 20) Vet has a market cap of $ 7,439,716,192 and rank positing 19 on the crypto table.

Screenshot ^Source

• Tron

I will like to permit you to know the details about tron above as I look at the best penny currency to invest in 2021.

• BitTorrent (BTT)

BitTorrent was originally called Bittorrent before bought over by the CEO of Tron Justin Sun. BitTorrent is an efficient method of sharing files over the Internet.it has been one of the easiest ways of sharing large files(seeding) over the internet by using the P2P system. BTT token only came in when Justin transfer Bittorrent to the BitTorrent Foundation. The main purpose of the BTT token was to reward users who are seeding on the network. The more seeded, the easier and fast a file can be move from one computer to another. The BTT has a value that can be exchanged for other tokens.

Screenshot ^Source

Market cap $ 2,590,156,435
Ranking 48

NEM (XEM)

NEM also know as New Economy Movement came into play to help in the movement of blockchain assets by companies. NEM platforms connect the private and public blockchains to easily move between the two. NEM came about to upgrade the supply chain management by providing a fast and secure system making it easy for the company to manage and share valid data. NEM applies the proof-of-importance consensus algorithm. With this algorithm, time and amount vested in the network are greatly considered. NEM issues the XEM token which the user vest to gain voting and block approval rights.

Screenshot ^Source

• Revain (REV)

Revain is a blockchain platform that rewards it, users, for giving valuable feedback on the product and services. Introducing this platform was to reduce the rate of fake profiles which are used to review products. The coming of Revain is to bring a more transparent and unbiased review strategist online. Given that blockchain technology offers the possibility of running a decentralized system, Revain made used of the Ethereum blockchain to take snapshots of reviews. This was to make sure these reviews can't be updated or deleted. Revain issue the REV token which is used to reward users for their review.

Screenshot ^Source

Market cap $ 1,505,613,532
Ranking 64

I will conclude that investing in any of these penny coins will depend on you. It is always advisable to do your personal research before investing. The values are very encouraging and promising, but remember cryptocurrencies are very volatile and penny crypto are of very high risk.

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5.- Show an investment (from 5 USD (2,700 XAF)) that you have made this week in Penny cryptocurrencies. List the steps you took.

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Well, during this course I came across BTT token. I will do an investment using my poloniex exchange wallet.

• log in to my exchange wallet (poloniex)

• If you happen to log in and fine yourself on some other page, maybe your wallet page. Click exchange.
• Next we have to select out pair (this case will be BTT/USDT)

• I have selected my pair above

• I put in the amount of BTT and the equivalent in USDT auto-filled.
• Click Buy BTT to make the order and automatically invest in BTT

To be sure that our order went through successfully.

• Click wallet to view your portfolio list

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Conclusion

Penny crypto is a risk to take if you love to go in for a long time investment. The fact that the values are very low, losing will not hurt that much as investing in cryptocurrency with huge value like BTC.

CC: @pelon53