Crypto Academy Week 14 | Homework Post for @pelon53 | Penny Cryptocurrencies
Introduction
It's an honour to be present here at this time to come and learn from our seasoned professors at the academy. With no doubt, our professors has delivered great lectures yet again. This time, I studied the lecture of professor @pelon53 as we were taken on a ride of Penny cryptourrencies. Join me as I solve the task given by the professor.
Explain the Penny cryptocurrencies in your own words. Advantages and disadvantages.
Penny cryptocurrencies are the type of cryptocurrencies that are categorized as low capital cryptocurrencies because of their extremely less value. Penny cryptocurrencies are generally cheap in value which is always below 1 USD and sometimes they can be up to many zero decimals in USD value (sometimes up to 6 zero decimals).
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In addition, we can say penny cryptocurrencies are new cryptocurrencies that just found their way or still trying to find their way into the crypto ecosystem that are generally very less in value such that a user can rake up to a billion unit of the crypto because they are too cheap. In the long run, penny cryptocurrencies are still struggling and can find their feet solid in the crypto ecosystem after some months or years of development.
Advantages of Penny Cryptocurrencies
Cheap: Penny cryptocurrencies are cheap to acquire because of their less value and a user can acquire up to millions unit of the tokens.
Good for long term investment: Penny cryptocurrencies are good for long term investment, if a user decides to preserve his/her money over a long period of time with high profit expectation.
High profitability: Penny cryptocurrencies are characterized with high profitability if the project goes well. The large amount up to millions unit acquired can earn one a fortune with huge profits from the coin held.
Early Access: It gives investors an early access to the cryptocurrency before its price climbed up in the crypto market thereby making a huge return on investment.
Disadvantages of Penny Cryptocurrencies
Fake Projects: Many penny cryptocurrencies issuers turns out to be fake scheme which in the long run, vanish with investors' money.
Price Volatility: Just as much as penny cryptocurrencies can bring huge profits likewise its price can dump so hard and lead to excessive loss on the part of investors. If you are investing in penny cryptocurrencies, be sure you are investing what you can afford to lose.
Regulation issues: Penny cryptocurrencies are not subjected to any solid regulations and as such, all investors interaction with the cryptocurrency is at the Investors' risk (win or loss).
For you: What will be the best Penny to invest in this 2021? Explain and show evidence.
Let's talk about the penny cryptocurrency I'd like to invest in, in the year 2021 which is Safemoon, a project that came in around march this year and there are a lot of potentials I see in this penny cryptocurrency which has interested me to decide on making an investment in it. Before that, let's talk about its price and market capitalization, Safemoon is currently 0.000005795 USD with 583,935,039,624,774 SAFEMOON supply and market capitalization of 3,331,349,154 USD sitting on number 202 in market capitalization coins ranking.
Why I choose Safemoon?
The first thing that interests me about safe is its community driven feature whereby the Dev team also have their tokens burned to participate with everyone else, the automatic liquidity providing feature whereby users buying/selling their assets have certain percentage of the assets going into liquidity pool and the most interesting part of it is the Static rewards, I've been watching my assets growing in volume over time because all buy/sell actions of Safemoon tokens have certain amount of it redistributed to the holders.
The screenshots above is a proof of what I call Static Rewards, if you look at the screenshot closely, the first one has my Safemoon to have a volume of 15,241,297 and the second one has 15,241,566 Safemoon which means certain volume of the token has been redistributed to the holders like me. This mechanism gives me full confidence in the project and that's why I've been holding it, my initial investment into Safemoon was just $10 and there was a time it grown to around $250 but I have the intention to HODL because I trust this project.
Do a Ripple (XRP) analysis. Show screenshots. Would you invest right now? Explain.
Before making the analysis, it's important to know about XRP itself which I will taking care of in a moment. Ripples (XRP) was first seen in the year 2012 and one of the purpose of this cryptocurrency is to make free payment within an approximate time of 3-5 seconds without the involvement of third parties in the transaction which means, users can send XRP to others without involving any intermediary.
As at the time of compiling this article, the price of XRP to USD is 1.15 with a circulating supply of 46,135,372,183 XRP and market capitalization $53,080,217,194 sitting on the number 6 on market capitalization.
Analysis of XRP on TradingView
From the analysis above, the XRP price behaviour on the chart pattern has opened a support for a buy position at $1.16 after a heavy market fall. On the course of this correction, XRP has shown a support which makes it a good to buy coin having the first profit target at $1.28 and if there is a price breakout, we can have it reach my second profit target as drawn out which happens at the price of $1.60. Generally, XRP is a good investment at the moment.
The Threat to XRP investment
A threat that would discourage me from investing in XRP now is the Securities and Exchange Commission (SEC) lawsuit against XRP about a conspiracy that earlier happened. In a report released a short while ago, the commission highlighted that holders of XRP are no friends with the court and such statement can cause panic to many users to sell off the XRP assets, and that could pull down the price of the asset based on sentimental analysis but technically, XRP is good for investment.
Present in detail a possible investment of 5 penny crypto assets. Explain and present data confirming your choice.
1. Safemoon: On my list of possible investment of penny crypto assets, Safemoon cryptocurrency occupies the first seat. Safemoon hasn't found its way to the big exchanges yet but it's doing great. Let's look at the stats, Safemoon circulating supply is 583,935,039,624,774 SAFEMOON, having its place at the number 202 by market capitalization with $3,331,349,154 .
Interesting features of the Safemoon crypto is the automatic liquidity providing and static rewards that is distributed to holders of this cryptocurrency such that whenever there is an interaction with the token, certain percentages are redistributed to the holders and this has given me the assurance that the crypto is built to last for long and not wither away like many penny cryptocurrencies would be.
Analysis of Safemoon
From the analysis of Safemoon cryptocurrency above, a resistance earlier seen at $0.000005559 later turned to a support which opens a good buy position for Safemoon. This analysis shows that Safemoon is a good investment at the moment.
2. Shiba Inu: Another penny cryptocurrency to talk about is Shiba Inu (SHIB) which is a decentralized token that came into limelight in August 2020 which is coined from the family of DOGECOIN. Shiba Inu is a decentralized token and at the moment of compiling this article, the value of SHIB to USD is 0.000009393 with $3,708,456,861 market capitalization sitting on number 35 of market cap ranking which is quite impressive for a penny cryptocurrency.
SHIB found its way into one of the biggest exchanges Binance a few weeks ago which has had its price growing wonderfully and this has given this crypto asset the potential to grow bigger in the crypto ecosystem. In addition, Shiba Inu token is also compatible with ERC-20 which means it operates on the Ethereum blockchain.
At the moment, the market is going uptrend again and this is an opening for a buy position and in the analysis, I've chosen some resistance where I expect the price to reach and users can take profit in the market or even hold for a long term investment.
3. REEF finance: Reef finance has its native coin as REEF which has a value of $0.03008 and sitting on the number 133 of market capitalization with the value of $381,052,304.
Interesting Facts about REEF Finance
This is a platform that is built on own blockchain which is REEF chain which enables users to utilize all benefits of decentralization finance, earlier utilization of decentralization involves users interacting with different dApps before they can carry out any transaction whereby REEF creates a platform whereby users can do all at a time without visiting external dApps to get transactions done. REEF chain offers smart contracts, borrowing/lending, Centralized/Decentralized platform and so on... all on one chain REEF Chain.
REEF is available in so many DEX and CEX which makes up its ease of liquidity. Let's go to the analysis of REEF token.
From the analysis of REEF above, it's in an uptrend position which opens a good buy position to investors for making good profits from the market. A special feature to notice above is that, at a point where the support opens a buy position was previously a resistance which makes a good indication of a long uptrend of the REEF market.
4. BitTorrent: BitTorrent token comes with the symbol BTT. Before BitTorrent token surfaced, BitTorrent was the platform used for transferring files between users through the feature of peer-peer file sharing and other files transfer utilizing decentralization.
BitTorrent token which is a TRC-10 utility token came into limelight in the year 2019 launched on the Tron network and an innovation of the BitTorrent foundation. One of the objectives of BitTorrent token is to incentivize users with a file in the process of sharing with others. Let's check on BitTorrent stats.
As at the time of writing this article, BitTorrent is sitting on the number 46 by market capitalization with the market cap value $2,936,292,849. The equivalent of BTT to US dollar at the moment is $0.004454. Over the previous months, BitTorrent have enjoyed great rise in the market and that has made it favorite for some investors.
The analysis above showed that the BTT market is downtrend at the moment with the current price $0.004454 and I've located two supports at $0.0040, if there is no trend reversal before this support line then there is a probability that a trend reversal would occur at that price ($0.0040) opening a good position for a purchase.
5. Tron (TRX): TRX which is a native cryptocurrency of the Tron blockchain and the first coin deployed on the blockchain. This crypto asset is created for free transfer of digital assets with no charges attached at all with its blockchain coming into limelight to correct the excessive transaction fee characterized with the Ethereum blockchain and also comes with increased transaction speed.
Going further, Tron (TRX) was created in the year 2017 by Tron Foundation under the founder, Justin Sun and the objectives is to create a platform for free sharing of digital assets, ease of payment, enhanced P2P and so on. At the moment of compiling this article, 1 Tron (TRX) value is equivalent to $0.08985 and sitting on the number 23 of the market capitalization with a value at $6,394,425,416. Tron (TRX) has proven to be a great investment over time and it's still on the course of standing up again after the heavy market fall experienced recently.
The TRX asset is going uptrend again and it's an indication for investors/traders to enter the market to make profitable trades.
Show an investment (starting at $ 5) that you have made this week in Penny cryptocurrencies. List the steps you took.
For this section of the task, I will be showing the trade I made earlier this week on the 18th (Tues) May, 2021. I bought some Shiba Inu (SHIB) using the spot trade platform of the Binance centralized exchange. The steps to follow.
I launched my Binance Application on my phone and clicked on the trades icon at the bottom of the homepage.
On the next Interface, I searched for the SHIB/USDT pair to start the process of trading my USDT for SHIB.
Now that I have the SHIB/USDT pair selected. I am exchanging 10.5 USDT for SHIB. I inputted the 10.5 USDT and clicked on Buy SHIB.
The process of purchase was successful and 619436 SHIB filled.
In conclusion, penny cryptocurrencies are very cheap which makes it very easy to acquire large amount of it and has the potential to give high return on investment. As much as the return on investment can be huge in penny cryptocurrencies investment, it's risky as this type of cryptocurrencies are susceptible to high price volatility which could lead to excessive loss on the side of the investor. Thanks to professor @pelon53 for this great lecture. Thank you all.
Cc: @pelon53
Written by;
@fredquantum
Gracias por participar en Steemit Crypto Academy:
Muy buena publicación. Felicitaciones.
Espero seguir leyendo tus publicaciones.
Calificación: 9.8
Thanks professor @pelon53. It's my pleasure been a beneficiary of your great lecture and I hope to learn more from you subsequently. Thank you, sir.
Nice post