What are penny Cryptocurrencies

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penny cryptocurrencies in simple terms refer to those digital correncies which has its value per coin below $1. Penny Cryptocurrencies similar to penny stocks are just cheap and worth almost nothing or worth some pennies.

Penny coins are considered a very risk filed promising investment. Reason being that if the coin sells well and attract so many investors and it's value eventually superceeds the one dollar mark, the initial investors would definitely gain in excess given that they had bought that coin when it was almost valueless.

Advantages of Penny Cryptocurrencies

Investment diversification

For an investor who needs constant returns from his portfolio, he surely must invest in penny Cryptocurrencies given that every penny Cryptocurrencies has a promising future.

Easily Affordable

Since these set of Cryptocurrencies are selling at a price less than $1, it is more affordable by traders with low capital. In essence, with just a little capital, one could posses a good amount of Penny Cryptocurrencies.

They offer Passive income

A number of Cryptocurrencies that return dividends best are those Cryptocurrencies which are selling under the $1 price. In simple words, you can earn money from your cryto wallet by holding a few penny Cryptocurrencies.

Promising Future

For every penny Cryptocurrency that is brought into the cryto market, their is a possibility of a brighter future for the coin and also it's initial investors. What I mean is that every penny Cryptocurrency has the tendency to increase in value in a close or later date.

Disadvantages of Penny Cryptocurrencies

A risky environment

Sadly, just like in the traditional financial system, fraudsters and scams exist within the Cryptocurrency system looking out to dupe less or uninformed investors. These scammers could do this by some information that looks promising and even sometimes develop a hype with the intention of increasing the market price and investors as well. If an investor does not have an official oversight then he could easily lose his investment.

No coin Interest

Irrespective of the fact that Cryptocurrencies are volatile generally, many penny Cryptocurrencies which are not popular are scarcely traded. This implies that an investor in this kind of Penny Cryptocurrency has to hold his coin for months and even years thereby tieing down capital that would have been used to invest in profitable coins.

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

Safemoon

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SafeMoon is a digital cryptocoin that is based on the blockchain technology which is alike Bitcoin, but posses some striking difference. The safemoon coin was made available to the market in March 2021 and at the moment, it has got more than one million users.

A striking feature of safemoon is that it discourages sales of its token by incuring upon it's sellers a fee of 10 percent. Then 5 percent of the charge is shared amongst other holders of safemoon token as a reward for holding on to the token.

Similar to the worth of Dogecoin, SafeMoons worth is far less compared to Bitcoin per unit but has always seen an increase in it's value. At CoinMarketCap, the price of a unit of safemoon is $0.00000494. This is an encouraging increase in it's price as at when it was launched at $0.000000010.

Although the current value of safemoon is not sufficient to get safemoon to the top cryptocurrency list, but it has at the moment got the eyes of willing investors turned to it not withstanding the 10 percent charge at the sale of the token by the holder.

A Ripple Analysis

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This is what the graph chart of XRP in three months looks like.

XRP has incured a sharp increase since February 2021 judging with the chart above. XRP has also attained an all time high of $1.8397 in the past 3 months. Since the price of XRP is at a bullish trend as we can see on the chart, in no distant time, the price of XRP is going to return to something better. But since since Bitcoin has over 45% in the crypto market, and XRP dominance at 3.06%, it should not be expected very soon that XRP could get to it's all time high in the past 3 months as it is greatly influenced by Bitcoin

Asking if I would invest right now, the answer is YES. This is because there is more to be expected from XRP in the near future and so I would not jeopardize a chance in being a partaker in the future rise of XRP price.

Present in Detail A Possible Investment Of 5 Penny Crypto Asset. Explain and present data confirming Your Choice

I observed five penny cryptocurrencies that are possible investments. Later, I completed real investment of 20 dollars in 2 of them. I will keep update of the status of these my new portfolios at monthly intervals. This is to know which coin will bring profit and which will incure loss.

Among the penny cryptocurrencies which I have invested in include BTT & WIN.
Before investing, I had to put into consideration many factors such as finding penny Cryptos that are among the top 200 in the cryto market, considering the daily trading volume, how popular the coin is and how it trends on social media.

BitTorrent (BTT): Before finalizing on BTT, I had to put into consideration some factors. Firstly, the fact that BTT worked with Tron network was applaudable and it gets support from Tron foundation. BTT as well has made it to the top 50 cryptocoins in relation to it's market value. The trading volume of BTT on a daily bases is about one billion and it has also got some popularity as well. By the study of BTT using technical analysis, I could see that it has the tendency to increase in price value. To crown it all, BTT is also listed on exchanges that matter which includes Bithump, Houbi, kucoin, Binance and poloniex.

WINkLink (WIN):This coin has a strong community backing it. WIN project gives solution to the sector. With the backup of Tron time, WIN has gotten to its all good one high in April and With my research, I speculate that WIN get past it's current price and take higher value for it's all time high. WIN is significant enough to be on the list of currencies that can be traded on exchanges like kucoin, Binance, Bithump and poloniex. is important to be listed on exchanges such as Binance, Poloniex, KuCoin, Bithump. The trading volume of WIN per day is well over 70 million dollars.

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

• First thing I did was to login to my Binance wallet as Binance exchange is the platform which I wish to use in acquiring these penny Cryptocurrencies.

• Next, I deposited some steems worth $36 into my Binance steem wallet

• Next, I converted these steems to tron so as to be able to purchase the coins which I wanted on the platform.

• Next , I went ahead to purchase my desired penny Cryptos. I purchased 16,304 pieces of WINLINK coin using 105 Tron. I also purchased 2171 pieces of BitTorrent coin using 105 Tron.

• Back at my wallet balance, it can be seen that I have added to my portfolio BTT coin and WIN coin

Conclusion

When searching for penny Cryptocurrency to invest in, you must recognize the fact that the market of Cryptocurrency is vololatile. That is to say that the prices of coins could change sometimes without reasons at ant time and this could cause the holders of such coin to be at loss or to have a depreciated portfolio.

Nevertheless, this risk can be reduced by means of making thorough research on a coin before purchase.

Regards to Professor- @pelon53