PENNY CRYPTOCURRENCY

Market forces or not, some things are just more valuable than others in an incomprehensible manner. Gold, Bitcoin for example. Same can also play off from the bottom. Some things can just be very cheap and they remain so. The analogy above is typical of the going-on in the crypto currency world. Bitcoin is the biggest in digital asset today; worth over 2 trillion in market cap and one Bitcoin worth over $45, 000 as of today 17th of May 2021. The other side belongs to the penny coins. They are worth just a fraction of Bitcoin or Ethereum.

What are penny crypto currencies?

Penny crypto currencies, as portrayed by the name, are digital coins that are very low in price, and equally in market cap. they trade, most times for less than a dollar and holistically below $5. They are worth just pennies.

CoinGecko tracks more than 6600 coins and most of them that are available for purchase are penny crypto currencies. Most of them, tagged under the umbrella name “altcoins”; since they are Bitcoin alternatives. They can be more volatile than Bitcoin itself and can be subjected to fraud or price manipulations. Yet, this is not to say they are all bad. Some of them are secured, listed on notable exchanges (Binance, OKEx, Huobi, etc), undervalued so have the potential to appreciaste over a given time; thereby able to give good returns on investment.

According to a data compiled by coinmarketcap in April 2020, penny crypto currencies make up 35% of the total crypto currency market. This is a huge market yet investors have to be careful not to get burnt as only few go on to give good returns.

Bitcoin could be said to have started like a penny. It was worth less than the price of three pieces of pizzas at inception but today it’s worth thousands of dollars making investors rich overnight.

Most investors are always on the lookout for penny crypto with good attributes like the Bitcoin, however, one needs to be careful. Most of them will end up wiped out or useless. Examples of great penny cryptos are Ripple XRP, Stellar, BAT, Steem, Ren, etc.

Advantages and disadvantages

Most penny crypto currencies give investors high risk reward on their investment as some are mostly undervalued. You can always expect them to have higher value in the future. They are risky yet a good choice most time.
Penny crypto currencies present the avenue to diversify investment. One can buy many of these crypto and expect three or more to give positive returns. They also offer passive income till they grow into something of big value.

Before I tell you to invest in a particular crypto you have to be critical and meticulous in your choice as there is no 100% guarantee that you won’t make some losses, hence invest only what you can afford to lose. Also, do your research and follow some of the criteria below:

Ensure that the crypto has a strong market cap. of at least $20 million and a daily trading volume of $1 million. It should also be listed on popular crypto currency exchanges like Binance, Hotbit, etc.
It should have above 10 million coins in supply. Endorsement by notable bodies or entities like Paypal did to Bitcoin and Elon Musk did to Dogecoin.

Given these, the best crypto currencies to invest in today are BAT (Basic Attention Token), Stellar(XLM), ZIL (Zilliqa), VET (VeChain), etc. having said these, a couple of them will be discussed right away.

Stellar Lumens (XLM)

Link

Stellar (XLM) was invented by a former Ripple developer, Jed McCaleb. He left Ripple to begin his own Crypto in 2014. Stellar is one of the most lucrative digital assets with over $531 million in daily trading volume. XLM tries to reduce the required time and cost of transferring money internationally.

Link

Stellar’s processing power has made it more appealing. It has an open block chain network designed to quickly carry out large transactions between banks and investment organizations that will normally take days, middlemen and is expensive. Stellar has a market cap of $15 billion with the price of $0.665835 as of today 17th May 2021.

BAT (Basic Attention Token)

Link

Basic Attention Token (BAT) is an Ethereum based penny crypto that is behind the Brave browser advertising platform. It was first brought to public knowledge in its white paper presented in 2018. It was developed by Brendan Eich, who co – founded Mozilla and Javascript. Publishers earn BAT, users get to earn and advertisers gets to reap good value for their expenses. It currently has a market cap of $1.6 billion and trades at $1.07. it is ranked 73 by coinmarketcap. BAT indeed has a bright future.

Ripple

Ripple is a block chain based digital tech that is both a digital payment or remittance platform and as well as a crypto. Developed by both Chris Larsen and Jed McCaleb in 2012, Ripples process payment systems in a similar way to SWIFT system of international money transfer done by financial institutions.

The Ripple’s XRP which has been pre - mined to a finite number of 100 billion can be exchanged for most major currencies instantaneous transaction and elimination of fees. XRP does not discriminate between fiat currencies or crypto thereby making it easy for any type of currency to be exchanged. Note that every currency in the system has its own gateway.

For instance, if Michael wants Ethereums as the payment of choice for the service he rendered to John, john does not need to have Ethereums. He can send the payment to his gateway. A gateway is not needed to bring about a complete transaction; multiple ones can be used, engendering a chain of trust, rippling across users. Heard of the ripple effect?

Ripple transactions also uses less energy than Bitcoin, and transactions are done in seconds. Ripple (XRP) is currently ranked 7th by coinmarketcap, traded at $1.52 with a market cap of over $53 billion.

Link

Would I invest in it right now? I will gladly do given that it is a popular penny crypto that has done better than Bitcoin in the area of transaction throughput, transaction speed of up to 1500 transaction per second and scalability. It is listed on reputable exchanges and is widely accepted by financial institutions worldwide.

Link

It has a secured system based on XRP ledger Consensus protocol where validators rather than miners verify transactions. Ultimately, Ripple has a strong market cap. All these key points are good criteria to invest right away.

Penny cryptos can indeed explode in value over time, so they are a good way to invest. Imagine if I had taken risk and invested $1000 in a very cheap coin that cost 1 cent last year and today it has increased 10,000x in value to $100 per coin.
Wholla! I’d be a multi – millionaire
Let us take a look at some possible investment in 5 pennies.

Dogecoin

Lawrence Charles bet on the right coin last year eventhough he had lost half of his investment then to some bad pennies. One of the crypto was Dogecoin. On the trading platform of coinbase, Lawrence bought Dogecoin, the worth of $20 at the price of $0.0023 in June 2020.

Being Elon Musk’s favourite coins and given his series of tweets about Dogecoin, it gained in value and today it is worth $0.4889 (May 17 2021) . You can do the math. He made a substantial sum of money there.

Link

Zilliqa (ZIL)

Link: www.cryptocoin.news/token
Zilliqa, a penny crypto that came on board in 2018 traded at the price of $0.007892 on August 24, 2019, if I had bought a $100 worth of Zilliqa then. Today zilliqa is worth $0.116057, I would make more than $200 profit.

Link

BAT (Basic Attention Token)

BAT began November 2019 with the price of $0.23. It increased but fluctuated down to $0.20 before the end of the month. This would have been a very good time to buy because as of today, BAT is worth $1.05. If one had bought $200 worth of BAT, one would be smiling to the bank today.

Link

VET (Vechain)

Link

VeChain Thor (VET) is also one of the best penny crypto around. It has the aim to solve transaction problems. It is backed by the reputable audit firm PWC.
VET was worth just $0.004145 as at January 01, 2019. If I had invested $0.1571, it will be worth the effort.

(Link)(www.coinmarketcap.com)

Stellar Crypto currency

Link

Stellar is one of the cheap and popular crypto that quickly rose up the ranks. It was worth just $0.01771 as at August 1st 2017 as seen in the first graph. Investing the sum of $100 will give me a high return on investment today as it is worth $0.6338 in the last graph.

Link

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

For the past last week, I have been trading on high volume cryptocurrency. But as for the sake of this assignment, I will be investing in penny Cryptocurrency from my binance application.

I was able to noticed a coin called VET which is currently ranked 18 in the cryptocurrency.

First of all

I checked the value of the bnb I have whether it is quite enough for me to trade and quite good, it is enough

So I need to first go to the coin chart to check how it is performing in relation to market trend.

As you can see in the screenshot below, it is actually a good time to buy the coin to invest in and the coin arrow is pointing down.

Secondly

So I bought 200 pieces of the coin and planning to hold it.

Right now the value is in around $32 in total. I am sensing the bull run will start again next week so it might push the price up to $40 next week which I will sell after and then make a profit of close to $10

Thank you @pelon53 for the lesson and @steemcurator02