Steemit Crypto Academy | Season 2: Week6 | PENNY CRYPTOCURRENCY by professor @pelon53 | @huzaifanaveed1
There's an ongoing race. A race to reach the heights. A race where everyone wants to come first. But winning a race is never easy. You've got to have the attributes of being a winner.
This race is the cryptomarket which every coin wants to top. Currently at the top are Bitcoin, Ether etc with the highest values
Some coins which are also a part of this race but they are at a very low level at the moment because of their values. And thse coins are known as Penny Cryptocurrencies.
In this lecture by professor @pelon53, we got a complete overview of the penny Cryptocurrencies. What are their advantages and disadvantages. Which penny currencies should we invest in and a lot more.
Lets start shall we?
Q 1)
Explain the Penny cryptocurrencies in your own words. Advantages and disadvantages.
Penny Cryptocurrencies in short means the coins whose value in the market is less than a dollar. These type of currencies attract the traders alot and these coins either make the traders rich in a small period of time or they sink their ships.
example: dogecoin
Because of their low prices, investors purchase huge amounts which can pay off them with some profit if the value increases
On the other hand
These penny Cryptocurrencies are also extremely volatile and easy to manipulate as well. This could be the end of you if you've invested in huge sums
Lets talk about the advantages and disadvantages
Turning Small amount into huge sums
For instance you have a sum of $200 and you invest it in 4 penny Cryptocurrencies and the values of these coins triple overnight. You'd get good profit. With $200 you can hardly invest in any one big coin
Acceleration
You don't have to wait for years for your coin to increase in value like the big coins. Penny Cryptocurrencies value increases in days usually.
Feasibility to buy
Even if you have money as less as $5 you can still invest in them and can get good profits.
Scams
You've got to keep an eye on the scams out there. The low prices attract investors but they can turn out to be scams
Fluctuation
They are volatile. One minute they are up and the mext moment they regress so much that you are in loss
You may lose more money than you made
This might upset you but it's statistically true.
Q2
For you: What will be the best Penny to invest in this 2021? Explain and show evidence.
Cardano (ADA) in my opinion is the coin to invest this year. Lets get in details with facts and figures to support my suggestion.
with a market cap of tremendous $60b ADA stands tall at the no.4 position on the cryptomarket. Currently its price is $1.85. It took a dip from $2.5. Even after a regression, it still is holding its ground.
Cardano (ADA)
Currently in the top five coins of the cryptomarket, Cardano is one top of the penny Cryptocurrencies with a third generation scientific blockchain.
It is a well designed complete project which works with its own coin named ADA. It has powerful smart contracts through which it has grown so much that is is amongst the top 5 largest Cryptocurrencies.
I am going to share some facts and figures regarding ADA with you.
As you can observe the graph above. The prices of cardano since its origination have continuously increased. No doubt in dips it has regressed as well. But even then the increment rate has always been high.
Q3)
Do a Ripple (XRP) analysis. Show screenshots. Would you invest right now? Explain.
Ripple is a blockchain based digital payment Network with its own Cryptocurrency XRP and it ranks amongst the top 5 most valuable coins
The most important thing about Ripple is that its transactions use considerably less amount of energy compared to Bitcoin
The first question that erupts in my mind. Would I invest in XRP in future? The answer would be a big NO. The reasons?
Understanding the technicality of this asset we should remember that Ripple was filed under a complaint for the United States Government back in 2020 due to their unlicensed sales.
How would you invest in an asset when the transparency of the coin is under doubts?
It could be a possible scam as well, and people might even stop the exchanging of XRP in future as well, who knows.
Now observing from a technical point of view lets have a look at the graph of XRP
As we can clearly see it has had good uptrend season it now regressing.
If you give a careful look at the graph you might notice the Elliot Wave theory of 5-3 waves in which there are 5 impulsive waves and 3 corrective waves
It has hit it's uptrend season now its in a regression. So I wouldn't be investing in it.
Q4)
Present in detail a possible investment of 5 penny crypto assets. Explain and present data confirming your choice.
We're currently going through a dip. Even tho the market stabilized today but its still in a dip. I would also Like to tell you that we are in an Altcoin season. A season where Bitcoin faces a regression while other altcoins might face uptrends.
According to my technical analysis the 5 penny crypto assets I possibly could invest are:
1
It has to he Dogecoin doesnt it. Since its entry in the market the only way it has gone is UP
That is due to the influence of ofcourse Elon musk. Lets see how.
MAY 10 2021
𝑺𝒑𝒂𝒄𝒆𝑿 𝒕𝒐 𝒍𝒂𝒖𝒏𝒄𝒉 𝒂 𝒔𝒂𝒕𝒆𝒍𝒍𝒊𝒕𝒆 𝒇𝒖𝒏𝒅𝒆𝒅 𝒃𝒚 𝑫𝒐𝒈𝒆𝒄𝒐𝒊𝒏
as a result DOGECOIN prices significantly rose
After the tweet by Elon musk. Dogecoins rising became inevitable
Lets have a look at some stats.
screenshot taken from coinmarket cap
So with a $52B market cap, 2.7% market dominancy and a coin value of $0.48 dogecoin is an attractive coin to invest in.
screenshot taken from coinmarket cap
2
screenshot taken from coinmarket cap
Like Dogecoin Shiba is also a part if the memecoin community. At this very moment it's on a roll and has surpassed the famous Dogecoin as well.
The investors who took a leap of faith in its early times have made tons of profit by this coin.
Shiba INU is planning to have their own own exchanges which means a price boom is on its way. So I'd say this is a promising coin to invest in.
screenshot taken from coinmarket cap
3
screenshot taken from coinmarket cap
With a market cap of a stammering $275m steem would be the third Penny crypto I would invest in. Currently in the dip steem prices have regressed as well but I believe due to its economical benefits and the diversity it will come out on top again. We even have a steemcoffeeshop now. So Steem has a bright future. With it's union with TRX it's value is bound to increase. Even last year it was named as on of the best Cryptocurrencies to invest in. The value of steem has risen considerably.
screenshot taken from coinmarket cap
4
screenshot taken from coinmarket cap
This coin also belongs to the Cardano ecosystem just like ADA and I believe it looks bright. It is also excelling in electronic payments due to which its price is bound to increase. When announcing its association with Cardano, it had a fairly high rise and at the moment it is kidnapped going through a correction so it is expected to rise again when it leaves it.
screenshot taken from coinmarket cap
5
screenshot taken from coinmarket cap
With a market cap of $6.2b Tron is the coin I would invest. It is positioned at No. 22 in the market ranking.
Also with its collaboration with steem I think both Steem and Tron are bound to go up.
Currently it has a price of $0.08. Which means it is an easy coin to invest in and we can also expect good profits from it if we do good Technical analysis.
Furthermore It was announcef as one of the best Cryptocurrencies to invest in alngsode ADA.
So I'm definitely going for it.
screenshot taken from coinmarket cap
Q5)
This is a detailed process and I will guide you through it step by step.
STEP 1
I logged into my steemit wallet and transferred 10 steem to my Binance wallet
STEP 2
It asked for my key which I provided for the transaction
STEP 3
a comfirmation text on binance
STEP 4
After recieving steem I converted it into BTC
STEP 5
after having it converted in BTC, I coverted BTC into ONE
STEP 6
after this I was forwarded to the portfolio of ONE COIN
I hope all the steps are clear
Q6)
In this lecture by professor @pelon53 we learned all about the Penny Cryptocurrencies. It was quite a detailed lecture and Honestly drafting the assignment took me some time as well.
According to my humble technical analysis I think there is more risk in Investing in penny cryptocurrencies then benefits but if yo know your game, and you know when to pull out and when to invest you can actually make huge sums of profits by penny coins.
Penny cryptocurrencies are usually for short term profits. Also they are easy to buy as well because of their low rates. One piece of advice would be. Do not invest your all tempted by the low prices and good profit rates of these currencies. Only invest the amount of money you can afford to lose, also always use technical indicators and set a stop loss for avoiding losses.
Hope you had a good read.
Thak you
Regards,
@huzaifanaveed1
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