Crypto Academy Week 14 - Homework Post for @pelon53

The lesson gives proper understanding of Penny cryptos, their features and study which has given me a proper understanding of the term Penny Cryptocurrencies .Firstly the penny, could be understood to be a smaller unit of the US dollar which would bring better understanding to know that , any substance with a penny value would always be less than a dollar.

I am @kelechisamuel and this my homework post for @pelon53

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

Therefore, we can define Penny Cryptocurrencies to be crypto coins or currencies with a worth that is less than a dollar . Generally , we understand this kind of currencies to have relatively low values but with prospect to attain more market capitalization and to create variety in the world trade /investment platforms.

These currencies could also be passively understood to be a major source of creating wealth since ,in a volatile state ,they could easily bring more profits .

There are also merits /advantages of these penny cryptocurrencies which include ;

Advantages

• Simpler transactions /businesses ; The privileges given to crypto traders and users by their brokers in penny cryptos make buying and selling of it easier since they have less cost and complexity in nature .There are also less transaction fees in the penny crypto usage since the charges based on percentage are lesser

• Variety of coins and Utility of choices ; The simplicity of crypto coins, ie it's relative low cost gives the users of it ,the ability to put their eggs in different baskets to purchase several coins based on their market cap and other advantages .For example a trader who would have originally bought Bitcoin worth $500 in 2020 and have to depend on just Bitcoin profits could buy Ripple ,ADA ,Tether ,Tron and Tether respectively with the money used to buy Bitcoin to turn into the several account profits incase of delay in one

• Affordability : One of the major scaring factors about the crypto markets could be seen as the high prices of other coins which could make investors lose hope of owning a major asset in the market but with penny coins investors get affordable coins to hold wth less amount and comfortable ways

There are also demerits and shortcomings to these crypto Currencies which include :

Disadvantages

• Security Issues ; Most penny coins which are developing assets could fall into the hand of fraudulent hackers and cyber security breaches . Examples of this are evident as we see Initial Coin Offerings get hacked into mostly and people's funds looted

• Instability of prices and irregular store of values ; Most penny cryptos, in a bid to gain more market cap and value have irregular prices causing trade failures and huge losses of markets in a trade .This makes people fear and tend not to invest in them but look for more stabilised coins with great values

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

To my understanding ,the best penny to invest in 2021 would be TRON
The TRON Crypto Currency could be seen as a decentralised system that works with a peer to peer network that performs activities on the TRX blockchain .The Tron was reported to have been founded by Justin Sun a strong representative of ripple formerly .The Tron chart below shows the bullish trend of Tron over a period of time after its value could have been termed as stagnant after its struggle with the values of 0.4-0.6 dollars from July 2020 to January 2021 and a very bullish trend too at April even up to 0.16 dollars and with reduced price rates too after this incident too which gives another hope for price rises again ..

This TRON crypto came to my interest after it begun to experience bullish trends and an increased market cap of over $5B and it's bullish trends as of April 2021
The TRON network too has partnerships with , several developers,graphic networks ,etc .

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

RIPPLE ANALYSIS

The utility token , Ripple could be explained as a currency exchange and an open source remittance network responsible for ingress to seamless transfer of money in any foreign currency, be it National currencies like Pound Sterling ,Euros ,or even crypto coins too like Bitcoin or Litecoin
In pursue of more light on this system ,we could consider a monetary transfer system where the actual transaction owners on the ends do not prefer to use their middle men unlike other crypto like Bitcoin ..
The New Year saw ripple at ₦200 with a gradual slow and steady increase giving it support at ₦200 and resistance at ₦300 until Late match where a volatile result brought ripple to about ₦900 like we see in the image even till April when prices increased upto ₦1000 to 1500 leaving it's support at 1000 and resistance at ₦1500 as we see in the image below

In May ,the analysis showed a price of 1500 to 1800 trending .
Today as at the time of this assignment , ripple saw a huge volatility as the market fell from about ₦2000 to ₦900 and even back to 1200 giving ripple ,a volatilel characteristics like we see in the image below

I feel this is the right time to invest since it's bearish volatility has shown intense and for now ,as a rational trader ,i should invest with a stop loss.

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

The list below contains a list of five supposed crypto penny assets with their present values

• Tron : The TRON Crypto Currency could be seen as a decentralised system that works with a peer to peer network that performs activities on the TRX blockchain .The Tron was reported to have been founded by Justin Sun a strong representative of ripple formerly.
  It is more so understood to be a management system where decentralised icons are made for quality usage and for gaining of passage into characteristics on a particular software
  With its increasing market cap at 5.49 billion dollars the coin is good crypto penny coin with its price at 0.08 dollars

• Chilliz : The chilliz could be seen as a Currency choice for produced goods and other productions meant for major consumers that have the back up of a block chain
  This brings a welcome development for users of the coin to be involved in entertainment and also means of transaction too and others
  This crypto gives activities relating to sporting and other entertainment Blockchain utensils to capture their audience and monetize their users and having its price now selling at 0.29 doll
  This is a very strong one since audiences even have rendered services on the Blockchain with their funds and even tend to be comfortables with it

• The Stellar Lumens (XLM) ; The Stellar Lumens could be seen as an out channel decentralized pattern for digital tenders to low currency transfers which accepts transactions between anytwo Cryptocurrencies easiest money sending ,transfer networks ie the platform making it easy for payments to be made ,sent ,created and and traded
  With a price rate of about 0.64 dollars this once is slowly gaining prominence

• Enjin Coin (ENJ) : The Enjin coin could be seen as an Ethereum token that has its purpose to “provide easier usage for individuals, establishments, and trademarks to utilise non-fungible tokens (NFTs).” ENJ is mainly used in backing the value of NFTs minted in the system the Enjin ecosystem directly .Enjin Coin might be a profitable investment for long holders as it gives future hopes of running into great profit sparks and bring it's holders joy You can buy parts of this token . So ENJ could be worth ₦35000 or ₦3500,000, you would just buy the relative part or amount of it as a fraction of ENJ. Of course, the people that are in early, like us, are going to be a lot richer and financial buoyant than the later buyers and that remains our advantage for taking on the risk as ontime investors..

• The Basic Attention Token (BAT) : The basic attention token ie the BAT could be seen as a token that is basically meant for location of media duration lapses and their locations on the Brave web browser .
  The aim and purpose this token seeks to achieve remains to properly and efficiently pass around advertisement funds to both the publishers ,readers and original writers of contents hereby giving them part of profit shares in all earnings.
  This would be a plus on sides of investors who love reading and have a standing opportunity of reading and funding with its price rate to be around $0.8

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

After much considerations, I decided to go invest in the chills penny coin and below are the steps I took

1. Open the binance application
2. Click on trade
3. Search for coin pair of CHZ/USDT
4. It is advisable to buy USDT from the p2p trading system which is a stable coin then exchange for a chills coin, for this assignment, I will be using my already bought Usdt coin
5. Insert the amount of usdt you wish to exchange or the amount of chills you to buy

MY PROCESS
Before the start of this assignment I had already bought usdt coin which I used to exchange for chill
Open the binance application, click on trade as seen in the image below

Click on the coin pair to find the chz/usdt coin pair

After finding the chz/usdt coin pair, input the amount of chz you wish to buy as for me I bought a $20 of usdt worth which gave me 70.9 worth of CHZ then click on buy and your coin is bought

Conclusion
The topic of the penny coins is a very interesting topic although it is very much advisable for one to research effectively about their White paper, road map, etc. It can also be very productive as penny coins are very volatile in some cases

Thanks for going through my post
Cc @pelon53