Crypto Academy Week 14 | homework post for @pelon53 | cryptocurrency penny | by @loveth01.

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What are Penny Cryptocurrencies?

A penny cryptocurrencies can be defined as digital currencies that that are trading under $1. What does this mean? This means that they are digital assets that have a very low value as compared to monetary assets or other highly traded cryptocurrencies.
Penny cryptocurrencies are coins that are very cheap and they have little worth and they can be gotten with just a small amount of USD.

Most penny cryptocurrencies have a high rate of volatility and they can be subjected to price forged by scammers through the pump and dump schemes. But then , it is not all pennycryptocurrencies are the same, they are all widely different from each other.

Why Invest in Penny Cryptocurrencies?

Altcoins are such coins that offer high-risk reward ratios to their investors. A quite number of penny cryptocurrencies are undervalued and with the power of mass adoption of the blockchain technology, the value of the altcoins can be expected to be much more higher in the future.
Penny cryptocurrencies are currencies that offer crypto traders a diversified investment in the sense that if a person wants his crypto portfolio to yied constant returns, instead of trading the stable and more traded coins, he may decide to buy pennycryptocurrency, hold on it and before he knows it, he is already millionaire.

Penny cryptocurrencies are sorts of investments that offer their trader a future income. If a trader earns dividends from cryptocurrencies is the same as a stock dividend. By simply holding on to penny cryptos in his wallet or exchange, a person can earn a lot of money.

Advantages of Penny cryptocurrencies are as follow :

1 . Though they are highly volatile but penny Crytocurrency yield special rewards for investors.
2 . have the potential to offer high growth in a short period of time and therefore have become one of the popular choices among Crypto investors.
3 . Penny cryptocurrencies yied massive profits which can be earned from small invested capital. The name itself says it all, they begin small and as time passed by, they have the capability and the potential to make it big.

Disadvantages of Penny cryptocurrencies

1 . Low price of Penny cryptocurrencies in the market can lead to low capitalization.
2 . Lower liquidity of a penny Crytocurrency asset makes it difficult for the holders to cash out. When an investor feels like selling the shares, he might not be able to sell them immediately because of the lack of buyers that may be available in the crypto market for such assets.
3 . They are usually not traded most of the times.
The lack of history of the project developers offering the penny Crytocurrency can make it very difficult for the investor to choose his purchase as such developers would possess a poor track record or non at all.
4 . When the price of Penny is manipulated falsely or it is sufficiently inflated, the people who want to commit any kinds of frauds and scams will dump their own shares and they'll gain instant profit massively.
5 . The lack of information available about a penny cryptocurrency to the public can make it very hard to make informed decisions about investments in such an asset.

Risks Associated with Penny Crytocurrencies

1 . fraud risks are so much high, a trader who wants to Investor in penny Crytocurrency needs to be attentive enough to understand and make useful the information on how the market is and take note of the current trends in the market.
2 . comes with high volatility. Though highly rewarded, penny cryptocurrencies are highly volatile, and therefore the investors need to be very careful and be vigilant, must keep checking somewarning signs as to when to invest in and when to make withdrawals from the market.
3 . Investors in penny Crytocurrencies must be aware of the possibility that they might lose their entire investment. Because of the penny being highly volatile, it is not very much possible to make predictions accurately and even, sometimes, it may lead to the loss of the entire investment.
4 . they are traded infrequently, which means investors will face difficulties in selling them once they decide to sell.

Best Penny Crytocurrency to trade in 2021:

Though there are a lot of Penny cryptocurrencies, but I'll consider Zilliqa.
It is a Singapore based penny that was founded by Amrit Kumar in 2017.
Zilliqa, with its token as ZIL is one of the first blockchain platform that is built on the unique sharded architecture. Furthermore, it has smart contracts features written in the platform’s proprietary programming language which is Scilla. And lastly, it is one of the most promising pennies. As as today 18/5/2021 15:09 GMT, the price of a ZIL to a USD is shown in the chart below

RIPPLE ANALYSIS:

Looking at the chart below, it can be seen that Ripple (XRP) is traded at 1.57 USD per XRP and its price had just an increase of 6.67%

Yeah I can invest right now because I'm sure and I'm certain there will be an increase in its price before the end of the year.

Top 5 Penny Crytocurrencies are :

1. RESERVE RIGHT (RSR)
2. ACROPOLIS (AKRO)
3. STELLAR (XLM)
4. REEF FINANCE (REEF)
5. HBAR

STELLAR (XLM)

Stellar was founded by Jed MC Caleb and Mt. God; it is crypt o asset that has the mission of providing a means by which financial institutions will be connected through blockchain platform and also provide and ensuring cheap transactions in the crypto market..Look at the chart below:
As seen on coindesk.com an XLM is traded for 0.650030 USD
It has a market cap of $68.54bn
It has a total supply of $105.44bn

RESERVE RIGHTS (RSR)

As seen in the chart below
It is currently traded at 0.06454
It has a market cap of $9.7m
It has a total volume of $8.4m

Hedera hashgraph (HBAR)

It is currently traded at $0.2954 per HBAR
It has a market cap of $2.44bn
Over the years the price of HBAR has been on an increase.

REEF

It has a market cap of $478m
It is traded at 0.03778 HBAR per USD
It has a total volume of $120m

AKROPOLIS (AKRO)

It is currently traded at $0.03653 per USD as shown in the chart below
It has a total volume of $13.2m
It has a market of +$108m

I have not make any investment for this week either in penny cryptocurrencies or any other cryptocurrencies.

In conclusion,

penny cryptocurrencies are the best cryptocurrencies you can invest on and be sure that you are going to make quick investment.

Note,

That: all the charts in this article were all taken on the 18th, May 2021. I have been busy since with school work that why I have not posted it

Thanks to professor @pelon53 this is my homework post.