Crypto Academy Season 2 Week 6 - Homework Post for [@pelon53] - CRYPTOCURRENCY PENNY

Thanks to professor @pelon53 for this wonderful lesson about "CRYPTOCURRENCY PENNY". I read the whole lesson. This lesson covered many new things. Now, I am ready to complete my homework task. Let's get started:

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

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Penny cryptocurrencies

We learned from today's lesson what penny cryptocurrency is. Coins worth less than $1 are penny cryptocurrency. When a coin comes on the market, it usually starts as a penny cryptocurrency. Then when its value crosses $ 1 it is no longer a penny cryptocurrency. But that doesn't mean it loses the value of a penny cryptocurrency. Because the cryptocurrency market is much more volatile. Here the price of any coin can rise or fall again at any time. So if the value of the penny cryptocurrency that increased to more than $1 is reduced to less than $1, then it will have to be taken as penny cryptocurrency again.

Advantages of Penny Cryptocurrencies

• The most remarkable advantage of penny cryptocurrencies is that they are much cheaper so you can make a good profit by investing less money. Coins that are more expensive, such as BTC, ETH, BNB, etc. penny coin are more profitable than these.

• Penny cryptocurrencies are great for traders who have less capital but want to make more profit.

• To build a portfolio you need to list some good penny cryptocurrencies. Even if the price of these goes down, if one of them goes up, there is no possibility of loss.

Disadvantages of Penny Cryptocurrencies

• The price fluctuations are much higher in penny cryptocurrencies so there is a risk. Many whale penny collects cryptocurrencies when the market is deep.

• There are some penny cryptocurrencies whose prices do not increase much. So if you buy these, you will not have any profit.

• There are some penny cryptocurrencies in the market which are much cheaper. These should be avoided because who knows if their prices will ever increase.

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

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In my opinion, the best Penny DENT in 2021. Its current rank is 127 and its Market Cap $339,450,916 as I write this post. Its value is currently 22% decreased. So it can be said that the value of the DENT coin is now deep so it can be invested now.

^{Screenshot from Coinmarketcap}

One more thing we look at before investing in a coin is how much it is worth. Coins that are less valuable usually give higher returns because their value fluctuates too much. The current market price of DENT coins is $0.003464 which is very reasonable. Again, 24-hour trading volume is a matter of understanding the market demand. The 24-hour trading volume of DENT coins $51,537,271 which I think is good.

^{Screenshot from Coinmarketcap}

Above we can see the 24 hours trading volume of the last seven days. Its trading volume indicates that it is in demand in the market. Who knows, it may hit the market like the DOGE coin this year. So in 2021, I think it is the best penny coin.

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

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^{Screenshot from Binance}

I have analyzed the Ripple (XRP) coin. In the figure below I have shown two support and resistance lines. It is based on a 1-day market. At the time of writing this post, it is priced at 0.9106$ which is currently the support line. In the last 24 hours, its price has decreased by 19%. If the market is good, there is an opportunity to make a profit of 30-35% from here.

^{Screenshot from Coinmarketcap}

It also has a much higher trading volume in different markets. I have tried to show it in the picture above. From this, it is understood that there is a huge demand for XRP in the market. But as the market value of BTC declined, so did the price of all coins. I hope you can make a very good profit from XRP if you take entry now.

I would invest in Ripple (XRP) coin right now because:

Let's discuss the following screenchot taken from coinmarketcap. Here we can see in the price graph that the price of Ripple (XRP) was the highest in 2018. Since then no bullish line has been seen. It was at an average price until mid-2020. But now that I am writing this post, its price has come down a lot, so I think now is the right time to invest in it. From this we can expect 100-200% profit in a few days.

^{Screenshot from Coinmarketcap}

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

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1. Cardano (ADA)

ADA coin in my opinion would be very good for long-term investment. I entered it in my virtual portfolio on eToro at 1.2481$ a few days ago now its market price is 1.5$. I am currently at 19% profit on it. But I think it is possible to get more profit from it. Currently, it ranks # 5 according to Coinmarketcap so I put it on the first list.

2. STEEM

STEEM coin is on my second list of investments. This is a token from Steemit, the world's best-decentralized site. Its current price is 0.6165 $ which I think is very reasonable. A few days ago it was priced at 2 1.2. In 2016 it was 8. According to Coinmarketcap, its rank is currently # 148. So you can definitely invest in STEEM.

3. DENT

There is also an opportunity to profit by investing in DENT coin. Its rank is currently # 127 according to Coinmarketcap. But its market value is much lower than that. At present, the value of the DENT coin is 0.003547 47. So it would be wise to invest in it now. You will have to pay the sale later when the price goes up.

4. TRON (TRX)

Another gem coin of 2021. The current market price of TRX is 0.07661$ by the time I am writing this post. From 2018 to January of 2021 TRX price was like a constant value around 0.2$. After January 2021 Its price increased and the maximum price was 0.16$ that was awesome. Now I think this coin is in deep. Perfect time for an investment. Its rank is currently #23 according to Coinmarketcap.

5. SHIBA INU (SHIB)

You will be amazed to hear that according to Coinmarketcap SHIB coin rank is #36. But the price of this coin is still very cheap 0.000007649$. I think to grab 100$ and invest in SHIB who knows if it shows a bullish line within few years.

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

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• First I logged in to my Binance account. Then I searched for SHIB coin from the market.

• I set the market price at its current market price of 0.00000765$ and created a limit order.

• I bought 4063266 SHIB coin for 31$. Now it's time to wait.

Conclusion

Penny cryptocurrency is good for investing but its price fluctuates a lot. So there can be profitable and there can be a loss. So you have to trade at your own risk. In cryptocurrency, you always have to trade with money that is lost but nothing happens, meaning you can't invest your important money here.

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Thanks for patiently reading my post. I hope you enjoy it.

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Best Regards,
@masumrbd