Steemit Crypto Academy | Season 2: Week6 | PENNY CRYPTOCURRENCY by professor @pelon53

source

Introduction

Hello, everybody! It's another week in the Steemit Crypto Academy group, where I've really grown and learned a lot about Cryptocurrencies, especially by doing my homework. This is my homework article for @pelon53. The subject is Penny Cryptocurrencies, which are very low-value cryptocurrencies (less than a dollar).

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

Penny Cryptocurrencies Penny cryptocurrencies are digital currencies that are still worth less than a dollar ($1). They are often new tokens, and they are often referred to as shitcoins. Over time, shit coins, such as alt coins, have gained traction in cryptocurrencies and begun to attract more investors.
This so called coin can make an investor rich within few days and can also drain the investor totally
Example include Doge at $ Stellar Lumens at $0.474, VeChain at $0.112, Tron at $0.008, NEM at $0.207, BAT at $0.795, Shiba Inu at $

As an investor there are certain factors to consider before investing in Penny Token

• The whitepaper of the token

• The project of the token and the team behind it

• The market capitalization of the token

• The total supply of the token

• The Exchanges where the token as been listed e.g how big and popular the Exchanges are

• The token social media accounts e.g if they have a verifed Twitter account or Facebook

Advantages of Penny Tokens

High Return on Investment (ROI) Because of the high volatility of penny tokens, the return on investment is typically high. If the token or coin project is successful, the investor may see a huge significant return of his/her Investment

Earning another Token in return for holding the token Most penny tokens pay out a part of the token or another token produced by the group to their holders.

Utility Penny token are very cheap to buy with just $10 investors can purchase millions of the token and it sometimes yeild X5 or X10 of the Investment

Disadvantages of Penny Tokens

Scam Some Penny Cryptocurrencies are simply well-crafted scams designed to defraud unsuspecting investors of their capital. As a result, it is important to conduct thorough research before investing in any penny cryptocurrency.

Dumping by the Developer: After investing a large sum of money in a penny cryptocurrency, the developers will abandon the project, causing it to die gradually. The investors eventually lose their capital.

Fluctuation in price penny Tokens are highly volatile they can pump and dump within few minutes.

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

Dogecoin is a penny coin folked from Litecoin and was created by Billy Markus and Jackson Palmer. They created the coin as "Joke Payment" making fun of cryptocurrencies at that time .

Dogecoin is referred to as "Meme" coin it currently sell at $0.3881 according to Coinmarketcap

Below is a table containing all the data of Dogecoin currently according to Coinmarketcap

Current price	$0.3881
Marketcap	$50,298,940,457.91
Total Supply	129,694,208,735 DOGE
Circulating supply	129,694,208,735 DOGE
Rank	No 7
Volume	$7,156,042,327.52
Market Dominance	2.85%
All time high	$0.7376
All time low	$0.00008547
Dogecoin ROI	69264.35%

For me Dogecoin is the best penny coin to invest in currently.

The reason why I choose Doge are stated below

• Dogecoin made a 527% change in less than a month, from $0.05349 it increased to $0.7399

See screenshot below

• Dogecoin is been promoted by Tesla CEO Elon Musk, as he tweeted "The Doge Father" few months ago this made the price to increase and also many investors to come in

• Dogecoin can by traded in tip exchanges like Binance, Huobi Global, OKEx, FTX, etc, it also has unlimited mining.

• Recently Tesla stopped accepting BTC as payment which cause the price of BTC to fall, and Elon the CEO of the company made a tweet asking people opinion if Tesla should accept Doge as it payment method or not

And there was a positive response as 78% people want Tesla to accept BTC

Screenshoot below

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

Ripple is a digital payment method built on the blockchain, it was released in 2012 by Chris Larsen and Jed McCaled. The mining and transaction on Ripple blockchain doesn't consume much energy compare to Bitcoin.

The native coin is called XRP

Currently it is price at $1.14 according to Coinmarketcap

Below is a table containing all the data of XRP currently

Current price	$1.14
Marketcap	$52,455,327,913.40
Total supply	99,990,461,026 XRP
Circulating supply	46,135,372,183 XRP
Rank	No 6
Volume	$8,796,392,704.72
Market Dominance	2.95%

Now my answer to the question

Would you invest right now?

Definitely NO and the reason is that Ripple are still in a case with SEC due to unlicensed sales back in 2020.

News source

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

Dogecoin

Dogecoin has been a great penny coin since it existence it has been climbing up.

With the back up from the CEO of Tesla Elon musk the price has increased massively.

Dogecoin currently ranked #7 according to Coinmarketcap
It is currently sold at $0.388.

Current price	$0.3881
Marketcap	$50,298,940,457.91
Total Supply	129,694,208,735 DOGE
Circulating supply	129,694,208,735 DOGE
Rank	No 7
Volume	$7,156,042,327.52
Market Dominance	2.85%
All time high	$0.7376
All time low	$0.00008547
Dogecoin ROI	69264.35%

Safemoon

Safemoon was launched in March 2021, it a token built with an auto liquidity generating protocols.

Currently ranked #202 and price at $0.000005627 according to Coinmarketcap

Current price	$0.000005627
Marketcap	$3,215,194,682.53
Total Supply	1,000,000,000,000,000 SAFEMOON
Circulating supply	585,536,366,402,812 SAFEMOON
Rank	No 7
Volume	$31,653,563.86
Market Dominance	0.20%
All time high	$0.00001399
All time low	No Data

RavenCoin

RavenCoin was folked from Bitcoin on 3rd of January, 2018.
It currently ranked #97 and price at $0.08822 according to Coinmarketcap

Current price	$0.08822
Marketcap	$741,857,757.57
Total Supply	8,818,580,000 RVN
Circulating supply	8,818,580,000 RVN
Rank	No 97
Volume	$72,084,061.30
Market Dominance	0.05%
All time high	$0.2854
All time low	$0.008794

Tron

Tron recently integrated with STEEM, it own by billionaire Justin Sun.

It is currently ranked #23 and price $0.08209 according to Coinmarketcap

Current price	$0.08209
Marketcap	$5,762,872,898.85
Total Supply	100,850,743,812 TRX
Circulating supply	71,659,657,369 TRX
Rank	No 23
Volume	$2,485,545,414.32
Market Dominance	0.35%
All time high	$0.3004
All time low	$0.001091

Freecoin

Freecoin is one of the uncommon coin, it is built on Ethereum blockchain, Tron Blockchain and Binance blockchain.

It is currently ranked #478 and price at $0.000005422 according to Coinmarketcap

Current price	$0.000005422
Marketcap	$50,919,001.17
Total Supply	9,938,989,997,635 FREE
Circulating supply	10,998,999,997,635 FREE
Rank	No 478
Volume	$413,327.80
Market Dominance	0%
All time high	$0.00003604
All time low	$0.00000005

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

I will be making use of Binance Exchange, and the peeny coin I want to invest on is Bittorent (BTT) currently.

Step 1: I login to my Binance account.
Below is the screenshot of the USDT I have in my wallet 9.72 USDT

Step 2: Now I navigate to the search and I search for "BTT/USDT" pair

screenshoot below

Step 3 I click on BTT/USDT pair, enter the amount of BTT I want to buy.
I enter 8.7 USDT, I waited for my order to be filled

Screenshoot below

Step 5 The order was successfully filled.

As you can see it as increased instantly from 8.7USDT to 8.87 USDT that is if I decided to sell I will see a profit of 0.17 USDT but am holding hopefully I can see a 100% changes.

In conclusion Penny Cryptocurrencies can be both a risky and successful investment. Proper analysis will save you from the burden of investing in a token that is on the verge of collapsing. The most critical things to remember are the token Whitepaper, development team, their updates, and total coin available . Their price history over a long time period would also aid in forecasting. However, nothing is absolute, and I always advise people to only spend money they are prepared to lose.

Cc:
@pelon53