Crypto Academy Season 2 Week 6 Homework Post for (@pelon53) - Penny Cryptocurrency

Hello everyone, it is new crypto academy week, and today I will be creating a post with respect to the assignment given by @pelon53. Before I continue, Let me give a little recap on the class by @pelon53 and talk about what I gained in the process.

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Summary of The Class

Attending the class CRYPTOCURRENCY PENNY was impressive and worth the time, I was able to improve my knowledge on the topic. @pelon53 explained what Penny cryptocurrencies, Why are they attractive to invest in, Data to select the best Penny cryptocurrencies, and studied a few cryptocurrencies.

@pelon53 was able to explain the data to select when choosing a penny cryptocurrency such as security, pump-and-dump, market capitalization, presence in the market, and investing in the long-term. Finally, @pelon53 gave a little study on a few cryptocurrencies such as Bitcoin, Cardano, and Ethereum.

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

Without beating around the bush, let me give a simple definition to penny cryptocurrency. A penny cryptocurrency is a crypto coin or crypto token that is not up to $1 in market price. Just like there is are penny stocks, the Penny cryptocurrencies can be synonymous with pink sheet stocks. Penny cryptocurrencies are no doubt that 3/4 of the entire cryptocurrency in the market are penny cryptocurrencies.

The first coin was the Bitcoin and I could say that it has the first-mover advantage is one reason why Bitcoin has been having a lot of tracts and it is seen as the major cryptocurrency. Just like I said, other cryptocurrencies such as Ethereum, Litecoin, and other second runner coins are regarded as major coins and other coins are regarded as penny coins.

Advantages

• Penny cryptocurrencies are very profitable especially for early birds and investors who think of the long run.

• Penny cryptocurrencies are very cheap and one can accumulate a lot with little capital.

• They are a good form of investment as they have low market capitalization giving it more potentials.

Disadvantages

• They have a very high circulating supply of coin in hundreds of millions
• Penny cryptocurrency can be easily manipulated
• Most penny cryptocurrencies do not have a base project, they are mainly done with the hope of getting investors to invest in something or for things like memes.
• Once the price drops, it can take away the entire money of an investor.
• The coin could be scam coins or for Ponzi schemes.

What will be the best Penny cryptocurrency to invest in this 2021?

First, I need to state clearly that this is not a piece of investment advice, it is for the purpose of education and recreation only.

If I were to invest in any penny cryptocurrency in 2021, it would be Dogecoin. It is no doubt that Dogecoin has seen a great increase within the past months but it hasn't seen its all-time high yet. The coin started as a Meme coin built on a blockchain similar to the Bitcoin blockchain. It uses the Proof-of-work consensus algorithm that allows miners to mine has had its great days in 2021 as it first got attention in the WallStreetBets Reddit channel where traders decided to take it to its all-time high. Soon after it started to increase in price, it got the attention of Billionaire investor Elon Musk who decided to buy into the coin as well as promote the coin on his official Twitter handle.

Dogecoin has made over a 5000% increase in 2021 but this isn't the end as a lot of investors are looking into making Dogecoin hit $1 and remain there making it a safe haven for investing. Elon Musk has been asked to give direction to Dogecoin thereby changing its major purpose from a meme coin to something of value.

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There are 129.65 billion DOGE in circulation and it is currently trading at 0.4729 and has a market capitalization of $61,423,823,144.

Currently, Dogecoin has an ROI of 85020.37% and has an ROI of 556390.25% since its all-time low 6 years ago.

Dogecoin in the nearest future will be a good investment as big companies start to accept it as a means of payment then it will increase in value.

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

As a trader or investor, it is very important to invest/trade a cryptocurrency based on two analyses which are Fundamental and Technical. As an investor, you need to check the company Ripple which is in charge of XRP, its leadership, and its socioeconomic issues. As for XRP, it is getting clear that the company would be able to win the SEC suit which means it will be in a good position to do well in the future. Coupled with the fact that its management is great.

For the technical analysis, I will be using the trend to check it will be a continuation of a trend and to achieve this, I will be using the triangle.

A symmetrical triangle usually follows a price breakout of its origin or the previous trend at a distance of 3/4 of the width of the triangle. I used the MACD to check if XRP is being overbought or oversold and with the MACD, and RSI to check if the coin will be going down as a result of too much buying or selling. The coin has a lot of volumes which then shows that it would reduce in price a little which is a good buying position and then I will wait till it hits a very good high.

Compared to its price during the 2017 bull run, XRP is underperforming, this might be as a result of several exchanges delisting XRP as a result of its SEC suit but the tunnel seems to be paved with light at the end and hopefully, it should perform better and hit an all-time high when it starts to perform in the market.

XRP still remains one of the investors favorite to invest in as it holds the top 10 positions even at its down period. Hopefully, it will hold better positions than doge in the near future.

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

To answer this question, I will be picking 5 penny crypto which I trust to perform and I have invested into. Each of these coins is a great investment asset which I will be explaining here.

PIG Finance

PIG is a high-yield farming token is built on the Binance Smart chain. The PIG finance charges a 5% tax on every transaction and sends 2% to the blackhole and 3% of all transactions locked as liquidity in the Pancake swap. Traded at $0.000000648, and a fully diluted market cap of $647,460,419.

I have invested in PIG Finance and I hope to buy more Pig token up to $30 and let it grow.

SHIBA INU (SHIB)

Recently launched and similar to dogecoin. It is said to be the Dogecoin killer and it has been making waves in the last few months. Holding the number 30 position on the crypto coin market cap, Shiba Inu has given investors a reason to smile with over 834622.62% in return (for investors that invested from its beginning). Just like Doge, Shiba Inu also got support from Elon Musk and other influencers in the industry. it has a daily volume trade of over $2 billion. It is no doubt that this coin will drop in price sooner as it will have to correct itself and stabilize but in the future, it will be a very good investment as it will see new all-time highs. It is currently listed on exchanges such as Binance, Huobi, Poloniex, Uniswap, and many more.

DOGECOIN (DOGE)

This coin is one penny crypto that has shaken the crypto industry. Built on the same blockchain consensus as Bitcoin (POW), it was meant for memes but recently it has started to gain more attraction beyond memes. With over 1000 places where Doge can be accepted, the price is gradually and will increase as more and more people start to accept it. currently, Dogecoin is currently traded on virtually all exchanges. It will hopefully reach the 1 dollar mark before the end of the year if it continues at this pace.

BitTorrent (BTT)

An important token in the Tron network (TRC-10) used for decentralized peer-to-peer sharing of data. BitTorrent has held a position in the file sharing industry and this has allowed the BTT token to stay strong. BTT is among the first 50 coins in the market with a daily trade of over half a billion dollars. It is traded on more than 10 exchanges and this makes it very easy to trade and invest.

TRON (TRX)

I have always believed in TRX as a result of its numerous used cases. TRX which was launched by the Tron foundation by Justin Sun aims to decentralize file sharing, reward content creators, allow content creators to launch their own personal tokens.

Tron holds the 24th position on the Coinmarketcap based on market capitalization and it is sold at $0.1005. It has a volume of over $3B and a market capitalization of over $7B. It surely has what people want which would increase its price in the near future.

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

I will be purchasing a penny cryptocurrency for the purpose of this post. I choose to purchase Tron (TRX) from Binance, using the TRX/BTC trading pair.

I will be buying 79 TRX which is about $8.00. and what i need to do is place my order call and allow my buy order to be filled after.

To this I took the following steps;

• Logged into Binance

• Searched for TRON (TRX)

• Clicked on the TRX/USDT pair
  

• Go to the trading page

• Set my order and wait for it to get filled at my desired price or the current market price.

• Wait for the order to get filled.

• The TRX appears in the wallet.

Conclusion

Penny cryptos have made it easier to own cryptocurrencies and it has allowed a lot of people to make profit. While it is a good source of investment, it easily fluctuates and it can be manipulated by whales with a lot of capital.