This is My task for @pelon53 assignment.

Question 1

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

Penny cryptocurrencies are digital assets with a value of less than one dollar. Penny currency is way too cheap and also risky when it comes to investment. For just $1, you can purchase a large number of them. They are thought to be good choices for investments that will yield a large profit in the near future. They are extremely volatile, which means that at the same pace at which they can potentially multiply and generate profit, they can also depreciate and lose value.

Advantages of Penny Cryptocurrencies

1. It could generate multiple profit within a short period.

2. With a small capital, you can invest in different penny currencies

3. It is a means for long term investments, since it was bought for a very low price, investor can easily take their mind off it, leaving it for a long time for it to grow to its potential

Disadvantages of Penny Cryptocurrencies

1. Due to high volatility, the price might drop and leave the coin worthless
2. Due to their low market cap, the project itself might die, and render the currency useless
3. There is high chances of price manipulation
4. Some penny currency can be a scam, hence deep research should be done to find genuine projects

Question 2

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

Reef Finance (REEF). Reef Fiance Price: $0.03110382
Reef Finance's CEO, Denko Mancheski. Reef Finance (REEF) Market Cap: $396,028,562
Reef Finance came to existence in 2019.
Reef Finance created Reef Chain, which was built on Substrate and tailored for potential DeFi applications to give investors a better experience.
Reef Chain was created with the goal of providing huge scalability as well as improving instant transactions at low cost.
Reef recently collaborated with the DEIP network to improve a variety of DeFi investment options for users based on intellectual properties. DEIP is a layer 2 protocol for the web version 3.0.

Reef has also collaborated with TRON, Harmony, and Avalanche, among others.
Traders will be able to exchange DeFi protocol tokens, intellectual property tokens, and artwork tokens, thanks to their partnership with DEIP.
Looking at their market cap, and the current rank which reef is, we will realize it is doing well.

Looking at current price, and the price trend, we will realize that reef finance is not doing bad. The price came up from as low as $0.0066 during early January and went to its ATH at $0.057 within a short period. The recent dip in the market also affected REEF, briniging the price down to as low as $0.017 on the 19th of May, and at $0.020, it became a good entry point. Reef price has picked again, with the price at $0.031 presently. I think with this technical analysis, REEF will be a good penny currency to invest in 2021.

Question 3

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

Ripple (XRP) Price: $1.152, and XRP was lunched in 2012.
Ripple protocol was first proposed over a decade ago. The framework was developed to organize safe online money transfers when the first series was released in 2005. In 2011, they developed a similar blockchain platform with the same features. Ripple's creators agreed to create a cryptocurrency in 2012. It was a success, and in that same 2012, Ripple's XRP token was introduced to the cryptocurrency sector.

Principles of XRP

1. While the company employs distributed data ledger technology, its architecture differs significantly from that of a traditional blockchain.
2. Ripple's network provides a nearly instantaneous transactions and low transaction fees (fixed at 0.00001 XRP).
3. Ripple's main goal was to collaborate with banks and payment system providers.
4. Transactions may be made with any currency or asset on the Ripple network.
5. There is no space for mining in the Ripple network.
6. Ripple did not completely follow the decentralization route.
7. Ripple's aim is to contend with conventional money transfer networks rather than big cryptocurrencies. By injecting blockchain security and also speed into the payments industry, Ripple hopes to provide a better user experience.
8. Ripple's Market Cap: $54,890,635,416

XRP sometimes do follow the price of bitcoin's rise and fall.
But technically, for almost a month, the price of XRP has been enjoying a sweet momentum, but the current dip affected it also, and the price dropped to $0.8 from $1.6. Presently the market is showing green on majority of coin, and XRP is recovering from the dip too, seeing its price at #1.15. It might be a good point for entry for majority, but as for me, I would like to observe the market for like 2 more days, and then make my decision on. But presently, XRP doesn't seem bad to invest in.

Question 4

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

Tron (TRX)

The Tron network is a decentralized operating system focused on blockchain technology. Due to widespread adoption of the tron decentralized blockchain network, the tron has risen from $0.0018 to $0.09 within just 3 years. The Tron network has a low service fee.
The price fell few days ago to $0.07, and now its picking up again.
Its current price is at $0.09 and its market cap is at $6,509,012,298.
Tron has proven to be of potential and that's why it will be a good choice.

Reef Finance (REEF)

As I have mentioned earlier, Reef has collaborated with many DeFi system and they continue to create features for users better experience. One of the major factor of a good crypto project is to create utility, and Reef is constructing is map toward achieving what other chains are yet to implement.
Reef will be an investment that will eventually make it big in the nearest future.
Its current price is at $0.02999590 and its market cap is at $$379,875,478.

Dogecoin (Doge)

Dogecoin (Doge) is a Penny currency that is presently making sense, and already, it is attracting investors. It is a cryptocurrency that have potentials and holds a brighter future.
Doge coin position to be a good choice of investment. Doge coin picked from $0.05 to $0.7 within a month. Yes, that is really amazing, and might still do something better in times to come.
Its current price is at $0.391530 and its market cap is at $50,587,266,463

Shiba-inu

The SHIB token is an ERC-20 token that was created on the Ethereum blockchain.
SHIB has only been around for a short time and has already made a name for itself; its developers are doing an excellent job, and its price has increased by a factor of thousands. It has been listed on Binance exchange and that's another great advantage which could result in its price booming in the nearest future.
Its current price is at $0.00000978 and its market cap is at $4,841,846,604
The price fell drastically because of the price of bitcoin on the 19/ May, but I think it creates opportunity for more investors to buy in the new project.

BitTorrent (BTT)

BitTorrent (BTT) is a TRC-10 token and a penny cryptocurrency with potential. It's a part of the TRON network. BTT is an excellent service for exchanging files over the Internet.
From march 2021, BTT price moved from $0.003 to as high as $0.014, which is really amazing. The price is coming up again after the dramatic dip on the 19th of may. I think it is a good project to invest in presently in this year 2021
Its current price is at $0.00468157 and its market cap is at $3,059,997,784

Question 5

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

The first thing is to ensure you have enough coin that you will be using for your your trading.
I logged into my binance mobile application.
Then I select trade

Then I went ahead to select the switch icon beside BUSD/USDT

In step 3, I input the name of the coin I am willing to buy in the search bar [Reef]

Step 4, It brought available trading pair for REEF, and I clicked on REEF/BUSD. Because BUSD is the coin I want to use for my trading

Step 5, I fill the quantity of REEF [712.7] that I want to buy, and it filled the price bar for me automatically [20.87498 BUSD]

Step 6, I clicked on Buy REEF.

I have successfully purchased my REEF coin, and now its in my wallet.

Conclusion

Penny Cryptourrencies are good for investment. It is risky and at the same time, it bring in large amount of profit, even within a short period of time. But then, Research must be carried out, so that we will be sure we are investing in a genuine project.