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

In this week's course, we will examine penny cryptocurrencies down to the finest detail. Now I am answering the questions posed by the professor.

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

(Coinmarketcap screenshot.)

When you enter the Coinmarketcap website, you will see coins at very low prices. Coins with a penny price are called penny cryptocurrency. In the screenshot, you can see some of the best 100 cent cryptocurrencies in terms of market capitalization.

Penny cryptocurrencies have a very low price. Generally, it is called cryptocurrencies below $ 1. However, some circles say that assets between $ 0.02 and $ 0.0004 should be called. The fluctuations of such assets are quite high. You can easily increase your investments 10x. You can even get much more.

Dogecoin was one of the most popular penny cryptocurrencies of a period. It still is because its price is still under $ 1. One year ago, Dogecoin price was $ 0.002277. Now it's $ 0.4974. It has increased almost 220 times. Imagine you have invested $ 1000 in Dogecoin. That's $ 218,445. This is money that a normal person cannot work and save for his life.

Advantages of Penny Cryptocurrencies

• It allows you to earn big profits. One of the biggest examples is Dogecoin. The price has been increased hundreds of times through wealthy individuals such as Dogecoin Elon Musk and Mark cuban.

• You don't need to make huge investments. For example, you need to invest a large amount of money in order to get big profits from investments such as BTC, Ether, Xrp. You can make big profits in penny cryptocurrencies with small investments.

• It alone can save your portfolio. If you want to be a professional trader, you need to create a portfolio of 7-8 cryptocurrencies. Even if you lose money from most cryptocurrencies in the portfolio, a good increase in your penny cryptocurrency allows you to profit from your portfolio.

Disadvantages of Penny Cryptocurrencies

• Fluctuations are quite high. During periods of downward market trend, there is more decline than other cryptocurrencies.

• There is a lot of shitcoin in the market. You should not invest because the price is too low. When investing in penny cryptocurrency, you need to do a thorough research.

• Penny cryptocurrencies do not earn you every season. It is likely that you will experience big losses from penny cryptocurrencies, especially during the bear periods.

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

(Coinmarketcap screenshot.)

In order to invest in penny cryptocurrencies, some criteria should be considered.

Penny must meet the cryptocurrency criteria, have a good project, be in the market for a long time, have a sufficient daily volume, be listed on popular exchanges, or be listed on some of the popular exchanges.

In order to invest in penny cryptocurrencies, some criteria should be considered.

Penny should meet the cryptocurrency criteria, have a good project, have been in the market for a long time, should have a sufficient amount of daily volume / be listed in the top 200 in terms of market value, should be listed on popular exchanges or listed on some of the popular exchanges.

The best penny cryptocurrency that fits the best criteria I just explained is DENT.

• Dent meets the penny cryptocurrency criteria. Its price is under $ 1. Dent's current price is $ 0.006496
• Dent is a solution generating project for mobile communication and data services. Dent wants to provide global mobile service, minimize costs and introduce everyone to mobile communication.
• Dent has remained in the market since 2017, proving that it is not shitcoin. It has a reputation in the eyes of investors.

(Coinmarketcap screenshot.)

• Dent daily volume is sufficient. It has a daily volume of around 60 million dollars. Periods of rising, daily volume is more than 400 million dollars.

• Dent is listed on popular exchanges. Listing on exchanges such as Binance, KuCoin, FTX, Bittrex, Upbit shows that it is a reputable project.

• Dent ranks 115th in terms of market value. I see penny cryptocurrencies other than the top 200 very risky.

(Coinmarketcap screenshot.)

• Dent has increased 52 times compared to last year. However, it still has the potential to increase. It is still well behind its 2018 price. If the bull season continues until the end of the year, it has the potential to increase by at least 20 times more.

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

Although XRP is centralized, it has been supported by some major investors from the very beginning. In terms of market capitalization, it has been among the top 5 cryptocurrencies for a long time. It had risen to $ 3.84 in 2018.

(Tradingview XRP/USDT chart)

As seen in the chart, XRP is still far behind the 2018 price. When analyzing the XRP price, we need to analyze it in fundamental analysis rather than technical analysis.

(Tradingview XRP/USDT chart)

XRP is currently located near the support zone. Seems quite suitable for purchase. Eligible levels for $ 1.50 purchase. There is a strong resistance zone at $ 1.96. It tested this area a few months ago but could not break the resistance price. It will try to break the resistance price several times. If it breaks the resistance price, it will not be difficult to reach its highest price. However, as I said before, fundamental analysis events, rather than technical analysis, will affect the XRP price.

Is it possible to invest in XRP?

I think investment is made. Investing in XRP is based on both fundamental and technical analysis.

• XRP is still behind its 2018 price. If adverse events had not developed, maybe that price would have exceeded now. At the end of the bullish period, I think the 2018 price of XRP will exceed. For this reason, it has a potential to increase at least 3-4 times.

• Ripple has an ongoing court. There are positive developments regarding the outcome of the case. The lawsuit looks like it will end up in Ripple's favor. If the lawsuit turns out to be positive, Ripple has the potential to increase 200-300% in a few days.

• After the Ripple lawsuit, the Coinbase exchange had delisted XRP. If the lawsuit turns out to be positive, the Coinbase exchange will list XRP again. Only coinbase listing XRP again will result in an increase of around 50-60%.

I invested in XRP at about $ 0.5. I sold some during the period when it was rising very well. Even if the XRP price has dropped too much, I am still in profit. Although I have invested at 0.5 $, the purchase is made at the current price. It can reach $ 10 at the end of the year. Of course, this depends a bit on when the bull period ends.

XRP is still one of the top 10 cryptocurrencies on the market, despite the very bad things happening to it. Investors' interest is high. Total market capitalization is $ 55,302,770,338. Daily trading volume is over 10 billion dollars.

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

(Coinmarketcap screenshot.)

I bought 5 penny cryptocurrencies on a watch list. These are possible investments. Later, I made a "virtual investment" of 100 dollars in all of them. The total investment amount is $ 500. I will check the status of the portfolio on a monthly basis. Let's see which one will win the most or which will lose the most?

(Coinmarketcap screenshot.)

The penny cryptocurrencies I invested in; SHIB, BTT, DENT, WIN, ELON.
While investing, I have considered many criteria. The first criterion is to be in the top 200 in terms of market value. I find cryptocurrencies other than the top 200 very risky. For Penny to be a coin, its price must be below $ 1. I paid attention to him too. I wanted the daily trading volume to be more than $ 30 million. I paid attention to his popularity / recognition / community / being talked about / on social media.

SHIBA INU (SHIB):One of the most remarkable penny cryptocurrencies of the last period. It is among the top 30 cryptocurrencies in terms of market value. Daily trading volume is around billion dollars. It is very popular on social media. There is a strong and large community behind it. He gets support from Elon Musk. It is listed on exchanges such as Binance, Huobi, FTX, Poloniex, Uniswap. There is a possibility to be listed on other exchanges.

BitTorrent (BTT):While choosing BTT, I considered many criteria. I considered it an important detail that it works in the Tron network and is supported by the Tron foundation. It is among the top 50 cryptocurrencies in terms of market value. Daily trading volume is close to 1 billion and it is very important. Looking at its technical analysis, I noticed that its price tends to increase. It is listed on major exchanges such as Binance, Huobi, Poloniex, KuCoin, Bithump.

DENT: I should have taken Dent among possible investments or I would have contradicted myself. I explained the Dent investment in detail in the second question. It is important to be able to produce solutions for mobile communication. The daily trading volume is fine. There is a very strong community on social media. Also, when I examined the technical analysis, I saw that it gave buy signals.

WINkLink (WIN):There is a very strong community behind WIN. A project that produces solutions in the sector. Backed by Tron time. It reached its highest level in April but I expect it to retest this level and reach its higher price. It is important to be listed on exchanges such as Binance, Poloniex, KuCoin, Bithump. Daily trading volume is over $ 70 million.

Dogelon Mars (ELON):

(Twitter screenshot)

When I chose ELON, I especially noticed that it reached the strong community. Reaching 76.9 K followers in 1 month is a great success for them. A strong community is very important in cryptocurrencies. Today, the Steem blockchain draws all of its power from its technology and its large community. The large community of the ELON project will also be effective in increasing the price. It is listed on two major exchanges such as Uniswap and Poloniex. There is a possibility that it will be listed on exchanges such as Binance and Huobi. If it is listed on these exchanges, we can see huge increases.

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

I have never traded cryptocurrencies this week. I will do this because the professor wishes. I chose DENT for my preference. Because I said that the best penny investment would be DENT. It is possible to buy DENT in many exchanges, but I will choose Binance. On Binance, we can get DENTs of at least around 10 USDT. It is listed on the Binance exchange as DENT / ETH and DENT / USDT pairs. I decided to buy DENT with about 13 USDT in my account. Let's see if it will return to me as much as a national lottery jackpot.

(Binance screenshot)

• I have logged into my Binance account. I clicked on the wallet in the middle top. I typed "Dent" in the search box.

(Binance screenshot)

• I chose the DENT / USDT trading pair. Because I have USDT in my account. Another option is ETH, but I didn't have ETH in my account.

• I placed a buy order on the buy / sell page at the current price ($ 0.0064721). I can buy approximately 2014 DENTs for 13 USDT. I also had to pay some commission. I clicked on the "Buy DENT" option and my transaction has been confirmed.

(Binance screenshot)

• When I check my Binance wallet, I can see that the DENT purchase has been successful.

Conclusion

Penny cryptocurrencies fluctuate quite a lot. It is necessary to consider these risks when investing. When investing in penny cryptocurrencies, we need to invest money we don't need. It may have a lot of contribution to you in the price increase. A house will help you buy a car or have a nice holiday.

Cc:
@steemitblog
@pelon53