Hello friends of steemitcryptoacademy, guess we are all doing well? It's my humble pleasure to participate in this week's homework task on Penny cryptocurrencies after attending lectures by Prof @pelon53

Homework:

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

The first time I heard about the word Penny Cryptocurrency, I was wondering what a combination of such two words. But nevertheless, this simply decode some kind of worth placed on some cryptocurrencies vis-a-vis its relationship to be a fiat value. Each time we open the coinmarketcap, there are hundreds of these coins ranked with very infinitesimal value which I sometimes wonder how they still stay at-float. But with their capitalization one would still know and be alittle encouraged of investors presence in its market share.

Therefore Penny Cryptocurrency are said to be Cryptocurrencies with values less that the worth of one USD ($1). They are categorically low value cryptocurrency tokens. In my previous class in the SteemitcryptoAcacdemy, we were guided to invest more with monies we don't only have immediate need for but also ready to forfeit in-case of any eventualities. They are relatively low in value and hence a larger chunk of these tokens are purchased in order to make out profits from price changes. Sometimes, this kind of investment done in the penny cryptocurrency are life changing hence the need to advantage of the viable ones.

Advantages of Penny Cryptocurrencies

• They are relatively low value coins which does not require much of larger asset investments to get volumes of its coins in your portfolio. This is unlike what is obtainable in high profile coins like BTC, ETH and BNBs.
• It encourages spread of investments across different cryptocurrencies. Due to its low value, it gives an investor the opportunity to acquire different coins in his wallet at a budgeted price.
• Large amounts of these coins gotten can translate to better profits in future which were acquired with little fiat investments.
• They also serve financial absorbers as there are low effect of market and price volatility and hence can help salvage the effect of market trend incurred in other highly volatile coins in the portfolios.

Disadvantages of Penny Cryptocurrencies

• Penny cryptocurrencies are usually long term investments which do not favor short term investor who wouldn't want to tie up their investments for longer and uncertain future.
• During bearish and high market volatility, these coins may be lost due to market activities and low value already with coin.
• There are high chances of investing into the wrong penny coins due to the rampant availability of these penny cryptocurrencies. This is so because of the low value of these coins.

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

Since after my first class on Penny cryptocurrency, I have hard my eye on some of them but this did not just go straight to my wallet/portfolio without some form of technical, fundamental and sentimental approaches taken. Some of the highlights taken into cognizance were the security of the assets, the market capitalization and its presence in the exchange to enable effective transactions. Others, included its coins presence in the hands of highly influential people in the society or by association and speculation.

My best Penny to invest in this 2021 is the DOGECOIN. This has already been implemented and acquired given to all the prospects associated with this coin. This surely passed all my expectations given to all the fundamental and technical analysis carried out and also from prof @pelon53 lectures that declared its minimum threshold for minimum daily volume and market Cap required for every Penny Cryptocurrency. These are some of the highlights seen that propelled my selecting the Dogecoin.

• The current value of the Dogecoin as at 18th May 2021 is $0.48. In less than 6months it has attend a high value of $0.60 before this bearish trend seen at its current status. This bearish trend seen in the market should be connected to the Leader coin _Bitcoin seen to be loosing value in the market over Telsa-Ellon Musk's comments and the China ban on cryptocurrency transactions with its financial institutions.
• The daily trading volume of the Dogecoin is seen to be at $4,802,902,841, which is far above the threshold given for Penny cryptocurrency.
• Its market capitalization is also far above so many of those coins not likened to be penny cryptocurrency. It holds a figure of whooping $61,729,644,541. This clearly shows that it is investors friendly with high potentials given to its strong security and fundamental analysis it inhibits.
• With its trending volume and market capitalization, Dogecoin is seen to rank number 5 .
• It also has a circulating supply of 129,666, 593, 991 DOGE which clearly indicates the widely acceptance of this Penny cryptocurrency and investment done in it already.
• The Dogecoin has a daily trading volume of 32.23billion DOGE. This also indicates strength with a market dominance of 2.87%.
• The Dogecoin is on 839,552 watchlist with contracts in Binance Exchange. It is seen in almost all of the exchange platforms.

(Dogecoin Price Chart)

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

The Ripple was designed to acts as both a cryptocurrency and a digital payment network for all financial transactions. It was live in 2012 with one Chris Larsen and Jed McCaleb as co-founders. Just like the SWIFT in the traditional centralized system, so is Ripple in its functionalities where it's focuses on Payment settlement and remittances. For clarity sake, Ripple is a company/Network and XRP is the native coin or Token used in Ripple. It is a decentralized blockchain network but funnily uses a permissioned consensus mechanism(Usually hook to bank servers to verify transactions). Some would call it a decentralized network that acts in a centralized manner.

(Coinmarketcap details for XRP)

I will want to explore the coinmarketcap and extract some vital information as regards the XRP vis-a-vis its price performance over the years. This would really give us an insight on what the market holds for this giant coin which is currently on the & position in market ranking. The price of the XRP is currently seen as $1.18 with market cap of $41.14B, daily trade volume of $20.68B and a circulating supply of 35,108,326,973XRP.

(XRP Price Peaks)

From the XRP chart, it was vividly seen that the in 2018, the XRP had a bullish run that saw it attain a whooping $3.4 since its launch as a coin. The next peak high attained by the XRP was seen two years later in 2020 where it got a value of $1.8. This also shows that there are potentials seen in this coin despite its poor run. We will also look at the the current market trend to know if its worth investing into now.

(YTD XRP market chart)

Sometime in early May 2021 (Precisely 2nd May 2021), the XRP was seen to have a bullish trend which saw its price climax at $1.65 indicated as the 3rd peak from the chart with support seen at $1 and resistance at $1.6. If price still continues on its bearish trend as seen in the chart and breaks through the support zone, that would like be an entry position for most investors who want to take advantage of the XRP token.

Catch up points

• It is most likely that the XRP would continue to see the bearish trend given to the current market volatility seen especially with the Bitcoin and Ethereum . For me, i only need to target a more dip in this scenario to enable me make an entry positions.
• When market eventually reverses its self, the XRP may likely break the resistance zone, hence all those that make entry positions will have the play ground to make profits from price changes.
• Given to the current market cap and Trading volume seen in a coin in the 7th positions, there are likelihood that an investment here is guaranteed with so much potentials to increase in its value.

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

My Possible 5 Penny Cryptocurrency assets chosen by me whichcan be viewd from my coinmarketcap watchlist are;

• Dogecoin
• Stellar
• Tron
• Shiba Inu
• Chiliz

(My Coinmarketcap watchlist)

The above screenshot shows a typical way of starting the test to invest in those penny cryptocurrencies. I have already had some few investments on the Dogecoins and Tron given to my earlier strong will to invest into them after some market analysis.
Find below my trust wallet holding this value. There are plans to increase the TRX value as well as make entry positions i the Chiliz, Stellar and SHIBA INU.

(My Trust Wallet holding my Dogecoin & TRX)

• Dogecoin: Great Penny cryptocurrency with $45B market cap, 2.76% market Dominance, $14B trading volume and $0.48 coin value makes it a guaranteed and more secured penny cryptocurrency with listing seen amongst the high fliers exchange platforms. Dogecoin stands among the 1 -10th cryptocurrency in ranking with Elon Musk earlier making advances on this favorite penny crypto which saw an uptrend of price values.

• Stellar This is also another highly potential filled token with current value of $0.47 and market cap of $11B. Also is the daily trading volume of $4.27B which really shows strength and investment activities in the penny cryptocurrency. it currently has a circulating supply of 23B XLM. There are already predictions that XLM would hit a record high of $5 by 2025 given to its rate of adaptability in the market. Sometime in early January, it was seen to hit a record high of $1.8whichcrepresents about 30% gain on its original price. Also looking at the adaptability of the XLM, the PrimeXBT offers the trading on it at upto 100x leverage which really shows its potentials.

• TRON: This is one of my utility tokens which have continued to play several role in steemitcryptoacademy classes ranging from Justswap to Jutlend activities. I started keep this coin when its value was barely 23NGN and now it is 40NGN. It has attained a 70NGN high something in March 2021. It has alot of potentials with a market cap of $6B, daily trading volume of $4.7B and circulating supply of 71.6B TRX. There are speculations and predictions on the the TRX getting to an all high of $0.15 by the end of 2021. It has some many potentials and pairing with other coins seen in most exchange platforms. The TRX is in the top 25 coins seen from the coinmarketcap listings.

• SHIBA INU: This is also another fast growing penny cryptocurrency showing much light in value appreciation. In its ranked among the top 30 cryptocurrency tokens in the coinmarketcap listing. Just to let you know that it has a whooping $3.9B market cap and $3.4B daily market volume with a large number of circulating supply of 394Trilion SHIB. Its seen listed on the top ranking exchanges with contracts in Binance.

• Chiliz: This is another silent but fast growing coin with a good community. It is currently valued at $0.3with $1.6B market cap and $616M daily trading volume. It has 5.7B CHZ as circulating supply but among the top 61 in ranking. Predictions has it that CHZ would heat an all high of $0.5 before the year end 2021.n

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

The last transaction I made on Penny Cryptocurrency was done sometime 2 weeks ago and the steps were not documented where I funded my trust wallet with Dogecoin worth over $60. But the purpose of this post, i would be funding my TRX account in the Binance Exchange by using the BTC/TRX pair to enable me buy the TRX. This can only be possible since i have a fraction of BTC value in my exchange account.

Funding my TRX will follow this simple steps and explanation;

• Login to the Binance exchange
• Click on the wallet Icon by the bottom right side of the screen, then click on the TRX coin from the list of coins displayed.
• Click on the TRX/BTC pair to initiate this buying process
• Select buy, the market option, the amount of BTC that you want to use. I'm using $0.00011326 worth of BTC to buy TRX. And this gave me 52TRX.
• Then click on the BUY TRX button.
• You can see from the list that i now have 52TRX in my wallet account which worth $4.15.

In conclusion, penny cryptocurrency are long term investment that we should not be expecting a quick returns given to its infinitesimal values. Due to the low value and high volume of this assets purchased, it is always advisable to invest with monies we don't have immediate use for and monies we can let go in-case of any eventualities.

Thank you Prof @pelon53, this is my entry.