Club5050-Penny Cryptocurremcies

suglo100 (62)in Tron Fan Club • 2 years ago

Hello everyone.

It is another great day for us to learn new things in our lives. Today I want to share with you what penny cryptocurremcies are, their merits and demerits all together.

This post is made up of my own understanding of what penny cryptocurremcies are. Had this knowledge from a research that I carried out recently on shit coins and I came across penny cryptocurremcies which I thought Will be beneficial to the crypto lovers.

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What A Penny Cryptocurrency Is?

The name itself of this type of cryptocurrency gives a brief idea of what penny cryptocurremcies are. In a layman’s language the word penny simply means little. Meaning penny cryptocurremcies refers to fraction of a whole cryptocurrency.

Again, we can say a penny cryptocurrency is one which value is below $1 and is known to be cheap in the crypto market. With the help of coinmarketcap, I was able to figure out some penny coins in recent times.

In the picture below I have highlighted some penny cryptocurremcies with a black rectangular shape.

_{Screenshot From Coinmarketcap}

There are four (4) different types of penny cryptocurremcies and they include, Newly minted, fallen, plentiful, and stagnant cryptos. Let’s take a look at each of the these penny cryptocurremcies.

Newly Minted Cryptos: Newly minted cryptos are penny cryptocurremcies that are not widely known to investors and they have a value below $1. These are freshly cryptos being introduced into the system.

Fallen crypto’s: Fallen cryptos are type of penny cryptocurremcies that have decreased in value due to market conditions but were valuable sometime ago.

Plentiful crypto’s: Plentiful cryptos are type of penny cryptocurremcies that are abundant in the market.

Stagnant crypto’s: Stagnant cryptos are type of penny cryptocurremcies whose value is maintained for a longer period of time.

Advantages Of Penny Cryptocurremcies

Just like any other thing, there are the good and bad aspects of everything and below are some of the advantages of penny coins.

• A little amount of fiat currency spent in purchasing penny coins can generate huge profit in the future.

• Since they are of low value they do not need a bigger resource to influence its volume in one’s portfolio.

• The risk of losing funds in investing in penny coins is little because investors don’t need a huge sum of money to start investing. And it is always good to use the money that wouldn’t affect you when you lose it.

Disadvantages Of Penny Cryptocurremcies

• When a market is in a bearish state or high volatility, these coins may get missing due to the market conditions and the coin low value.

• Most at times, penny coins records low liquidity rate which may cause problems in offering it to buyers within the market.

• Penny coins can make one to be a bug holder. Due to that, it’s not advisable to invest much money in them just like we do in coins with high values when it comes to market cap and price.

• Again, penny coins can change into shit coins in no time.

The Penny Coin I Will Like To Invest In

As a crypto lover and investor i will like to invest in Dogecoin. I have been monitoring the Dogecoin for sometime now and it has catch my intention due to how it rises in the market. It is a coin I will like to invest in this year.

_{Screenshot From Coinmarketcap}

From the screenshot above we can see the important statistics about the Dogecoin. And I will be talking more on them based on the reason why I want to invest in this particular coin.

• One of the reason I want to invest in this coin is that, it can be found in almost all the exchange platforms which makes it easier to trade in.

• With the trending volume and market capital, the coin is ranked 13th on coinmarketcap.

• The Dogecoin has an all time high of $0.7376 which means that it has a chance of going ahead of that next time.

• It also has a current price of $0.1200 as at the time of writing this post.

Looking at all these statistics, I think the Dogecoin has a future and it will be a nice idea to invest in it. It has a great potential in rising through the market as time goes on.

And this will be the right time to buy this coin since it’s value is down now.

Why You Should Invest In Penny Coins As An Investor

The cheap and low value of penny cryptocurremcies doesn’t mean they are not worth investing in. As an investor or a trader you can also invest in penny coins for some reasons like, getting more money, diversification of portfolio and many more.

Below are some of the reasons you should start investing or trading in penny coins.

• Generating Bonuses: From what many investors say, cryptocurremcies that give the best bonuses are usually under $1. As a result, investing in penny cryptocurremcies is also a good option and one can generate more rewards from them frequently.

This is one important reason you should try investing in penny cryptocurremcies. Although, you need to take into consideration so many factors before selecting the right penny coin to avoid wrong choice.

• Investment Diversification: It is very important to invest in all parts of the crypto market. This will enlighten your knowledge about the market and increase your experience as well as your returns from cryptocurremcies.

To end with, we can all now see that penny coins are long term projects that we should not be expecting a fast returns from.