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Today, it’s nearly difficult to meet someone who hasn’t at least heard about Bitcoin, even if you searched high and low. Even those with little computer literacy have heard of the world’s first and most prominent cryptocurrency, thanks to its widespread acceptance in the general public.
If you ask folks if they’ve heard of penny cryptocurrencies, you’ll receive a different response. It’s not because they’re a bad investment or that they’re not popular enough to warrant attention. These cryptocurrencies exist, but they’re not as well-known as Bitcoin.
That’s why we’ve chosen to focus on them in this guide! Then we’ll speak about what makes them so valuable, give you a rundown of the most popular penny cryptos, and let you know where you can buy them.
What is a Penny Cryptocurrency?
Penny cryptocurrencies, as the name implies, are digital assets with a value of less than one dollar. If you look closely at the cryptocurrency market, you’ll see that the vast majority of the crypto available to buy are penny coins.
It’s interesting to see that individuals rarely inquire as to why these coins continue to trade at such cheap rates. Somehow, we’ve come to accept that cryptocurrencies like Bitcoin, Ethereum, and Litecoin are to be regarded as major players in the market, with all other cryptocurrencies being seen as small players.
Indeed, Bitcoin has established such a strong reputation since it was the first decentralized digital money based on cryptographic evidence to be introduced into the market. During that time, it has established itself as a household brand, and all other cryptocurrencies have been grouped under the umbrella term “altcoins,” which refers to Bitcoin’s rivals.
This strategy of “placing every altcoin in the same basket” is damaging to these coins since it prevents their individuality from shining through. Stablecoins, utility tokens, security tokens, new coins, stagnant coins, and other types of penny cryptocurrencies are among the several penny cryptocurrencies available.
It is critical to distinguish between one penny cryptocurrency and another since the characteristics of each will influence your investment approach.
Why Invest in Penny Cryptocurrencies?
The following are the most compelling reasons to consider investing in penny cryptocurrencies:
The possibility for substantial profits
Newly launched cryptocurrencies are sometimes offered at extremely cheap prices to attract investors. Logic dictates that the currency’s price and demand should be modest at first, and then rise as the coin becomes more popular and useful.
For this reason, it’s important to keep a watch on new penny cryptos, read their white papers, pay attention to media attention, and think about their possible applications. Purchasing the asset while it is still a penny coin will enable you to maintain a competitive advantage over other traders.
Diversification of one’s investment portfolio
Investing in cryptocurrencies requires you to improve your game and broaden your coin portfolio if you want to ensure consistent returns on your investments.
Don’t make the frequent beginning error of putting all of your money into a single popular cryptocurrency in the mistaken belief that you’re playing it safe. This results in traders losing it all because they misjudge the unpredictability of the cryptocurrency market, which they did not anticipate.
Possibilities for generating passive income
Several of the most successful dividend cryptocurrencies may be purchased for less than a single dollar. In a manner comparable to stock dividends, keeping onto penny cryptocurrencies for an extended length of time results in a monetary windfall.
Best Penny Crypto to Buy Now
Ripple (XRP)
It is safe to say that Ripple (XRP) is the most prominent penny crypto on the cryptocurrency market. It was established in 2012 under the name OpenCoin as a collaborative initiative of engineers Ryan Fugger and Jed McCaleb, as well as angel investor Chris Larsen. The cryptocurrency and ecosystem were developed in parallel.
Ripple was established as a component of a payment network that enables quicker and more cost-effective cross-border payments. For mining, the XRP ledger utilizes a separate network protocol the XRP Ledger Consensus Protocol, in which validators, rather than miners, are in charge of validating transactions and creating new “ledger versions,” which are comparable to Bitcoin’s “blocks,” to generate new “ledger versions.”
As a result of its superior transaction throughput, speed, and scalability, Ripple is still a well-known penny cryptocurrency. On top of that, it is widely acknowledged by a large number of authoritative financial institutions throughout the world, which is quite uncommon among cryptocurrencies nowadays.
Stellar Lumens (XLM)
Its cryptocurrency, Stellar Lumens, or simply XLM, is among the most profitable cryptocurrencies available, with a daily trading volume of more than 531 million dollars.
The firm was co-founded by Jed McCaleb, one of the engineers who worked on Ripple before leaving the company in 2014 to launch his cryptocurrency project. Stellar is likewise concerned with decreasing the amount of time and money necessary for international money transactions.
XLM has gained popularity because of its incredible transaction throughput, which may reach 1,000 operations per second, and the fact that it takes just 3 to 5 seconds to complete a transaction. The Federated Byzantine Agreement, a sophisticated algorithm developed by Stellar Lumens, is responsible for this processing power (FBA).
Popular crypto exchanges like Kraken, Bittrex, and Binance have recognized the value of XML as a valuable asset, and as a result, all three have included the token on their lists of supported cryptocurrencies.
Basic Attention Token (BAT)
In addition to being a penny cryptocurrency, Basic Attention Token (BAT) is a utility ERC20 token that is developed on top of the Ethereum network. It is used for digital advertising by the BAT decentralized ledger exchange, which is based on the Ethereum blockchain.
Aiming at three key stakeholders: users, publishers, and advertisers, this exchange aims to transform the advertising business. To meet these requirements, the exchange guarantees privacy and security, the opportunity to make some money, and the guarantee that users will only view advertising that is relevant to them.
The BAT tokens are largely used by marketers to compensate publishers for advertisements that are displayed in response to user attention. Furthermore, when viewers watch advertisements, they are paid with BATs. They may use these tokens to purchase services provided by the platform, or they can donate them to the publishers to support them.
Cardano (ADA)
Cardano (ADA) is an aspirational cryptocurrency venture and a third-generation ledger developed by Charles Hoskinson, a co-founder of the Ethereum blockchain. Ada Lovelace, an exceptional 19th-century coder, was the inspiration for the name of this penny cryptocurrency.
Cardano is working on tackling the following issues that cryptocurrency users are facing: scalability, interoperability, and long-term sustainability.
To address the scalability issue, Cardano employs a proof of stake validation method (PoS) called Ouroboros, rather than the proof of work technique used by Bitcoin, which consumes a tremendous amount of power to do the same task.
The validators in a PoS system are picked at random and in a transparent manner. To participate, you must first acquire some ADA tokens and place them at risk as an incentive to maintain objectivity when validating transactions.
This penny cryptocurrency has a lot of space to develop, and many traders choose to invest in it because they believe it reflects the cryptocurrency industry’s future.
Qlink (QLC)
Because it has promised to construct the world’s first decentralized cellular connection to address the inadequacies of the telecommunications sector, Qlink (QLC) has piqued the interest of the public. These difficulties include cyber-security concerns, expanding coverage, and ensuring that the firm generates a good return on its investment.
Qlink’s initial coin offering (ICO) spanned one month, and during that time the firm was able to raise nearly $19 million! As a consequence of this collaboration, the firm has been successful in realizing its vision of a mobile network where users may register and digitalize telecommunication assets, and then share those investments with other members via smart contracts.
Qlink also provides other features through the Qlink app, such as the sharing of WiFi, cellular data, and SMS messages among users. Developed on the NEO blockchain, the QLC tokens function as service currencies, allowing users to pay for the platform’s services using their NEO-5 currency. Users may also earn tokens by watching select sponsored content on the site’s website.
Tips for Buying Penny Cryptocurrency
When deciding on the finest penny cryptocurrency to purchase, it’s critical to use a methodical selection procedure. This helps to keep things simple in light of all the different currencies that are now on the market. Here are a few things to keep in mind:
- Make an investment in a penny crypto that has between 10 million and 1 billion coins in circulation.
- At the very least, the crypto’s market valuation should be $20 million, and the daily trading volume should be at least $1 million.
- Most popular cryptocurrency exchanges like eToro and Coinbase must accept it as a trading asset.
- Make an investment in a penny crypto that has 25 percent or more of its total supply already been mined out.
- The cryptocurrency’s seven-day rise in percentage value must be greater than 50%.
- At least $1 million in 24-hour trading volume is required for high liquidity.
- It must be well-known on social media platforms like Facebook and Twitter.
- The project should be supported by a team of skilled blockchain developers. Be familiar with their background, objective, and strategy for achieving the goal.
- Learn about the cryptocurrency’s core technology and primary function. In other words, whether it’s a “security token” (like a stock) or “utility token” is up for grabs.
- The bitcoin community itself should be taken into account as a last consideration. Consider what others have to say about cryptocurrencies in online forums and discussion groups.
Where To Buy Penny Cryptocurrencies
A variety of cryptocurrency trading platforms, as well as people and Initial Coin Offerings, are available for purchasing penny cryptos (ISO).
The following is a list of viable penny cryptocurrency investment options:
- eToro; Over 120 cryptocurrencies with an average daily volume of $1.5 billion are available on eToro.
- Binance; is the world’s largest cryptocurrency exchange, with a listing of 685 cryptocurrencies and a 24-hour trading volume of $3.9 billion on average. Binance
- OKEx; Over 372 penny coins are available on OKEx, with a transaction volume of $1.9 billion.
- HitBTC; let users to trade more than 827 different cent coins, with a 24-hour trading volume of $650 million on average.
- Hotbit; With a daily average volume of $2.3 billion on Hotbit, you may trade more than 625 different penny coins.
- KuCoin; you may choose from among 447 different penny currencies with an average transaction volume of $40 million.
- Bitfinex; There are 277 penny coins available on Bitfinex, with a daily trading volume of $94 million on average.
Penny Cryptocurrency Limitations
For the reasons stated earlier, cryptocurrencies vary widely, and you can maintain tabs on them by looking at various metrics including market capitalization and risk.
Because of the erratic nature of penny cryptocurrency values, they carry a higher level of risk. This danger grows tremendously as a result of three primary factors: a lack of knowledge, frauds, and rug pulls.
Liquidity: During the 2021 bull run, a variety of meme tokens were launched on DEXs (decentralized marketplaces) without being audited and with minimal liquidity. Furthermore, token distribution favored the project’s founders. As a result, “pump and dump” techniques are commonly used to manipulate tiny cryptocurrencies. Redcoin (RDD) was the finest example of a dump and dump, as its value dropped by half in just six months.
A scarcity of information: The vast majority of people working on tiny cryptocurrencies are hiding behind pseudonyms. This is a fundamental principle in the bitcoin world. As a result, figuring out who is working on the project behind the scenes is difficult, making it much more difficult to evaluate their objectives. Aside from that, projects sometimes bypass the audit stage, resulting in fraud and a loss of investor funds
Scams and rug pull: A rug pull scenario happens when a project creator takes money from investors and then abandons it, leaving the investors stranded. Rug pulls were common in the bull market of 2021 when several blockchain projects encountered funding problems. Only SushiSwap was able to recover from the exit fraud when many other projects went down.
Final Thoughts
If you’re considering investing in a penny cryptocurrency of any kind, you should keep in mind that the market is quite volatile. Prices might fluctuate at any time for no apparent cause, leaving many people with a negative return.
However, you may minimize this risk by thoroughly researching cryptocurrencies and learning more about the underlying concepts.
