The cryptocurrency market is becoming more popular and is particularly popular among speculators. How did formerly “fringe” investments become the centre of financial news? CNBC and other financial networks have price tickers on their screens that indicate the current value of Bitcoin.
I must first mention the following caveats to illustrate the significance of penny cryptocurrencies. It is because penny cryptocurrencies are relative terms. Today, most penny cryptocurrencies currently available on the market are priced at about a penny. With the rise of the cryptocurrency market over the past year, traditional coins like the penny have also increased.
Today’s price of most cryptos is almost ten times what they were in 2017 when you could pick them up for pennies. As a result, penny crypto will cost less than $1 per unit to be worth approximately $10 in the coming year. These penny cryptocurrencies have made many crypto enthusiasts millionaires.
Despite being described as penny crypto, it is still an excellent place to start. If you know how to pick the right ones, you can make a penny in a day from most penny cryptocurrencies. Hence, I have compiled the list of penny cryptocurrencies. Additionally, these penny crypto coins will not only make you rich by 2022. Still, they will also teach you about cryptocurrency investments and provide research opportunities into additional penny crypto coins.
Studying the underlying technology of several penny cryptos is essential since it is the factor that determines their actual value. Will today’s cryptos still be relevant a decade from now? The one clear thing is that blockchain technology may stay around for a while.
Analysts believe that some penny cryptos have high-profit potential, so many are available for trading. There is disagreement among them about which ones are about to spike in popularity. Nobody can say for sure what will happen in the future. It would be best to have a strategy to determine which one to invest in.
What is a penny cryptocurrency?
Like penny stocks, penny cryptocurrencies are fractions of whole cryptocurrencies. As with penny stocks, most cryptocurrencies fluctuate and are easily manipulated. It makes penny cryptocurrencies suitable for investment purposes.
The term “penny cryptocurrency” refers to crypto coins or tokens with a market price of less than $1.
There are four types of them:
Newly minted crypto’s
- Newly Minted Crypto’s
Cryptocurrencies that are newly minted and are not widely known are referred to as freshly minted crypto’s.
- Fallen crypto’s
Cryptocurrencies that were previously valuable but have taken a dip in price because of market conditions are called fallen cryptos.
- Plentiful cryptos
Cryptocurrencies with an ample supply are plentiful cryptos.
- Stagnant cryptos
Stagnant crypto is a coin whose price hasn’t fluctuated for a long time. It should handle Penny cryptos of all types differently. Cryptocurrencies can be regarded as penny stocks since they are volatile and are subject to manipulation.
Why should you invest in Penny Cryptocurrency?
Their cheap cryptocurrencies don’t mean they’re worth investing in them. You may also invest in penny cryptocurrencies for various other reasons, such as diversification of your portfolio, earning more money, etc. Here are a few reasons in detail:
- Income from a passive source:
According to investors, dividend cryptocurrencies that pay the best dividends are usually under $1. As a result, getting a tip from cryptocurrency is similar to picking up bonuses from stocks. As a result, holding penny cryptocurrencies is also a viable option.
These are a few reasons why you should consider investing in penny crypto. However, several factors are to consider, as one wrong choice can lead to a loss, so picking the right cryptocurrency is essential.
- Risk-reward ratio:
Several penny cryptocurrencies are undervalued, and it is anticipated that blockchain technology will be widely adopted, which might raise the value of the altcoins.
- Investment diversification offer:
Investment in various areas will be essential if you want to earn regular returns from crypto. For example, one coin might crash, but another might rise. It is why investing requires diversification.
3 Major Limitations of Penny Cryptocurrencies
There are many different ways to track altcoins, including market capitalization and other factors.
Penny cryptocurrencies come with a fair amount of risk because of their volatile prices. Three main reasons contribute to the exponential growth of this risk:
Lack of information
Scams or rug pulls
As a result of the 2021 Bull Run, several meme tokens were put up for sale on DEXs without editing, with little liquidity. A significant proportion of tokens were distributed to project creators. Since penny cryptocurrencies are often manipulated by a pump or dump scheme, they are susceptible to manipulation. Among the most famous pump and dumps was Redcoin (RDD), whose value dropped by 50% in a short period.
- Lack of Information:
The vast majority of developers of penny cryptocurrencies use pseudonyms to remain anonymous.
It is a fundamental principle of the cryptocurrency industry. Consequently, it is hard to gauge intentions regarding the project as it is hard to measure who is working behind the scenes. These projects also often skip the audit stage, causing them to be deemed scams and causing investors to lose money.
- Scams and Rug Pulls:
If the project founder pulls the rug from underneath investors, it drains their money and causes investors to lose interest. Throughout the 2021 bubble, many projects pulled the rug from underneath investors. SushiSwap was the only one that survived the exit scam after many other projects were destroyed.
Even though penny cryptocurrencies are riskier than Bitcoin, Ethereum, and other altcoins, they frequently provide more significant rewards.
Before diving into the best penny cryptocurrencies in 2021, let’s discuss factors to consider before investing in them.
Before Buying Penny Cryptocurrencies
For buying cryptocurrencies, you should follow a structured selection process. By doing so, you will avoid becoming overwhelmed by the many coins available. A few things you need to consider include:
- Invest in a cryptocurrency with a market capitalization of around 10 million to 1 billion coins
- It should have a market capitalization of at least $20 million and a daily trading volume of $1 million.
- Must list on the largest cryptocurrency exchanges such as: eToro, Coinbase, Binance, BitMex, and KuCoin etc.
- The cryptocurrency’s percentage gain must have exceeded 50% during the last seven days.
- Consider purchasing penny crypto with a minimum of 25% mined maximum supply.
- An exchange must have a high liquidity level, with a minimum 24-hour trading volume of $1 million.
- A solid social media presence is essential on Twitter, Facebook, Reddit, and cryptocurrency forums.
- A blockchain development team with extensive experience should be behind this project. Find out experiences, their mission, and their plan to achieve success.
- Get an overview of the underlying technology of cryptocurrencies and how they work.
- Finally, we should take into consideration the community of crypto users. Visit the various cryptocurrency public forums and comment sections to see how the public feels about crypto.
Penny Cryptocurrencies list
- Inch ($1Inch)
Users can exchange assets from one platform to another more easily using this decentralized exchange aggregator. You can even access it on Gemini, which has one of the strictest restrictions in the world. Several people may be interested in it.
As to the possibility that Inch will be a profitable penny cryptocurrency in 2022, it’s just another penny cryptocurrency out there. There are a lot of opportunities to profit from penny cryptos like these (I wouldn’t bet against them), although it may not make you rich.
- Bloom ($BLT)
During this year, penny cryptocurrencies have already doubled in value. As long as it gets even more traction in 2022 and stays affordable, this penny cryptocurrency has an excellent chance to make you rich. This penny cryptocurrency also has a solid development team, so its future looks bright.
Bloom has developed a decentralized platform to address various problems plaguing the lending industry. It works with BloomIQ and BloomScore and could partner with these companies in the future. People who lack access to traditional methods of building credit may benefit from Bloom’s way of scoring credit.
Bloom creates a new identity based on verified transactions instead of using outdated FICO ratings or spending patterns over time. In addition to ensuring anonymity through Blockchain, BloomIQ allows participants to assess their earning potential.
- Basic Attention Token
This token is one of the best penny cryptocurrencies to buy in 2021 due to its good performance and importance to the cryptocurrency industry. It is based on the Ethereum platform and has the utility of an ERC-20 token.
A market capitalization of approximately $1.2 billion places it as 87th most valuable cryptocurrency globally. According to a current exchange rate of $0.8102, BAT is currently trading within this range.
Using BAT, advertisers can advertise using decentralized blockchain-based exchanges.
An outstanding team of developers and Mozilla co-founders are behind BAT. By targeting three different stakeholders – advertisers, publishers, and users – the BAT project aim to alter how advertising is done radically.
In addition to its excellent network, BAT also provides prompt responsiveness to the community, allowing it to improve over time constantly. Also, they ensure that their users’ privacy and security are protected; they will see their advertisements and get the assistance they need.
- Curve DAO ($CRV)
You can swap Tether into USDC using the Curve – for example, to exchange Tether for USDC. There is also a Gemini version of this, which means everyone can use it. It is possible to join the Curve affiliate program via email (when the Curve emails are sent). It is possible to earn $100 per referral when joining the Curve affiliate program. Infinite Curve is backed by Hikaru, whose primary cryptocurrencies are still in development, though the Blockchain will be used by Curve.
- iExec ($RLC)
The iExec cloud computing platform runs on distributed blockchain technology. A penny cryptocurrency called iExec has capabilities ranging from rendering to machine learning and is committed to establishing a platform for cloud computing resources trading on the iExec network to revolutionize the market for cloud computing.
- Simdaq ($SMQ)
The penny cryptocurrency belongs to the CryptoNote family, which makes transactions anonymous via one-time keys and ring signatures. This penny cryptocurrency is also an exchange that operates without a central authority. Penny cryptocurrency could become quite lucrative indeed!
- 3Gbyte ($GBYTE 3g)
The high transaction speeds of 3gByte make it a standout penny cryptocurrency. Graphene technology underpins 3gByte. With 3gbyte’s price rising by 3,000% last year, it’s one to watch. Also, 3gbyte can be purchased easily on Cryptopia.
- Rover Coin ($ROI)
The idea behind this penny cryptocurrency is to appeal to dog breeders and owners. People can buy and sell their dogs directly through Rover Coin, rather than having to contact intermediaries like most people do today. That way, everyone gets the information they need faster instead of searching through listings they don’t need or getting conned into overpaying.
- WhaleCoin ($WHL)
Ring signatures and one-time keys enable anonymous transactions with this open-source cryptocurrency for pennies. It is an older coin (though it doesn’t necessarily mean less) launched back in May 2015. Likewise, WhaleCoin has transparent mining. All hashes can be seen as generated, perfect for those who don’t want to miss out on opportunities when they are away from their computer!
While playing the WhaleCoin game, you can also earn WhaleCoins.
- Ren ($Ren)
Transparent mining and anonymous transactions are also possible with Ren, like with WhaleCoin. It is easy to purchase Ren on Cryptopia because the exchange offers it. It aims to facilitate asset trades across platforms by providing a decentralized exchange aggregator. Since July, the Ren coin has only been around, so it wasn’t as long as WhaleCoin, but it may even be a penny cryptocurrency that can make you rich in 2022.
- Voyager Token ($VGX)
Within the US, Voyager competes with Coinbase. Unlike Coinbase, which has absurdly high fees, it has no fees, and users can lock up tokens and earn high yields (10%+), not like Coinbase, which offers products of only 2%. But it’s essential to buy $VGX to get higher results. It is still early in Voyager’s stages, but this spacecraft has proven very secure. In contrast to Coinbase, Voyager provides 24/7 customer support. As Voyager gains traction, now is the time to get on board before it takes off!
Before investing in penny crypto!
Don’t make big bets because you could wind up losing everything. Investing in tiny amounts is the best way to get started, regardless of your risk tolerance. Keep your investments below 2% of your entire portfolio.
Make sure you are prepared for extreme volatility. It is best to invest in cryptocurrencies first because you will gain a much better understanding of them. It has high risks and rewards, and the value of your investment can fluctuate dramatically. It is also worth noting that bitcoin has fallen by 48% compared to its April high of Rs 50 lakhs.
Make sure your platform is secure. New crypto business is founded every day, and cryptocurrency is not regulated. Cryptocurrencies are illegal under Reserve Bank of India regulations. Still, they have been ruled unconstitutional by the Supreme Court, which has indicated that the government will take caution when regulating the industry. Utilize a reputable and trusted platform to invest.
Make sure you check all suggestions before you react. A severe lack of credible information plagues the crypto market. Social media is primarily relied upon by investors for unsubstantiated information.
Where to Buy Penny Cryptocurrencies
There are several crypto trading platforms where you can purchase penny cryptos from individuals and purchase an initial coin offering (ISO).
The following are a few crypto exchanges to buy penny cryptocurrencies from:
- A typical daily volume of $1.5 billion on eToro gives you access to over 120 cryptos.
- Binance is the largest cryptocurrency exchange in terms of the daily trading volume.
- There are over 372 penny coins available at OKEx, and the trading volume on the exchange averages $1.9 billion every day.
- A 24-hour average volume of $650 million and more than 827 penny coins are available for trading on HitBTC.
- Trading volume averages $2.3 billion a day for Hotbit, which features more than 650 penny coins.
- Featuring 447 penny coins and an average daily trading volume of $40 million, KuCoin provides traders with plenty of choices.
- There are approximately 94 million penny coins on Bitfinex with roughly $277 million daily.
Now that you know how to buy penny cryptocurrencies in 2021, you have enough information. Penny cryptocurrencies allow you to invest in new projects, diversify your portfolio and earn returns that sometimes exceed 100%. You can save time by automating your trades when using crypto robots to trade, and you will earn passive income as a result.
You can never be particular with 100% accuracy which penny cryptocurrencies are the best to purchase in 2021. However, history tells us that cryptocurrencies will multiply slower as the cryptocurrency markets grow. Additionally, we may see some cryptocurrencies disappear within the next couple of years.
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