Penny Cryptos: Best Low-Cost Investments For Quick Gains

Penny cryptocurrencies are digital assets that trade for less than $5 per unit, often for just a few pennies. They are a popular choice for crypto enthusiasts looking for low-cost investments with big growth potential. However, it's important to remember that penny cryptos are high-risk investments due to their small market capitalization.

- Lucky Block (LBLOCK)

- Stellar (XLM)

- Dogecoin (DOGE)

- Ripple (XRP)

- Ravencoin (RVN)

- Basic Attention Token (BAT)

- Tron (TRX)

- Cardano (ADA)

- Binance Coin (BNB)

- U.S. Dollar Coin (USDC)

Pros and cons of investing in penny cryptos

Pros of Investing in Penny Cryptocurrencies

Penny cryptocurrencies are digital assets that trade for low prices, usually under $1, and even for mere fractions of a cent. They are cheap to invest in and can be a good option for those who don't have a lot of money to invest. Here are some of the pros of investing in penny cryptos:

• Lower Barrier to Entry: Penny cryptos allow you to invest in projects with smaller initial outlays. For example, if a penny crypto trades at $0.05, you can buy 100 tokens for just $5.
• Early Adopter Advantage: Investing in penny cryptos, you become a pioneer, investing in potentially groundbreaking projects before the mainstream takes notice. Imagine investing in a company like Uber when it was just starting out.
• Explosive Growth Potential: Penny cryptos have the potential for massive price increases. For example, Dogecoin started 2021 at around $0.004 and surged to over $0.70 by May, representing a more than 17,000% increase in just a few months.

Cons of Investing in Penny Cryptocurrencies

On the other hand, penny cryptos are also very risky and highly volatile. Here are some of the cons of investing in penny cryptos:

• Unpredictable Pricing: The price of penny cryptos is difficult to predict due to limited information, infrequent trading, and the scope of fraudulent activities.
• High Risk: Penny cryptos are typically issued by small companies that haven't yet reached their potential, so they are riskier investments.
• Lack of Information: It can be challenging to find information about penny crypto companies, such as their financial soundness, management quality, and overall performance.
• Low Trading Volumes: Penny cryptos often have low trading volumes, which can make it difficult for investors to buy or sell.
• Susceptible to Scams: Due to the low trading volumes and stock prices, penny cryptos are attractive to scammers aiming to manipulate prices to make profits at the expense of unsuspecting investors.

In conclusion, investing in penny cryptos can be a lucrative opportunity, but it is also a very risky venture. It is important to do thorough research and understand the high level of risk involved before investing in penny cryptocurrencies.

How to choose the best penny cryptos

Penny cryptocurrencies are a risky but potentially rewarding investment option. They are characterised by their low market value, usually costing under $1, and are more volatile than prominent cryptocurrencies.

• Market Capitalisation: Look for penny cryptos with a reasonable market capitalisation. A higher market cap indicates greater stability and potential for long-term growth.
• Liquidity: Ensure that the cryptocurrency is actively traded on exchanges. Higher liquidity allows for quick buying and selling without significantly impacting the market price.
• Development Team: A competent and experienced development team increases the likelihood of successful project execution and sustained growth.
• Technology and Use Case: Evaluate the underlying technology and the specific use case of the cryptocurrency. Seek out projects with practical and innovative applications that address real-world problems.
• Community Support and Momentum: A vibrant and engaged community can positively influence the cryptocurrency's success. Look for active discussions, social media promotion, and community contributions such as testing, feedback, and spreading awareness.
• Risk Management: Penny cryptos are inherently risky due to their low price, high volatility, and limited liquidity. Assess your risk tolerance and conduct thorough research before investing.
• Price History and Volatility: Penny cryptos with a longer price history can provide more data for technical analysis, helping you make more informed trading decisions. Be prepared for acute price fluctuations as small orders can significantly impact prices due to low liquidity.
• Regulatory Considerations: Penny cryptos are more susceptible to pump-and-dump schemes due to their low prices. Exercise vigilance and conduct due diligence to mitigate the risk of falling victim to such schemes.
• Diversification: Instead of investing heavily in one or two cryptos, consider diversifying your portfolio by investing smaller amounts in various penny cryptocurrencies. This strategy can help manage risk and maximise potential gains.
• Long-Term Potential: Evaluate the stability and growth potential of the project. Some traders seek out assets with the potential for sustained long-term growth rather than short-term gains.
• Transparency and Credibility: Opt for penny cryptos with transparent financial reporting and sustainable business models. Scrutinise the use case, potential for pump-and-dump schemes, and the level of transparency to make an informed decision.

Best penny cryptos to invest in 2024

Penny cryptocurrencies are digital assets priced at under $1, though some definitions also include tokens under $5. They are often appealing to investors due to their low cost, potential for significant returns, and their nascent state of development. However, they are also highly volatile and susceptible to pump-and-dump schemes. Here are some of the best penny cryptos to consider investing in for 2024:

Shiba Inu (SHIB)

Shiba Inu started as an experiment in decentralized community building in 2020 and has since evolved into one of the most active and robust crypto ecosystems. It has a passionate community, a dedicated DEX and NFT marketplace, and recently launched a layer 2 solution, Shibarium. With its current price of around $0.000033, an investment in Shiba Inu could generate massive returns if the coin ever reaches $1.

Tron (TRX)

Tron is a blockchain-based operating system that aims to decentralize the internet and empower content creators. It prioritizes giving creators ownership of their content and direct consumer interactions. Tron has been around since 2017 and is within the top 50 largest cryptocurrencies by market cap, making it a more stable investment option. Its price typically ranges from $0.05 to $0.15.

Stellar (XLM)

Stellar is an open-source payment network that launched in 2014. It allows users to create, send, and receive digital representations of all forms of money. The platform has processed over 3.6 billion operations by more than 6 million accounts. Stellar's native cryptocurrency, XLM, is one of the larger cryptos by market cap but is still affordable, typically trading between $0.15 and $0.60.

Fetch.ai (FET)

Fetch.ai is a blockchain platform that integrates artificial intelligence and machine learning. It offers digital twins, or digital versions of the user, that can handle everyday tasks and assist entrepreneurs. Fetch.ai is one of the more unique and interesting crypto projects, but it doesn't have a large market cap yet and often trades for well under $1, making it a hidden gem worth considering.

Proton (XPR)

Proton is a payment blockchain designed for purchases and peer-to-peer transactions. It can process 4,000 transactions per second, and transactions are free for users. Proton aims to build verified identity records into its payment system, allowing businesses and individuals to have their own accounts. Proton typically trades for a fraction of a cent to $0.02 and has the potential for substantial growth.

Harmony (ONE)

Harmony is a blockchain platform that utilizes sharding technology to improve the efficiency and scalability of decentralized applications (DApps). By using random state sharding, Harmony divides its network database into smaller segments, significantly enhancing performance. Harmony's native cryptocurrency, ONE, typically trades between $0.05 and $0.30.

Other Mentions

Other penny cryptos that have been mentioned as worth considering for 2024 include Basic Attention Token (BAT), Pepe Coin (PEPE), Floki Inu (FLOKI), and Holo (HOT). Remember to always conduct your own research and invest cautiously, as penny cryptos are highly volatile and carry more risk than larger, more established cryptocurrencies.

Best penny cryptos to invest in 2022

Penny cryptocurrencies are digital assets that are priced at less than $1. They are popular among crypto enthusiasts as they are low-cost options with the potential for significant returns. However, it's important to remember that investing in penny cryptocurrencies is risky due to their low market capitalization, high volatility, and potential for market manipulation.

• Tron (TRX): Tron is a blockchain-based operating system that aims to decentralize the internet and enable direct transactions between content creators and consumers. It has been around since 2017 and is one of the more stable penny cryptocurrencies.
• Stellar (XLM): Stellar is an open-source payment network that allows users to create, send, and receive digital representations of all forms of money. It has been processing transactions since 2014 and has a strong track record of reliability.
• Proton: Proton is a payment blockchain designed for purchases and peer-to-peer transactions. It can process 4,000 transactions per second, and the transactions are free for users. Proton usually trades for a fraction of a cent to $0.02, and it has the potential for substantial growth.
• Shiba Inu (SHIB): Shiba Inu is a meme cryptocurrency that has gained significant popularity. It has a passionate community and the potential for future use cases, including decentralized exchanges, NFTs, and gaming.
• Fetch.ai (FET): Fetch.ai is a blockchain platform that utilizes artificial intelligence and machine learning. It offers "digital twins," which are digital versions of the user designed to make their lives easier by handling everyday tasks.
• Harmony (ONE): Harmony is a blockchain platform that uses sharding technology to improve the efficiency and scalability of decentralized applications (DApps). It employs random state sharding to divide its network database into smaller segments, resulting in better performance and capacity.
• Floki Inu (FLOKI): Floki Inu is a meme coin that combines utility with memes. It is developing four major utility projects, including an NFT and merchandise marketplace, an NFT gaming metaverse, and decentralized finance products.
• Holo (HOT): Holo is a decentralized cloud hosting platform for peer-to-peer applications built on the Holochain framework. It enables users to create and host distributed apps (hApps) without the limitations of blockchain technology.
• Ravencoin (RVN): Ravencoin is a blockchain specifically designed for the efficient creation and transfer of digital assets. It supports a wide range of applications, including tokenized securities, digital collectibles, and representations of tangible assets.
• Ankr: Ankr is a blockchain-based cloud computing platform that offers multi-chain tools compatible with different blockchains. It provides an opportunity for investors to earn through cryptocurrency staking.

It is important to note that investing in penny cryptocurrencies carries a high level of risk. Before investing, conduct thorough research, assess your risk tolerance, and only invest what you can afford to lose.

How to buy penny cryptos

Penny cryptocurrencies are a risky but potentially rewarding investment. They are a low-cost entry point into the crypto market, but it's important to be aware of the higher volatility and risks associated with these assets. Here is a step-by-step guide on how to buy penny cryptos:

Step 1: Research and Due Diligence

Before investing in any penny cryptocurrency, it is crucial to conduct thorough research. Evaluate the project's whitepaper, goals, technology, roadmap, use cases, and dynamics. Assess the credibility and expertise of the development team. Consider the market capitalization, liquidity, and community support behind the crypto. Analyze historical data, market trends, and the technology underpinning the crypto.

Step 2: Assess Your Risk Tolerance

Penny cryptos are highly volatile and carry higher risks than more established coins. Before investing, understand your risk tolerance and ensure you do not invest more than you can afford to lose. Diversifying your portfolio by investing in multiple penny cryptos can help mitigate some of the risks.

Step 3: Choose a Penny Crypto

Based on your research and risk assessment, select a penny cryptocurrency that aligns with your investment goals and risk tolerance. Some popular penny cryptos include Pepe Unchained ($PEPU), Crypto All-Stars ($STARS), Shiba Shootout ($SHIBASHOOT), and Tron (TRX).

Step 4: Find an Exchange or Platform

Once you have selected the penny crypto you want to invest in, you need to find a platform or exchange to make your purchase. For presale coins, you can usually buy directly from the provider's website. For more established coins, you can use centralized or decentralized exchanges such as Binance, CoinDCX, WazirX, or Mudrex. Compare fees, security measures, and available trading pairs before choosing an exchange.

Step 5: Set Up a Crypto Wallet

To store and manage your penny crypto, you will need a crypto wallet. There are various types of wallets available, such as hot wallets (online or software-based) and cold wallets (offline or hardware-based). Choose a wallet that offers the security and features you need. MetaMask is a popular option for buying and storing penny cryptos.

Step 6: Make Your Purchase

Connect your wallet to the chosen exchange or platform. Select the network you want to use for the transaction, such as Ethereum, Binance, or Tether. Enter the amount of crypto or fiat currency you wish to exchange for the penny crypto tokens. Follow the platform's instructions to complete the transaction and purchase your chosen penny crypto.

Step 7: Claim and Manage Your Tokens

After purchasing your penny crypto, follow the instructions provided by the project or exchange to claim your tokens. You may need to use the same wallet and network you used during the purchase. Once you have claimed your tokens, you can choose to stake, trade, or hold them. Staking allows you to earn rewards or passive income, while trading involves exchanging your tokens on decentralized exchanges.

Remember, investing in penny cryptos is a risky endeavor, and there is always the potential to lose money. Conduct thorough research, assess your risk tolerance, and consider diversifying your portfolio to mitigate some of the risks associated with these volatile assets.

Frequently asked questions