The majority of individuals enter the crypto realm via one of the major exchanges, such as Coinbase, Kraken, or Gemini. What they see are extremely costly bitcoin, moderately expensive litecoin, and extremely expensive ethereum.
This implies he can only buy a fraction of a bitcoin or a few litecoins or ethers, making his moon/lambo fantasy a little less feasible. Other, more affordable coins offered on these exchanges appeal to the naive novice crypto investor, and he considers purchasing a stack of penny cryptocurrencies like as XRP, IOTA, XLM, or ADA.
But, in terms of economics, is that decision sound? Because majority of the low-cost coins are low-cost due to their large quantity (in billions of tokens). The rule of supply and demand mandates results like this: the greater the quantity of a certain thing, the lower its value and price.
Penny cryptocurrencies make for over 35% of the total cryptocurrency market, according to Coinmarketcap (according to data compiled through April 2020). The list of penny cryptos is long, but only a few of them will turn out to be profitable.
It’s critical to create a good investment procedure since most cryptocurrencies will perish and no one will ever talk about them. Our team of experts will disclose which penny cryptocurrencies are on the verge of going to the moon, as well as the finest altcoins to invest in in 2020, throughout this guide.
Let’s dig in and take a look at the upcoming cryptocurrency season together.
Let’s get this party started!
What are penny cryptocurrencies?
A penny cryptocurrency is a digital currency that trades for less than one dollar. Penny cryptocurrencies, like penny stocks, are extremely low-cost coins worth only a few cents.
Penny cryptos are a form of alternative investment that may be broken down into four categories:
- Mining-based cryptocurrencies
- Stablecoins (Check out here What Are Stablecoins And How Do They Work?)
- Security Tokens (Check out everything you need to know about Security Token Offerings)
- Utility Tokens
Most penny cryptocurrencies are more volatile, and price manipulation through pump and dump schemes is a possibility. However, not all penny cryptocurrencies are created equal; they differ greatly.
Why Invest in Penny Cryptocurrencies?
If you’re on on the fence about whether or not you should invest in penny cryptocurrencies, let me explain.
Here are three reasons why you might consider investing in altcoins right now:
Altcoins have a high reward-risk ratio. Many penny cryptocurrencies are undervalued, and we should anticipate the value of altcoins to rise in the near future due to the possibility for widespread use of blockchain technology.
Penny cryptocurrencies provide a means of diversifying one’s investing portfolio. You’ll need diversity in your crypto portfolio if you want consistent profits. Despite the fact that the bitcoin market fall coincided with the coronavirus epidemic, not every coin was destroyed. There are still certain coins that provide a profit (see figure below).
Penny cryptocurrencies provide a source of income that is not dependent on the user. Some of the greatest dividend-paying cryptocurrencies are available for less than a dollar.
We hope you can now see the benefit of purchasing penny cryptocurrencies. These cryptocurrencies, like blockchain technology, are here to stay.
Top Penny Cryptocurrencies
Let’s separate what are simply false promises from the greatest penny cryptocurrency to invest in in 2021.
While the market is now in a bear market owing to concerns over the COVID-19 Coronavirus, skilled crypto traders understand that the finest chances arise during times of crisis.
You could now be wondering:
What altcoins should you buy in in 2020?
These are the best pennies cryptocurrencies 2020 if the cryptocurrency market recovers.
Ripple XRP is also recognized as the most popular cryptocurrency among banks across the world. The XRP payment mechanism has been active since 2012, and it reached an all-time high of around $3.5 in January 2018. Ripple is the world’s third most valuable cryptocurrency by market capitalization, according to Coinmarketcap.
Stellar is presently the 13th most valued cryptocurrency in the world. In the sense that it allows individuals to convert crypto to fiat cash, XLM has a lot of potential. In January 2018, Stellar hit an all-time high of $0.83.
With over 1 million active users, Steem is one of the most active blockchains in the ecosystem. Steem is an internet-based application that focuses on delivering social media and other sorts of communication services. On Coinmarketcap, Steem is now ranked 40th. In January 2018, it hit an all-time high of $7.21.
Enjin Coin is the world’s 59th most valued cryptocurrency. Enjin Coin won one of the greatest cryptocurrency collaborations in history with Samsung, one of the world’s leading mobile phone businesses. ENJ also has a collaboration with Unity, the world’s most popular gaming engine, which is why it should be included in every crypto portfolio.
ENJ all-time high was $0.44, so we’re not that far off from it.
Ren cryptocurrency has a lot of room to develop in the next years. Ren is a cryptocurrency and token transaction facilitator. Basically, any coin or token may be transferred between any blockchain. Ren just hit an all-time high of $0.18 in August 2019.
Ravencoin has grown in popularity as a result of its unique combination of technical and fundamental price movement. RVN is one of the top 50 cryptocurrencies according to Coinmarketcap. Ravencoin hit an all-time high of $0.07 in April of this year.
OmiseGO is another inexpensive cryptocurrency that you can purchase right now. With a small circulating supply and a daily volume that exceeds OMG’s market capitalization, this currency has the potential to skyrocket in value. In January 2019, OmiseGO hit an all-time high of $25.49.
How to find the best cheap cryptocurrency to invest
In this part, we’ll lay out our criteria for choosing the best penny cryptocurrencies. To begin, crypto trading signals will make determining which cryptocurrencies are most likely to grow or drop in value much easier.
It’s critical to have some type of selection procedure so you don’t get lost among the various coins available for purchase.
Before you purchase penny cryptocurrencies today, our team of specialists has compiled a list of ten things to consider:
The circulation supply of a cryptocurrency is between 10 million and 1 billion coins.
A market capitalization of at least $20 million is required.
It has to be listed on the most popular cryptocurrency exchanges (Binance, BitMex, OKEx, Huobi Global, MXC, etc.)
- Remove any penny cryptocurrency with less than 25% of its maximum supply mined.
- The percentage increase in the past seven days must be greater than 50%. (you can view these metrics on Coinmarketcap)
- High liquidity – minimum daily volume exchanged of $1 million
- A significant social media presence (Twitter, Facebook, Reddit and cryptocurrency forums)
- a group of seasoned blockchain developers
- Penny coins at a discount approaching their all-time high
- The third stage is to utilize technical analysis to figure out what’s going on.
Our team of crypto professionals successfully utilized the only criteria you need to know before buying penny coins in 2021.
Where to buy penny coins Binance and other exchange
There are cryptocurrency exchanges that specialize on digital currencies that trade for less than a dollar, similar to Bitcoin exchanges. Binance is the world’s largest and most popular cryptocurrency exchange for penny currencies.
Crypto enthusiasts may trade a wide range of 685 currencies on the Binance platform, which has an average trading volume of $3.9 billion each day;
- HitBTC gives you access to over 827 penny coins and $650 million average daily volume.
- Hotbit gives you access to over 625 penny coins and $2.3 billion average daily volume.
- KuCoin gives you access to over 447 penny coins and $40 million average daily volume.
- OKEx gives you access to over 372 penny coins and $1.9 billion average daily volume.
- Binance gives you access to over 277 penny coins and $93 million average daily volume.
Purchasing penny cryptos with fiat money is nearly impossible. The majority of penny cryptos are exchanged in exchange for Bitcoin or Ethereum. So, if you don’t already have Bitcoins, you’ll need to acquire some before buying your favourite penny cryptocurrency.
The Ledger Nano S is a product of a French firm called Ledger Wallet. The company (Ledger Wallet) has a solid reputation, and I couldn’t think of anything negative to say about their product.
The design of the Ledger wallet has a beautiful and sleek European feel about it. It is a battery-free gadget that connects through USB to a mobile device or a computer. This is undoubtedly the most popular – and, in my opinion, the best – hardware wallet on the market.
The Trezor Bitcoin hardware wallet, developed by SatoshiLabs, was the first of its kind. Trezor is the world’s first secure Bitcoin hardware wallet, having been released in 2014.
It resembles a tiny calculator with an OLED display and connects to your laptop or desktop computer through USB.
This hardware wallet creates keys offline and includes many of the essential functions that a Bitcoin trader requires. The security of this hardware wallet is excellent. In the event that the device is damaged or lost, a 24-word recovery seed key and randomly generated nine-digit pins assure security.
The Model T was introduced on October 31, 2107, the same day that Satoshi Nakamoto published his Bitcoin White Paper nine years before.
Its slim 64mm x 39mm x 10mm frame is attractive and comfortable to hold. The screen also has the advantage of being touch-sensitive. This implies that, unlike its two-button predecessor, the TREZOR T has no buttons.
KeepKey, a third-place finisher, is a hardware device for keeping Bitcoins that is now available on the market.
This hardware wallet has a lovely, though slightly big, design. The KeepKey wallet is about double the size of the Ledger Nano S and Trezor, making it difficult to carry in your pocket.
- The most secure way to keep your Bitcoins safe
- Perfect for those who want to keep a big amount of Bitcoins for a longer period of time.
- Your Bitcoins are safe with two levels of protection in case your gadget is lost or stolen.
- They are simple to set up and operate.
- Your coins are in your possession and are not subject to the control of a third party.
- Hardware wallets provide the advantage of keeping your keys safe offline. They do, however, have certain disadvantages.
- For example, if you lose or forget your recovery seed key and/or PIN number, you won’t be able to access your money.
- That is why it is critical to remember your PIN code at all times.
Investing in penny cryptocurrencies is definitely something to think about. As the name implies, they are inexpensive to purchase and allow you to spread your investment and decrease risk without requiring a large sum of money. It’s crucial to keep in mind that such coins are riskier than well-known cryptocurrencies like Bitcoin or Ethereum. Always do your homework before investing and look for low-cost Altcoins that have a specific function.
Creating a cold wallet is a simple approach to limit the dangers of third-party access that come with most conventional bitcoin storage options. No approach is completely risk-free. Storing coins offline, on the other hand, substantially reduces the risk of losing your investment due to digital methods like as ransomware attacks, exchange bankruptcy, exchange compromise, and other cybercriminal operations.
Real-world risks, such as damage, theft, or loss of private keys, are still as essential as ever, and you should always secure your private keys. In addition, if there is any sign that their privacy has been compromised, you should replace them (put up fresh cold storage) as soon as possible.