Best Penny Cryptocurrency to Invest In
24 Jun, 2022
Best Penny Cryptocurrency
With each passing day, more and more people are becoming interested in cryptocurrency. Today's most successful investors are continually on the lookout for opportunities to grow their portfolios' equity. Furthermore, the best investors have diversified portfolios.
It is common for consumers to look for low-cost alternatives to invest in, which has led to a rise in demand for penny cryptocurrencies.
The term "penny cryptocurrency" refers to digital assets that can be purchased for as little as a few cents (less than $5) per unit. Due to their small market capitalization (though this isn't always the case), penny cryptocurrencies are high-risk investments. The benefit of investing in penny cryptocurrencies is that you don't require a large sum of money.
Nevertheless, the goal of every investment is to generate a return on its initial investment over time. Therefore, if you are interested in trying your hand with penny cryptocurrencies, you should prioritise those that have the potential for value growth within a decent period of time. However, that’s not an easy task. The potential of a cryptocurrency is heavily influenced by a wide range of circumstances. The project's technical competency, the development team, and the resulting buzz all play a part in its success.
Investing in the right penny cryptocurrency could result in a bigger return on your investment (ROI). In other words, what's the best penny cryptocurrency to invest in right now? We've compiled a list of the top penny cryptocurrencies to invest in to assist you in making better investment decisions.
1. Shiba Inu (SHIB)
In 2021, Shiba Inu has performed exceptionally well in terms of price performance. Dogecoin was released in August 2020. On August 12, 2020, the price of one SHIB coin was $0.000000000157. Things took a dramatic turn in May 2021 after a spike in prices. On May 9th, the price of one SHIB coin was $0.00003503. An all-time high price of $0.00008845 was set on October 28, 2021, for Shiba Inu.
The current value of a SHIB coin is $0.000000037. However, interest in this cryptocurrency appears to be growing rather than fading. Shiba Inu's association with Dogecoin (DOGE) may have contributed to the cryptocurrency's rise in popularity. SHIB has become the 13th most valuable cryptocurrency on the market as a result of the rush of new investors.
For Shiba Inu's success, publicity has also been an important ingredient. You can't expect to make a profit by holding this coin for a long period. When celebrities like Elon Musk tweet about how much they love the product they're selling, we notice an increase in the price. Followed by enormous price revisions. However, the Shiba Inu could revive in 2022.
2. VeChain (VET)
The VeChain project is one of the most sophisticated blockchain projects to date. It tries to address several critical supply chain issues. Supply chains will become more efficient, traceable and transparent thanks to VeChain's blockchain technology. It has been a challenging year for the supply chain industry. As a result, there has been an increase in public interest in projects like VeChain
Two coins make up the VeChain platform: VET and VTHO. VET tokens are traded on exchanges for speculative purposes. Additionally, the blockchain is used for staking and governance on the network, as well. In the year 2021, this token performed admirably.
On April 17, 2021, the VET token reached an all-time high price of $0.2782. As recently as July 19, the token's value decreased to $0.05783. It was trading at $0.1757 on November 7. VET tokens are now trading at $0.096 per token. A new all-time high might be hit in 2022 for the 32nd-largest cryptocurrency by market capitalization.
3. Stellar (XLM)
One of the most impressive blockchain-based payment systems is Stellar. As a peer-to-peer payment system, Bitcoin is the oldest and most widely used system. However, it was only a matter of time before other projects would appear that could process transactions more quickly. One such project is Stellar, which provides lightning-fast digital coin remittances.
Stellar has built one of the most advanced payment systems in the world since its foundation. In addition, it has formed strategic alliances with some of the biggest names in the crypto and traditional finance worlds.
Stellar's native token, XLM, supports multi-currency payments. During the bull run in crypto in 2017-2018, it reached its all-time price high. On January 4, 2018, it hit a peak of $0.9381. For the next two and a half years, XLM's price fluctuated modestly. On May 10, 2021, the price of XLM rose to $0.73, with a strongly rising trend.
Despite the token's current price of $0.28 at the time of writing, a new boom is very likely in 2022. According to market capitalization, this cryptocurrency is ranked 27th.
4. Cardano (ADA)
A prominent blockchain platform for the development of decentralised applications, Cardano is an excellent choice (DApps). It has used a proof-of-stake (PoS) consensus process effectively. In September 2021, this platform began delivering decentralised financial (Defi) services, which use smart contracts. ADA, the company's native token, can be staked to earn interest.
In 2017, ADA was introduced. During the bull run in crypto in 2017-2018, it performed well in terms of price. However, it didn't last long. For nearly three years, ADA did not perform well. However, ADA's value has risen rapidly since the beginning of 2021. On September 2, 2021, it reached an all-time high price of $3.10.
At the time of this writing, the ADA price is $1.35, however, it is still the 6th largest cryptocurrency by market cap. As a result, a significant increase is expected in 2022.
5. Hedera (HBAR)
Hedera is a public network that enables anyone to build decentralised apps of their design (DApps). The hashgraph consensus mechanism is introduced by this platform. Instability and slowness are no longer problems for Hedera because of this breakthrough. Using the hashgraph consensus process, 10,000 transactions can be completed in just one second.
Services like smart contracts are powered by the platform's native coin, which is called HBAR. Staking helps to keep the network safe. Before 2021, HBAR's share price did not perform well. As a result, this token's value has reached an all-time high price this year. On September 16, HBAR was trading at $0.5701.
In 2022, the HBAR price is expected to reach a new all-time high. By market capitalization, HBAR is the 38th most valuable cryptocurrency.
Where Can I Buy Penny Cryptocurrencies to Invest In?
A large variety of different penny cryptocurrencies are available for trading on most cryptocurrency exchanges. These coins can be purchased with fiat money through custodial exchanges. A crypto-to-crypto exchange is an option if you already own digital coins. The coins listed above can be traded instantly on our platform, which includes more than 200 other cryptocurrencies.
Why Do People Find Penny Cryptocurrency to Invest in So Attractive?
Traders and investors are drawn to penny cryptocurrencies because of their low cost. However, since cryptocurrency is so cheap, you should invest in it right away. Consider the following:
Provides Potential for a Large Payoff
The value of most penny cryptocurrencies is understated. If the penny cryptocurrency initiative is a success, the value of the coin might soar quickly. Those investors who are willing to take on the risk of investing in these currencies stand to win enormously in the long run.
Aids in the Diversification of Investments
Investing veterans know that the best approach to avoid large losses is to have a diverse portfolio. To diversify your portfolio without incurring large costs, penny cryptocurrencies are an excellent choice.
Provides an Opportunity to Earn Passive Income
It takes a lot of time to trade cryptocurrencies. As a result, penny cryptocurrencies can be stored and used to fund other investments. You'll have more time to trade for more valuable coins if you do it this way.
How to Pick the Best Penny Cryptocurrency to Invest in?
Investing in a specific cryptocurrency requires extensive research and analysis of market data Technical analysis is the best technique to identify the most promising penny cryptocurrencies. You can predict the coin's future price performance based on this analysis.
In the absence of time or expertise, the following aspects of a coin should be taken into consideration:
Circulating supply of around 10 million - 1 billion coins.
Mined coins (minimum of 25% of total supply).
At least $1 million trade volume each day.
A market cap of at least $20 million.
At least 50% growth over 7 days.
Also, see if the penny cryptocurrency you're considering investing in is listed on popular exchanges like Binance or Coinbase. Study the development team's background. Invest in currencies that have a well-established team of developers and a strong social media presence. However, if you don't have the time or inclination to complete this study, you can simply select a penny cryptocurrency from the list we supplied.
Without a doubt, the risks associated with investing in penny cryptocurrencies are high. However, if things turn out well in the future, it will pay off. It's therefore a simple matter of making a decision and taking joy in the profits from your penny crypto investments.
Please keep in mind that the aforementioned information is solely based on our observations and is being offered strictly as educational material. Neither does it reflect an official forecast nor does it represent any type of financial advice. Investing in cryptocurrency is a high-risk undertaking, and you do it at your own risk.