The crypto markets are gaining momentum at a rapid rate. Investors are always on the lookout for cryptos to gain profits and diversify their portfolios. Investors especially look for affordable investments that offer a high rate of return within the shortest possible time.
Enter penny cryptocurrencies.
The latest entrant to the cryptocurrency markets, penny crypto is the thing to watch out for.
Read on to know more!
What are penny cryptocurrencies?
Penny cryptocurrencies are altcoins that you can purchase for less than a dollar. They are quite similar to penny stocks and are an affordable option when compared to regular cryptocurrencies such as Bitcoin and Ethereum. If you wish to invest in Ethereum, check its prices and trends (Ethereum to INR).
How To Invest in Penny Cryptocurrencies?
Just because they are amongst the cheapest cryptocurrency, it doesn’t mean that they are not subject to volatility.
Here is how to make the most of your investment in this currency:
Do your research
It helps to know the basics about the penny currency that you are planning to invest in. For instance, go through its website and its whitepaper, if any. You should be convinced about the currency and what problem it is solving. Get to know the team behind the currency through their online profiles. Read the reviews to get to know what people are saying about this particular currency.
Know the fundamentals
The objective of launching penny cryptocurrency is the same as that of other cryptos. It is to remove all obstacles involved in traditional banking. Besides this fundamental objective, there are other reasons why particular penny currencies have been launched. These include facilitating low-cost and easy account transfers, selling digital artworks, and more.
Total coin supply
Total supply is the limit of coins of any particular cryptocurrency that would be available in the market. If there is an increase in the price of a coin whose volumes are high, the price will move relatively slower as compared to a coin priced at the same level but has lower volumes.
What are the benefits of penny cryptocurrencies?
Here are some great reasons to invest in penny cryptocurrencies:
- Since it is assumed that blockchain technology will be adopted by more businesses and individuals in the future, they are expected to offer a high reward ratio.
- They offer an essential diversification in your crypto portfolio at affordable rates.
Which are some of the best penny cryptocurrencies?
Here are some of the best penny cryptocurrencies to look out for:
Stellar Lumens (XLM)
Launched in 2014, Stellar Lumes is an open-source blockchain that focuses on faster cross-border payments and remittances. It is one of the fastest-growing cryptos and aims to become a low-cost financial service for people from all income levels.
Cardano
Launched by the co-founder of Ethereum this is an ambitious third-generation blockchain. It works on interoperability and scalability of transactions. The currency is favoured for its low transaction fee and an experienced development team.
Dogecoin (DOGE)
All thanks to Elon Musk, DOGE is amongst the most popular cryptos in the world. This is a meme coin and was launched as a joke on Bitcoin. It is one of the cheapest currencies to invest in and also one of the most profitable ones.
What are some tips to invest in penny cryptocurrencies?
Here are some things to keep in mind before investing in crypto:
- Invest in crypto that has a supply of between 10 million-1 billion coins.
- It should be listed on credible crypto exchanges such as MXC and Binance.
- It should have transparent reporting and must have a strong social media presence.
Though penny cryptocurrencies come with a higher risk, their gains are equally attractive. Always educate yourself through reliable platforms such as Coinswitch to keep yourself updated.
