Crypto markets are growing at a rapid pace. Investors are always on the lookout for cryptos to earn profit and diversify their portfolios. Investors are particularly looking for affordable investments that offer a high rate of return in the shortest possible time.
Enter penny cryptocurrencies.
The latest entrant to the cryptocurrency markets, penny crypto is the thing to watch.
Read on to find out more!
What is a cryptocurrency penny?
Penny cryptocurrencies are altcoins that you can buy for less than a dollar. They are quite similar to penny stocks and are an affordable option over traditional cryptocurrencies such as Bitcoin and Ethereum. If you want to invest in Ethereum, check its prices and trends (Ethereum to INR).
How to Invest in Penny Cryptocurrencies?
It is not because they are part of cheapest cryptocurrency, this does not mean that they are not subject to volatility.
Here’s how to get the most out of your investment in this currency:
Do your research
It is useful to know the basics of the currency in which you plan to invest. For example, browse their website and white paper, if available. You need to be convinced of the motto and the problem it solves. Get to know the team behind the currency through their online profiles. Read reviews to find out what people are saying about this particular currency.
Know the fundamentals
The purpose of launching the penny cryptocurrency is the same as other cryptos. It is a question of removing all the obstacles linked to traditional banking. Apart from this basic purpose, there are other reasons why particular currencies have been launched. These include facilitating low-cost and easy account transfers, selling digital artwork, and more.
Total parts supply
The total supply is the limit of coins of a particular cryptocurrency that would be available in the market. If there is an increase in the price of a coin with high volumes, the price will move relatively slower compared to a coin with the same price but lower volumes.
What are the benefits of penny cryptocurrencies?
Here are some good reasons to invest in penny cryptocurrencies:
- Since it is assumed that blockchain technology will be adopted by more businesses and individuals in the future, it is expected to offer a high reward rate.
- They offer essential diversification of your crypto portfolio at affordable rates.
What are some of the best penny cryptocurrencies?
Here are some of the best 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 of all income levels.
Launched by the co-founder of Ethereum, it is an ambitious third generation blockchain. He works on interoperability and scalability of transactions. The currency is favored for its low transaction fees and an experienced development team.
Thanks to Elon Musk, DOGE is among the most popular cryptos in the world. This is a meme coin and was started as a bitcoin joke. It is one of the cheapest currencies to invest in and also one of the most profitable.
What are some tips for investing 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 and 1 billion coins.
- It should be listed on credible crypto exchanges such as MXC and Binance.
- It must have transparent reporting and must have a strong social media presence.
Although penny cryptocurrencies have a higher risk, their rewards are just as attractive. Always check out reliable platforms such as Coinswitch to keep up to date.