A Penny cryptocurrency is a fraction of a full cryptocurrency. Most cryptocurrencies are similar to penny stocks in that they are extremely volatile, prone to manipulation, and only cost a few cents. As a result, penny cryptocurrencies are unsuitable for use as a store of value.
There are four types of cryptos: abundant cryptos, newly minted cryptos, stagnant Cryptos, and fallen cryptos. Plentiful cryptos are coins with a huge supply, while recently minted cryptos are coins that are new to the market and aren’t well-known.
Stagnant cryptos are coins that have been on the market for a long time but whose price does not move at all, and fallen cryptos are coins that used to be worth a lot but have dropped in price owing to market changes.
All of these different kinds of penny cryptos must be dealt with differently. In general, cryptocurrency is comparable to penny stocks in that it is susceptible to manipulation and carries a high level of volatility.
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What makes them attractive to investors?
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It would be impossible to find someone who has never heard of Bitcoin or cryptocurrency exchanges in this day and age. This cryptocurrency has catapulted the crypto business into the mainstream, with an increasing number of people wanting a piece of the action.
Due to its liquidity and popularity, the bulk of investors prefer huge cryptocurrencies like Bitcoin. However, an increasing number of investors are opting for lesser cryptocurrencies that only cost a few cents to invest in. Because these smaller coins are less expensive, they have a lot of room to expand.
Even though penny cryptocurrencies are a high-risk investment, the past has shown that they may be profitable. Stellar Lumens and XRP are two examples of penny cryptos that have risen through the ranks over time to become major players.
Others invest in penny cryptos since they don’t have much money to invest and a less expensive coin is the best option for them. Whatever the reason or purpose, we are seeing an increase in the number of people interested in investing in more esoteric coins.
Different penny cryptocurrencies to buy and invest in:
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The penny cryptocurrencies are legal to buy and trade. There are many penny cryptocurrencies out there in the market and are legal to invest in. The different penny cryptocurrencies to buy include :
1. Ripple (XRP)
Ripple’s cryptocurrency, XRP, has a variety of applications. The penny cryptocurrency’s parent company has partnered with a number of financial companies and banks to use the coin for cross-border settlements. The crypto community questions whether XRP is decentralized or not because, unlike bitcoin, it is pre-mined and Ripple owns half of the total value.
2. Basic Attention Token
Basic Attention Token is a promising penny cryptocurrency that currently ranks 34th in terms of market capitalization. Because it is integrated with the Brave Browser and has a fantastic team behind it, including the original developer of JavaScript and a co-founder of Firefox and Mozilla, BAT(Basic Attention Token) has a bright future. It reached $0.88 that was an all-time high price in January 2018.
3. Ravencoin(RVN)
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Ravencoin (RVN) is a fork of Bitcoin which is a relatively new token, and having only been since January, 2018. The Ravencoin blockchain was created with a specific goal in mind. On the one hand, it should aid in the accurate determination of asset ownership. Ravencoin, on the other hand, akin to Bitcoin, aims to enable direct payments.
4. Tron(TRX)
According to investors, Tron is one of the penny cryptocurrencies with the potential to grow in the future. This year, i.e., 2024, the TRON network announced many large agreements that could help the coin gain traction. TRX is currently trading at $0.0146 and has a 24 hours trading value of $942,202,039. TRX’s all-time high was $0.2316, which it reached in January 2018.
5. Stellar Lumens (XLM)
Stellar Lumens or XLM is a cryptocurrency that specializes in remittances and cross-border payments.
Stellar aspires to establish an open financial system that provides low-cost financial services to people of all economic levels. Among the services available include, but are not limited to:
- Mobile Money
- Mobile Branches
- Micropayments
- Remittances
In addition to these services, the network’s Distributed Exchange is a very powerful feature. The platform’s exchange anchors allow users to liquidate/swap their assets for other cryptocurrencies or fiat currency.
6. ZIL (Zilliqa)
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The Zilliqa (ZIL) blockchain is one of the first to use a sharded architecture. It includes smart contracts written in Scilla, the platform’s own programming language. Zilliqa is another low-cost cryptocurrency with a high fundamental value, supported by Neo Global Capital, One Block Capital, and other 14+ venture capital firms. If you ask us, it’s a terrific cheap coin to acquire.
7. RSR (Reserve Rights)
Reserve Rights (RSR) is a utility token for the Reserve Protocol, an Ethereum-based stable coin ecosystem. The Reserve Protocol uses a two-token model: the RSR utility token and the RSV stablecoin, both of which are backed by a pool of assets.
Reserve has received funding from well-known venture capitalists such as Peter Thiel, Coinbase Ventures, and Sam Altman. It’s a strong contender for one of the best low-cost alternatives.
Conclusion
If you’re considering investing in a penny cryptocurrency, keep in mind that the crypto market is extremely volatile. Prices might fluctuate at any time and for no apparent reason, leaving many people short and at a great loss.
However, you may lower your risk by conducting extensive research and learning more about the basics of cryptocurrencies.
