If you're looking to make money or invest in a way that will generate handsome returns, cryptocurrency is the latest buzzword. The Blockchain market offers more than 5000 cryptocurrencies. The general public is interested in buying or investing in cryptocurrencies that offer similar gains to Bitcoin. The growth of any other cryptocurrency will be difficult to predict, as Bitcoin experienced astronomical growth in recent years. You should not lose heart, there are still a few penny cryptocurrencies you can invest in today that could potentially return 10x-100x of your original investment.
The first cryptocurrency to be released was Bitcoin (BTC), which is currently the most valuable cryptocurrency by market capitalization. Although most people would like to buy Bitcoin, the price is quite high. Aside from price, one would have to wait for a long time before they achieve the desired return on investment when investing in Bitcoin. Therefore, investors are seeking out more affordable but more lucrative investments. Due to the explosive value of most mainstream cryptocurrencies, almost everyone is trying to discover the next best cryptocurrency that will be the next Bitcoin or Ethereum. As the cryptocurrency market matures, the number of diamonds in the rough keeps shrinking.
The term penny cryptocurrency refers to digital currencies that can be purchased for less than $1. As with penny stocks, they are very cheap assets whose value is only a few pennies. Investing in such cheap cryptocurrencies has the advantage of having a high profit potential. Cryptocurrencies are thought of as one of the best investments. You can categorize them as follows:
Penny cryptocurrencies are extremely volatile in price and are vulnerable to price manipulation through pump and dump schemes. The penny cryptocurrencies differ widely from one another, however, as they are not all the same.
Reasons to invest in penny cryptocurrencies
Cryptocurrencies are primarily designed to fix the problems of traditional currencies and give currency holders more power. Cryptocurrencies, however, are becoming increasingly popular as a form of investment. Since it has shown the ultimate rise that has helped many people to grow their money.
There are three solid reasons why you should buy penny cryptocurrencies today if you are still unsure whether they are worth your investment:
The penny cryptocurrency market offers high rewards despite the high risk: Many penny cryptocurrencies are undervalued, and with the increased adoption of blockchain technology, it is likely that the value of these assets will increase exponentially in the near future.
Penny cryptocurrencies offer diversification, which is important if you want constant returns on your crypto portfolio. Despite the Coronavirus pandemic and increased regulation, the cryptocurrency market remains uncertain. Because some of the cryptos are so expensive, it would be wise to invest in a variety of them so that if one crashes, you can still utilize another.
The best dividend-paying cryptocurrencies are mainly those that are valued under $1. According to investment analysts, cryptocurrencies worth a penny can provide passive income. Dividends from cryptocurrencies can be earned just like stock dividends. Thus, if you hold penny cryptocurrencies in your wallet or exchange, you can also earn money.
Investing in penny crypto currencies has now become clear to you. We are in the era of the blockchain, and it will not go away. In other words, we are likely to see more and more cryptocurrencies emerge.
Steps to buy worth tokens
It is possible to build an easily accessible portfolio of high-potential penny cryptocurrencies by 2022 by following a certain technique. It involves the following steps:
1. Look for high-profile new projects
Consider the people behind a cryptocurrency before investing. Do not invest in projects with anonymous founders. The era of anonymous launches is over. You need to look at the marketing strategy in addition to the technical capabilities. In detail, you should consider the team's past experience in digital marketing, particularly in its ability to build hype on social media.
2. Look at how well existing crypto has been adopted so far if you go with it
New projects will have the highest potential returns in upcoming year, but you shouldn't ignore existing projects either. The adoption rate should be your first consideration if you decide to use an existing project. After all, it shows the project has actual demand. The project has a good amount of hype, so that tells me it has intrinsic value and will easily outperform the market.
3. Consider the Price of an Existing Project
After ensuring that the project you are considering is well-adopted, the next most important factor is the current price.
Currently, the price of a penny cryptocurrency with 100x or more potential should be quite low. At the peak of a bull market, you should buy low and sell high. If you want to maximize ROI, then you should consider a project with a depressed price, or one that is trading sideways at the moment.
4. Take A Closer Look At The Hype
It is more common than anything else for penny cryptocurrencies to thrive on hype. Those penny cryptocurrencies that are already gaining momentum in social circles are the best to buy in 2022. Since there are many websites that track upcoming crypto events months in advance, this is easy to do.
Things to Consider Before purchasing Penny Currencies
In order to choose the best cryptocurrency, one must follow a structured selection process. By doing so, one avoids becoming confused among the many coins available today. Listed below are some things to consider:
The circulating supply of a cryptocurrency should range between 10 million and 1 billion coins
The crypto should have a market cap of at least $20 million and a daily volume of at least $1 million.
Listing on major cryptocurrency exchanges like eToro, Coinbase, Binance, BitMex, Kucoin, etc.
Buy penny cryptocurrencies whose supply has been mined at least 25%.
Over the last seven days, the crypto's percentage gain must have exceeded 50%.
The volume traded should be at least $1 million per day.
Social media presence (Twitter, Facebook, Reddit, cryptocurrency forums) is essential.
The project should be led by an experienced team of blockchain developers. Learn their background, mission, and plans to accomplish the project.
Get to know how cryptocurrency works and what it is used for whether it is a security token (like a stock) or a utility token (coins redeemable for services).
The community itself is another important factor to consider. Examine various cryptocurrency public forums and talk sites for public sentiment and comments.
You can tell whether a project is legitimate and professional based on its whitepaper. By reading the White paper, you will be able to understand how a crypto differs from others in the market.
Top most Penny Cryptocurrencies 2022
A question related to the penny cryptocurrencies is always revolving in the people’s mind which penny cryptocurrency is the best these days. So, bearing this question in mind, we have decided to share the top most penny cryptocurrencies of 2021 with you. Here is the answer to your question:
Dogecoin (DOGE):
From the establishment of Dogecoin, it is the most popular around the globe. Since 2013, Dogecoin has not changed the logo of a Shiba lnu dog. However, the crypto price was ordinary for a few years. Presently, Dogecoin has been included in the world's top most valuable cryptocurrencies at no. 7. Moreover, its market capitalization is more than $36 billion. It is gaining attention from popular celebrities. Along with Dogecoin, most other meme coins have emerged.
Stellar:
The platform of Stellar pays attention to international payments and cross-border remittances. It is estimated that its daily trading volume is approximately $531 and, that is the reason why it has been included in the list of leading cryptocurrencies in 2022. At present, it is in 22nd place among the world’s top cryptocurrencies. And it is observed that the market capitalization of Stellar is more than $8 billion. At the present time, its value price is $0.3441. From the beginning, a non-profit organization stellar development foundation is maintaining the Stellar. The aim of Stellar is to offer an open financial system that provides people of all work of life across to financial services. It also pays attention to reducing the time and cost required for international money transfers. Moreover, a stellar blockchain network provides mobile money services, mobile branches, micropayments, and remittances among others.
VeChain (VET):
This blockchain-based supply chain network is designed to solve economic concerns in the real world. The developers have developed an ecosystem that aim is to solve usual issues in the supply chain industry. The two tokens VeThor (VTHO) and VeChain (VET) are offered by the platform. VTHO token is issued as a reward staking VET and transferring the accompanying value across the VeChain network, while VeChain (VET) has a limited supply of around 86.7 billion VET. Thus the developers behind VeChain have to get better the efficiency and affordability of supply chains by offering more control to users. Hence, VeChain is worthy of your attention as cheap crypto and a market leader to invest in 2022 if you are looking for the top most Penny cryptocurrency to buy now.
Ravencoin:
In 2018, Ravencoin was launched and moving ahead with the aim of becoming an Ethereum security token. It has lately been included in the top most cryptocurrencies because of the unique combination of the positive fundamentals and technical price action. At present, its name comes in the list of top hundred cryptocurrencies at 85th place. The market capitalization of Ravencoin is nearly $1.25 billion, data released by Coinmarketcap. Besides, there are many different uses of the Ravencoin network and flawlessly determining the ownership of assets is one of them. At the present moment, $0.1312 is the RVN trading value.
Different ways to classify penny cryptocurrencies
There are several different ways to classify penny currencies. While talking about penny cryptos, there are three types of penny currencies: new cryptocurrencies, stagnant cryptocurrencies, and crashing cryptocurrencies.
New Cryptocurrencies
The hype is built around its initial coin offering before a cryptocurrency is released. This can be done by using lots of marketing-related ways. An ICO (Initial Coin Offering) plays an important role, as the price of the new crypto coin mainly depends on it. On the other hand, the success of an ICO largely depends on the usefulness of the coin. Moreover, most newly released cryptocurrencies start with a super low market price, therefore able to classify as a penny currency. The price of newly released cryptocurrencies will increase soon after the initial release if the coin is seen as useful. You need to look at the market and do in-depth research with new and upcoming crypto coins if you want to catch these penny cryptocurrencies. Don`t forget the price of the new crypto could stay low for quite some time after its release if it seems to be a very promising coin. This is because people simply do not notice it or do not pay enough attention to what it does or what purpose it serves.
Stagnant Cryptocurrencies
Another penny cryptocurrency, “stagnant cryptocurrency” has usually been in the market for quite some time now, yet their price doesn’t seem to fluctuate at all. And there are various reasons behind this currency. Additionally, it depends on what level you want to analyze it. To this concern, some situations might involve corporate interference and other simply the loss of interest. This type of cryptocurrency is both good and bad, as there is no fluctuation in its price. There is one good thing that the price is not falling. It is the most beneficial sign that the crypto is still valuable and widely used, even if it is done quietly.
Crashing Cryptocurrencies
The crypto market crashed indefinitely - almost every single cryptocurrency experienced a major deflation of price and market value after the initial halt of the rising prices and the sudden change of direction, in January of 2018. This becomes even trickier while concerned investing in penny currencies. Moreover, reading a penny cryptocurrencies list is not going to be enough and, you need to gain more knowledge on the coin to try and predict. At present, many other cryptocurrencies might fall into different categories. Out of many cryptocurrencies, these three categories must cover most of the main types of penny cryptocurrencies that you’ll encounter.
Limitations for investing in penny cryptocurrcies
You can keep track of altcoins by considering factors like market capitalization and risk, among others, as previously mentioned. Compared to other cryptocurrencies, penny cryptocurrencies are relatively riskier because of their volatile prices. There are three reasons why this risk increases exponentially: Liquidity, lack of information, and scams and rug pulling.
Liquidity:
The 2021 bull run saw a number of meme tokens launched on decentralized exchanges (DEXs) without being audited and with very little liquidity. Additionally, the token distribution was skewed in favor of the project developers. Penny cryptocurrencies are therefore commonly subject to manipulation through "pump and dump" schemes. In six months, Redcoin (RDD) lost approximately 50% of its value. McAfee, who passed away in 2007, was accused of manipulating digital assets such as Verge (XVG) and Dogecoin (DOGE).
Lack of Information:
Developers of penny cryptocurrencies are typically anonymous individuals using pseudonyms. The cryptocurrency industry places a great deal of emphasis on anonymity. Therefore, it is hard to discern what team is working behind the scenes, which makes assessing their intentions even more difficult. In addition, the projects have a tendency to skip the audit stage, which typically results in the loss of investor money.
Scams and Rug Pulls:
Founders of projects who drain investors' money from projects and abandon them leave them high and dry in a rug pull situation. Many blockchain projects have fallen prey to rug pulls since the bull run of 2021. The exit scam caused many of the projects to fail, with only SushiSwap surviving.
The risks associated with penny cryptocurrencies are significant, but the rewards usually exceed those of Bitcoin, Ethereum, and other altcoins.
Final words
you now have enough information on the best penny cryptocurrencies to invest in 2022. Penny cryptocurrencies expose you to innovative projects, diversification and last but not least the potential to make more than 100% returns on your investment. Some crypto robots are designed to automate your trades, which will allow you to earn passive income by saving time. Cryptocurrencies are similar to penny stocks in the sense that they are cheap and worth just a few pennies. Alternative coins tend to be undervalued.The above information will help you to make a good decision on which one to invest your money into. The future is coming, so why not start getting ready now.
As a result of a massive market crash and inflation, several cryptocurrencies are poised to start a new bull market cycle in 2021. Some of the biggest companies, banks, and institutions around the world support and are interested in all these cryptocurrencies. As such, this cheap digital asset looks to be the best penny cryptocurrency to watch in 2022.
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