A penny cryptocurrency is a virtual currency/asset that is trading under $1. Though because of their low price value, they can be easily manipulated through the pump and dump method, it is worth noting that not all penny crypto is the same, some do have strong fundamentals.
Why Invest In Penny Cryptos
Many penny cryptos with good fundamental and solid teams are undervalued, thereby these penny cryptos give investors opportunities to grow with the asset/coin.
Some examples are the Enjin coin which was launched as a penny crypto and today has grown to $3.4 (at the time of writing) and it is still believed to have more potential to grow.
Cardano (ADA) also was launched as penny crypto and so far has surged/grown to become among the top 10 cryptocurrencies and price about $2-3 (at the time of writing).
XRP (ripple) also was launched as penny crypto.
OMG Network was launched in June 2017 as penny crypto worth $0.0045 and today has grown to become about $16 per one, which is about a 356,144% increase with an all-time high of $25.72.
Diversifying is key in investing in cryptocurrency. For your portfolio to give you a regular profit/returns you need to diversify. Penny crypto also gives you this opportunity to diversify. It is also wise to diversify into penny cryptocurrencies with strong fundamentals and projects.
What To Look At Before Picking A Penny Crypto
The Market cap should be at least 20 million and above.
- Ensure they are listed on the largest cryptocurrency exchanges such as Binance, Huobi, Okex, etc.
- Liquidity: high liquidity of at least $1 million 24 hours volume trade
- It should have a strong social media presence.
- Ensure you do background checks on the team if they are experienced developers.
- The circulating supply should be between 10million – billion.
Though it is worth noting that some shitcoins with trillion of supply has done well in recent time like Shiba Inu and Floki Inu but many shitcoins with such supply has also been abandoned by developers, some is now using pump and dump scheme
Best exchange platforms to buy and sell penny cryptos include Binance, HotBit, KuCoin, Okex, and Bit Forex.
Penny crypto may look unreal to you but they are the starting point of most of the top cryptocurrencies we see today in the market.
With everything being said about it, we’re sure you are going to make the best out of it.