In the investing world, it is said that the best investor is the one who diversifies their portfolio. This is absolutely true, which is why today people seek the best options to invest and get the highest return on them. Since the advent of cryptocurrencies, many people have started investing in them after the massive growth of Bitcoin, Ethereum, and other top cryptocurrency prices.
There are thousands of in the market that can be bought and sold, but the point is which are the best Penny Cryptocurrency to invest to watch now so that you can get maximum return. The big ones like Bitcoin and Ethereum are the obvious choices, but there are various other cheap alternatives in the form of penny coins with more growth potential to your portfolio.
12 Best Penny Cryptocurrency to Invest (2021)
What are Penny Cryptocurrencies?
It is a digital currency that you can buy for less than $1. They are very similar to penny stocks and are very cheap coins worth a few pennies. The major advantage of investing in them is that they have a high potential to profit.
Penny cryptocurrencies are said to be one of the best alternative types of investments that can be divided into four categories-
- Utility tokens
- Mining-based cryptocurrencies
- Security tokens
Usually, all the cryptocurrency’s prices change and are subject to price manipulation by pump and dump schemes.
Why invest in Penny Cryptocurrency?
Just because they are cheap cryptocurrencies does not mean that you should invest in them. There are various other reasons you should invest in penny cryptocurrencies, such as diversifying your portfolio, the potential to earn more through them, etc. Let us know about the reasons in detail:
1. High-risk reward ratio: Various penny cryptocurrency are undervalued, and it is assumed that there might be mass adoption of the blockchain technology; hence the value of the altcoins might rise in the near future.
2. They offer investment diversification: If you yearn to earn regular returns from crypto, then it is substantial for you to diversify your portfolio by investing in different areas. For example, if one coin crashes, the other might benefit you. So, diversification always plays an important role in investments.
3. Passive income: As per the investors, the best-paying dividend cryptocurrencies are mostly under $1. So earning dividends from crypto is alike getting a dividend from stocks. This means that you can also earn by just holding the penny cryptocurrencies.
These were some of the reasons you should invest in penny crypto, but the next important thing is what factors to look into before investing, as one wrong decision can lead your profit into loss, so it is important to choose the right crypto.
How to select which Penny Crypto to buy?
It is essential to have a set structure or format of the selection process so that you do not get confused with so many coins available in the market. Therefore, when searching for the best Penny Cryptocurrency to invest in, here is a list of a few factors to consider.
1. Always invest in the crypto that has a circulating supply of between 10 million – 1 billion coins.
2. Minimum 25% of the whole supply limit should have been mined already·
3. It should have a minimum market capitalization value of $20 million and should bring more than $1 million in daily trading volume·
4. It should be listed on popular cryptocurrency exchanges such as MXC, Binance, BitMex, etc.
5. Discount penny coins that trade near their all-time high.
6. There percentage gain in the last 7 days should be higher than 50%. You can check this data on big cryptocurrency exchanges·
7. The cryptocurrency that you wish to invest in should have a strong presence on social media channels and should report about its development with complete transparency·
8. Should possess a team of experienced blockchain developers·
Last but not least, you should always use technical analysis to search for the range-bound penny crypto that buys and sell at a psychological support level.
These were the few factors to look into before selecting any cryptocurrency. Now comes the most substantial topic of discussion that is which penny cryptocurrency to invest in. After a lot of research and data, we have prepared a list of some of the best penny crypto coins in which you can invest and gain huge profits.
12 Cheap Cryptocurrencies with Huge Potential in 2021
1) Ripple (XRP)
Undoubtedly, this is one of the most popular cryptocurrencies in the market as of now. It was known as OpenCoin when it was launched in 2012. Ryan Fugger and Jed McCaleb founded Ripple, and their angel investor was Chris Larsen.
Ripple had hit its maximum price in January 2018 when its price was $3.5; currently, it is priced at $0.863. XRP is attached to it because it has a utility factor which means you can do international transactions on it that would be completed within seconds, and the similar transaction takes long hours if you get them done through a bank.
Ripple was built as a unit of payment network that would enable quick and cheaper cross-border payments. They have a different structure to mine the coin, which is known as XRP Ledger Consensus Protocol. Here, there are validators instead of the miners to verify the transactions and create new ledger versions like Bitcoin’s blocks.
Ripple has gained popularity so soon that it even outperforms Bitcoin in the aspect of transaction throughput. Ripple processes more than 1500 transactions per second, scalability, and speed.
2) Stellar Lumens (XLM)
This platform focuses on remittance and cross-border payments. It has become one of the leading cryptocurrencies where more than $531 million tradings are done in a day. In addition, it is listed in the top 13 world’s most valuable cryptocurrencies.
Stellar is maintained by the Stellar Development Foundation, which is a non-profit organization established in 2014. Jed McCaleb co-founded it, but he left the company in the year 2014 only to start his own venture.
XLM aims to become an open financial system that would give access to all income levels for performing low-cost financial services. Some of the major services that they offer are mobile money, remittances, mobile branches, micropayments, and many more.
Stellar years to lessen the required time and cost for international money transfers; in short, they want to create equitable access to the global financial system. It has an excellent application that helps people in converting crypto to fiat currency. In 2018 they hit their highest price that was $0.83, and as of now, their price is around $0.340.
3) Basic Attention Token (BAT)
It is one of the best penny cryptos to invest in as they have the most sound projects in the whole crypto world. They have a utility of ERC20 token and are created on top of Ethereum’s blockchain. BAT ranks the 34th position globally in terms of market capitalization. It is also used by the BAT decentralized blockchain-based exchange for digital advertising.
Also Read: How to Mine Cryptocurrency?
The good part about BAT is that their team is very reactive to community feedback; hence the improvement on their platform is done almost every day. Also, they ensure they provide complete privacy and security to their clients, assurance that the users will see relevant ads and address all their needs.
The advertisers majorly use their tokens for paying publishers for the ads based on user attention. In fact, users are also paid with tokens as rewards for watching ads. BAT reached an all-time high of $0.88 back in January 2018, and as of now, their price is running around $0.679.
It has gained such a high position in the list because of its flexible network and fast transactions. The co-founder of Cardano, Charles Hoskinson, was also the co-founder of Ethereum.
It is an ambitious crypto project and third-generation blockchain that has become popular because it works on scalability and interoperability, which are the major challenges faced by cryptocurrencies.
Recently, they have updated and given their users good news that now they can build smart contracts on Cardano’s network. However, it still has a lot of room to grow, and there are many investors who invest in it as they know that this would represent the future of cryptocurrencies.
Cardano is one network that takes time and accomplishes things persistently. The good part about them is that they have a low transaction fee and an excellent development team that is working to fully decentralize the project.
Their price is $1.54 currently, and it has increased because of the new update of building smart contracts, enabling developers to start working on dApps and the Defi field.
5) Ravencoin (RVN)
This coin has become pretty famous lately because of the great combination of both technical price action and good sets of fundamentals. However, it is relatively new in the market as it was launched lately in 2018. They aim to become an Ethereum of security tokens.
They are listed amongst the top 50 cryptocurrencies and reached the maximum price in April 2019 that was $0.07, and are recently at the same price. RVN has been created for serving specific purposes, and one of them is to determine ownership of assets flawlessly.
This coin is pretty similar to Bitcoin as they also make direct payments. The father of Ravencoin is Bruce Fenton; he is a high-profile expert from the traditional finance sector. He was also called the early Bitcoin advocate as he worked as an Executive Chairman of the Bitcoin Foundation from 2015-2016.
6) Zilliqa (ZIL)
It is one of the world’s first blockchains created on a sharded architecture. It is in the top 10 because they are the first platform to harness the power of sharding while its competitors are still planning to implement it. This technology is not only important for ZIL but the whole crypto world.
It is a Singapore-based project that is perfect for handling the issues of scalability. It has established itself as the hottest coin of 2018, but it went under the radar because of its own faults and misses deadlines. They also have the feature of smart contracts that are written in its proprietary programming language called Scilla.
Also Read: 17 Best Cryptocurrency to Mine
ZIL is a cheap currency with a high fundamental value that is supported by Neo Global Capital, One Block Capital, and other big investors. As of now, their rate is $0.105; it can be a great time to purchase them.
7) VeChain (VET)
It is a blockchain-based supply chain platform that aims to solve real-world economic issues. They strive to build an ecosystem that would solve common problems related to supply chain management. They offer two types of tokens to their users: VeChain Token (VET) and VeThor Token(VTHO).
VET has a limited supply of 86.7 billion, whereas VTHO is given as a reward for VET staking AMs and transferring the value across the network. As a result, they want to improvise the efficiency and affordability of supply chains and give more control to their clients.
Thus, when we look into penny cryptocurrencies, VeChain is a market leader and is worthy of attention as cheap crypto to buy.
VeChain is backed by one of the biggest Audit Firm-PwC and partners with numerous popular Fortune 500 companies like H&M, BMW China, and many more. The current value of one VeChain is $0.1115; they just trade at $0.20 even after a huge profit of 4500% in just a year.
This penny cryptocurrency is worth mentioning in the list of best penny crypto as it has been the talk of the entire world, and all the credit goes to Elon Musk. This coin had a shady past, but after the statement of Elon Musk, the prices of dodge touched heights and reached the maximum amount to date in May 2021.
No one ever thought that this meme coin created in 2013 would become legal and get into the list of the top best cryptocurrencies to invest in. All this has become possible because of Elon Musk, as now it has become one of the cheapest currencies to trade-in. Dogecoin is one of the best cryptos to invest in 2021, as many people predict that its price might increase again in the near future.
Since the start of 2021, this currency has been on a ride; so far, just this year, they have returned more than 8000 percent. In addition, this year, it has recorded its highest market capitalization value of $80 billion. All in all, this is a great and viable currency to invest in, as the more the risk, the more profits you can earn.
Initially, it was known as Matic Network; it is Ethereum-compatible blockchain interoperability and scaling framework. They aim to address a few limitations in Ethereum, such as its lack of community governance, poor user experience, and throughput.
Also Read: How to Make Money with Bitcoin
Their token is named MATIC, and it is used for staking, governance, and gas cost, which remains central. Polygon is a structure that is built for developing interlinked blockchain networks. It has four main layers that makeup Polygon’s framework:
- Ethereum layer
- Network layer
- Security layer
- Execution layer
Their new project comprises excellent Ethereum developers and influencers like Hudson Jameson, Ryan Sean Adams, Anthony Sassano, and John Lyric as advisors. Polygon is one of the latest attempts at blockchain interoperability and scaling; hence it yearns to soothe some specious restrictions of projects like Polkadot and Cosmos.
10) Chiliz (CHZ)
It is a blockchain platform that recently enjoyed the upward pull of the market because of the fan token frenzy. Chiliz is underpinning Socios.com, a fan engagement service that lets sports teams sell fans special advantages like early access to tickets, voting on team jersey designs when they take the field, etc. These perks are then sold on the blockchain as “fan tokens.”
Their fan tokens have become pretty famous with football teams in Europe and other sporting competitors globally. Several Fan Tokens like Juventus ($JUV), Atlético de Madrid ($ATM), AS Roma ($ASR), and AC Milan ($ACM) have been gaining traction on cryptocurrency exchanges. In fact, Juventus and AC Milan have their own fan tokens that users can buy.
This digital currency is especially for sports and entertainment; they have introduced a new concept for fans interacting with their favorite sports team. Thus, it is a great platform for you if you are a sports person as you get a chance to interact with your favorite team and, along with that, make money as well.
It is an open-source framework for creating a fully distributed, peer-to-peer application. Holochain is energy efficient post-blockchain technology decentralized app development platform without any scalability problems of existing blockchain projects.
It is resilient, versatile, scalable, and more efficient than blockchain. Moreover, Holochain has access to all the Internet apps’ capabilities simultaneously without any API requirement as its languages are completely compatible. You would be amazed to know that having Holochain is like having an IFTTT layer built underneath the Internet.
The best part about it is that users can also create a customized experience as per their selection parameters; all this is possible because the information on this platform is not forced to sit uniquely in every application. As a result, Holochain has grabbed the attention of various investors, and the earning potential from it seems to be really high in the future.
12) QLink (QLC)
It has become really famous in just a couple of years as it promises to create the foremost decentralized network to improvise the limitations of the telecom industry. Some of the major challenges are cyber-security threats, ensuring maximum return for the company, and wider coverage.
The ICO of Qlink lasted for a month, and in that very month, they raised more than $19 million. As their result was overwhelming, they were able to materialize the startup and aim to create a mobile network where the users could register and digitalize telecom assets. Furthermore, they would also be able to share those assets with other users through smart contracts.
Also Read: 33 Best Cryptocurrency Exchanges
They offer other services to their users from their app, like sharing Wi-Fi, SMS, and mobile data, which people would love to use. The QLC tokens are NEO-5 tokens created on the NEO blockchain. They are used as service coins to pay for the platform’s services. In addition, if users watch some sponsored content, they earn some tokens as well. This was the best penny crypto-list; they are reliable, and under $1, so you can invest in them and hope to earn a good return in the future.
Factors to consider before investment
Here are a few points that you should always check on before choosing any crypto to invest in-
1) Longevity: One of the most important things to check is how long has the crypto been in the market? Although new cryptocurrencies are also not ruled out immediately but check their previous record or date, it helps you make comparisons and see how it has performed.
2) Track record: The track record also helps fetch information about their reliability, highest prices, and trend of its movement. It gives you insight into how they have performed previously, and if they have been stable for a couple of years, that is a good sign which depicts that it is a reliable cryptocurrency to invest in. Also, if you see that it is gaining traction and its value is increasing persistently, it is even better.
3) Technology: You should compare the platform with others in the aspect of its security and usability. You can start by looking at the speed at which it does the transactions and see that it has a strong network that can handle transaction traffic easily or not?
The next important thing to check is if your investments are safe or not, as numerous platforms use blockchain technology which makes the transactions transparent and easy to track. The major benefit of blockchain technology is that if any hacker steals your crypto, it makes it pretty easy to track your investment to recover despite being lost because of fraud.
4) Adoption Rate: The next aspect that you should check is seeing how many people are investing in the crypto you are interested in. If a lot of people are investing in it, that means that cryptocurrency has a high level of adoption rate, which makes its liquidity even better. The more people invest in it, the better would be its trading and spending in the future.
Where can I purchase Penny Cryptocurrency?
When you know the factors and the currency you wish to invest in, the next important thing that comes to mind is where you can buy them from, as you would need a platform where you have to give less commission, get good returns, and be reliable.
There are cryptocurrency exchanges like a Bitcoin exchange specializing in providing digital currencies that trade under $1. The process is completely the same for penny cryptocurrency as well. It does not matter if these exchanges are centralized or decentralized; it entirely depends on your investment strategy.
One of the biggest exchanges is Binance that offers penny coins plus other big currencies as well. But, whichever platform you select, ensure to check the variety of penny cryptocurrency that it supports.
Initially, it might be tough and time-consuming for you to search for a reliable exchange that succors even the most enigmatic tokens, as these exchanges take coins that show massive demand and vow them profit.
Here is the list of penny cryptocurrency where you can invest:
- Binance: You can trade from a huge selection of 685 coins with an average 24-hour trading volume of $3.9 billion
- OKEx gives you access to over 372 penny coins and a $1.9 billion average daily volume.
- HitBTC grants you access to choose from more than 827 penny coins and a $650 million average daily volume.
- Hotbit allows you to trade in more than 625 penny coins and a $2.3 billion average daily volume.
- KuCoin provides you entree to select from over 447 penny coins and a $40 million average daily volume.
- Bitfinex has 277 penny coins to access and a $93 million average daily volume.
This was about some of the best penny cryptocurrency to invest in, and this list was made after intensive research, but the best thing is to do some more research as per your requirement while investing. The reason behind it is that you will gain more knowledge about the crypto world and clear your doubts regarding investment.
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Be careful, do not go with any advice and recommendations; instead, verify everything yourself before investing anywhere. But, all the coins mentioned above are also reliable and have partnerships with some of the biggest companies and brands in the world; this sets them apart from other cryptocurrencies.
So, you can choose any crypto from the above list and start investing.