It’s easy to define a penny cryptocurrency because, as the name suggests, these cryptos are worth less than a dollar. Meanwhile, penny stocks are different because people identify them according to market capitalization or market cap. Matters become much more complicated when talking about penny crypto investments, though.
It’s not that easy to do it because the usual “hold then sells” method may not be the most practical strategy. Instead, it might be better to use DeFi platforms and NFT games. Of course, that means you will have to learn how those work too. Fortunately, I can show you all you need to know, so you can start investing in penny cryptocurrencies!
Let’s start by jumping right into listing the best penny assets in the crypto market. I will share details about their features and the best ways to invest in them. More importantly, I will discuss the benefits and risks of penny cryptocurrencies, so you can decide whether or not you should invest. Later, you’ll see that this may not be the best choice for beginners!
Here’s the list of the best penny cryptocurrencies:
#1. Chromia (CHR)
— Chromia | Power to the Public (@Chromia) November 2, 2021
This is a smart contract-enable, blockchain-based platform that makes it easier to create decentralized applications (dapps). Chromia (CHR) started in 2018.
The CHR platform makes it possible by letting developers use more programming languages in making dapps. Also, it lets them have sidechains, networks outside the CHR main network.
At the time of writing, the price of a Chromia token was $0.7642. In late 2021, each was worth a dollar, but we’re not sure if this penny cryptocurrency will rise that high again in 2022.
Instead, it might be better to stake CHR tokens. Staking works like your savings at the bank. You leave some money there, and you’ll earn more later.
If you just want to leave them and wait, you could stake on cryptocurrency exchanges like Binance. At writing, 30-day locked staking had an annual percentage yield (APY) of 22.32%.
#2. Smooth Love Potion (SLP)
— Ajit Singh (@cryptolaksya) January 12, 2022
This next penny cryptocurrency helped people worldwide make ends meet during the COVID-19 pandemic. You can earn it on the video game called Axie Infinity that started in 2018.
It’s an NFT game where you get a team of digital pets called Axies to battle against AI enemies or other players. You earn Smooth Love Potions or SLP tokens as you play.
Then, you could convert the SLP into fiat from your country. This is what Filipino players did to pay bills during the COVID lockdowns.
At the time of writing, an SLP token was worth $0.01876, and it reached $0.3462 last year. Again, we can’t say for sure if SLP will rise back to that price or higher.
You could buy these from a crypto exchange, or you could try a more fun approach. It might be better for you to play Axie Infinity to earn SLP! That’s right.
If you’re a Pokémon fan, you will probably feel at home with its gameplay. If you’re not interested in video games, this could be a way to see how far blockchain technology has come.
Take a closer look, and you’ll see that it somehow enabled video game players to earn money with their hobby. Trying Axie Infinity will let you experience that firsthand!
SLP tokens could be fun to earn, but the profits might not be as high as those from CHR tokens. That’s why Smooth Love Potions are second place in this list.
Read More: How To Invest In Cryptocurrencies
#3. Dogecoin (DOGE)
— Dogecoin (@dogecoin) September 15, 2021
You might have heard of this penny cryptocurrency even if you don’t follow the market. After all, Tesla CEO Elon Musk expressed his support for it many times.
If you didn’t notice it, you might remember it because of its silly Shiba Inu logo. You might have, even though it looks like that famous dog meme going around the internet.
That’s because it is! Billy Markus and Jackson Palmer created Dogecoin in 2013 based on that cute meme. They thought people took cryptos too seriously, so they released it as a joke.
Nobody is laughing at it nowadays because it was the top 11 crypto at the time of writing! Yet, the Dogecoin (DOGE) price was $0.1738 during that period.
The price went over $0.60 weeks before Musk’s guest appearance on Saturday Night Live. If you invested at around $0.10, your money could have increased by roughly 500%!
You could buy a lot of DOGE easily, as you can find it in nearly every crypto exchange. On the other hand, you could just mine Dogecoin! This will cost a hefty initial investment, though.
Mining cryptocurrencies means paying for expensive computers or dedicated crypto mining rigs. Then, expect them to increase your electric and internet bills.
This is why Dogecoin is in the top three of my penny cryptocurrency list. It’s unlikely to go away soon, as more companies accept it as a mode of payment.
Still, it’s not the best choice if you want to earn more money. You might be better off trying the previous entries in my list. Of course, you must look into the assets yourself before investing.
Should I invest?
Penny stocks are known for being high-risk investments. Many people know how volatile crypto prices are. As you may expect, penny cryptocurrencies are much riskier!
You could buy 5,000 or more of these coins and earn bigtime once the price bumps. It may seem nice to have that much of this asset, but we cannot be sure when the value will increase.
Even if the prices go up, it must be a significant increase. Otherwise, the investment might not seem worth the purchase. Mining and staking could make it easier to gather them.
Again, they will only be worth the effort if the price goes up significantly. If you’ve got what it takes, you could try investing in it as a day trader, a person who profits from tiny increases in price.
Once you buy at a low price, you will have to sell within minutes or even seconds to catch your desired price. You can’t do this by just looking at the crypto charts round the clock!
Instead, you will have to use advanced methods and market orders. Also, you will have to learn technical analysis metrics like candlestick movements.
More importantly, you will need a high-performance trading platform like Cryptowatch. If you’re not familiar with any of these concepts, it’s best to avoid this investment strategy!
Instead of penny cryptocurrencies, you could just invest in the mainstream options like Bitcoin (BTC) and Ethereum (ETH). Still, you must expect risk in any investment.
Note that this article is not meant as investment advice. Create an investment plan, research assets yourself, and choose those that match your goals.
Also, cryptos go up in value to fit the description of penny cryptocurrency. For example, Basic Attention Tokens counted in 2021 because they were worth around $0.70.
At the time of writing, the BAT price was $1.10, so they’re not penny cryptos anymore. Check out the other articles from Financial Daily Updates for more crypto tips.