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Penny Cryptocurrencies: Are They Worth It?

Penny Cryptocurrencies: Are They Worth It?
penny-cryptocurrenciesIn this day and age, it would probably be difficult to find a person that has never heard about Bitcoin. This cryptocurrency has skyrocketed the crypto industry into the mainstream – increasingly more people today want to have a share in what this market has to offer. However, Bitcoin and Ethereum aside, not everyone has heard about penny cryptocurrencies. And that’s why today, in this penny cryptocurrency list, we are going to be talking about precisely that – we shall analyze the most promising and well-known penny cryptos out there.

To begin with, we’ll go over the terminology. Although you might already have an idea or two about what a “penny cryptocurrency” might be, we still need to know that we’re talking about the same thing.

After that, we’ll try to find the best penny cryptocurrency available – there are certain specific requirements that such a crypto coin should have to be the best, and we’ll go over all of it as we progress through the tutorial.

Introduction

So.. What exactly are penny cryptocurrencies?

As the name implies, a penny cryptocurrency is a crypto coin which market price is under $1 USD. As you can probably imagine, most of the cryptocurrencies that currently exist in the market can be classified as penny cryptos.

Even though the names and prices of crypto coins are often thrown around in various discussions, attention is rarely put on why these coins are priced the way that they are. It seems that it has become natural to view Bitcoin as the absolute cryptocurrency, then see coins like Ethereum and Litecoin as follow-ups, and then there’s everything else. But why is that?

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Well, Bitcoin is a unique case. You might argue that its price is due to it being the first decentralized cryptocurrency in the world (and that certainly adds to the reason), but there are definitely more factors that come into play.

Bitcoin has reached the level where the coin’s reputation and notoriety speak for themselves. It has become the staple of all cryptocurrencies out there. Even linguistically speaking, all of the cryptocurrencies that are not Bitcoin are called altcoins (alternative choices to Bitcoin).

It was also the cryptocurrency that pushed this whole market into the mainstream – people paid little to no attention to the topic of cryptos up until Bitcoin started making it big. Suddenly, you have huge companies and organizations dedicated solemnly to provide their users with crypto-related services.

It should be kept in mind, however, that Bitcoin is a very unique case. Most other cryptocurrencies that are currently in the market have certain, specific reasons for why they are priced the way they are.

It isn’t always easy to understand these reasons, however, especially when it comes to penny cryptocurrencies. That being said, there are methods of classifying these coins according to certain criteria. This tutorial’s penny cryptocurrencies list is composed following some of those criteria, so it would probably be a good decision to briefly talk them through.

Penny Cryptocurrencies: Categories

Even though there are many different ways to classify penny cryptocurrencies, I’ll be using a method that I find to be the clearest and most understandable one.

There are three categories in total: new cryptocurrencies, stagnant cryptocurrencies, and crashing cryptocurrencies. These three categories should probably cover most of the popular penny cryptos out there.

New Cryptocurrencies

Before a cryptocurrency is released, the hype is built around its ICO (initial coin offering). This is done in a variety of marketing-related ways, but it all boils down to one simple criterion: is this cryptocurrency going to be useful? The price of the new crypto coin is largely dependent on its ICO, while the success of an ICO is heavily reliant on the usefulness of the coin in question.

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Most of the newly-released cryptocurrencies start off with a super low market price, thus being able to classify as a penny cryptocurrency. If the coin is seen as useful, however, it’s price will surely start increasing really soon after the initial release.

What you should do to be able to catch one of these penny cryptocurrencies early on and successfully invest into it is watch the market and do in-depth research with new, up-and-coming crypto coins. Read the companies’ whitepapers, follow the news and think logically – will this new crypto fill a need? Will it serve a use? If so, it might be a good option to invest in.

Keep in mind that the price of the new crypto could stay low for quite some time after it’s release, even if it seems to be a very promising coin. This is usually due to people simply not noticing it or not paying enough attention to what it does or what purpose it serves. The most common scenario is that once a new and good-looking coin is noticed by a couple of people, things start to snowball and the coin’s price starts to increase fast.

Stagnant Cryptocurrencies

penny-cryptocurrenciesAnother type of cryptocurrencies that you might encounter is called stagnant cryptocurrencies. These crypto coins have usually been in the market for quite some time now, yet their price doesn’t really seem to fluctuate at all.

There can be many different reasons behind this. It depends on what level you want to analyze it – some situation might involve corporate interference, others – a simple loss of interest or a momentary pause of trading (using “momentary” as a broad term here).

This is somewhat of a difficult type of cryptos – the non-fluctuation of their price could be both a good and a bad thing. On one hand, you might be happy that the coin’s price isn’t falling down. This could be taken as a sign that the crypto is still valuable and widely used, even if it is done in a passive manner.

On the other hand, however, the stagnation of a cryptocurrency can mean that the developers are slowly abandoning the project and are not planning on developing or furthering the network that the coin is based on any more than they already have. This leads to a slow, yet the steady loss of interest on the user’s side, which in turn results in a stagnant death for the cryptocurrency.

If you happen to encounter such penny cryptocurrencies in some sort of a penny cryptocurrency list found online, always read the news surrounding that coin. With doing so, you might be able to dodge a bullet in the long run.

Crashing Cryptocurrencies

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As of the end of 2017 and the beginning of 2018, this category became tricker than ever before.

At first glance, it seems sort of self-explanatory, doesn’t it? If a cryptocurrency’s price is crashing, that means that the coin is probably dying off, right? Well, not necessarily.

At a certain point of December 2017, the cryptocurrency market started crashing as a whole. Up to that point, since Summer of the same year, crypto coins kept on steadily increasing in price – Bitcoin, for example, almost breached the $20,000 USD mark!

After the initial halt of the rising prices and the sudden change of direction, in January of 2018, the crypto market crashed indefinitely – almost every single cryptocurrency experienced a major deflation of price and market value.

Because of this, it becomes almost impossible to say that “if a cryptocurrency is crashing in price, that means it’s done for”. The market is seeing some sort of stabilization as of late, and a lot of crypto experts promise great things to come. I guess we’ll just have to wait and see.

Concerning investing in penny cryptocurrencies, this becomes even trickier. You would have to do a lot of research before placing an investment in one such coin. However, reading a penny cryptocurrencies list isn’t going to be enough – you will have to have gathered enough knowledge on the coin to try and predict WHEN it will stop crashing in price, so as to find the best timeframe for placing an investment.

Naturally, there are a lot of other types of cryptocurrencies that might fall into different categories (tokens, coins that are rising in price, etc.). However, these three categories should cover most of the main types of penny cryptocurrencies that you’ll encounter. Now, without any further ado, let’s jump into the penny cryptocurrency list and talk about some of the most notable penny cryptocurrencies out there.

Ripple (XRP)

Out of all of the penny cryptocurrencies in this tutorial, Ripple is probably the most well-known and appreciated. Even though “Ripple” is actually the company that created the coin (the coin itself is called “XRP”), everyone got so used to calling the coin Ripple that, for the sake of clearance, I’ll do the same thing.

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Ripple stands out of the cryptocurrency crowd by being the only centralized cryptocurrency to make it to the top of the market. At its peak, Ripple had managed to reach the number two spot in the market position, and was considered to soon become “the Bitcoin killer”. Even though that didn’t really happen, Ripple now sits comfortably in the third spot just behind the crypto giant Ethereum.

There are quite a few reasons why people love Ripple. Some of the main ones include, but aren’t limited to: speed (when compared to Bitcoin), scarcity, longevity, the team behind the coins development, fluidity, it being accepted by many banks and governments around the world, etc.

Ripple is considered to be one of the best penny cryptocurrencies to invest in when you’re just starting out in the investment world. Most of the penny cryptocurrencies lists that you’ll find online reference Ripple as the most popular penny crypto in the world.

Cardano (ADA)

Cardano is a very ambitious project by some of the most knowledgeable cryptocurrency experts from around the world. It aims to improve crypto scalability, make transactions much faster and revolutionize the way that cryptocurrencies work, in general.

Even though it’s one of the lesser talked about coins in the market, Cardano (ADA) is still viewed by many experts and crypto enthusiasts as one of the most promising projects out there.

Cardano has implemented the Proof-of-Stake algorithm into their systems. This means that you can’t MINE Cardano – instead, you can stake your coins and verify the transactions that other Cardano holders make within the blockchain. Depending on the amount of ADA coins that you staked, you receive a share of the revenue afterward.

Cardano seems to have a very promising future ahead of it, and no penny cryptocurrencies list forgets to list it as one of the coins that people should pay attention to the most.

Qlink (QLC)

Qlink is somewhat of a special entry on this list. It is the world’s first decentralized mobile network service. The creators of the company aim to sweep old-school mobile networking under the rug by introducing a new, peer-to-peer based system.

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One of the main ways that people can earn QCL tokens is by sharing their WiFis with other Qlink members to enable the usage of the service. The company has also introduced decentralized SMS messages on to their platform – if you have a bulk of unused SMSs, you can simply sell them off for additional earnings.

The Qlink company, being the first of it’s kind, faced (and in many ways still does!) many difficult hurdles that blocked their project’s success. They are, however, slowly but surely moving forward – the project is constantly under heavy development. It is simply because this service is so useful to a huge variety of people worldwide that the coin is still very promising – if you’re looking for good investments when it comes to penny cryptocurrencies, definitely give Qlink a check!

Conclusions

penny-cryptocurrenciesThere are many different reasons why people might want to find the best penny cryptocurrency. Some are interested in the growth of crypto coins since their early days of inception, others simply don’t have a lot of money to invest in cryptos and coins that are worth under a dollar seem like a great place to start.

Whatever the motivation might be, it is evident that more and more people are looking for lesser-known, yet-to-bloom crypto coins in the current market.

If you’re searching for the best penny cryptocurrency, always keep in mind that the crypto market is a very volatile place. Prices can change at any given moment, seemingly without a solid reason. You can minimize the “surprise factor” by doing your research and digging deeper, but this won’t really change the outcome, though.

I hope that this “Penny Cryptocurrencies” tutorial was useful for you and that you’ll apply what you’ve learned when searching for the best penny crypto coin out there. Remember, though – investments can be a tricky business. Always consult with a professional before investing any money into cryptocurrencies. Best of luck!

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