Penny Cryptocurrencies Explanatory!!!

1 year ago
(edited)
6 Min Read
1253 Words

Hello! Friends,

As we grow in the knowledge of cryptocurrency, it would be difficult to find a person that has never heard about bitcoin. Do you agree with me? Bitcoin is known almost everywhere and it has grown into the mainstream and as many are joining crypto space they want to hold or own small part of this coin. Permit me to ask, does anyone heard about penny cryptocurrencies? You are thinking about what type of crypto is this! We are all familiar with Bitcoin, Ethereum, Litecoin, Bitcoin Cash e.t.c. but most of us are not familiar with what penny cryptocurrencies are. I will list out some of the penny cryptocurrencies with explanation in this journal. I can also do justice to some of them that are most promising.

Something is telling me that you have an idea of the terms penny cryptocurrency but let me share you with the definition so that we will all be on the same page.

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Pixabay: Cryptocurrency


What Is Penny Cryptocurrency

Penny Cryptocurrencies are the crypto coin that their market price is under $1. That's so simple to understand. You will agree with me that most of the crypto that exist in the market this day belong to this terminology called Penny. It is certain that the prices and the names of penny crypto coins are mostly thrown around for discussion and many investors, users, and traders rarely focus on the reason the price has to be that price. Is it that Bitcoin now views as absolute cryptocurrency while other coins as follow-ups, or why?

I understand the fact that Bitcoin is a unique case and I agree with the fact that it's the first digital asset in the world, but that's not the major reason for its price to be on the hight side. One of the major factors is the level of reputation that coin has built, so the coin can speak for itself without publicity or any advert, this makes it become the staple of all other cryptocurrencies and that is why they are all called Altcoin, which is a choice to bitcoin.

Don't Forget, We are studying penny cryptocurrencies!
Aside from Bitcoin, we have Altcoin and Altcoin can be classified into three categories which I will explain extensively.

Categories

The classification of penny cryptocurrencies can be in many ways, but I will base the classification on three types, which are, new cryptocurrencies, stagnant cryptocurrencies, and crashing cryptocurrencies.

New Cryptocurrencies
Some of us are aware of ICO which is the first thing many projects carried out before the release of their crypto coin. This is a means of spreading the coin for mass adoption and it happened when bitcoin was released also if we flashback to 2008. Considering the means of sharing the coin via initial coin offering, ask yourself: is this cryptocurrency going to be useful? Based on experience, every new crypto price is dependent on the successful ICO and its ICO success is a determinant of the coin use case. As new crypto is released, it is difficult to see a such crypto coin with a super high price and that's why they are classified as penny cryptocurrency and the moment the user discovered that the coin is useful, the price starts to increase.

Most time people ask, how do you catch up with such penny cryptocurrencies and gain huge profit? I will say, get in as early as possible, but you need to watch the market and do your in-depth research, make sure you read the companies whitepaper and don't forget to follow the news update of such project. The most important thing is to watch out for the use case of such coin if it is a real case study.

The price of new cryptocurrency may stay very low for a very long time, even if its use case study is real, stay put and keep investing because every of your drop and engagement contributes to the growth of such coin/project.

Stagnant Cryptocurrencies
These are coins that remain in the market for a very long time and their price remains unchanged since the time of launch. For changes to happen to a coin is based on a factor and for its stagnancy, there must also a reason. We can dwell of corporate interference analysis of that coin with a simple loss of interest or maybe their momentary pause on its trading. When you consider the stagnancy of such coin, it can be for good or bad, but the most important thing which I feel is cool is the fact that such coin price is not falling.

Stagnancy also happens to a coin when the developer or the team are not ready to work on the project and are slowly dumping the project with the mind of not developing the network (upgrading). As the user of a project is increasing, there should be an upgrade to avoid loss of steady interest on the user side which may later turn to stagnant death for such crypto coin. The news surrounds a coin will tell you if a such coin has entered stagnancy mode. Make sure you read more before investing.

Crashing Cryptocurrencies
I think with the caption is well explanatory, when a coin price is going down expressly we say the coin is dying, but do you know that this might not be true. Pick up what happened in January 2018 when bitcoin started crashing from $20,000 do we say bitcoin is dying? This also affected all major coins. Looking at the present state of crypto price, generally, it seems like there is some stability though some crypto guru still promises great things are coming, we shall wait to see the outcome.

Now, with the statement above, it is becoming trickier to invest in penny cryptocurrencies because you don't know if the crypto coin is crashing or is the market correction. On this note, it is very much important to carry out research on any project you want to invest in, reading about penny cryptocurrencies may not help you, but gather information about the coin from people ahead of you, and this will help you to predict when such coin will stop crashing in price based on the knowledge you have acquired about such coin, then you can know the best time to invest.

I know there is still some category of the coin I may not explain, like a coin that does rise in price but I feel these three categories explained major coins in crypto space. Like I mentioned at the beginning, there are good penny cryptocurrencies based on their use case and just a few mentions are Ripple, Cardano, and Qlink. There are many you can go ahead and study them before investing in them.

1UP is also in this category with a solid use case study, which is blogging, video streaming, and many more future projects. You can check out the project here and register

Conclusions
There are several reasons people look for the best penny cryptocurrency to invest in. Some based their reasons on the growth of the coins starting from the day of launch, some have little cash, which can not avoid bitcoin and they feel penny cryptocurrency is the best place to start with. When searching for the best penny cryptocurrency to invest, remember the crypto market is volatile and price changes are inevitable, invest wisely and do your research before investing. Best of luck!

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