SteemitCryptoAcademy Season 2 Week 6 Homework Post for (@pelon53) - Penny Cryptocurrency

Thank you @pelon53 for this amazing lesson.

Explain the Penny cryptocurrencies in your own words. Advantages and disadvantages.

Penny cryptocurrencies are virtual assets that are worth less than a dollar ($1) per unit. These cryptocurrencies make a larger percentage of the market and are readily available for purchase, they are volatile, can be manipulated, and of course, relatively cheap. Investing in penny cryptocurrencies is good because it has the potential for high returns. It is usually priced low when newly released and if it seems promising and useful, its demand and price will rise.

More so, it helps for portfolio investment as different coins can be purchased with a small amount of money. In addition, money can be earned from holding penny cryptocurrencies over a period of time and are a worthwhile investment. There are about four categories of penny cryptocurrencies; plentiful, newly-minted, fallen, and stagnant. Examples of penny coins are Tron, Cardano, Ravencoin, Basic Attention Token, and a host of others.

Advantages of Penny Cryptocurrencies

• It helps build your investment portfolio. With penny cryptocurrencies, you can up to 10 cryptocurrencies in your portfolio and even if you have losses from one coin, it won’t be every terrible as compared to the effect when you have only one or two coins in your portfolio.

• Investing in penny cryptocurrencies is good because it has the potential for high returns. Take, for example, Dogecoin has increased a whole lot lately about 200% and even world leaders such as Elon Musk has made investments.

• It can be bought with just a small amount of money, you do not necessarily need to make investments as compared to purchasing BTC or other big coins like ETH, XRP, etc.

Disadvantages of Penny Cryptocurrencies

• The market is really volatile with very high fluctuations and hence, if there is a bearish movement, penny cryptocurrencies are affected the most.

• Money can be lost because there is a tendency of the coin not to increase in price, there are a lot of shitcoins out there and every investor must do his due diligence by researching.

What will be the best Penny to invest in this 2021? Explain and show evidence.

In order to invest in penny cryptocurrencies, some criteria should be considered and they are named below:

1. The market cap must be at least $20 million and have a circulating supply between 10 million – 1 billion coins.

2. The coin must be listed on one of the biggest exchanges such as Binance, BitMex, etc.

3. It must have an experienced blockchain developers’ team and have a strong social media presence.

4. It must have high liquidity of a minimum of $1 million per 24hour volume traded.

The best penny cryptocurrency that fits the criteria I just explained is SHIBA INU.

SHIB is a decentralized token created in August 2020. It was modeled after Dogecoin and has a market capitalization of over $6 billion as of May 2021. The token’s price was about $0.000002 in April 2021. SHIB is not really a technological upgrade but a social phenomenon and has received positive promotions from celebrities and well-known business personnel. It has had very impressive growth since its inception and has positioned its market entrance perfectly. It has increased in value by about 39.357% in the last 30days.

It has gained access through lots of major exchanges and this has been one of the reasons for its rise in price. SHIB even got a tweet from the CEO of Ethereum which is actually impressive. Its sole goal is to provide users with more earning potential and make the platform more profitable by hitting $0.01. It also has another unique aspect called the Artist Incubator which encourages the creation of unique NFTs.

As of today, SHIB has a market capitalization of $ 4,473,161,299.34 and is ranked #29 in the world TOP.

Do a Ripple (XRP) analysis. Show screenshots. Would you invest right now? Explain.

Trading cryptocurrencies comes with feelings of hesitancy and uncertainties. Ripple has been trying really hard to make a niche for itself with its goal to serve banks and other financial institutions in making seamless transactions. To understand if now is a good time to invest in XRP, we must take a look at how it behaved in the past.

XRP was created in 2012 and pre-mined supply of 100 billion tokens. It has been through a lot of struggles in its price since then with so many rising and falling although it reached an incredible high of $2.30 in 2017. However, it fell again in 2018 and 2019, and even when other crypto assets increased in price, XRP still lagged behind.

Currently, XRP is located around the support zone and looks like a good time to purchase at an eligible level of $1. There is a really strong resistance at $1.9668 which was it's all-time high a few months ago. If the resistance price is eventually broken, XRP will reach its highest price.

Is investing in XRP a good idea?

Personally, I think investing in XRP is a good idea judging by both technical and fundamental analysis. Let us remember that XRP is still lagging behind its price in 2018 and has a tendency to increase about 4 times at the end of the bullish period which is a fair one. The ongoing court case has drastically affected its price, there is light at the end of the tunnel and it seems like there are going to be some positive developments.

If everything comes out positively, the price will definitely increase over 100 percent in just a few days. This could also mean that exchanges will enlist it again in its platform as Coinbase delisted it after a court suit was filed against it. This singular action will also increase its price. In spite of all the unfortunate events that have surrounded XRP, it is still listed as one of the top 10 cryptocurrencies in the market and has a total market cap of $55,302,770,338 and a daily trading volume of over $10billion. Investor’s interest is quite high so I can say that investing in XRP now is fairly good.

Present in detail a possible investment of 5 penny crypto assets. Explain and present data confirming your choice.

Polygon (MATIC)

Polygon has increased about 100% in the past week and its market capitalization ranked #14 this week. One of its aims is to generate new Ethereum scalability solutions and it has received partnerships from some NFT platforms which is likely the reason behind the rise in price. It has continued to wax strongly and is one of the few cryptocurrencies that has withstood the downtrend of coins lately.

SHIBA INU (SHIB)

SHIB is part of the Dogecoin family (meme coin). Some say it was created to outsmart dogecoin and its rise and fall is really showing that. The project of this coin is not very clear but it has good publicity and is planning on launching its own exchange although some persons are speculating that the tokens are being burned and this news is really advantageous to the coin as it keeps rising. But one must be careful while investing in this coin, knowing the entry and exit time because it looks like a pump and dump coin.

BitTorrent (BTT)


This is a good coin because has the support of the Tron foundation and works in the Tron network.
It is listed amongst the top 50 cryptocurrencies in the market. This was done with consideration to market value and daily trading volume which is about $1 billion. It is listed in major exchanges which is a criterion for penny cryptocurrencies and following various analyses, there is a tendency for the price to increase. It feels like it may not be short term but if investors can be patient enough to hold for the next few years, they will likely make a lot of profit.

WINkLink (WIN)


This coin is also backed up by Tron, provides solutions in the sector, and is made for casino-style games which allow players to participate in their choicest games and be rewarded. It has a daily trading volume of over $70million and has increased in price by over 700% in the last month. It is ranked #174 and is listed on major exchanges. It actually reached its all-time high in April 2021 and make likely surpass it soonest.

Coti (COTI)


COTI is an amazing coin that is creating a niche for itself. It belongs to the Cardano community and has its own wallet with a platform for electronic payments. This platform would ensure that transactions of cryptocurrencies will be faster and at a lower cost. It has been increasing and decreasing in price but was fairly high after the announcement of its partnership with Cardano was made.

Show an investment (starting at $ 5) that you have made this week in Penny cryptocurrencies. List the steps you took.

I made an investment using DENT as my choicest coin. It is listed on the Binance exchange and I’m using the DENT/USDT because I have some USDT in my account.
First, I logged into my Binance account. Clicked on fiat on market and selected the DENT/USDT pair.

I then placed an order at the current price of $0.00431 which will give me about 1172 units of DENT. Thereafter, I clicked on ‘buy DENT’ to proceed with my transaction.

Checking my Binance wallet, it shows that the purchase is successful.

Penny currencies are very volatile and although they can be profitable, they can also cause huge losses. One of the good things about it is that it is cheap but traders must be careful when making investments.

Cc: @pelon53