Homework task season 2 week 6 by professor @pelon53 penny cryptocurrencies by @sadiaanyat

Hello everyone! In this lecture, the professor @pelon53 explained the penny crypto currencies in detail. The lecture is easy to understand. After understanding the lecture and with some basic research on penny cryptocurrencies, i am able now to do my this week task.

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

Penny cryptocurrencies

In the crypto world, all the crypto coins whose value is less than one dollar are known as penny crypto currencies. There are multiple altcoins available on the binance platform with value less than $1. They are very cheap and best for investment for new investors. these coins have the price which bitcoin has a few year ago. The price of the penny assets attract the attention of many investors. It possible to get higher profit by investing in penny crypto currencies. The market price of these coins change rapidly. These currencies are highly volatile and market trend up or down in every minute. That's why these are good choice to make lot of many by investing small amount for long period of time. In crypto world, many coins are introduced every day with price less than 1 dollar. Dogecoin and safemoon are example of penny crypto currencies.

Why these coins have low price: As i mentioned above, that every day new penny coins are introduced in crypto world. So buying penny coins mean buying shares of a micro companies projects whose liquidity is very low. These projects cannot be predicted. These projects are highly volatile. The market price of these coins and goes up or down fastly. They can be rise to the great extend and can return a very high profit. On the other hand they can also goes down and you may lose all your investment.

Example: There was a time when bitcoin was also a penny coin. In 2009, when the Satoshi introduced the bitcoin, its price was also not very high. It was considered as a penny coin. But when the investors start investing in this currency, its value goes up and within a couple of year, it became one of the biggest crypto currency. Now bitcoin is the largest crypto currency. The people who invested in this penny crypto currency are now the millionaires and billionaires. They got very high profit. So this project went good and such a penny coin became the largest coin of decade.

Advantages of Penny crypto currencies

Best for new investors- Penny crypto currencies are the best for new investors. They can make the investment with very low money. They can even buy many coins with less money. 2

Volatility- As the penny coins are highly volatile, so they are very high chances of getting large profit within short time.

Low market price: As the penny coins are cheap, so more investor invest their money in these crypto currencies and get good reward within very small timing.

Penny Projects: All the crypto currencies were the penny currencies at the time of their beginning. They were started from very cheap prices. If you invest in the penny projects, they may go up rapidly and may return you a large profit in return of your investment within short period of time.

Profit ratio: As the penny crypto currencies are very volatile, so you can earn reward more than fifty percent in a very short time.

 Disadvantages of the Penny

Fluctuation: If there is chances of uptrend, they can go down too with same ratio. Fluctuation ratio in penny crypto currencies is very high. If the market goes down, the ratio of lose is very high. These currencies get highly effected by market fall as compare to other coins.

Less experienced companies: These projects are handled and managed by less experienced companies who provide a very small information for the investors. So it's not usually secure to invest in these projects.

Risk: If the penny coins can return you a very goof profit, these project may destroyed you completely as the risk level is very high here.

Unable to predict future: If the penny is newly launched, so it is not be able to predict its future.

No proper monitoring: These project need the proper management and monitoring. Without these, such pennies can be vanished within few weeks. If you lose your money, no one will be answerable for that lose.

Hard to sell: It may be possible that in future, the penny where you have make investment do not get popularity. So it would be difficult for you to sell your pennies.

Plenty of penny: Many new pennies are being introduced daily. So you shouldn't invest in such small valued coins and they don't have a proper future. they can even be destroyed with some days. So do proper analyze before making investment in such coins.

Always make a good research and proper analyzes before investing any any penny coin. As there is very high volatility, so don't take risk of losing your money in such small project. Always invest in those pennies which are getting the popularity among investors and seems to be on trend in future by their selling ratio.

For you: What will be the best Penny to invest in this 2021?

You cannot invest in any penny project blindly. Although the future cannot be predicted of these small price coins, so its not safe to trust on such small projects without having any analyzes and research. You need to do a proper homework before making investment. There are some points which need to be taken into consideration before investment.

Market rank: The penny where you are going to invest should be in one of top ranked penny currencies in term of market value.

Well managed project: The penny where you going to invest should be monitored properly and must be a very good project.

Investor's interest: The penny coin where you want to invest should be popular among investors. The selling ratio should be high of this coin.

Creation of Coin: The penny coins should be create enough on the regular base.

Market age: The penny where you are going to invest should be there in market for long period of time.

If all the above mentioned factors are found in a penny coin, it means that coin is safe to invest. Many pennies are being introduced on the daily basis but the one i find more trust worthy is Dent and Vechain.

VeChain

Vechain is a penny coin with the value less than 1 dollar. It fulfill the above mentioned criteria. Its value in market is rising day by day and soon it will consider the best penny coin by investors to invest in order to get the maximum profit within short time. Many big companies such as Renault is supporting this project which enhance its worth. Its currency is VET. Its market capitalization is 0.475. Vechain price is 0.1246$.

This project is working with the Bayer China which force the investors to trust on it as the Bayer china is the one of the largest Company in Pharmaceutical companies.

Purpose of Vechain: We are lining in the era where every thing is copied and replica is being made of anything; whether its jwellery, dresses, shoes or car, everything is available in replica form. So there is hard to find the difference between the what is origional and what is copied version. This problem is solved by the Vechain project. Now we are able to identify the true version of a product. Its importance in our life is increasing day by day. The is outclass idea to have such excellent project in digitized form.

Dent

Dent is a penny whose value is less than one dollar. It is most common penny coin among investor. Dent was introduced in crypto world in 2017 and increase its worth in market with passage of time. It works on the well known platform such as binance, Upbit etc.

Its rank oin the market in term of market value is 115. It is safe and a good penny coin to invest. It return the invested amount with great profit. As its penny coin, so it also change every time. So risk factor always be there. But its previous record in market help us to take the decision to invest in the well known and famous penny coin. It was launched on the well known platform ERC-20. But now it also working on Binance, Bittrex and Upbit etc too.

Dent current price is $0.004294, market capitalization is $420,855,133.58% and valume is $128,776,262.59. Its price increase much as compare to the previous years. From 2017 till now, there is the increment of 52% in its value. It is increasing day by day. If it continue to increase with this ratio than one day, it may possible that, it will also become a major project just like ETH and BTC.

Purpose of dent: The major purpose of Dent is to facilitate its users to the communication services at very small cost.

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

The XRP is a centralized crypto currency. It mean that XRP is owned by some person(or group of person) and being managed by them. The basic purpose of this to replace the banking system. It allow the exchange of any currency within very short time. This platform perform the trading without any cost. It is one of the top 5 crypto currencies. Its price rised to more than 3$ in 2018

You can analyze this through technical way but fundamental analysis is more effective for XRP. The above is the fundamental anaylze of the XRP. Its resistence point is 1.9 if once it break its resistence in future, it will be at its highest price than. This basic purpose of the CRP is to improve the process of transaction between multiple countries of any crypto currencies. It will be a better, faster and a secure system in near future that will be used as bank. As we said that it is decentralized, so It work on the DLT technology. It does not work on the blockchain. All of its transactions are validated by its own server.

Key points

• Highly centralized
• One of the top five crypto currencies
• Historical maximum price is 3.2
• The XRP is going to plan the emission of CO² by 2030. It will attract the investor's interest.
• The Creators are deciding to burn the large amount of XRP tokens.

Bright side of XRP

• As it is old project, so it is trust worthy
• It is supported by many well known companies
• The technique use to protect the investors is crypto graphy.

Dark side of XRP

• No PoW
• It is centralized. Mean that more power is to the owner instead of investors.
• This currency, like any other crypto coin, is not mined

Is it possible to invest in XRP

The bitcoin effect all the other currencies. As the price of bitcoin is fall, so the price of XRP is also downtrend right now. When the market will up, it will return in a very good profit. But i would prefer the short term investment. I would invest my money to purchase coins. I will hold those coins and would sell them once the price goes up. It is rising continuously. As its company has announced to burn a large number of XRP. And as the burning always turn into a huge benefit, so soon it will reach its maximum price. So i would like to invest in this coin at this time.

For selling XRP as unregistered securities, XRP have ongoing court. Many positive outcomes are there regarding to the case. If the XRP win the case, there will be probably increament of 200-300% within short period of time. Moreover many platforms eliminated the XRP after hearing that news from their list. Coinbase was one of them. If the XRP win the case, Coinbase will add it again into its list which will be result in 40-60% increase in XRP price.

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

 Dent

This penny coin is very popular on social media. I have explained it in the 2nd question too. Dent current price is $0.004294, market capitalization is $420,855,133.58% and valume is $128,776,262.59.

Its price increase much as compare to the previous years. From 2017 till now, there is the increment of 52% in its value. It is increasing day by day. If it continue to increase with this ratio than one day, it may possible that, it will also become a major project just like ETH and BTC.

Polygon (MATIC)

Polygon is a crypto currency which is on 14th rank worlwide. Its market capitalization is $12,800,023,400.81. the price of this coin is rising fastly everyday. Its price raised upto 120% withing the last week.

This penny crypt currency is also become a partner of well known platform NTF which also a cause of rapid rise in its price. It uss the ethereum token algo. From that contract, it price is rising continuously. Polygon provide the easiest, fastest transaction on ethereum blockchain. Its price fell when the bitcoin down trend, but again it started rising. In near future it possibly reach its highest price.

Bittorrent (BTT)

It is decentralized project which was introduced in 2019. Its current price is 0.004314$ and market capitalization is $2,840,229,835.51 . Multiple users use the services of Bittorrent coin for P2P transaction. It provide many services to its users included direct transaction. Its value changes very fastly and has become the mostly sold coin of 2021.

In this year, this coin reached it maximum historical price 0.0108$. This coin can return in huge reward if you hold this for up to two year. It is supported by Tron foundation and one among 50 crypto currencies interm of market value.

SHIBA INU (SHIB)

In the term of market capitalization, it is on the 30th rank in the list. It is supported by Elon Musk and very popular on social media. It is currently listed on the well known excgange platform such as binance, Uniswap, fTX etc. Its market rank is 31.

Even though the crypto of this penny coin is not muc solid but still this coin is planning to introduce its own exchange. There is also a news of burning the token of this penny. So there is a chance of rise in its price again in future.

COTI

This coin has its own wallet. It facilitate its user with the electronic payment. The user can make the transaction fastly and easily of all the crypto currencies at very low cost using this wallet. This belong to Carnado which cause a very bright rise in its price.

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

Out of all above mentioned penny crypto currencies, i find the dent more beneficial. I am going to show you the steps to invest in dent.

Step 1- On the search bar, type the binance.com

Step2- A new page will be open. If you have not account on binane yet, then click on the registration button and register yourself first. If you already have account on binance then just click on the login button, enter your user name and password. You will be login and now you can trade on binance platform.

Step 3- Click on "wallet" button from the manu bar. A drop down list will be there. Select "Fiat and spot"

Step 4- Type "Dent" in search bar.

Step 5- There are two options. If you have Eth in your account then select Dent/ETH. If you have USDT in your account then select Dent/USDT.

Step 6- A page will be there where you can place your order. Type the ammount for which you want dent. Click on Buy button and hurryyyy! the process is ended now and transaction is confirmed.

Step 7- You can see the dent which you have purchased from the binnace account.
_{^{(I didn't have USDT or ETH right now in my account, so i cannot buy the Dent but by following the above steps, you can buy as much dent as you want)}}

Conclusion

Penny crypto currencies are highly vilatile. Fluctuation is very hihg. You need a proper research and keep considered some facts before investing in penny crypto currencies. You can either earn large profit or lose your money in penny coins. Always invest those money in penny coin which you can afford to lose. It may result in higher profit or a small lose as you have bought the coin at a very low price.

Cc:
@steemitblog
@pelon53