Cheap altcoin can also be called penny cryptocurrency.
Investing in penny altcoins is a new opportunity for elite investors, and it has actually made lots of individuals very rich.
Getting involve in the cryptocurrency world, you will see so many crypto-coin projects valued under a dollar in the market capitalization.
There’re plenty cheap coins that makes up the crypto market capitalization, but not all of them are bound to remain valuable for a long time.
Let’s dig deep into the meaning of penny cryptocurrencies.
Are you ready…?
What is penny cryptocurrency?
This is any altcoin that is valued under $1 – which is not up-to the value of other popular coins like; BTC, ETH, LTC etc.
If you’re an avid investor, you ought to know that investing in new crypto-coins can increase your profit margin, but can lead to heavy losses.
However, penny altcoins price values are very volatile.
To invest in penny cryptocurrency, you need to do thorough research, and also use fundamental, alongside technical analysis.
As the market is full of cryptocurrency scams, you’ll look for sneaky moves to avoid loosing your financial investments in the fake market.
Investing in penny crypto
If you would like to invest in cheap crypto-coins, I would say that most wealthy personalities can afford to loose almost 100% of their investment.
They know the potentials, and they got a far mile in learning the way to get into the crypto-coin market.
Penny cryptos vs stocks
Since Bitcoin is popular and an already established coin, then penny stocks in the crypto world would be those penny cryptocurrencies.
In the real sense, there’s no difference between penny stocks and cryptos, as they’re both the same in all aspect.
They‘re those penny altcoins that are very cheap in price, and you can buy them with very little amount of money.
They mostly cost cents in price.
Categories of penny altcoins
All the cheap altcoins known as penny cryptocurrencies are not all the same, when it comes to classification.
Newly minted cryptos
These are new crypto-coins that got into the market, and are very volatile with risks for beginner investors.
I suggest you avoid such cryptocurrencies, because they’re mostly used for practicing Pump and Dump in the space.
Plentiful penny altcoins
They are cryptos that their market volume supply is very high, and that’s why they’re the cheap alternatives to the next big crypto-coins like; BTC, ETH and LTC.
These are crypto assets that their price value remains stagnant, because they never got expected popularity and adoptions.
These cryptos are those ones that have high value, but later took heavy dip and lost most of their value.
How to make money with penny crypto
Penny altcoins are a good way to earn some extra cash with very little crypto investment capital.
You don’t have to put in a lot of money to invest, unless you’re willing to take big risks.
To make money with these crypto-coins, you must have created an account on a reliable crypto exchange platform.
If you have firmly decided to invest in a penny cryptocurrency, the next step is to look for cheap cryptocurrencies to invest in.
Always make sure to research on them to know their potential in future.
How to buy penny cryptocurrencies
Am a fan of buying a Stablecoin, or popular cryptocurrency before investing in any penny crypto-coins.
If you would want to know about buying penny coins, then follow these steps below:
- Create an account on Binance
- Deposit any amount of money to your base currency
- Buy either BTC, ETH, LTC or BNB from Binance
- Exchange the coin to your desired penny coin
- Your exchange wallet will be funded.
Penny cryptocurrencies can make you very rich, but can also drain you in an instant.
If you had most of your money in the ones that gained price value, you will make huge returns on investment.
But now, let’s assume most of your money was invested in those that where undervalued, you will loose a lot of money.
Always investing in penny cryptocurrencies with a pinch of salt grains, and don’t invest more than you can afford to loose if the market value should go against your favour.
How to store penny crypto-coins
I always advice individuals to avoid storing cryptocurrency investments in an exchange to avoid lose due to theft.
Penny crypto-coins can also be stored just like all other cryptocurrencies.
If you’re going to invest in any cryptocurrency for the long term profit making, you should use an offline wallet.
Conclusion: Penny altcoins
Now that you know all about penny cryptos, you may be wondering if investing in them will be worth it or not.
They can be worth it but you still have to understand all the risks that come with it.
If you’re looking to invest in penny cryptos, you have to be willing to lose money in the whole investment process.
It’s necessary to only invest the sum of money you can afford to loose in-case of unforeseen circumstances.