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Penny cryptos are young cryptocurrencies with a low market value. They cost under $1, are more volatile than prominent cryptocurrencies, and are vulnerable to pump-and-dump schemes. Their affordability makes them appealing to investors who seek high returns with a smaller initial outlay.
Investing in penny cryptocurrencies carries a higher risk because of their low price, increased volatility, and limited liquidity. Despite these risk factors, the potential for expanding growth fuels their appeal.
Let’s explore some of the best penny cryptocurrencies in 2024.
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Best Penny Cryptocurrency
- Shiba Inu (SHIB)
- Dogecoin (DOGE)
- Tron (TRX)
- Telcoin (TEL)
- Ripple (XRP)
- Stellar (XLM)
List of Best Penny Crypto to Buy Now
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Shiba Inu (SHIB)
Market Capitalization
$8.95 billion
Price
$0.00001513
YTD
91.97%
Market Capitalization
$8.95 billion
Price
$0.00001513
YTD
91.97%
Why We Picked It
The famous Dogecoin inspires Shiba Inu (SHIB), a meme cryptocurrency recently gaining significant popularity. SHIB boasts a passionate community and has the potential to become a reliable investment option for investors looking to dive into the world of penny cryptos.
Shiba Inu trades at an inadequate price, with trillions of coins circulating. As part of the Shiba Inu ecosystem, SHIB promises future use cases within ShibaSwap—a decentralized exchange and potential ventures into NFTs and gaming.
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Dogecoin (DOGE)
Market Capitalization
$15.86 billion
Price
$0.1094
YTD
55.75%
Market Capitalization
$15.86 billion
Price
$0.1094
YTD
55.75%
Why We Picked It
Dogecoin (DOGE), created initially as a meme coin, has grown into a widely recognized cryptocurrency with a high-spirited community and significant use in charity and online tipping.
With outstanding community drive backing it, DOGE is now accepted as a payment by many companies such as AMC Entertainment, Tesla, etc. Dogecoin aims to be an easy-to-use cryptocurrency and fun for tipping and small transactions. Its technology is based on the Litecoin blockchain.
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Tron (TRX)
Market Capitalization
$11.02 billion
Price
$0.1263
YTD
61.86%
Market Capitalization
$11.02 billion
Price
$0.1263
YTD
61.86%
Why We Picked It
Tron (TRX) aims to create a decentralized content creation and entertainment platform. While not rigidly a “penny crypto,” its price remains relatively low compared to major players like Bitcoin and Ethereum.
Tron prioritizes giving creators ownership of their content and authorizes direct consumer interactions. Due to its focus on real-world use, Tron can grow long-term, but it still carries risks.
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Telcoin (TEL)
Market Capitalization
$187.19 million
Price
$0.002099
YTD
45.44%
Market Capitalization
$187.19 million
Price
$0.002099
YTD
45.44%
Why We Picked It
Telcoin (TEL) is driven to bridge the gap between cryptocurrency and telecommunications. It is the native medium of exchange, reserve assets, and protocol tokens for the Telcoin user-owned, decentralized financial platform. It enables end users to ideally access and power a global suite of user-owned, decentralized financial products.
With alliances and partnerships in the telecom industry, TEL aims to provide fast, affordable remittances and international money transfers. As the adoption of cryptocurrency increases, Telcoin may see considerable growth.
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Ripple (XRP)
Market Capitalization
$25.01 billion
Price
$0.4486
YTD
-9.49%
Market Capitalization
$25.01 billion
Price
$0.4486
YTD
-9.49%
Why We Picked It
Ripple (XRP) is said to be one of the most popular penny cryptos in the cryptocurrency market. It launched in the market in 2012 and reached its all-time high price of $3.84 after seven years, i.e., in 2018.
XRP even left BTC behind in transaction throughput, processing 1500 plus transactions per second. Therefore, Ripple is one of the best penny cryptos to buy in 2024 for the long term since its value may fly up in the following years as crypto payments gain further traction.
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Stellar (XLM)
Market Capitalization
$2.57 billion
Price
$0.0883
YTD
-17.91%
Market Capitalization
$2.57 billion
Price
$0.0883
YTD
-17.91%
Why We Picked It
Stellar (XLM) is another leading penny crypto launched in 2015. Since its inception, it has processed 3.6 billion-plus operations by more than 6 million individual accounts.
XLM allows individuals from all income levels to invest and perform financial services cheaply. Additionally, it helps create and trade digital representations for all money forms, such as dollars or Bitcoin. All this makes Stellar an exciting penny crypto.
Comparison of Best Penny Cryptocurrency
| Penny Cryptocurrency | Price | Market Capitalization | Volume (24h) | |||
|---|---|---|---|---|---|---|
| Shiba Inu (SHIB) | $0.00001513 | $8.95 billion | 33.37% | |||
| Dogecoin (DOGE) | $0.1094 | $15.86 billion | 77.12% | |||
| Tron (TRX) | $0.1263 | $11.02 billion | 21.56% | |||
| Telcoin (TEL) | $0.002099 | $187.19 million | 19.79% | |||
| Ripple (XRP) | $0.4486 | $25.01 billion | 54.59% | |||
| Stellar (XLM) | $0.0883 | $2.57 billion | 38.38% | |||
What is Penny Cryptocurrency?
Penny cryptocurrencies are digital assets called penny coins. They are like penny stocks, which can be bought and sold for less than a dollar. They have an enormous potential to earn profit at low risk. This makes penny coins tempting among crypto users to test the waters. You can invest in as many penny cryptocurrencies as you want and build a well-diversified portfolio.
Investing in penny cryptocurrencies also sounds like a retirement strategy, as their accumulated value grows daily. Compared to other major cryptocurrencies, such as BTC and ETH, the market capitalization of penny cryptocurrencies is comparatively low. These penny coins offer a lot more than just being a cheap investment.
Penny crypto prices can experience considerable swings within brief periods, and fewer buyers on the market may amplify such fluctuations. However, they attract investors despite their inherent risks owing to their conviction regarding the project’s long-term viability or desire to take more risks.
How to Find the Best Penny Cryptocurrency?
Penny cryptocurrencies can be appealing investment options due to their potential for significant returns and low prices, mainly during a bull run. However, it is pivotal to consider certain factors and precautions before investing. Here are some of the primary factors to consider when choosing penny cryptos:
- Market Capitalization: Look for penny cryptos with a reasonable market capitalization. A higher market cap advocates more excellent stability and potential for long-term growth.
- Liquidity: Ensure that the cryptocurrency is adequately traded on exchanges. Higher liquidity allows for quickly buying and selling cryptocurrencies without influencing the market price.
- Development Team: A competent and expert development team increases the probability of successful project execution and continued growth.
- Technology and Use Case: Analyze the underlying technology and the cryptocurrency’s specific use case. Look for projects with practical and innovative applications that can solve actual problems.
Featured Partners
1
Mudrex
Legacy
Over 2 Million Investors Trust Mudrex for Their Crypto Investments
Security
Mudrex is Indian Govt. recognized platform with 100% insured deposits stored in encrypted wallets
Fees
Enjoy zero crypto deposit fees and industry’s best fee rates.
On Mudrex’s secure application
2
BlackBull Markets
Multiple Award-Winning Broker
Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more
Best-In-Class for Offering of Investments
Trade 26,000+ assets with no minimum deposit
Customer Support
24/7 dedicated support & easy to sign up
On BlackBull Market’s secure website
3
Uphold
Grow Your Passive Income
250+ cryptoassets available
Why Uphold
Just $1 minimum deposit
Fees
Enjoy 0% bank deposit & withdrawal fees*
On Uphold’s Website
Please invest carefully, your capital is at risk
Are Penny Cryptocurrencies Risky?
Trading in penny cryptos carries inherent risks. It is highly recommended that you assess your risk tolerance before engaging in penny crypto trading. Below are some of the risk factors.
Lack of price history can make technical analysis difficult:
The major disadvantage of trading penny cryptos is the limited price history required for technical analysis. Technical analysis utilizes historical price data to identify patterns, patterns, and indicators that can help predict future price movements.
However, many penny cryptos have a proportionately short trading history or need more data, making it difficult to assess their market behavior accurately. This lack of information can increase the risks and make informed trading decisions challenging when investing in penny cryptos.
Price Fluctuations:
Highly volatile and acute price fluctuations often characterize penny cryptos. Due to the low liquidity and market capitalization of penny coins, even relatively small buy or sell orders can significantly impact the prices. This increased price volatility can lead to swift gains but can also result in losses in a short period.
Susceptibility to pump-and-dump schemes:
Penny cryptos are peculiarly exposed to pump-and-dump schemes. These schemes imply artificially inflating the price of a cut-price cryptocurrency through misleading information, enticing unwary investors to buy in.
Once the price of penny cryptocurrencies reaches a certain point, scammers sell off their holdings, causing their prices to crash and bolt from other investors with crucial losses. The lack of regulation and simplicity with which these schemes are executed make it essential for investors to exercise vigilance and due diligence before trading in penny cryptocurrencies.
Is Penny Cryptocurrencies Considered a Good Investment Option?
Penny cryptocurrencies have a high risk-to-reward ratio and a low market capitalization. Hence, as more people purchase them, they will surely rise in value faster than more prominent altcoins.
They are also a great investment option because they allow investment diversification. Instead of investing significantly in one or two cryptos, invest small chunks in various penny cryptocurrencies. If the value of one penny coin goes down, the others might come to your rescue.
Forbes Advisor India always advises you to research before investing in digital assets and invest cautiously. What you can do is:
- Ask around
- Track the live-market status of the penny cryptocurrencies
- Seek professional guidance
Since crypto is a new asset class, it is essential to take your own time making an investment decision.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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