TOP 10 Best Penny Cryptocurrency to Invest in 2024
Best Penny Cryptocurrency to Invest in 2023:
| Cryptocurrency | Industry |
|---|---|
Payments |
|
Basic Attention Token |
Blockchain Advertising |
Blockchain platform/Media |
|
Payments |
|
RavenCoin |
Blockchain |
The past year has seen lots of investors make their way into the crypto market, with Bitcoin and Ethereum enjoying the most growth in their valuation. But other than these A-grade coins, another class of digital currencies can be traded – penny cryptocurrencies.
Penny cryptos are digital assets that you can buy for less than $1. They may not be as popular as the bigger coins but they can offer massive ROI if you invest wisely. So we've prepared this guide to let you in on the best penny cryptocurrency to invest in 2023 with great growth potential.
You can find a complete list of the cheapest and most promising coins in this review.
Start investing in crypto right now with ByBit!What are Penny Cryptocurrencies?
Penny cryptocurrencies refer to digital assets on the blockchain that anyone can purchase below $1. This class of assets can potentially make you a lot of money even if they tend to be a lot more volatile than the top-ranking coins.
Investing in Penny cryptocurrencies is attractive for many different reasons in addition to being very affordable. For instance, it is predicted that the world will begin to tilt towards crypto and the blockchain, eventually making the industry and its solutions more mainstream. If that happens, then we expect to see a massive increase in the valuation of Penny cryptos.
Penny coins investing pros and cons
Investing in crypto under a penny has its upsides and downsides. So here are the pros and cons you need to know.
👍 Pros of penny coins
• Penny coins have a high possibility of massive growth and return on investment if you get in early
• Being able to spot penny coins with huge upside potential early can be enlightening and thrilling
• Penny coins investing allows you to diversify as much as you can on a small budget
• There’s a high chance of big gains happening fast
👎 Cons of penny coins
• New penny coins lack a solid history and track record on which to make a decision
• Low trading volume is one problem that besets many of these coins
• Penny coins might be cheap but put you at risk of getting scammed
• Penny cryptos can be insanely volatile and see their value change rapidly
• Being able to buy under a dollar doesn’t necessarily equate to a sound decision because the market cap may already be too high
What is Market Cap?
It’s important to consider the market capitalisation of penny coins before investing in them. The concept of a market cap is simple and allows you to determine the current level of growth of any cryptocurrency. Market cap tells you the size of a cryptocurrency and how stable it is, so you can decide whether to invest or not.
A penny cryptocurrency with a large market cap is the better investment choice if you’re looking to lower your risk because a large capitalization makes it more stable and less volatile. However, any of these assets with a smaller cap may be more volatile but give you a higher reward potential. That means, you’re more likely to see huge gains by investing in smaller capped penny coins but it’s riskier because the losses could also be massive.
Calculate the market capitalisation of any coin by multiplying the number of that coin in circulation by its current price.
TOP 10 Penny Crypto To Invest In - Full List
To give you a clear and concise list of the best penny cryptocurrencies to invest in 2023, our experts at Traders Union did a thorough job researching each coin to determine the quality and utility of the project. We also looked at the level of transparency, the developers behind them, and the future projection. Finally, we considered the rate of acceptance, community activity, and how well each coin has performed since being launched into the crypto space.
| Cryptocurrency | Industry | Current Price | 1 m return | 1 y return | Rank |
|---|---|---|---|---|---|
Payments |
0.00$ |
NaN% |
NaN% |
8 |
|
Basic Attention Token |
Blockchain Advertising |
0.00$ |
NaN% |
NaN% |
|
Blockchain platform/Media |
0.00$ |
NaN% |
NaN% |
7 |
|
Payments |
0.00$ |
NaN% |
NaN% |
7.5 |
|
RavenCoin |
Blockchain |
0.00$ |
NaN% |
NaN% |
|
Zilliqa |
Scaling solution |
0.00$ |
NaN% |
NaN% |
|
ChiliZ |
Fan token |
0.00$ |
NaN% |
NaN% |
|
Shiba Inu |
Payments |
0.00$ |
210.31% |
240.13% |
|
Reserve Rights |
Stablecoin governance |
0.01$ |
88.14% |
179.05% |
|
Payments |
0.00$ |
NaN% |
NaN% |
9 |
Dogecoin (DOGE)
DogeCoin
Doge can be described as the king of all meme coins, increasing by more than 7000% since its creation. This token was initially created to make fun of cryptocurrencies but has since gone on to attract a large community, backed by one of the biggest whales – Elon Musk.
Despite having no unique use case at first, Doge can now be used as a form of payment as we’ve seen it being accepted by companies like airBaltic, Strange Donuts, Tesla, etc.
Basic Attention Token (BAT)
Basic Attention Token (BAT)
BAT is the fueling penny cryptocurrency for a digital advertising platform built on the blockchain with its founders being Brendan Eich and Brian Bondy who are both well-known in the online browsing industry. Basic Attention Token is created to ensure that advertisers can better results after spending on ads while rewarding users who interact with the adverts. Everything takes place inside the Brave browser which allows users to earn rewards In BAT whenever they view adverts while keeping their privacy secure. And then advertisers can take advantage of the platform to target their ads to specific users in order to reduce losses and get more engagement.
TRON (TRX)
TRON (TRX)
TRON is a blockchain product dedicated to making the internet decentralized by reducing the influence of big service corporations like YouTube. The goal is to ensure that content creators take back the power and retain most of the profits that are currently flowing to advertising platforms. TRON believes that every creator on the internet has a right to all of the profits and intends to use a peer-to-peer blockchain-based system to process every transaction.
Stellar (XLM)
Stellar (XLM)
Stellar was developed to service and infrastructure through which funds could be moved without incurring high-cost fees. Since being launched in 2014, the project has gained notable partnerships with companies like IBM, Grayscale, and Franklin Templeton. Payment systems and businesses make use of XLM to facilitate transactions across borders, which only requires a per-transaction cost of $0.00006. One upside of the Stellar infrastructure is its proof-of-stake algorithm that helps to conserve energy. It is expected that XLM will see more adoption in the coming years, and that will drive its price up.
RavenCoin (RVN)
RavenCoin (RVN)
In recent times, RavenCoin has started to get eyes on its project which focuses on application in the financial sector. At first, it was designed for blockchain-based ownership using digital certificates. But despite having NFT capabilities, the fact that it has its blockchain and could be mined made it attractive to miners, thereby increasing its popularity. With a higher adoption rate projected shortly, RavenCoin might just be the ideal penny cryptocurrency to explode 2023.
Zilliqa (ZIL)
Zilliqa (ZIL)
Aimed at increasing the number of transactions that can be carried out every second, Zilliqa is a scaling solution that makes use of sharding technology and uses a limited number of nodes per shard in order to reduce the risk of manipulation on the blockchain by any node. Birthed by Techies, entrepreneurs, and academics in Singapore, it’s said that the ZIL blockchain can power almost 3,000 transactions per second. With a strong team behind the project and backed by pros from the National University of Singapore, this seems like decent crypto under a penny to consider investing in.
ChiliZ (CHZ)
ChiliZ (CHZ)
Fan involvement in the world of sports is set to evolve, thanks to the introduction of fan tokens. That’s something that ChiliZ is championing, making it possible for fans to join in making decisions regarding what goes on in their preferred sports teams. Many football teams around the world are embracing the idea because it serves as a way to create an inclusive experience for loyal fans. ChiliZ fan tokens tokenize decision-making and give fans a share in that process using its website, socios.com. By holding the token, fans can vote on certain things such as team jersey choices, signings, etc. We’ve seen teams like Juventus and AC Milan partner with CHZ already and more sports teams are set to join the movement.
Shiba Inu (SHIB)
Shiba Inu (SHIB)
Among the tokens valued under a penny, Shiba Inu is the cheapest, which means a couple of bucks can get you many millions worth of SHIB. It’s also a meme coin, treading in the footsteps of DOGE. But what started as a joke has now seen Shiba Inu grow in size, community, projects, and market cap. Built on the Ethereum blockchain, news that the developers were going to build and launch a DeX (ShibaSwap) attracted a lot of investors both big and small. Its market capitalisation already rivals that of Dogecoin but it is expected that this penny cryptocurrency will continue to rise in value over the coming years as the developers look to create more use cases.
Reserve Rights (RSR)
Reserve Rights (RSR)
The Reserve Rights token helps to govern and stabilize its stablecoin – The RSV. It also serves as a recapitalization source in the event that RSV cannot be collateralized anymore. This is called rebalancing. With the stable coin pegged to the US dollar, Reserve Rights seeks to lower the rate at which digital assets are affected by volatility. It uses a protocol that enables the autonomous operation of different Fiat networks and then employs a repurchasing mechanism to ensure that the token (RSV) remains at a stable point. The project also wants to help reduce the pain points and high transaction costs incurred when moving money across borders. A third party holds its US dollar-backed centralized storage.
Ripple (XRP)
Ripple (XRP)
Ripple stands out in the world of virtual payment solutions. This digital tech system is the brainchild of Jed McCaleb and Chris Larson, set up in 2012 to streamline payments using the Ripple blockchain, designed in the form of a distributed open-source protocol. Besides being able to process payments at high-speed, the blockchain also comes with one of the best financial security features. Its potential earns it a deserved place on our list of the best penny cryptocurrency to invest in 2023.
How to Choose a Penny Cryptocurrency?
Penny cryptocurrencies provide an attractive form of investment since they could lead to enormous gains. But keep in mind that they can also lead to huge losses because they tend to experience great volatility.
So if you are looking to find a penny crypto to buy, here are some guidelines to help you choose the best possible crypto under a penny:
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Startup vs Established Project: Penny cryptocurrencies usually start as new projects on the blockchain. But some of them eventually grow and gain massive adoption, as well as lots of investors. So you want to decide whether to take the bigger risk of getting in early when the crypto is still undervalued or waiting until it has built a successful track record. Getting in early puts you in the best possible position to reap massively if the project performs well. But that also exposes you to a higher risk of losing your money should the project flop.
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Developer activity: Look into the background of the developer team. Did they have an excellent reputation? Visit their LinkedIn or professional profiles. Join the social channels of the project to see how well the developers interact with the community. Find out what their plans are and how they intend to grow the project.
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Price movement: if the project has been around for some time, go back over the price history and study how the price reacts in relation to BTC movements. Does it dump heavily each time there’s a bear market? How quickly does it recover? What are the percentage gains made since its inception? That should give you an idea of what to expect if the price moves against you.
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Market cap: Every investor likes to get in early on a promising project. But due to the highly volatile nature of cryptocurrencies, you're basically dealing with high-risk investments here, especially when a penny cryptocurrency is involved. So you want to look at the market capitalisation before investing. If you have the balls to stomach the risks, you want to go for a penny cryptocurrency with a smaller market capitalisation, say $10-$200 million. That could see you make huge gains if the project succeeds. But if you want a more stable investment that could grow over the years, then it makes sense to go for a penny cryptocurrency with a higher market capitalisation. That’s because a higher market cap protects you from losing too much money if the market swings against you.
Risks of Investing in Penny Cryptocurrencies
As much as many cryptocurrencies are cheaper to invest in and easier to diversify your portfolio with, they also come with some level of risk.
Here they are:
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Rug pulls: New cryptocurrencies usually cost less than $1 when launched. If you fail to do your research, you could end up investing in a scam project where the developers end up pulling the rug under you and taking off with investors’ money. That will leave you with a bag of worthless coins.
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Higher loss margins: A penny cryptocurrency with a low market cap exposes you to a higher risk of massive losses in the event of a bad market swing to the downside. This mostly happens during the bear season which affects new crypto coins adversely.
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Wrong positioning: That you can buy a penny crypto for less than a dollar doesn't necessarily make it a worthwhile investment. That's because the market cap may already be so high that your chances of making good profits on future bullish movement becomes greatly reduced. This is true in the case of cryptocurrencies like Shiba Inu and Dogecoin. With both projects already capped in billions of dollars, you will need to invest lots of money to see any substantial returns and that could take a lot longer to achieve.
Which Exchanges are the Best for Penny Coins
Before choosing an exchange to buy a penny cryptocurrency, there are certain things to look out for. Of course, you have to do your due diligence. According to our experts at Traders Union, here are some of the most important that was to consider:
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Security: Make sure the exchange has high-level security features to protect your money after investing.
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Legal compliance: Do some research about its method of operation to ensure that the exchange complies with legal standards wherever it offers its services.
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Customer support: Crypto investing is a high-risk, high-reward endeavor. That makes customer support access a crucial part of the service structure. Find an exchange that responds swiftly to customer queries.
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User-friendliness: Most penny cryptocurrency investors are beginners. So it’s best to find an exchange that has a user-friendly platform.
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Fees: Your preferred exchange should have a transparent fee structure with no shady tactics. Hidden charges are a red flag.
That said, two top-rated exchanges for investors looking for a penny crypto to buy are Binance and Huobi Global.
Binance
Binance
Currently the biggest centralised exchange in the cryptocurrency industry, Binance is considered the apex for all cryptocurrencies. That’s because they’ve built a reputation as the most secure and most user-friendly exchange. Set up in 2017, both newbies and pros use Binance to trade every day. Binance also has a mobile application that offers virtually the same web experience. You can find a wide range of penny cryptocurrencies on the exchange and their trading fee is fair at 0.1%. You still get discounted trades by up to 25% if you choose to pay trading fees in its native coin, BNB.
Huobi Global
Huobi Global
Next in line is Huobi Global, a centralized exchange established in 2013 but now regarded among the most stable crypto exchanges in the world. You will find more than 300 coins and tokens to invest in on the exchange, many of which are also penny cryptocurrencies. Huobi’s trading platform comes with a whole lot of advantages and exciting features. The trading fees are also great, with takers and makers paying around 0.2% which is favorable when you put that side by side with what many other exchanges offer. Download the mobile app on your Android or iPhone and buy any penny cryptocurrency of your choice. You can also take advantage of the price action charts, drawing tools, and indicators to make better trading decisions.
Summary
Cryptocurrencies are risky digital assets that also promise a high return on investment if you get it right. A $100 investment could easily grow into $1000 and more if you spend time researching the best penny cryptocurrency to invest in 2023. Once you find the right project and get in early, you could make a fortune in favourable market conditions. However, keep in mind that penny cryptocurrencies, as well as other cryptos, are not regulated. With no investor protection from the Feds, apply proper risk management strategies and invest only what you are willing to lose.
FAQs
Why invest in penny cryptocurrency?
Despite the risks that this form of digital asset presents, you need to start adding them to your portfolio because the future projection for cryptocurrencies going mainstream is positive and promising. Bagging the right crypto under a penny could be the difference between where you are now and where you could be in the coming months and years. The higher the risk, the bigger the reward.
What Penny crypto to buy now?
Consider looking into some of these penny cryptocurrencies in 2024:
- Dogecoin
- Shiba Inu
- Ripple
- Basic Attention Token
- Stellar
- RavenCoin
- ChiliZ
- Zilliqa
- Tron
- Reserve Rights
Best cryptocurrency exchanges for penny cryptos?
Many different exchanges exist, but if you’re really concerned about the long-term safety of your investment, Binance and Huobi Global are two great picks.
What is the cheapest crypto to invest in?
As of now, coins like CHZ, DOGE, ZIL, and XLM are pretty cheap and cost less than a dollar per unit. They also have huge upside potential, but consider researching the projects and looking at the market cap before investing.
Glossary for novice traders
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1
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
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2
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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3
Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
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4
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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5
Volatility
Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.
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Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).