Most of people enter the crypto world from fiat through one of the big exchanges like Coinbase, Kraken or Gemini. What meets their eyes are very expensive bitcoin, fairly expensive litecoin and ethereum. This means he can buy only a fraction of bitcoin or couple of litecoins or ethers; which further means his moon/lambo dream is not looking too realistic. Other, more cheap coins listed on these exchanges look far more attractive to the unsophisticated new crypto investor and he starts thinking of buying himself a pile of penny cryptocurrencies like XRP, IOTA, XLM or ADA.
But how sound is that decision, economically? Because, most of the cheap coins are cheap because of their massive supply (in billions of tokens). Supply and demand is a basic economic law that dictates outcomes like this – the bigger the supply of certain item, the lower its value and its price.
Read our other article – on most undervalued coins to see which ones are more worth (in our opinion) than the market is willing to price them right now. And this article will tell you generally more about altcoins and which ones are promising projects.
However, it is perfectly reasonable to expect bigger growth from a low-priced altcoin than very expensive bitcoin.
For example, if you invest $1000 in bitcoin right now you will get approximately 0.2BTC. If bitcoin does an incredible, wildest astronomical gain of 100x and reaches $500k – you still have earned “only” $100k. But imagine if you invested those $1000 in a dirt cheap coin that costs 1 cent and it does 10,000x or 100,000x increase to $100 or $1000 per coin – you are a multi-millionaire. If you think this sounds like a fantasy – go check some stats from 2017 and see the incredible growth of many coins, from under $1 to $1000+ (ether being one of the most famous examples).
If you have a big appetite for risk and speculative drive in you, hunting down these penny coins can be very rewarding. Once you seize those profits, it would be wise, though, to move them into bitcoin as that is the ultimate goal of crypto investing: increasing your bag of satoshis with every trade move.
Before we gush out of the initial topic, let’s move to the list of recommended (in our humble opinion) penny cryptocurrencies worth investing in 2021. It is worth noting that all of the below enumerated coins are under a $1.
Best penny crypto to buy now:
⚡️ Polygon – MATIC
Formerly known as Matic Network, Polygon is an interoperability and scaling framework for building Ethereum-compatible blockchains.
It seeks to address some of Ethereum’s major limitations—including its throughput, poor user experience (high speed and delayed transactions), and lack of community governance—using a novel sidechain solution.
As part of the new strategy, the project also included prominent Ethereum developers and influencers such as Hudson Jameson, Ryan Sean Adams, Anthony Sassano and John Lyric as advisors.
Polygon’s SDK and platform transform Ethereum into a multi-chain system. This is the same as other projects such as Polkadot, Cosmos and Avalanche.
The MATIC token is used for a variety of purposes in the Polygon ecosystem, including participating in network governance by voting on Polygon Improvement Proposals (PIPs), contributing to security through staking, as well as paying gas fees.
⚡️ Chiliz – CHZ
Chiliz is the blockchain platform underpinning Socios.com, a fan engagement service that allows sports teams to sell fans special perks, such as voting on team jersey designs or early access to tickets. Those perks are sold as “fan tokens” on the blockchain, similar to recent smart contract NFT sales by Kings of Leon and others.
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The Malta-based company has so far taken a focus on soccer, with its tokens allowing fans to vote on club polls and receive incentives and prizes. This can type of fan interaction can provide a “new digital revenue source” for sports organizations.
Several Fan Tokens like Juventus ($JUV), Atlético de Madrid ($ATM), AS Roma ($ASR), and AC Milan ($ACM) have been gaining traction on cryptocurrency exchanges like Binance.
In consequence, the traction from these tokens seems to have had a cascading effect on the price of Chiliz’s token too.
⚡️ Basic Attention Token – BAT
BAT is definitely one of the fundamentally most sound projects in the whole crypto world and thanks to its low price, it is also the best penny cryptocurrency to invest in 2021.
⚡️ Ravencoin – RVN
Ravencoin, a fork of Bitcoin, is a relatively young token; it’s only since January 3, 2018 that it’s been hovering among the crypto currencies.
Ravencoin blockchain is designed to serve specific purposes. On the one hand, it should help to determine ownership of assets in a flawless manner. On the other hand, Ravencoin, similar to Bitcoin, wants to make direct payments possible. As the open source project on the homepage emphasizes, it is completely decentralized: Neither master nodes nor especially no ICO are behind the project.
Bruce Fenton, high profile expert from traditional finance sector, is the father of Ravencoin. Bruce is known an early Bitcoin advocate, who worked as Executive Chairman of the Bitcoin Foundation from 2015-2016. His experience led him to discover the future of blockchain’s potential for the financial securities industry.
Tron Black is one of seven lead developers of Ravencoin works for Medici Ventures, a wholly-owned subsidiary of Overstock.com. Bruce was friends with Patrick Byrne, Overstock.com’s CEO, and this is how Tron became involved with Ravencoin.
⚡️ VeChain (VET)
VeChain’s is an enterprise level public blockchain with use cases in several industries like automobile, logistics, healthcare, and even luxury fashion. It also connects with state-of-the-art IoT solutions as well. The blockchain is managed by the VeChain Foundation.
It comes with built-in governance tools and works on the Proof-of-Authority algorithm. The blockchain system also boasts of higher scalability suitable for enterprise solutions as well as sidechain capability. It works on a two-coin economic model that helps in managing the costs of VeChainThor protocol. The project is currently dedicated to the expansion of VeChainThor ecosystem and business side of their project is thriving with major partnerships coming to birth almost weekly.
Top strategic partnerships include DNV GL, PriceWaterhouseCoopers (PwC), National Research Consulting Center (NRCC), Yida China Holdings Limited and BitOcean.
⚡️ Holochain – HOT Token
Holochain is a post-blockchain technology that is energy efficient decentralised app development platform that is truly peer-to-peer without the scalability issues of existing Blockchain projects.
Holochain is like having access to all of the capabilities of all of the Internet apps simultaneously without needing an API, because the languages are entirely compatible. Holochain is the equivalent of having an IFTTT layer built underneath the entire Internet.
Because the information isn’t forced to sit uniquely in each application, the end user can create a customized experience with the parameters of their choosing. The possibilities for data mining and consensus building are endless. End the data-monopolies of Facebook and Google. If we choose to use Holochain, we choose how our information is shared and empower the commons to utilize it for collective growth and understanding. Source for this wonderful description of Holo is this guy.
When you hear the description of Holochain, you get excited. The project is bleeding edge tech and it grabbed attention of some mainstream media that reported about it. Right now it is still closer to an idea rather than to an actual realization but the potential is immense.
⚡️ Stellar Lumens (XLM)
Stellar Lumens is a cryptocurrency platform that focuses on remittance and cross-border payments.
Stellar is aiming to be an open financial system that gives people of all income levels access to low-cost financial services. These services include, but are not limited to:
- Mobile Branches
- Mobile Money
In addition to these services, one very powerful feature of the network is their Distributed Exchange. Users can liquidate/exchange their funds for other cryptocurrencies or fiat currencies using the platform’s exchange anchors.
⚡️ Zilliqa (ZIL)
A Singapore-based project called Zilliqa is strong contender for tackling the problem of scalability, and has quickly established itself as one of the hottest coins of 2018. Then they went under the radar, mostly due to their own fault and missed deadlines.
The primary strength that Zilliqa brings to the table is that it is one of the first projects to successfully harness the power of sharding as a scaling solution. While other projects (including Ethereum) are planning to implement sharding, Zilliqa was among the first to demonstrate that it can really work.
Zilliqa is not just some generic fork like many other altcoins; this is a team that tries to really build something: Scilla programming language and sharding are best proofs for that. For this reason, Zilliqa deserves props up from the whole crypto community.
Sharding technology is of high importance, not only for Zilliqa, but for the whole cryptocurrency industry. Should this scaling solution proves its value on Zilliqa’s blockchain, it can be implemented on other networks which would lead to a huge breakthrough on one of the biggest painpoints of the whole crypto world.
No amount of read or listened material can make up a good research. And that is our first and foremost recommendation – do your own research. Our suggestions should only serve you as pointers and one of the information sources you take into account while making your decision as to where to invest your money.
Be vigilant, don’t trust anyone and verify everything.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com