Crypto Trading for Broke People: A Guide to Cheapest Cryptocurrencies
Of all these thousands of cryptos, choosing the best and the most profitable cryptocurrency option has been a topic of intense debate and conversation. Many believe that the most popular altcoins are the best to invest in. But with altcoins, popularity does not always ensure quality or profitability.
Most popular cryptocurrencies are way too expensive to start with, and you don’t have to be rich to explore cryptocurrencies. If you don’t have a lot of money to invest in cryptocurrency (most people don’t), you might be better off opting for penny cryptos to start.
Why are penny cryptos a good option?
Let’s go back to penny cryptocurrencies and how they can help you.
When we talk about penny cryptos, we are talking about digital cryptocurrencies that go for less than one dollar per unit. We’ll summarize why penny cryptocurrencies are a good option to explore in the next three points.
The future of cryptocurrencies is rewarding
One of the first things that come to mind when reading about penny cryptos is that they’re undervalued, so how can they possibly be the best cryptocurrencies to invest in?
But this is not a disadvantage, especially if you’re a long-term investor. The mass adoption of these coins may look vague now, but looking at the future could be the next boom.
Penny cryptos that grow in popularity also tend to grow in value. Several coins have grown in value over time as long as they continue to provide proven use cases with their existing user base and continue acquiring new ones.
With many people investing in penny cryptos, the value of these cheaper cryptocurrencies might skyrocket soon. This is one reason financial experts advise that it is best to buy crypto when the price is low and sell when the price has increased much more than its initial coin offering.
Let’s look at an example.
In August 2016, a unit of Stratis was worth $0.01. So, if you had bought 500,000 units, you would now have over $155,000 worth of Stratis coin, with the current price being $0.31 per unit. Now that’s a great monetary gain, which easily makes it one of the best cheaper coins to invest in.
But to achieve this profitability, you have to observe the trend of these cryptos in the market and if they actually look promising to a point where you can invest in them.
They offer good investment diversification
Penny cryptocurrency could be the best option if you’re considering investment diversification. You could be a huge investor in other digital markets, but this would allow you to have diverse income and could also help you generate small incremental gains.
They offer stable passive income
Penny cryptos under $1 offer passive income because they offer one of the best digital dividends to investors. It doesn’t require much money to purchase them since their value is meager.
With that out of the way, let’s talk about the best cheap cryptocurrencies to invest in 2020.
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Top cheap cryptocurrencies to invest in
Here are the top 10 best penny cryptocurrencies to invest in that made it onto our list:
1. IOTA
In cryptocurrency today, IOTA is popular for being a science-oriented trading platform for internet-connected devices. IOTA operates on one of the most unique and advanced technologies, which has accounted for the coin’s distinct operational function from a host of others.
IOTA takes its name from the Internet of Everything (IoT) and serves as a platform for humans and machines to exchange data and values.
There are no blocks or miners in IOTA. When you send a request for an IOTA transaction, you also validate two other transactions simultaneously, which lets IOTA overcome the cost involved.
It’s highly scalable, requires low-resource, and has zero-fee transactions. IOTA transactions are confirmed within minutes.
IOTA recently released a new node called “Hornet,” which brings significant improvements to transactions’ speed. The upgrade will be another step towards improving centralized components from the IOTA network.
IOTA uses a DAG (Directed Acyclic Graph) technology instead of the conventional blockchain technology. The technology was specifically created for IOTA, and no other altcoin shares it to date.
Fast Transactions
Transactions are FREE
ITOA uses Tangle
IOTA uses a quantum-proof technology
Big competition
IOTA is more centralized
2. CARDANO
Cardano was developed in 2015 and was officially launched by September 2017. According to its developer, Cardano is the first blockchain to have fully evolved from scientific research and philosophy.
The design of Cardano was made such that data and transactions are provided on two different layers. Cardano operates on a proof-of-algorithm concept commonly referred to as Ouroboros.
Cardano is also capable of running decentralized applications on the blockchain.
The maximum amount of ADA coins Cardano can supply is 31 billion, with a maximum of 45 billion coins supply.
Developed on an open-source code
Was developed by a team of competent and credible and programmers
Stake Proof Algorithm complicates mining
The security is questionable
The programming language used in developing is not universally tested and recognized
3. RAVENCOIN
Ravencoin came into existence as “a transformation” of Bitcoin. So, it’s better put as a hard fork of BTC. The first coin was mined on January 3, 2018, when the software was made public.
Ravencoin focused on issuing tokens on the Ravencoin blockchain, which could be used as securities or as collectibles.
Originally, Ravencoin came into existence for a single purpose: to serve as a leading open-source platform for transferring token-based assets from one person to another without being charged for such transactions.
Its hash rate has, however, been improved by adding a small block. This enables mining to take place in less than a minute.
The total coin supply of Ravencoin stands at 21 billion.
It is an open-source platform
Privacy is top-notch
Ravencoin is operated by a team of dedicated programmers
Ravencoin is quite slow
There is no backing such as commodity or assets for Ravencoin miners
4. RIPPLE
Ripple has been in existence for 8 years and is often a strong contender for one of the best cheap cryptocurrencies. Like the other best cheaper cryptocurrencies to invest in 2020, Ripple had a major aim of revolutionizing transactions such as transferring funds and payment.
Today, Ripple has been able to actualize most of its plan, perhaps because it was visionary enough to partner with big names in the world of technology such as Google and MIT.
The developers of this altcoin, which has made it to our list of best cheaper coins, felt that the traditional banking system was too slow and quite expensive and should not be categorized as a Global Payment platform. This created the RippleNet — the global payment system for Ripple users.
Ripple is the second-largest crypto with a net market capitalization of $122B. This fortune has turned Chris Larsen, the co-founder of this altcoin, into one of the world’s richest people.
According to Ripple, more than 300 organizations now choose their platform to tap into new customer bases, expand their services, and deliver the best to their customers through more efficient global transactions.
Ripple is capable of processing over 10,000 transactions per second
Confirmation of transactions is effected four seconds
Ripple is the second-largest market cap
Ripple focuses on targeting the traditional banking system
Ripple developers hold up to 60% of the XRP in circulation
5. DOGECOIN
Dogecoin is another open-source, peer-to-peer digital currency, which the developers say is “favored by Shiba Inus” — the meme dog.
Dogecoin allows fast transfer of funds from one holder to another, making it one of the best cryptos under $1.
Dogecoin started on Twitter as a charity organization. It was forked from Litecoin and officially launched as a cryptocurrency in 2013. Now, it is one of the best cheaper altcoins, perhaps because it started as a meme.
Today, Dogecoin has a market capitalization of over $199M, with over 123 million circulation units.
One unique thing that sets Dogecoin apart and makes it one of the best cheap cryptocurrencies to invest in is that it has a rich community with nice and humorous users — it’s all in the spirit of the meme.
The confirmation of transactions is relatively fast
The transaction fee is comparatively low
Dogecoin has a team of dedicated and loyal members
Dogecoin is supported in hardware wallets
He has a number of security issues
The market is very unpredictable and unstable
This is not widely accepted by crypto lovers
6. DIGIBYTE
Digibyte was introduced to the crypto market in 2014 and has since been growing in market size. In terms of speed, decentralization, and security, Digibyte is the next big deal after Bitcoin.
According to the developers, Digibyte would have supplied a total of 21 billion units of DGB by the end of 2035.
Digibyte has three main application layer hosts, making it completely different from other coins. They are Decentralized Apps (DApps), Smart contracts, and Digi-apps.
DApps is essentially built as a software utility application for Digibyte blockchain. Smart contracts are digital policies that are set up to ensure that digital assets transfer without a third party’s involvement. Digi-apps, on the other hand, are centralized software for the blockchain.
The altcoin operates on two layers: the digital asset and public ledger layer and the core protocol and global network layer. The first layer is made to ensure the administration and security of asset-based tokens. The second layer helps facilitate communication between crypto users from different platforms.
Digibyde’s multiple features surely make it one of the best cheaper cryptocurrencies to invest in.
It executes transactions very fast
Its decentralized network is completely secure
Digibyte hosts a number of decentralized apps
Dogecoin is supported in hardware wallets
As the coins are increasing in quantity, the value may have dropped by 2035
There’s no future roadmap or whitepaper for Digibyte
7. BITCOIN DIAMOND
When BCD was launched on November 24, 2017, there were controversies around its existence. In fact, it took people some time to trust this cryptocurrency. People believed that it was created as a scam since anyone could fall for any brand with Bitcoin in its name. But still today, there are no records of fraud or scam on the platform. BCD is a hard fork of Bitcoin.
When the altcoin was launched in 2017, there were no future roadmaps or whitepapers, which exacerbated people’s initial thoughts about the cryptocurrency. It took the developers a very long time to release some information about BCD after it was launched.
BCD is a decentralized currency like other cryptos. Despite the similarities it shares with BTC (such as its developers’ anonymity), some differences do exist.
BCD had two major aims before its establishment — to increase the pace at which transactions are executed and strengthen users’ privacy protection.
Presently, there’s a circulating supply of 190 Million coins, along with a maximum supply of 210 Million coins. Anyone willing to mine BCD should know that all transactions and blocks are verified using the proof-of-work algorithm.
Has become more decentralized
BCD is cheaper and faster than most cryptos
You can save your wealth from hackers using BCD tokens
BCD can be mined with less powerful rigs
BCD is new to the crypto market
There are possibilities that the altcoin will soon be hacked
It has failed to launch the lightning network it promised its users, years ago
8. STEEM
Unlike many other cryptocurrencies that prefer to hide their identities under the veil of anonymity, Steem was created by Ned Scott and Daniel Larimer in 2016. It is a decentralized cryptocurrency and operates on blockchain technology.
It is a social blockchain that provides immediate revenue streams for its community by rewarding users for sharing content.
Since its creation, this altcoin has continued to grow almost astronomically. By 2020, it also eased up on its volatility and became a stable coin for investors.
It is a platform designed to empower content creators more than media channels, as the latter tend to make more money than content creators ever do.
Transactions at Steem take around 3 seconds to complete, and that’s some great speed.
All its operators are identity verified in case of fraud
It has witnessed remarkable market growth in the last three years.
It has a low user base
It is prone to hacking as the security structure is questionable
9. ONTOLOGY
Ontology was created as a platform for corporate clients who cherish privacy and are strongly against their data being revealed to the public.
In short, it is a privacy-conscious cryptocurrency. Over the years, this altcoin has gained remarkable popularity and uses a network of blockchains for operation.
Ontology came into existence for companies and institutions to incorporate blockchain technology into their system without changing their systems completely.
Ontology is open-source, and every piece of information posted is made available for all to see on their public ledger.
It provides multiple toolkit application development frameworks for users to develop and build their own applications without any technological barrier.
Ontology is very easy to operate
It comes with toolkit application framework for developers
There are endless benefits for companies using the ontology blockchain on their systems
The altcoin is still in its early years and may not have enough user base
Ontology is operated from China; a country with the strictest cryptocurrency policies
Wrapping up
Penny cryptocurrencies or cryptocurrencies under $1 can be a good investment option if you have a long-term goal. By investing in cheaper coins, you’re very likely to make more profit and lose less money. We also suggest you invest in cheaper altcoins if you are looking for diversifying your cryptocurrency investment portfolio.
However, there’s one major risk factor — volatility. No one can predict accurately what happens to the market in the next few hours, not even for the best cheaper cryptocurrencies. You could expect that the price rises and then disappointedly plummets.
Some cheaper coins have had their prices fall below 99% of their initial prices. This may look enticing to a prospective investor, but it’s a trap. Investing in such could be your worst mistake ever. In most cases, the prices of such coins do not rise back to their original prices. Only the fastest growing cryptocurrencies tend to survive!
So, if you’re going to invest in cheaper cryptocurrency under $1, study the market very well and keep an eye on the trends and reports around them.
If you have made up your mind about investing in cheaper cryptocurrency and mining it, you can check our post on the best hardware for mining cryptocurrency.
Thank you for reading.
