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What Are Crypto Penny Stocks?

A Crypto Penny Stock is a digital currency that trades for less than a dollar. Much like penny stocks, some cryptocurrencies are cheap coins that are worth just a few pennies. The following are the four-penny cryptos: Stable coins, Mining-based cryptocurrencies, Security Tokens, and Utility tokens.

Many people think that penny cryptocurrencies provide an excellent investment opportunity. But they are more susceptible to pumping and dumping than larger coins such as Bitcoin. Though all penny cryptocurrencies are similar in the basics, they differ from one another too.

Benefits of Investing In Penny Cryptocurrencies?

If you’re still on the fence about buying penny cryptocurrencies and are questioning if it’s a sound investment, we will help you understand. You can visit  VectorVest a stock forecasting site to help you find the best investment.

These are three main reasons you should invest in altcoins: Altcoins have a high reward-to-risk ratio, the value of penny cryptocurrencies is currently undervalued and will probably increase in the future as Blockchain technology becomes more accepted, and Penny cryptocurrencies provide investment diversification.

Diversification is a must when your portfolio earns consistent returns. Although every coin in the cryptocurrency market suffered when people were afraid of infecting themselves with the coronavirus, some coins still presented a positive return.

They Offered Passive Income Through Penny Cryptocurrencies.

The best-paying dividend cryptocurrency often trades at a value of less than $1. Earning cryptocurrency dividends is like making a stock dividend. Some cryptocurrencies gradually appreciate in worth over time while you are holding them in your wallet or exchange.

Buying a few penny cryptocurrencies might not seem worth it, but we can all see the value they provide now. Blockchain technology is here to stay, and so are the altcoins currencies.

Which Penny Cryptocurrencies Should You Invest In?

Below, we will cover the top investments you should consider. To start, using crypto trading signals will make it much easier to identify coins that are most likely to build up or drop off in value.

Before you buy coins, it is important to have a plan that will help you choose which ones are worth your time. The selection process can be difficult to hold on to when you decide what coins best suit your needs.

Criteria to follow before investing in penny cryptocurrencies

We have compiled a list of 10 criteria to follow before investing in penny cryptocurrencies.

  1. Cryptocurrencies often have a limited supply, having collections varying from 10 million to 1 billion coins.
  2. The company must have a certain market cap, which is mostly a minimum of $20 million.
  3. One must list a popular cryptocurrency exchange like BitMex, Huobi Global, or MXC Binance, OKEx.
  4. Coins with less than 25% of their maximum supply should be removed.
  5. The growth in the last week must be over 50 percent (Use the metrics on Coinmarketcap to calculate).
  6. The minimum volume for the 24 hour trading day is $1 million.
  7. Have a powerful presence on social media (Twitter, Facebook, Reddit, and cryptocurrency forums)
  8. Team up with experienced Blockchain developers
  9. A penny stock that currently trades near its all-time high
  10. Discount penny coins which trade near their all-time high

Find range-bound penny cryptocurrencies that sell at a psychological support level using technical analysis. The team of crypto experts shares the best tips for picking penny cryptos in a future post.