Penny crypto, like its counterparts in stocks, is well known for its volatility. Usually, they cost less than $5 a pop, but we will be looking at even cheaper alternatives – coins under $1. Thanks to high volatility, these tokens tend to grant investors substantial profits over time. To identify penny crypto with upside potential, you should look at the value of its underlying technology, the proficiency of its team of developers, or the hype it enjoys. Either of these could be the North Star into multiplying your crypto gains. That being said, let’s dive into some popular investment choices for 2022.
XRP
This is an open-source cryptocurrency developed by Ripple, a renowned blockchain company. It makes payments and facilitates transactions faster, cheaper, and more efficiently than most existing payment systems. This it achieves thanks to its superior consensus mechanism, which requires transaction verification by most validators. As proof of its efficiency, more than 200 financial institutions have adopted it.
XRP’s all-time high (ATH) is $3.40, which it hit towards the tail end of 2017. At the time of writing, it boasts a market cap north of $36 billion. Trading at $0.77, this coin is definitely a bargain, especially considering analysts expect it to hit highs of $4 by 2025.
Dogecoin
This is a meme coin that made headlines severally in 2021, following the relentless PR campaign spearheaded by Elon Musk, the affluent investor and businessman. Originally, it was created as a joke with the sole purpose of tipping content creators on the internet. However, when Elon Musk started publicizing it on Twitter, it rallied by more than 18,000%. In less than half a year, it had gone from $0.004 to $0.74. This is its standing ATH, which it reached in May 2021.
At the time of writing, Dogecoin is trading at $0.14, with a market cap of $18.51 billion. This puts it at the 11th largest spot. If the coin were to recover its gains from 2021, it would translate to more than 400% in gains for investors.
Lucky Block
Launched in January 2022, this is a relatively new coin, but don’t let that fool you. Whatever it lacks in-market experience, it makes up for in upside potential. It is a lottery project that is looking to revolutionize online gambling. It utilizes blockchain technology and its underlying smart contracts to achieve transparency, speedy payouts, and fairness.
These smart contracts ensure accurate calculations, random number generation, and equitable fund and reward distribution. What’s more, it doesn’t restrict users from entry based on their geographical location. At the time of writing, it is trading at $0.00198 with a market cap of $73.5 million, making it a bargain for any investors looking to get in on its ground floor.
Basic Attention Token
This is a token that was built to tackle the shortcomings of existing online marketing strategies. Usually, most websites will be riddled with data trackers and numerous ad pop-ups, which only serve to bloat the user experience and increase the load times.
BAT as a project is aimed at redefining how these marketers gather user data and display ads. It does this by rewarding users with BAT tokens for watching ads and helping advertisers deliver targeted ads to obtain better returns on their ad spend. At press time, BAT is trading at $0.7531, with a market cap of $1.13 billion.
Tron
This is a token aimed at facilitating peer-to-peer transactions between consumers and content creators. Its blockchain is smart contract enabled, which means it is capable of hosting dApps of various financial applications. It also boasts a transaction throughput of 2,000 TPS and features free transactions. In 2018, the company acquired BitTorrent, a renowned file-sharing service.
Typically, Tron is characterized by low volatility. Its ATH currently stands at $0.3, and at press time, it is trading at $0.06. Analysts predict it could hit a new ATH by 2025.
Chiliz
Launched in 2018, this is the official token behind Socios, a sports fan engagement platform. Socios works with major sports teams around the world to create fan tokens, which enable their fans to participate in some of their favorite teams’ decisions. For instance, they can get to vote on the designs of team jerseys.
Chiliz ATH currently stands at $0.89, which it hit in March of 2021. As it gains more partnerships with sports entities globally, analysts predict it could hit highs of $7 by 2025.
Stellar
Launched in 2014, Stellar was aimed at facilitating easy payments all across the globe. To achieve this, it utilizes digital representations of any existing currency, be it fiat or crypto. Users can generate, send and receive these digital clones of any currency they wish to make use of. This way, they can make payments globally, regardless of compatibility restrictions across different financial systems.
The Stellar network also features a decentralized exchange for digital asset trading. Financial institutions called Stellar Anchors are used to keep fiat deposits, which are exchanged for their digital clones. The depositor can later redeem the obtained digital tokens for fiat. Stellar’s ATH is at $0.79, but analysts predict it could hit highs of $1.75 by 2025.
Ankr
Ankr is a token behind a decentralized cloud computing solution. The Ankr network aims at providing cloud storage by incentivizing businesses to rent out their unused hard drive space in return for ANKR coins. What’s more, the network is compatible with multiple blockchains. It can also be used by developers to create their own blockchains. Additionally, the ANKR token is stakable, allowing investors to earn passive rewards. Although it currently trades at below $1, analysts believe the token could hit highs of $12 by 2025.
In a nutshell
Penny crypto is a good investment for risk-tolerant investors. Such projects have often earned their investors profits numbering in the millions, owing to their high volatility. However, investing in crypto is a risky investment. To that end, any opinions expressed in this article should not be construed as investment advice.
