The best penny cryptocurrency for 2020 can be a profitable way to expand your crypto portfolio. While investing in penny cryptocurrencies can scare many traders, but if you do your own research, it can offer you tremendous potential.
Our TSG team believes there are still some secret gems in the countless list of coins. There are over 1600 coins on the market and growing. From this enormous list we are going to choose the best penny cryptocurrencies to invest in.
Remember, even at one point even Bitcoin was a penny!
A cheap coin does not necessarily mean that cryptocurrency is undervalued or unreliable. This line of thinking shows a basic misunderstanding of supply and demand and market capacity. Many new ICOs and developer teams are very innovative. They create coins at artificially low prices, so that the new investors will be interested in their cryptocurrencies.
It is common psychology that people would rather own 1000 cheap coins than 0.10 Bitcoin. Bitcoin is expensive, so most of the time you cannot get multiple bitcoins at once unless you are a multimillionaire. However, you can buy 1000 Ripple XRP for only $400, which is much better than 0.050 BTC.
Moving forward, we’re going to think about the things you should look for so you can find the best penny cryptocurrencies to invest in, but first let’s start with what are penny cryptocurrencies?
What are Penny Cryptocurrencies
A penny cryptocurrency is any coin that is worth less than $1.00. In a sense, they can be considered the same as penny stocks are in relation to classic stocks. The same relationship exists between penny coins and normal cryptocurrencies.
To some extent, coins are more volatile and choosing the wrong one is definitely a risky investment. Nevertheless, they also have a great potential to generate 100x, 500x or even 1000x returns.
Some coins have produced excellent returns. For example, Etherum was up almost 10,000% in 2017. But even this performance pales in comparison to the 1,582,000% gain realized by Verge XVG.
Before we even think about generating this kind of returns, we must first learn a good place to buy penny cryptocurrency.
Where to Buy Penny Cryptocurrency
Unfortunately, buying penny cryptocurrencies is a two-step process. You simply cannot buy coins under $1 directly with fiat money. For this purpose, you must first buy either Bitcoin or Ethereum with fiat money. Most altcoins are traded against Bitcoin or Ethereum, so you need BTC or ETH to buy penny cryptocurrency.
Coinbase is the number one exchange that lets you buy crypto with fiat money. So this is the first step. Second, after buying your Bitcoin, simply transfer your BTCs to an altcoin exchange like Binance so you can buy your penny crypto.
# 1 Binance This is by far our most trusted and recommended place to buy and sell cryptocurrency. Binance is known for a strong team, proven products, excellent technology and industry resources. They have a solid relationship with industry leaders and are able to process over 1,400,000 orders per second making them by far the fastest exchange in the market.
Get $10 Free with Coinbase: Open a Coinbase account using the link below and they will give you $10
#2 Coinbase This is by far the most popular. Binance or Coinbase is a good choice if you are looking to buy and sell crypto.
Now let’s see what are the penny cryptocurrencies to invest in and what has the potential to deliver insane returns.
Penny Cryptocurrencies to Invest in
We are always looking for coins under $1 or a penny cryptocurrencies to invest in and have the potential to explode and double our money. This is what our crypto portfolio is all about.
We must concentrate on the importance of a cryptocurrency valued below $1. Not all coins are created equal, so in some cases it is better to buy a fraction of a Bitcoin than 1000 altcoins that have no future and are just some scam coins built on hype.
With that said, our team at TSG will give you the top three cryptocurrencies to invest in this growth potential. We encourage anyone interested in investing in the cryptocurrency space to do their own research on all the coins because you don’t want to send HODL coins.
Penny Cryptocurrency # 1: IOTA
Our first choice for coins costing less than $1 is IOTA. IOTA has the potential to change the way we make payments. There is a big difference in the IOTA blockchain to almost every other cryptocurrency out there.
IOTA promises absolutely free transactions. So, if you are involved in IOTA network and want to send a payment, you need to use your device to confirm two payments and in that way it is only enough to participate in the network to access it.
The no-fee feature allows for all types of microtransactions that will make IOTA a great wallet to HODL in your crypto portfolio.
If you are looking for a practical way to trade IOTA, check out our trading strategy: IOTA Cryptocurrency Strategy – Busted Double Top Pattern.
Penny Cryptocurrency # 2: Ripple XRP
Our second favorite penny cryptocurrency is Ripple XRP. Currently trading at $0.35, this cryptocurrency has tremendous growth potential.
Ripple promises to help banks and financial institutions handle transactions and payments. If you have ever been in a bank and realized how much money it costs to do a simple bank transfer, you will realize that they are stealing money from you.
Everything is slow and everything is very expensive. Ripple can work with the banks, or it can work without them, but it will enable fast real-time transactions. It also happens at a fraction of the cost.
If you are looking for a practical way to actively trade Ripple, check out our trading strategy: Best Ripple Trading Strategy That Can Make You Millions
Penny Cryptocurrency #3: SiaCoin
Our third cryptocurrency under $1 is SiaCoin, which allows users to rent out their unused hard drive space and earn money. One thing that makes this blockchain technology so attractive is that it has a variable pricing model.
As more users add storage, the price will drop and if storage becomes scarce, the storage price will rise.
This technology has huge potential to disrupt Amazon AWS, Dropbox and Google Drive. For this reason and the fact that it is trading under 1 cent – at the moment of writing this article – we think that it has incredible growth potential, and could be really disruptive in the cloud storage industry.
Conclusion – Best Penny Cryptocurrency 2020
The blockchain technology has the potential to really change the way people deal with money, especially during the next 10 to 20 years. When investing in cryptocurrencies, this is the most important thing to do.
Most importantly, penny cryptocurrencies are an excellent alternative investment choice for those who don’t have a lot of cash. Our best penny cryptocurrency 2020 guide highlights three projects that we believe have a higher potential return than the risk involved.
We think that these three coins are the best cryptocurrencies to invest in because they have a solid potential to explode over the course of 2019. Remember that even Bitcoin was a penny cryptocurrency at one point.