Penny cryptocurrency are simply cryptocurrencies that are either a penny or under a penny or cent in dollars. Penny cryptocurrencies are considered a great opportunity for making high profit return on investment, which is why a lot of investors always look out for penny cryptocurrency gems that can generate high profit returns.
While a lot of penny cryptocurrencies are low capital, some penny cryptocurrencies still fall under the mid capital for example Shiba Inu went from low cap to mid capital in a very short time some weeks ago. Most penny cryptocurrencies are under low marketcap which means that their market capitalization is under #1 billion. Also, many penny cryptocurrencies are referred to as high-risk cryptocurrencies because of the high level of risk involved in investing in penny cryptocurrencies.
However, on the positive side, penny cryptocurrencies also offer tremendous high reward, that is why most penny cryptocurrencies are also known as high-risk high-reward cryptocurrency gems. A typical example of penny cryptocurrencies are Bittorrent BTT, Holochain Hot, Shiba Inu SHIB, etc.
Advantages
Penny cryptocurrencies have the potential to be very profitable in the short term. This is one of the benefits of penny cryptocurrencies.
Penny cryptocurrencies have a higher reward margin. This can be a great investment especially for investors who likes to take risk for high returns.
Penny cryptocurrencies are great for traders looking for quick profits. Traders who enjoy trading penny cryptocurrencies because they can make a lot of profit in a matter of hours.
Penny cryptocurrencies can be great short term investments. This category of cryptocurrencies can be a great short term investment because they can increase the value of an investor’s portfolio in a very short time.
Disadvantages
Penny cryptocurrencies can lead to loss of whole investment capital. This category of cryptocurrencies are very risky and as such, they can lead to loss of whole investment capital.
Penny cryptocurrencies are easily manipulated in the market. This category of cryptocurrencies are very cheap to buy and because of that, it is easier for large coin holders to manipulate the market.
Penny cryptocurrencies can easily be dumped. They are very cheap and because of that, there are whales who hold a very large amount. Once the price increases, there is a big possibility that the large holders would dump the coins.
There are so many scam projects in the penny cryptocurrency category. This is a big disadvantage of penny cryptocurrencies. There are a lot of scam cryptocurrency projects that are penny cryptocurrencies which would most likely lead to loss of investment funds.
I had not heard about this cryptocurrency Penny, well I know very few cryptocurrency projects, it sounds interesting to be a cryptocurrency with a high reward margin, I will investigate about it. Thanks @designieplay for this article