13 Best Penny Cryptocurrencies To Invest In

Introduction

Most crypto enthusiasts dream of buying low and selling high. This comprehensive guide explores the best under-$1 digital assets with the potential to skyrocket during market uptrends. Understanding penny cryptocurrencies is crucial for investors seeking high-growth opportunities in the blockchain space. Here's a detailed rundown of thirteen best penny cryptocurrencies to invest in based on market capitalization, each offering strong growth potential and unique value propositions in the evolving crypto ecosystem.

Key Takeaways

• Some of the top penny cryptos include Tron, The Graph, DOGE, PEPE, and SHIB, each representing different sectors of the blockchain industry.
• While many penny cryptos offer enticing deals during bull runs, it's crucial to select assets carefully and consider multiple factors including utility, tokenomics, social sentiment, and technological innovation.
• Investing in cryptocurrencies can be risky, especially with smaller or lesser-known cryptocurrencies. Risk management and thorough research are essential. Never invest more than you can afford to lose.

Best Penny Cryptocurrencies To Consider

1. Tron

• Price: $0.1972
• Market cap: $17.03 billion
• Total supply: 86,335,943,691

TRON is designed to decentralize the internet, emphasizing high scalability and rapid transaction speeds. The platform has established itself as a major player in the blockchain space by focusing on content distribution and entertainment applications. Its initiatives like "HackaTron" actively engage the community in innovative sectors such as DeFi and GameFi, positioning TRON as an attractive option for investors keen on cutting-edge digital assets.

The TRON ecosystem has grown significantly, supporting thousands of decentralized applications and processing millions of transactions daily. Its low transaction fees and high throughput make it particularly appealing for developers and users seeking efficient blockchain solutions. The platform's commitment to technological advancement and community engagement continues to drive its adoption across various use cases.

2. The Graph

• Price: $0.346
• Market cap: $2.42 billion
• Total supply: 10,799,706,720

The Graph is an intriguing option for those interested in penny cryptocurrencies with real utility. Established in 2018, this DeFi project initially debuted on the Ethereum blockchain and has since expanded to support multiple blockchain networks. The primary aim of GRT is to improve information retrieval within blockchains, functioning as an indexing protocol for querying networks like Ethereum and IPFS.

Often referred to as the "Google of blockchains," The Graph enables developers to build and publish open APIs called subgraphs, making blockchain data easily accessible. This infrastructure is crucial for the development of decentralized applications, as it allows developers to efficiently query blockchain data without relying on centralized servers. The Graph's role in the Web3 ecosystem positions it as a fundamental building block for the decentralized internet.

3. Floki Inu

• Price: $0.0002286
• Market cap: $2.20 billion
• Total supply: 9,682,569,216,017

Floki Inu is a meme coin that blends practical utility with a philanthropic angle, aiming to empower the average person over venture capitalists and hedge funds. Unlike many meme coins that rely solely on community hype, Floki has developed several utility projects including Valhalla (a metaverse game), FlokiFi (DeFi products), and the University of Floki (educational platform).

The project has gained significant attention through strategic marketing campaigns and partnerships, building a strong community of supporters. Floki's commitment to charitable causes, particularly in education and animal welfare, has helped differentiate it from other meme coins. The combination of entertainment value, practical applications, and social impact makes Floki Inu an interesting case study in the evolution of meme cryptocurrencies.

4. Shiba Inu

• Price: $0.00002563
• Market cap: $15.10 billion
• Total supply: 589,512,447,110,672

Since its debut in 2021, Shiba Inu has lit up the crypto community and established itself as one of the most recognizable meme coins. Many believe it to be one of the best penny cryptos due to ongoing efforts to enhance and expand its ecosystem while remaining true to its meme coin nature. The project has evolved beyond simple speculation to include Shibarium (a layer-2 solution), ShibaSwap (decentralized exchange), and various NFT initiatives.

The Shiba Inu ecosystem demonstrates how meme coins can transition into legitimate blockchain projects with real utility. The development team has consistently worked on adding value through technological innovations and strategic partnerships. The massive and passionate community behind SHIB continues to drive its adoption and market presence, making it a notable player in the penny cryptocurrency space.

5. Fetch.ai

• Price: $1.46
• Market cap: $3.97 billion
• Total supply: 2,719,493,896

Fetch.ai is an innovative blockchain platform that integrates artificial intelligence and machine learning into its core functionality. The project aims to create an autonomous economic internet where digital agents can perform tasks on behalf of individuals and organizations. Fetch.ai's unique approach in blending AI with blockchain technology sets it apart from other projects in the crypto space.

The platform enables the creation of autonomous agents that can learn, adapt, and transact independently, opening up possibilities for optimization in various industries including supply chain, transportation, and energy management. As AI continues to gain prominence in technology discussions, Fetch.ai positions itself at the intersection of two revolutionary technologies, potentially offering significant growth opportunities for investors interested in next-generation blockchain solutions.

6. Dogecoin

• Price: $0.3985
• Market cap: $58.58 billion
• Total supply: 146,943,226,383

Initially created as a joke in 2013, Dogecoin has become the first and most recognized meme coin cryptocurrency. It often experiences increased price surges when mentioned by notable figures and has maintained a strong community following over the years. Due to its large supply and inflationary tokenomics, it remains below a dollar but still has potential due to the volatility of the crypto market.

Dogecoin's simplicity and accessibility have made it a popular choice for newcomers to cryptocurrency. The coin has gained mainstream attention and acceptance, with some businesses accepting it as payment. Its low transaction fees and fast confirmation times make it practical for everyday transactions. Despite its humorous origins, Dogecoin has demonstrated remarkable staying power in the competitive cryptocurrency market.

7. Stellar

• Price: $0.50
• Market cap: $15.21 billion
• Total supply: 50,001,786,911

Stellar is designed to facilitate efficient cross-border transactions and positions itself as a key player in modernizing the international financial landscape. The platform connects banks, payment systems, and people, enabling fast and affordable money transfers across borders. Its role in enhancing and simplifying global payments makes it a valuable asset across both blockchain and traditional banking sectors.

The Stellar network operates with remarkable speed and low costs, processing transactions in seconds for fractions of a penny. The project has established partnerships with various financial institutions and has been used for numerous real-world applications including remittances and tokenization of assets. Stellar's focus on financial inclusion and its proven track record in facilitating cross-border payments make it an attractive option for investors seeking penny cryptocurrencies with practical utility.

8. Pepe

• Price: $0.00001868
• Market cap: $7.86 billion
• Total supply: 420,689,899,999,994

PEPE was born from the Pepe the Frog meme, capitalizing on internet culture and meme coin enthusiasm. It is a popular ERC-20 token that was launched on the Ethereum blockchain, quickly gaining traction among crypto enthusiasts. Due to its large supply, it has not traded above one dollar, making it the perfect penny cryptocurrency for investors seeking high-risk, high-reward opportunities.

The token has built a strong community of supporters and has seen significant trading volume on various platforms. While PEPE lacks inherent utility beyond its meme status, it has demonstrated the power of community-driven projects in the crypto space. The coin's success reflects the ongoing appetite for meme coins and the potential for viral growth in the cryptocurrency market.

9. Harmony

• Price: $0.024
• Market cap: $352.14 million
• Total supply: 14,452,085,098

Harmony is a blockchain platform that utilizes sharding technology to enhance the efficiency and scalability of decentralized applications. By employing random state sharding, Harmony effectively divides its network database into smaller, manageable segments known as shards. This innovative approach allows the network to process transactions in parallel, significantly improving throughput and reducing latency.

The platform aims to provide a high-performance infrastructure for decentralized applications, supporting use cases ranging from DeFi to NFTs and gaming. Harmony's focus on scalability addresses one of the fundamental challenges facing blockchain technology. The project's technical approach and commitment to creating a fast, secure, and scalable blockchain make it an interesting option for investors looking at penny cryptocurrencies with strong technological foundations.

10. Zilliqa

• Price: $0.02342
• Market cap: $449.87 million
• Total supply: 19,888,055,521

Zilliqa utilizes sharding technology to achieve remarkable scalability and high transaction throughput, positioning itself as one of the best penny cryptocurrencies for investors interested in scalable blockchain solutions. It is designed to overcome the scalability issues faced by other blockchains like Ethereum and Bitcoin, offering a platform that can handle thousands of transactions per second.

As one of the first blockchains to implement sharding, Zilliqa has pioneered solutions to blockchain scalability challenges. The platform supports smart contracts written in Scilla, a secure-by-design programming language. Zilliqa's technological innovations and focus on enterprise applications make it a compelling option for those seeking penny cryptocurrencies with real-world utility and strong technical fundamentals.

11. Holo

• Price: $0.002941
• Market cap: $512.82 million
• Total supply: 177,619,433,541

Holo is a decentralized cloud hosting platform for peer-to-peer applications, operating on the innovative Holochain framework. Unlike traditional blockchains, Holochain enables the development of distributed apps without blockchain's limitations, offering a more scalable and energy-efficient alternative. This unique architecture allows each user to maintain their own chain, eliminating the need for global consensus.

The platform aims to democratize hosting by enabling anyone to become a host and earn cryptocurrency by sharing their computing power. Holo's approach to distributed computing represents a paradigm shift from traditional blockchain architecture. The project's focus on creating a truly distributed internet infrastructure and its innovative technology make it an intriguing option for investors seeking penny cryptocurrencies with disruptive potential.

12. Ravencoin

• Price: $0.02456
• Market cap: $357.71 million
• Total supply: 14,537,687,821

Ravencoin was established in early 2018 and is an offshoot of Bitcoin, designed specifically to enhance the creation and transfer of digital assets across its blockchain. It offers a versatile framework that supports a wide array of applications, from tokenized securities and digital collectibles to fungible tokens. The platform's focus on asset tokenization makes it particularly relevant for businesses and individuals looking to digitize real-world assets.

The process of creating new crypto assets on Ravencoin involves burning a certain amount of RVN, the native cryptocurrency of the network, which helps maintain scarcity and value. Ravencoin also employs the KAWPOW mining algorithm, which is resistant to ASIC mining, promoting decentralization by allowing GPU miners to participate. The project's commitment to asset tokenization and community-driven development makes it a noteworthy penny cryptocurrency for investors interested in the tokenization trend.

13. Ankr

• Price: $0.03847
• Market cap: $384.71 million
• Total supply: 10,000,000,000

Ankr operates as a blockchain-based cloud computing platform, leveraging a widespread network of nodes and offering multi-chain tools compatible with different blockchains. The platform provides infrastructure services that make it easier for developers to build and deploy decentralized applications across multiple blockchain networks. For investors, Ankr presents an opportunity to earn through cryptocurrency staking and by providing node infrastructure.

The project addresses the growing need for accessible and affordable blockchain infrastructure. Ankr's multi-chain approach and focus on Web3 infrastructure position it well in the evolving blockchain ecosystem. The platform's services include node deployment, API services, and staking solutions, making it a comprehensive infrastructure provider for the decentralized web. This utility-focused approach makes Ankr an attractive penny cryptocurrency for investors seeking exposure to blockchain infrastructure development.

What Are Penny Cryptocurrencies?

Penny cryptocurrencies are generally defined as those priced below $1, though this definition isn't universally accepted across the crypto community. Some investors and analysts consider tokens under $5 to also fall into the "penny cryptocurrencies" category, broadening the scope of potential investments. Understanding this classification is important for investors seeking opportunities in lower-priced digital assets.

The challenge with this classification is that it includes a wide range of cryptocurrencies, from highly valuable ones with substantial market capitalizations to lesser-known options with limited liquidity. In fact, several of the world's top 20 cryptocurrencies are priced under $1, highlighting that price alone doesn't always reflect a cryptocurrency's market position, potential, or legitimacy. Market capitalization, rather than price per token, often provides a more accurate measure of a cryptocurrency's value and stability.

When searching for the best penny cryptocurrencies, investors could consider various approaches:

• Cryptocurrencies priced under $1 with strong fundamentals and active development
• Cryptocurrencies valued around a penny, which could range from fractions of a cent to approximately $0.10
• Cryptocurrencies under $1 that are not ranked within the top 100, 500, or 1,000 in terms of market capitalization, potentially offering higher growth opportunities

It's important to remember that investing in cryptocurrencies can be risky, especially with smaller or lesser-known cryptocurrencies. There's a heightened risk of losing your investment, and these smaller cryptos may not be readily available on major cryptocurrency platforms. Thorough research and risk assessment are essential before investing in any penny cryptocurrency.

How Many Penny Crypto Coins Are There?

Given the volatile nature of cryptocurrencies and the dynamic crypto market, the exact number of penny cryptocurrencies is not fixed and changes frequently. New cryptocurrencies are constantly being created and launched through various mechanisms including initial coin offerings, token generation events, and fair launches. Meanwhile, existing cryptocurrencies may fluctuate in price, moving in and out of the "penny cryptocurrency" category based on market conditions.

The cryptocurrency market includes thousands of tokens, with a significant portion trading below $1. However, many of these projects may lack substantial development, community support, or real-world utility. The constant creation of new tokens and the volatility of existing ones make it challenging to maintain an accurate count of penny cryptocurrencies at any given time. This dynamic nature underscores the importance of careful selection and ongoing monitoring when investing in this segment of the crypto market.

What To Consider When Choosing Penny Cryptocurrencies?

Selecting the right penny cryptocurrencies requires careful analysis and consideration of multiple factors. Here are the main aspects to evaluate when choosing a penny crypto to invest in:

• Market Capitalization and Liquidity: Look at the market cap to understand the cryptocurrency's size and stability. A higher market cap often indicates more stability and established market presence. Liquidity is crucial for buying and selling without significantly affecting the price, ensuring you can enter and exit positions efficiently. Low liquidity can lead to high slippage and difficulty executing trades at desired prices.

• Project Fundamentals: Assess the underlying project thoroughly. Does it have a clear purpose and value proposition? Is the technology sound, innovative, and solving real problems? A strong project foundation with clear use cases can indicate long-term viability and potential for growth. Examine the project's whitepaper, roadmap, and technical documentation to understand its goals and implementation strategy.

• Development Team and Community Support: Research the team behind the cryptocurrency. Experienced and reputable developers with proven track records can boost confidence in the project's execution. A strong, active community can indicate a healthy project with sustained interest and support. Community engagement often correlates with long-term success in the crypto space.

• Adoption and Real-World Use: Consider if the cryptocurrency has real-world applications and adoption. Tokens with practical use cases, partnerships with established entities, and growing user bases are more likely to succeed. Evaluate whether the project is addressing actual market needs and gaining traction in its target sector.

• Volatility and Price History: Penny cryptocurrencies can be highly volatile, experiencing significant price swings. Review their price history to understand past performance, identify patterns, and assess potential future trends. Historical data can provide insights into how the token responds to market conditions and news events.

• Regulatory Environment: Stay informed about the regulatory climate for cryptocurrencies in relevant jurisdictions, as regulatory changes can significantly impact prices and project viability. Understanding the legal framework surrounding a cryptocurrency can help assess potential risks and opportunities.

• Technology and Security: Ensure the cryptocurrency uses robust and secure technology, especially if it's a newer or less tested project. Evaluate the blockchain's security features, audit history, and any past security incidents. Strong security measures are essential for protecting investor assets and maintaining project credibility.

• Risk Assessment: Be aware of the risks, including the possibility of losing your entire investment. Penny cryptocurrencies can be more speculative and risky compared to more established coins. Assess your risk tolerance and investment goals before committing funds to any penny cryptocurrency.

• Diversification: Diversifying your crypto portfolio can help manage risk and reduce exposure to any single asset's volatility. Don't put all your funds into a single penny cryptocurrency. Spreading investments across multiple projects and sectors can provide better risk-adjusted returns.

• News and Developments: Stay updated with news and developments related to the cryptocurrencies you are interested in, as announcements, partnerships, and technological upgrades can impact their prices and long-term viability. Following project updates and industry trends helps inform investment decisions.

Are Penny Cryptos Safe?

Penny cryptocurrencies, like all investments, carry a mix of risks and potential rewards. Their safety largely depends on various factors, such as market volatility, liquidity, project legitimacy, and the broader cryptocurrency market conditions. Understanding these risk factors is essential for making informed investment decisions in the penny crypto space.

Penny cryptocurrencies can offer significant returns due to their low entry prices and high growth potential, but they are associated with higher risks compared to established cryptocurrencies. The lower market capitalization and liquidity of many penny cryptos can lead to extreme price volatility and difficulty executing large trades. They should be approached with caution, and investments should be based on thorough research and due diligence.

One key aspect of evaluating any of these projects is the community supporting them. A strong community and active development team can indicate a healthier and more promising project with better chances of long-term success. Community engagement, regular development updates, and transparent communication from the team are positive indicators. Conversely, projects with inactive communities or anonymous teams may present higher risks.

Investors should always aim to diversify their crypto investments and be mindful of potential scams, rug pulls, and fraudulent projects that are more common in the penny crypto space. Conducting thorough research, verifying project claims, and starting with smaller investment amounts can help mitigate risks while exploring opportunities in penny cryptocurrencies.

Should You Invest In Penny Cryptocurrencies?

Some penny cryptos are likely good investment opportunities for those with appropriate risk tolerance and investment strategies. Many also present passive income opportunities, including staking, yield farming, and liquidity provision. Penny cryptocurrencies offer opportunities for significant returns, especially during bull runs when market sentiment is positive and capital flows into higher-risk assets.

These assets can be a smart element of a balanced crypto portfolio when properly researched and sized appropriately relative to total portfolio value. Including penny cryptocurrencies alongside more established digital assets can provide exposure to high-growth potential while maintaining overall portfolio stability. The key is finding projects with strong fundamentals, active development, and real utility that justify their current valuations.

However, keeping abreast of crypto market trends and understanding investment strategies is crucial for success in this space. Thorough risk assessment is key when considering any investment, but especially with crypto assets that can experience extreme volatility. Investors should evaluate their financial situation, investment goals, and risk tolerance before allocating capital to penny cryptocurrencies.

If you do want to purchase some penny cryptos, only invest what you can afford to lose, and remember profits are never guaranteed. The cryptocurrency market is highly unpredictable, and even well-researched investments can result in losses. Maintaining realistic expectations, practicing proper risk management, and continuously educating yourself about the crypto space are essential for navigating penny cryptocurrency investments successfully.

This article is for informational purposes only and is not financial advice. Investing is risky and you could lose money. Never invest more than you can comfortably afford to lose. Always conduct your own research and consider consulting with financial advisors before making investment decisions.

FAQ

What are Penny Cryptocurrencies? How do they differ from mainstream cryptocurrencies?

Penny cryptocurrencies are low-priced digital assets with smaller market capitalizations and trading volumes compared to Bitcoin and Ethereum. They offer higher risk but potential for significant returns. Unlike mainstream coins, penny cryptocurrencies have lower liquidity and higher volatility.

What are the risks of investing in cheap cryptocurrencies? How should I assess and manage risks?

Cheap cryptocurrencies carry extreme volatility, lack government protection, and face higher fraud risks. Assess risks by researching project fundamentals and team credibility. Manage exposure through portfolio diversification and only invest capital you can afford to lose completely.

How to choose penny cryptocurrencies worth investing in? What are the screening criteria and methods?

Focus on projects with real utility and strong fundamentals. Evaluate the consensus mechanism, team background, and development transparency. Prioritize coins with active communities and genuine use cases over those relying solely on social media hype. Check trading volume and market capitalization trends.

What is the investment potential and return space for cheap cryptocurrencies?

Cheap cryptocurrencies offer substantial upside potential with annualized returns potentially reaching 10-20% or higher. Early-stage projects can deliver significant gains as market cap expands. However, success depends on project fundamentals, adoption trajectory, and market cycles. Volatility is high, creating both opportunities and risks for informed investors.

Where can I buy cheap cryptocurrencies?

Cheap cryptocurrencies are available on major exchanges offering low fees and diverse market selections. Look for platforms with high trading volume, good liquidity, and competitive pricing to find the best deals on penny cryptocurrencies.

Are penny cryptocurrencies easy to manipulate (Pump and Dump)? How to identify and avoid them?

Yes, penny coins are vulnerable to manipulation. Identify pump and dump schemes by watching for sudden unexplained price spikes, excessive social media hype, and low trading volume. Avoid them by researching projects thoroughly, diversifying your portfolio, and only trading on reputable platforms.

Will liquidity issues in cheap cryptocurrencies affect my investment?

Yes, low liquidity significantly impacts investment results. It causes higher transaction costs, increased price volatility, and difficulty executing large orders without substantial price slippage. Low-liquidity assets are more susceptible to sharp price swings and market manipulation.

How much capital do I need to start investing in penny cryptocurrencies? Is there a minimum investment amount?

Most exchanges set a minimum transaction of around 5 USD to begin investing in penny cryptocurrencies. You can start with this small amount, though investing more capital typically allows for greater potential returns.