Are Penny Cryptocurrencies Good to Buy?
In the last 2-3 years after Ethereum launched, a lot of investors have turned their relatively small savings into giant goldmines by investing in early, unproven projects. Irrespective of their high risk profile, the best penny cryptocurrencies remain in demand due to their high potential for reward.
Here are some cryptocurrencies that sell for under a dollar:
- XLM (Stellar) – Global transactions platform that obtained a vital alliance with IBM;
- ADA (Cardano) – A platform for smart contracts that are seen as OK by regulators, as opposed to most other crypto projects; and
- XEM (NEM) – Decentralized apps (dapps) platform which is evidently more safe and secure as well as friendlier to developer than top projects like Ethereum.
By far the number one pick on many investors’ lists, Stellar has a basic use case as a platform for processing fast international money transfers. At first glance, Stellar looks exactly like the more sought-after XRP (Ripple), but in reality XLM has a much larger market than XRP.
This is because Ripple’s prospective customers are banking institutions whereas Stellar is aiming to serve the world at large. So while Ripple’s establishing alliances with banks and financial institutions, IBM is presently constructing an international money transfer platform utilizing Stellar’s tech that will enable regular people to transfer and accept funds across nations at a fraction of current fees, trumping the pricier services like the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
IBM’s recently validated its service with around 12 distinct currencies and is quickly broaden its net for testing. Stellar has built identical alliances, especially in Asia and Africa, where volume of international remittances are high and the demand for money transfers that are smooth and inexpensive is even higher.
The crypto crash of 2018 taught us that unforeseen regulations are a bad harbinger for digital coins. As a result, fear of tough regulations has made it difficult for investors to commit to cryptos.
Cardano’s one crypto startup that’s reducing regulatory-based risk by including regulators into the picture. The tech is very much in its development phase, so investors who invest today are considered super early adopters.
Presently, Cardano’s platform only enables P2P transactions, like BTC does. But later this year, the company is expecting to launch a platform update known as Shelley, which will make the platform usable beyond mere financial payments. Shelley will make Cardano become identical to Ethereum, enabling “decentralized apps” and “smart contracts” to be formed on its fledgling network.
Many analysts foresee this penny cryptocoin blasting off after Shelley’s release, which is the reason why Cardano may be worth including in your radar.
Similar to Cardano, NEM is a penny crypto that’s attempting to go head-to-head against Ethereum. What makes it distinct is its platform for “smart assets” that is more scalable and secure than Ethereum.
Many financial institutions are currently validating NEM’s upcoming iteration Catapult which is anticipated to be launched later this year.
Because Catapult will have the capacity to handle transactions in the thousands per second, it could emerge as the foundation of NEM’s explosive growth this year.
NEM’s platform is also friendlier to developers than other similar platforms since NEM supports numerous languages unlike Ethereum which exclusively utilizes Solidity. This makes NEM more accessible, since ordinary developers don’t have to focus on one specific language to utilize it. Almost anybody with basic programming know-how can set up DApps on NEM.
Each and every cryptocurrency claims to be the next “it” thing in the blockchain space when in reality, many of these will be worthless within a few years. This is why our readers are consistently advised to practice due diligence prior to committing to penny cryptocurrencies.
With that said, these are cryptocurrencies that we recommend you monitor as they are backed by big-name players and have upcoming releases that can propel coin prices upwards.
Further reading: Bitcoin vs Litecoin vs Ethereum 2018