Crypto Academy Week 14 | Homework Post for @pelon53 | Penny Cryptocurrencies

Introduction

Hello everyone, greeting from this side of the world

It is an honor to be present here at this time to learn from our experienced academy professors. Without a doubt, our professors have once again given excellent lectures. This time, as we were taken on a Penny cryptocurrency trip, I learned professor @pelon53's lecture. Join me as I complete the professor's assignment.

Explain the Penny cryptocurrencies in your own words. Advantages and disadvantages.

Penny cryptocurrencies are known as low value cryptocurrencies due to their extremely low price. Penny cryptocurrencies have a low value that is often less than 1 dollar ($), and they may often be worth several zero decimals in USD.

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Furthermore, penny cryptocurrencies are new cryptocurrencies that have either made their way or are still trying to find their way into the cryptocurrency market and are usually very low in value, so that a user can rake up to a million amount of the crypto because it is too cheap. In the long run, penny cryptocurrencies are still struggling and may find their feet firmly planted in the crypto ecosystem after months or years of growth.

Advantages of Penny Cryptocurrencies

High profit margins: Penny cryptocurrencies are known for their high profitability if the project is successful. The purchase of a large number of tokens, up to millions of the tokens, will result in a fortune in huge profits from the coin kept.

Early Adopters: investors can adopt the cryptocurrency early before its price rises in the crypto market, resulting in a large return on investment.

Very Cheap: Penny cryptocurrencies are very cheap to obtain due to their low value, and a person may purchase up to millions of tokens.

Disadvantages of Penny Cryptocurrencies

Price Volatility:Just as penny cryptocurrencies can bring massive profits, their prices can crash hard and cause investors to lose a lot of money. If you're going to invest in penny cryptocurrencies, make sure it's money you can afford to lose.

Scam: Many penny cryptocurrency issuers turn out to be scam, in the end, disappear with investors' capital.

No Regulations: Penny cryptocurrency are not subject to any solid regulations, so all investor interactions with the cryptocurrency are at the risk of the investor it is either a win or loss.

For you: What will be the best Penny to invest in this 2021? Explain and show evidence.

Some factors should be considered before investing in penny cryptocurrencies.

• The whitepaper of the penny cryptocurreny

• The penny cryptocurreny project

• How long it has been in market

• The daily trading volume, market cap and rank

• Top Exchanges it was listed on.

After considering all this factors I decided to invest in Dent, the reason is that it contain all the factors listed above.

DENT

Dent is a project launched in 2017, the projec creates solutions for mobile communication and data services. Dent's goal is to provide global mobile service while minimizing costs and introducing everybody to mobile communication.

Dent is listed in top Exchanges like Binance, KuCoin, Hotbit, FTX, Bittrex.

Dent currently ranked #126 according to Coinmarketcap, with current price at $0.003442 with a market capitalization of $337,145,870, a trading volume of $43,063,041, a circulating supply of 98.00B DENT and a total supply of 100,000,000,000 DENT.

Do a Ripple (XRP) analysis. Show screenshots. Would you invest right now? Explain.

Ripples (XRP) was launched in 2012, and one of the main purposes is to allow free payments within 3-5 seconds without the intervention of third parties in the transaction, which means that users can send XRP to others without involving any intermediary.

As of the time of writing, the price of XRP is $0.894, rank #7, with a market capitalization of $41,245,191,384, a trading volume of $10,103,795,164, a circulating supply of 46.14B XRP and a total supply of 99,990,461,026 XRP.

XRP Technical analysis

Using tradingview website, I navigate to the XRP/USDT trading pair.

From the chart above we can see that XRP is on a downtrend with a current price of $0.9066, although it has fall a bit before it picked again. For me, this is a good time to buy XRP because there is a big probability that XRP will go back to the previous 14days price and even break it previous resistance.

Right now investing in XRP is a great idea because there is a big chance that we will see the price increase in few days time. The market has been in a downtrend in the past few days but will most likely not remain in a downtrend for long.

XRP Fundamental/Sentimental Analysis

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Few months ago SEC file a lawsuit again them for selling and this saw the price of XRP fall drastically, XRP is now trading at a loss compared to where it was in 2018. If adverse events with SEC had not occurred, then the price would have been higher than it is now. I believe the 2018 price of XRP would surpass at the end of the bullish cycle. As a result, it has the ability to develop at least three to four times.

With the technical analysis and fundamental analysis I see a great potential in XRP and it a good investment.

Present in detail a possible investment of 5 penny crypto assets. Explain and present data confirming your choice.

DENT

Dent of course Is the first possible penny cryptocurrency for Investment.

The cryptocurrency has provided a solution for the telecommunication industry, the cryptocurrency currently ranked # according to Coinmarketcap.

With a daily trading volume of $43,063,041, and a market capitalization of $337,145,870. It currently ranked #126 according to Coinmarketcap, with current price at $0.003442, a circulating supply of 98.00B DENT and a total supply of 100,000,000,000 DENT.

SHIBA INU (SHIB)

Another penny cryptocurrency for possible Investment is Shiba Inu (SHIB), a decentralized token that debuted in August 2020 and is part of the DOGECOIN family. Shiba Inu is a decentralized coin, and at the time of writing, the price of SHIB is $0.000007872, with a market capitalization of $3,107,988,634, a total supply and circulating supply of 1,000,000,000,000,000 SHIB and 394,796.00B SHIB, ranked #34 in the market cap list, which is quite impressive for a penny cryptocurrency.

Tron (TRX)

TRX is the Tron network's native cryptocurrency and the first coin to be deployed on the blockchain. This crypto asset was developed for the free transfer of digital assets with no fees attached, with its blockchain coming into the spotlight to correct the excessive transaction fee characterized by the Ethereum blockchain, as well as improved transaction pace.

Furthermore, Tron (TRX) was founded in 2017 by Tron Foundation under the founder, Justin Sun, with the aim of creating a forum for free sharing of digital properties, ease of payment, enhanced P2P, and so on.

Tron current price $0.07625, ranked #23 according to Coinmarketcap, with a market capitalization of $5,464,092,359, trading volume of $2,059,590,310, total supply of 100,850,743,812 TRX and the current circulating supply of 71.66B TRX.

BitTorrent

BitTorrent token, a TRC-10 utility token, rose to prominence in 2019 after being introduced on the Tron network and an invention of the BitTorrent base. One of the goals of BitTorrent token is to reward users who are in the process of sharing a file with others.

BitTorrent currently ranked # and price at $0.003799 according to Coinmarketcap, a market capitalization of $2,507,231,456, a trading volume of $330,742,010, total supply and circulating supply of 990,000,000,000 BTT and 659.95B BTT respectively.

REEF

REEF finance is built on its own blockchain, the REEF chain, that allows users to take advantage of all the benefits of decentralization finance. Previously, users had to interact with various dApps before they could carry out any transaction, but REEF has created a platform where users can do everything at once without having to visit external dApps. REEF Chain provides smart contracts, borrowing/lending, a centralized/decentralized platform, and other services all on one chain.

REEF current price is $0.02561 and ranked #129 according to Coinmarketcap, with a market capitalization of $324,455,610, trading volume of $99,475,267, total supply and circulating supply of 15,934,019,762 REEF and 12.67B REEF respectively.

Show an investment (starting at $ 5) that you have made this week in Penny cryptocurrencies. List the steps you took.

I will make use of Binance exchange for this task.
Binance is one of the leading top exchange that support many penny cryptocurrency.

For this task I choose Tron (TRX) a penny cryptocurreny with great potential.

Step 1: Login to my Binance and navigate to my wallet.
Below is the screenshot of my wallet, I have 51 STEEM and 10 USDT.

Step 2: I navigate downward and click on "Market"

Screenshoot below

Step 3: At the market section I search for TRX/USDT trading pair on spot trading market.

Step 4: I select "Buy" to proceed to the trading page

Step 5 I then enter the amount of TRX I want to buy and click on "Buy"

I want to buy 67 TRX for 5.00758 USDT.
After clicking on buy I wait a little while for my order to be filled, since I bought at the current limit price the order filled instantly.

I have successfully buy 67 Tron (TRX) wit 5.00758 USDT, since all the market are currently in dips, I will be hoping to leave my 67 TRX for a long term Investment, hoping for a huge profit.

conclusion

Penny cryptocurrencies are very cheap, making it very convenient to buy massive amounts of them and have the potential to have a high return on investment. While the return on investment in penny cryptocurrencies can be enormous, it is dangerous since these cryptocurrencies are vulnerable to high price volatility, which may result in unnecessary loss on the investor's part. Professor @pelon53, thank you for this fantastic lecture. Thank you so much.

All the image used above are mine, screenshots from my phone and the one I downloaded was properly cited