Best Penny Cryptocurrency to Invest in under $5

Penny stocks are shares of companies that trade at low prices, typically less than $5 per share. They often have limited liquidity and are considered to be high-risk investments. However, there are some penny cryptocurrencies that have shown promise and could be worth considering for investment. Here are ten penny cryptocurrencies with a price under $5 that you might want to look into:

Best Penny Cryptocurrency to Invest In

Explore and compare the top penny cryptocurrencies for potential investments, aiming to identify the best crypto penny stock for your investment portfolio:

Similar to penny stocks, penny cryptocurrencies are units that trade for just a few pennies or less than $5 each. While these investments come with high risk due to their small market capitalization, they offer an affordable entry point. However, it’s crucial to choose the best penny crypto that shows promise for long-term value growth.

Various factors influence the potential success of a cryptocurrency. This can include the underlying technology, the project’s team and community support, or even market hype. It’s possible to find cryptocurrencies and tokens with the potential for increasing in value over time based on their current capabilities. Therefore, it’s important to carefully assess these factors before making any investment decisions.

Discovering the best penny cryptocurrencies to invest in is the focus of this guide, considering their current potential value.

Here’s how to choose the best penny cryptocurrency:

1. Conduct Your Own Research:
   Take some time to explore the crypto market. Evaluate each option based on their use case strengths, market value, price projections, and the teams behind them.
2. Check the Development Team:
   The team should have knowledge in crypto and blockchain, although it’s not mandatory. A strong community supporting the coin is essential.
3. Consider Market Cap and Supply:
   Aim for a circulating supply between 10 million to 1 billion coins. The coin should have a market cap of at least $20 million.
4. Confirm Exchange Listings:
   Ensure the coin is listed on reputable exchanges like Coinbase, Bitmex, OKEx, Huobi, and others.
5. Check 24-Hour Trading Volume:
   Verify that the coin has a 24-hour trading volume of at least $1 million.
6. Evaluate Trading History and Projections:
   Examine the coin’s trading history, market performance, and future projections. Ensure it shows promise based on statistics and your analysis.
7. Consider Professional Advice:
   If needed, seek guidance from a financial crypto advisor. Some investors also start by testing the waters, buying a few tokens.

By following these steps, you can make informed decisions about the best penny cryptocurrencies for your investment.

Some of the best penny cryptocurrencies which are reliable and are priced under $5 are:

Dogecoin (DOGE)

Dogecoin is a peer-to-peer cryptocurrency that was created as a joke but quickly gained popularity and became a legitimate alternative currency. It was created in 2013 and has a relatively low market capitalization compared to other cryptocurrencies.

Dogecoin is known for its memetic nature and has been used in various charitable campaigns.

Pros:

• Known for its memetic nature and charitable efforts
• Low entry point makes it accessible to individual investors
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Ripple (XRP)

Ripple is an open-source software for building interoperable financial systems. It was created in 2012 and has a relatively low market capitalization compared to other cryptocurrencies.

Ripple is known for its ability to facilitate cross-border payments and has partnerships with various banks and financial institutions.

Pros:

• Ability to facilitate cross-border payments
• Partnerships with banks and financial institutions
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Cardano (ADA)

Cardano is a decentralized public blockchain and cryptographic currency that aims to provide a more secure and efficient way of transacting. It was created in 2017 and has a relatively low market capitalization compared to other cryptocurrencies. Cardano is known for its ability to handle a high volume of transactions and has a strong focus on security.

Pros:

• Ability to handle a high volume of transactions
• Strong focus on security
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Stellar (XLM)

Stellar is an open-source, decentralized blockchain that connects banking networks and creates a borderless financial system. It was created in 2014 and has a relatively low market capitalization compared to other cryptocurrencies. Stellar is known for its ability to facilitate cross-border payments and has partnerships with various banks and financial institutions.

Pros:

• Ability to facilitate cross-border payments
• Partnerships with banks and financial institutions
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

NEO (NEO)

NEO is a decentralized, open-source blockchain platform that enables the creation of decentralized applications. It was created in 2014 and has a relatively low market capitalization compared to other cryptocurrencies. NEO is known for its ability to create decentralized applications and has a large and growing ecosystem of developers.

Pros:

• Ability to create decentralized applications
• Large and growing ecosystem of developers
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Qtum (QTUM)

Qtum is a decentralized, open-source blockchain platform that enables the creation of decentralized applications. It was created in 2016 and has a relatively low market capitalization compared to other cryptocurrencies. Qtum is known for its ability to create decentralized applications and has a large and growing ecosystem of developers.

Pros:

• Ability to create decentralized applications
• Large and growing ecosystem of developers
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Here’s a table comparing the above five Penny Cryptocurrencies – Dogecoin, Ripple, Cardano, Stellar and Qtum.

Currency	Ticker Symbol	Consensus Algorithm	Block Time	Max Supply	Current Market Capitalization (in USD)
Dogecoin	DOGE	Scrypt	60 seconds	100 billion	$11.66B
Ripple	XRP	Proof-of-Stake	45 seconds	100 billion	$33.87B
Cardano	ADA	Ouroboros Classic	5 seconds	30 billion	$19.37B
Stellar	XLM	Fedora	5 seconds	100 billion	$3.4B
Qtum	QTUM	Proof-of-Work (PoW)	60 seconds	21 million	$382.24M

Note that the market capitalization figures are subject to change rapidly and may not reflect current values. Also, it’s important to note that while these currencies have been referred to as “penny” or “shitcoins,” they each have their own unique features, use cases, and communities.

Bitcoin Cash (BCH)

Bitcoin Cash is a peer-to-peer electronic cash system that allows for instant and near-anonymous transactions. It was created by splitting the Bitcoin network in half, allowing for faster and cheaper transactions. Bitcoin Cash has been around since 2017 and has seen significant growth over the past year. Its current market capitalization is $33.4 billion, making it the largest cryptocurrency by market value.

Pros:

• Large market capitalization
• Fast and cheap transactions
• Potential for high returns if the price continues to rise

Cons:

• Highly volatile
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Litecoin (LTC)

Litecoin is a peer-to-peer cryptocurrency that uses scrypt as a proof-of-work algorithm. It was created in 2011 and has been around longer than many other cryptocurrencies. Litecoin has a lower market capitalization than Bitcoin, but it has a stronger following and is considered to be more stable.

Pros:

• Lower market capitalization makes it more accessible to individual investors
• Stronger following and community support
• More stable than some other cryptocurrencies

Cons:

• Smaller market capitalization means fewer resources and exposure
• Still subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Ethereum (ETH)

Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications. It was created in 2015 and has a relatively low market capitalization compared to other cryptocurrencies. Ethereum is known for its ability to create decentralized applications and has a large and growing ecosystem of developers.

Pros:

• Ability to create decentralized applications
• Large and growing ecosystem of developers
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

Binance Coin (BNB)

Binance Coin is a cryptocurrency exchange built on the Ethereum blockchain that allows users to trade various digital assets. It was created in 2017 and has a relatively low market capitalization compared to other cryptocurrencies. Binance Coin is known for its ease of use and has a large user base.

Pros:

• Ease of use and large user base
• Built on the Ethereum blockchain
• Potential for high returns if the price increases

Cons:

• Small market capitalization means fewer resources and exposure
• Subject to regulatory scrutiny
• Could face competition from other cryptocurrencies

It’s important to note that investing in cryptocurrency is a high-risk, high-reward endeavor. These currencies are highly volatile and can drop in value quickly. Therefore, it’s important to thoroughly research each currency and consider your risk tolerance before investing. Additionally, it’s always recommended to diversify your portfolio and avoid putting too much of your wealth into any single asset.

Frequently Asked Questions

Q #1) Which penny cryptocurrency should I invest in? 

The options are vast, but the key is to invest in a crypto or token with the potential for value growth. Investigate the specific reasons pointing to future potential in the current context. Consider whether these factors will drive value in the short or long term.

From our list, potential choices include

1. Dogecoin (DOGE)
2. Ripple (XRP)
3. Cardano (ADA)
4. Stellar (XLM)
5. NEO (NEO)
6. Qtum (QTUM)

Other potential penny cryptocurrencies to invest include: VeChain, Stellar, Basic Attention Token, Chilliz token, Zilliqa, and more.

Q #2) What is the best coin to invest in? 

Choosing the best coin to invest in depends on the value it can bring to you, whether in the long or short term. When considering penny cryptocurrencies, make sure to align your choices with your own investment goals.

Ask yourself: Do you aim for long-term or short-term gains? Determine how much you want to invest, when, how, and the returns you aspire to achieve.

Refer to the list provided in this guide, featuring Dogecoin, Ripple, Cardano, Stellar, NEO, Qtum and many others. Alongside the top penny cryptocurrencies, also consider the list of overall top cryptocurrencies for investment.

Q #3) What is the cheapest crypto to invest in? 

Dogecoin, Ripple, Cardano, Stellar, NEO and Qtum stand out as some of the most affordable penny cryptocurrencies to consider for investment. Priced at under a dollar or just a few dollars, these coins, which were relatively inexpensive in 2017, carry substantial potential for future growth and the generation of significant returns.

Q #4) Which crypto is under a penny?

Certainly! Here’s a refined version:

Among the options listed, there are numerous penny cryptocurrencies that offer affordability for investment and have the potential for substantial long-term value. Notably, Ripple, Cardano, Stellar, NEO, Qtum, and Dogecoin are not only inexpensive but are also regarded as some of the top penny tokens to invest in, given their significant potential for value appreciation.

Q #5) What is a penny cryptocurrency? 

A penny cryptocurrency is like a digital money that doesn’t cost much – usually just a few cents or less than $5 per unit. It’s called “penny” because, just like penny stocks, it’s cheap to get started with. People like the idea of investing in these because you can buy a lot without spending a ton of money. But be careful, they can be risky because their prices can go up and down a lot. So, before you decide to invest, make sure to look into it and understand what you’re getting into.

Q #6) How should I invest in penny cryptocurrencies? 

Investing in penny cryptocurrencies involves purchasing them through crypto exchanges where they are listed. Our list of penny cryptos to consider for investment is extensive. Additionally, you can cross-check with popular cryptocurrency exchanges to confirm whether these tokens and cryptos are available for trading. Some well-known exchanges where you can buy penny cryptocurrencies include Binance, Coinbase, Kraken, and Bitfinex. Always ensure that the exchange you choose is reputable and trustworthy.

Other good reads are:

1. Solana Reviews and Solana Price Predictions | Is Solana a Good Investment?
2. What is Cryptocurrency? 12 Most Popular Types of Cryptocurrencies