What’s a more volatile market than cryptocurrency?
In a market whose more established and stabilized constituents tend to swing broadly and suddenly across the charts, elements with the value below $1 behave even more chaotically.
With great risk come great opportunities, so this is the perfect terrain for investors who feel at home with market speculation that borders gambling.
Cryptocurrencies whose value is lower than $1 (otherwise known as penny cryptocurrencies) represent the more exotic, but still fundamental part of the crypto trading market.
Penny cryptos remain a particularly attractive investment for those with a stomach for high risk, as they are much less stable than blue-chip cryptocurrencies (such as Ethereum and Bitcoin).
Although these small altcoins have a huge profitability potential, you should invest in them only as much as you are willing to part with.
Best Penny Cryptocurrencies to Invest In 2022
Investing in penny cryptocurrencies requires an even more informed approach than that of regular cryptocoins due to the greater risks involved.
Who can “sense” whether the trending penny cryptocoin will be the next Bitcoin or a pile of trash this time next year? Gut feeling and herd mentality just don’t cut it with penny cryptos.
This is precisely why an in-depth list of best penny cryptos to invest in 2022 comes quite handy for all those who wish to try their hands at.
Here are some candidates that have been selected from the top 200 most valuable cryptocurrencies, with an already significant amount of development poured into them.
Shiba Inu (SHIB)
Shiba Inu is by far the least expensive token listed here, with a price of a single token thousands of times lower than a single cent.
However, due to the sheer number of SHIB tokens circling through the global market, its market cap is more than $11 billion (as of October 2021).
Based on a similar crypto project, Dogecoin, Shiba Inu is also a “meme coin”. It is the large number of its users that maintains its value, though, so it has grown to become a serious crypto token.
It is an ERC-20 token and it surged in value when the rumors of its own decentralized cryptocurrency exchange, ShibaSwap, started rolling around.
It is an interesting fact that a single SHIB will never reach anything close to the value of $1 since there is not enough cash in the entire global economy to enable it.
👉 Buy Shiba Inu (SHIB)
The Graph (GRT)
The Graph is a token that has grown out as a means of support of its mother service, a decentralized protocol for indexing, ranking, and gathering data from blockchains.
The main archive and browsing system for blockchain data for networks such as Ethereum and Filecoin, The Graph groups the data into subgraphs, its open APIs, which anyone can access and query.
As of October 2021, the token gets exchanged for $0.79 and its market cap stands somewhere above $3.6 billion.
👉 Buy The Graph (GRT)
Basic Attention Token (BAT)
Envisioned and launched by the co-founder of Mozilla and Firefox in an effort to upgrade the security, distribution, and efficiency of online ads through the use of blockchain technology, Basic Attention Token is an ERC-20 that rewards users for attentive observation of digital advertisement.
It is tied to the Brave web browser which rewards users with cash per search, but the whole project is still ongoing and we can expect further development.
The innovative twist here is that users will have only relevant advertisements presented to them, which is a win-win situation for both consumers and marketing experts.
An eager audience engages more with the presented content while the search results do not include irrelevant ads that will most likely be skipped over.
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The Brave web browser will also cut the middleman such as e.g. Google, connecting users directly with advertisers.
As of October 2021, regardless of the creator’s intention, BAT goes for $0.69 per token, with its market capitalization of slightly above $1 billion in total.
👉 Buy Basic Attention Token (BAT)
The Sandbox (SAND)
Yet another ERC-20 utility token, The Sandbox is intrinsically tied to the gaming industry and its attempts of community-driven monetization of the gaming experience via the blockchain.
The Sandbox software essentially allows players to earn non-fungible tokens just with their gaming effort. In this virtual world game, users can invest in and develop virtual real estate that can be monetized outside the virtual world, of course.
The Sandbox also provides software for creating additional gaming experiences that can be further infused with NFTs and monetized via the platform.
As of October 2021, The price of individual SAND tokens in $USD is $0.72 with the total market cap being a somewhat humble $644 million.
👉 Buy The Sandbox (SAND)
Another, older digital world built upon Etherum’s blockchain, Decentraland is another gaming-slash-simulation platform that has witnessed a large growth in the total number of users recently.
The main trading activity in Decentraland is digital real estate as you can buy and sell plots of land in Decentraland.
The world itself is developed by its users and not limited thematically or in any other way except by the imagination of its users.
As of October 2021, MANA token is traded for $0.76 with the market cap of slightly below $1.4 billion.
👉 Buy Decentraland (MANA)
Another platform that aims to “decentralize the Internet” by the means of using blockchain, TRON aims to cut third-party service giants such as YouTube and iTunes from the equation and bring the power back into the hands of the content creators.
With the majority of profits from artists, influencers, musicians, and other content creators going to advertisers and their respective platforms, TRON’s idea is to get 100% of the profits to the creators who they think have the right to, and every transaction would go through the blockchain on the peer-to-peer basis.
As of October 2021, TRX trades for $0.098 with a market cap of $7 billion.
👉 Buy Tron (TRX)
What is an Altcoin?
No precise definition of the term exists at the moment, but the general consensus goes that an altcoin is pretty much any other cryptocurrency than Bitcoin.
As a widely accepted cryptocurrency that strives to become on par with fiat currencies of central banks and governments, Bitcoin lends legitimacy to every altcoin out there.
This by no means indicates that every altcoin is legitimate and genuinely valuable. On the contrary, most of them turn out to be worthless in the end.
After all, it is not difficult to make a crypto coin and anyone can do it-why should we take them seriously at all?
However, Bitcoin itself has started out as an “altcoin”, so to speak. It was worthless and given out in thousands for one U.S. dollar. But we all know how that ended up, right?
Also, due to its growing acceptance, a healthy system of non-fungible tokens (NFTs), and a decentralized structure, Ethereum is no longer referred to as an altcoin by most investors.
Here are some examples of altcoin:
- BEP-20 is a token standard on Binance Smart Chain that has emerged as an improvement on the standard transaction protocols. Overall, these cryptocurrency projects do not last very long and investment in these tends to be a short-term investment only. Examples of BEP-20 altcoins include BUSD, CAKE, BAKE, and SafeMoon
- ERC-20 tokens are Ethereum network’s cryptocurrency projects. This technical standard serves as a set of rules that govern every Ethereum-based altcoin. However, there are no restrictions on who can create an ERC-20 coin and it is a simple process that anyone with a bit of tech expertise can do. This does not mean that there are no ERC-20 tokens of value, though. A number of reliable altcoins exist based on this standard, such as Compound, Uniswap, and nftgamef.comnce.
- Native blockchain tokens include all those crypto coins that run on their own blockchain systems, and a wide array of sizable altcoins come from this group such as Dogecoin, Litecoin, and Ripple Labs’ XRP.
- Smart contract altcoins represent blockchains that include their code on their blockchain to foster increased decentralization in the global system. Some of the largest smart contract altcoins include Cardano, Polkadot, and Solana. Ethereum can count among these as well, if you classify it as an altcoin that is.
Token Price vs. Total Altcoin Value
A common misconception about altcoins is that, since the value of a single token is low, the total value of such an altcoin is also insignificant on the market. This is far from the truth.
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Total altcoin value, or more formally market capitalization of a token, is much more important than the price of an individual token.
Having an inexpensive token per single unit does not mean that the market capitalization, or the value of the whole project, is cheap or worthless.
There are coins, for example, whose single token has a value much higher than $1, but the market cap of which is relatively humble when compared to others.
As a perfect example of this, nftgamef.comnce is currently estimated at just above $35,300 (as of October 2021) but the market cap of it is just $1.2 billion.
On the other hand, a single Dogecoin (DOGE) token is exchanged for $0.23, but the total market cap is almost $31 billion because of the sheer volume of Dogecoins in circulation.
This makes Dogecoin’s price much more stable than e.g. nftgamef.comnce’s.
Cryptocurrency Exchanges for Penny Cryptos
Because of factors such as niche platforms, relatively small value, and lower market caps, not every crypto exchange supports altcoins and the tokens mentioned above.
Do not be surprised to see that your preferred major exchange that you are perhaps currently using does not support altcoins.
Depending on your aims and desires, perhaps you will have to turn towards different exchanges. We have some suitable candidates that go hand in hand with penny crypto trading.
- eToro supports every token on this list.
- Coinbase supports Basic Attention Token, The Graph, and Decentraland, but not the others on this list.
- Binance supports every token on this list, which makes sense since it is the largest cryptocurrency exchange in the world.
- If you have got your eyes on Shiba Inu and these two mentioned above do not support it, give Voyager a go. Suitable for mobile traders, it also has pretty low transaction fees and is thus pretty useful to various crypto investors.
Automating Crypto Trade
There has been little talk about the way cryptocurrency trading is done. Although it is possible to approach the crypto market in a classic, stock-similar way, this is highly ineffective and perhaps even impossible in the long run.
The most common way to deal with crypto trading is to become a day trader, that is a trader who commits a deal and closes it in a single day.
And it is impossible to keep track of the crypto market 24-7, as we traders are still made of flesh and blood.
We need sleep, rest, leisure time, and so on. There are tools of the trade, however, that deal away with this issue entirely. They are called crypto trading bots and they streamline and automate crypto trading.
Trading bots are pieces of software that can be set up according to your trading logic and perform mundane checks and chores automatically instead of you, drastically reducing the necessary time and effort required to invest in both penny cryptos and regular cryptos.
Consider using trading bots. After all, they are much more efficient than you or any of us at this. Technology is bound to take over at one point in any case, right? Either way, trading bots are the way to go.
Top-Rated Crypto Exchanges
These crypto exchanges have been voted as the best consistently in user ratings across various websites.
First we collated the user review data, then we performed our own tests to ensure 100% legitimacy of the exchanges.
These are by far the best services on the market today, and we continue to use them ourselves.
RankExchange 1PionexGet Started 2eToroVisit 3UpholdVisit
So this is the list of best penny cryptos to invest in 2022 along with some basic concepts explained and simple tips provided.
Only one thing remains to be said: do not take this as a law set in stone.
The dynamics of cryptocurrency, especially penny cryptocurrency, make pretty much any sort of list or guide obsolete in a matter of months or even weeks.
It is thus important to constantly be on the watch for updates and changes in circumstances in the market.
Everything said here is true for now, but keep your eyes and mind open and follow us for more news on this topic.
We will do our best to keep track of the changes and update our views as they change with the times.
In any case, now is the time for whatever you decide. First come, first serve. Good luck trading!
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