Best Penny Cryptocurrency To Invest In 2022 – The Details

Some of the best penny cryptos to invest in 2022 are VeChain (VET), Stellar (XLM), Basic Attention Token (BAT), Chilliz (CHZ), Zilliqa (ZIL), Reserve Rights (RSR), REEF Finance (REEF), Binance, Coinbase, and Dogecoin.

Key Takeaways

• Crypto investors like to diversify their portfolios for maximum profit and to minimize the risk factors
• Penny cryptocurrencies are like penny stocks where investors can trade for a few pennies or less than $5 per unit
• With penny cryptocurrency, you will be able to accumulate a massive number of currencies and diversify your portfolio
• Penny cryptocurrency investment has four part: Utility tokens, Mining-based cryptocurrencies, Security tokens and Stablecoins

Definition Of Penny Cryptocurrency

Penny cryptocurrency is a type of digital currency that you can buy for less than $1. Penny cryptocurrency is quite similar to penny stocks and because of their low price, it is very cheap to invest in penny crypto. The best part of penny crypto is, you can accumulate a massive number of currencies and diversify your portfolio. According to many crypto experts, Penny cryptocurrency investment can be divided into four categories – 

1. Utility tokens

2. Mining-based cryptocurrencies

3. Security tokens

4. Stablecoins      

Reasons To Invest In Penny Cryptocurrencies

Apart from the lower price, there are many other reasons available to invest in cryptocurrencies. Let’s know the reasons in detail!

1. High-Risk Reward Ratio

There are many penny cryptocurrencies available that are undervalued and it is assumed that there might be mass adoption of blockchain technology. So, the price of these crypto coins will rise rapidly and investors might be able to gain large profits from these penny currencies. 

2. Investment Diversification

One of the keys to becoming successful in crypto investment is a diversified portfolio. If you want to earn regular profit from crypto investment then you have to diversify your portfolio by investing in different areas. This way, if a coin of your investment crashes, then the other cryptos might benefit you. So, diversification always plays an important role in crypto investments.   

3. Passive Income

Investing in penny cryptocurrencies can be a great passive income source for crypto investors. Moreover, for crypto investors, the best-paying dividend cryptocurrencies are mostly under $1. So, you can get dividends from penny cryptos just like the stocks. It means you can earn profit by just holding the penny cryptocurrencies!

How To Select The Best Penny Cryptocurrency

Before investing in penny cryptocurrency, you should try to pick the best penny currency to invest in. So, while you are trying to pick the best penny cryptocurrency, you can follow the below tips – 

1. Make sure you invest in penny crypto that has a circulating supply of between 10 million – 1 billion coins

2. Minimum 25% of the whole supply limit of that crypto should be mined already

3. The crypto must be listed on popular cryptocurrency exchanges such as MXC, Binance, BitMex, etc.

4. Don’t invest in penny coins that trade near their all-time high

5. The percentage gain of the crypto in the last 7 days should be higher than 50%

6. The penny crypto should have a strong presence on social media channels

7. The penny crypto team should possess a team of experienced blockchain developers

List Of Best Penny Cryptocurrencies To Invest In 2022

1. VeChain (VET)

2. Stellar (XLM)

3. Basic Attention Token (BAT)

4. Chilli (CHZ)

5. Zilliqa (ZIL)

6. Reserve Rights (RSR)

7. REEF Finance (REEF)

8. Binance

9. Coinbase

10. Dogecoin    

1. VeChain (VET)

VeChain is a blockchain service platform best suitable for enterprises that want to leverage the power of the Internet of Things to prevent counterfeiting. Businesses can use VeChain for IoT, supply chains, and logistics investments. This technology uses IoT to track and provide proof of authentication for goods and services during trading. In VeChain, every product is tagged with a unique code that also facilitates tracking on the blockchain so that retailers or consumers can easily know where, when, how, enterprise responsible during shipping, production, etc. Some key features of VeChain are – 

1. Explore applications and information built on the VeChainThor blockchain

2. Find comprehensive documentation and guides to help you start the development of the VeChainThor blockchain

3. Apply for the bounty programs to get more support for your projects built on the VeChainThor blockchain

4. Controllable Transaction Lifecycle

5. Fee Delegation

6. Multi-task Transaction (MTT)

7. Transaction Dependency  

2. Stellar (XLM)

Stellar crypto can be used in the logistics, remittance, and borderless payment transfer industries. This platform allows secure and fast payment solutions across the world. The best part of this platform is, anyone, can create, send, and trade representations of any form of money whether it is dollars, pesos, euros, Bitcoins, or anything. If you are looking for penny cryptocurrencies to invest in then Stellar will be a great option for you because it has real-world uses. Some of the key features of Stellar are – 

1. Stellar’s API and SDKs are ready to help transform the world of finance

2. Leverage the many currency-backed tokens already on the Stellar network

3. Use Stellar’s built-in decentralized exchange for crypto, forex, or securities

4. Users can swap between tokens using simple functions built into the protocol

5. Micropayment services with Stellar’s low, flat fees, and fast transactions  

3. Basic Attention Token (BAT)

The Basic Attention Token is based on the Ethereum blockchain therefore, it is an efficient way of digital advertising. BAT can be used as a platform token for the Brave browser and a brainchild of Brendan Eich. You can use the BAT to distribute ad revenues amongst ads advertisers, content publishers, etc. So while using the Brave browser, users can earn money by watching ads. This browser has more than 25 million monthly active users so investing in BAT is worth considering. Some key features of BAT are – 

1. Brave browser available for Windows, macOS, and Linux platforms

2. BAT tokens can be purchased on exchanges

3. Buy crypto with credit and debit cards, crypto assets, and more using Brave wallet

4. Receive discounts when using BAT for transaction fees

5. Manage fiat and crypto payment options on desktop and mobile   

4. Chilli (CHZ)

This is a blockchain platform consists of two other platforms, namely socios.com and the tokens. Here, Socios.com is a team crowd management platform and it allows the users to use the fan tokens supported on the platform to vote or trade value like shirt designs, training grounds names, logo design, etc. Owning Chilli (CHZ) provides discounts for users when buying merchandise, earning rewards, and many more. Fan Tokens, CHZ, Locker Tokens, and NFTs support this token. Important features of CHZ are – 

1. You can buy Chiliz with Visa, Mastercard, SKRIL, and Rapid

2. Socios app is available and it has a trading section that allows users to trade fan tokens

3. You can trade or invest CHZ tokes; this platform also supports USDT and BTC 

5. Zilliqa (ZIL)

This is Singapore-based penny crypto and it uses sharding as a scaling solution to lift limits on the number of transactions per second. In this platform, each shard is limited to 600 nodes to prevent the manipulation of a block. This platform was first introduced by the National University of Singapore by academics, Technologies, and entrepreneurs. Zilliqa is capable of supporting 2,828 transactions per second! Here are some vital features of Zilliqa – 

1. This toke is used as a governance token on the platform

2. It allows the users to exchange assets through ZilSwap, a trading and liquidity platform

3. In this platform, proof of work is combined with the Byzantine Fault Tolerance Protocol to reduce the energy consumption 

4. Low transaction cost

5. Earn rewards and power the network

6. Access financial products and services in an open, transparent financial marketplace     

6. Reserve Rights (RSR)

This technology uses a USD-pegged stable coin at a ratio of 1:1 to reduce the volatility of held value. This technology is built on the Ethereum blockchain and this platform offers multiple fiat networks to operate autonomously. Here the protocol keeps the token stable by repurchasing the token which is very uncommon for any type of cryptocurrency. By using this protocol you will be able to reduce cross-border transaction costs and pain points. Important features of RSR are – 

1. You can cash in and out RSR using a bank, Paypal, or Zelle

2. You can convert your local currency to Reserve Dollars (RSV)

7. REEF Finance (REEF)

If you are looking for Penny cryptocurrencies for long-term investment then REEF will be a great option for you. REEF can be used as a uniting tool to solve various blockchain-related problems. This protocol was launched in September 2020 on the Polkadot blockchain. It also launched on the Binance Launchpool in 2020. Users can use REEF as a liquidity aggregator and multi-chain yield engine. Below are the reasons why REEF has a strong feature – 

1. Cross-linkage with some DeFi platforms

2. AI-driven management function  

3. Fast transaction rate with lower transaction fees

8. Binance

Binance started as a centralized cryptocurrency exchange in 2017 and since then it has become the largest cryptocurrency exchange by daily trading volumes in the world. This platform also has a blockchain known as Binance Chain where many projects and applications are held. You can use the BNB token on both the centralized and the decentralized exchanges which is very convenient. Features of Binance are – 

1. The Binance API is designed to provide an efficient way to integrate the trading application into the platform

2. Provide increased account safety with 2-Step verification codes

3. Binance allows the users to earn block rewards for holding BNB tokens

4. This exchange allows trading, a listing of new tokens, and staking   

9. Coinbase

This is the world’s largest centralized exchange by trading volumes and it allows the users to take advantage of cryptocurrencies and digital assets through its custodian services. This platform allows the users to exchange cryptos, sell crypto for fiat, etc. Users can buy, sell various cryptos using PayPal, ACH, bank wire, credit, and debit cards. Coinbase is listed on the Nasdaq stock exchange through an IPO therefore it is the best penny cryptocurrency to invest in in 2022. Some key features of Coinbase are – 

1. Stock listed on Nasdaq through IPO

2. iOS and Android mobile apps

3. Support institutional staking, saving, and dollar-cost averaging investment  

10. Dogecoin    

Dogecoin uses a proof of work mining algorithm just like Bitcoin and it is the king of meme coins. Dogecoin has a better transaction experience because it has reduced confirmation time for each block to 1 minute each! Dogecoin can be used as a payment token on many platforms. One of the most important features of Dogecoin is – 

1. No limit on the number of tokens that can be minted

Comparison Of Top 5 Penny Cryptocurrencies

Crypto	Top Features	Best For	Rating
VeChain (VET)	IoT-based supply chain tracking.Smart contracts.	IoT, supply chains, and logistics investments	5/5
Stellar (XLM)	Capable of supporting transactions per second	logistics and supply chain investments	4.8/5
Basic Attention Token (BAT)	Publisher and advertiser revenue sharing	Advertisers and publishers	4.7/5
Chilli (CHZ)	Hosts NFTs and Fan tokens	Investors in gaming platforms and NFTs	4.5/5
Zilliqa (ZIL)	Smart contracts Can support thousands of transactions per second hence very scalable	Long term investors and holders	4.5/5

Final Thoughts

Finally, all the penny cryptos mentioned above have the potential to become top fractional penny cryptocurrencies. However, before investing in any of these currencies make sure you do enough research to identify potential risk factors and profit margin. This way you will understand whether it would be a great idea for you to invest in penny cryptocurrency.

References:

1. https://earthweb.com/penny-cryptos/
2. https://www.softwaretestinghelp.com/penny-cryptocurrency-to-invest/

Last Updated on October 18, 2022 by Magalie D.