Once upon a time, Bitcoin was practically worthless. In 2010, someone paid 10,000 bitcoins for two pizzas, worth 25 US dollars. A bit over seven years later, those 10,000 bitcoins were valued at almost 200 million dollars. Now there are many cheap cryptocurrencies out there and many people are wondering which is the best cryptocurrency for under a penny.
After all, not all tokens are as likely to return large profits.
Is there really any cryptocurrency under $1?
Certainly. There are hundreds of tokens out there that sell for less than 1 US dollar. These cheap cryptocurrencies are generally known as penny cryptocurrencies. You can find some that cost less than 0.01 USD.
Which is the best penny cryptocurrency?
In 2007, no one could have predicted one bitcoin would eventually be worth 20,000 USD. Likewise, no one can know for sure which one of the cheap cryptocurrencies will see its price skyrocket in the next few months or years. Crypto trading, much like stock trading or even gambling, is about taking risks.
But taking risks doesn't mean you should take a blind leap of faith on any particular token. Some cryptocurrencies are more likely to see their prices go up than others. But there is an indicator that can help you decide which tokens to invest in. This indicator is a tokens Market Capitalization or “market cap”.
Now I'll give you a list of some low-cost, low market cap cryptocurrencies you might want to check out to decide which is the best cryptocurrency under a penny. Most of these aren't just cryptocurrencies but also projects that look to change the way the internet itself works.
1. TRON (TRX)
TRON is an operating system based on a blockchain that seeks to create an independent, decentralized, democratic and high-performance web, suitable for high-speed applications such as games. At this time the price of TRX is 0,018 USD with a market cap of 1,166,114,042 USD.
Electroneum seeks to create a new ecosystem for fast digital payments than even people with no bank account can use. This ecosystem is centered around the use of mobile phones and apps. The current price is 0.0038 USD and the market cap is 37,459,353 USD. Buying some Electroneum is a no brainer.
Opacity's goal is to create an inexpensive, decentralized and anonymous cloud storage service for sharing files. Users need not provide any personal information to use the service. Payment for storage space is via the opacity token.
Stellar has created a protocol that allows fast, inexpensive, international transfers between crypto tokens and fiat currencies. Its goal is to allow its users to easily send money across borders. Current price is 0.067 USD and market cap is 1,310,680,883.
Read Also: Best Stellar Lumens Wallet
Ravencoin is one of the coins many analysts consider to have high potential. Built on a blockchain forked from bitcoin, it seeks to efficiently create and transfer tokens between parties. The current price is 0.034 USD and the market cap is 143,054,768 USD.
Cardano is looking to create an open-source platform with more advanced features than any other platform. Development is per a scientifically oriented, peer-reviewed research-driven work philosophy. It has a current market price of 0.049 USD and a market cap of 1,530,101,948 USD.
The people behind the Basic Attention Token are creating a system that closes the gap between users, advertisers, and publishers, allowing funds to be sent without middlemen, at a reduced cost, and with greater efficiency. Besides purchasing BAT tokens, users can also earn them with contents they create, such as personal blogs, twitter accounts, youtube channels, etc. This is accomplished via the Brave web browser. There is also a referral system that can help you earn more BAT. If you feel like checking out the browser, click here to download.
The current price of BAT is 0.20 USD, with a market cap of 252,797,375 USD
This is another token with a proposal that will let you earn coins. KARMA is not just the name of the cryptocurrency, but also of a dAPP and social network built on the EOS blockchain. It's a bit like Instagram, but posts are more oriented towards promoting good actions and working towards social change. Also, post creators can earn KARMA tokens with the “likes” they receive. With a price of 0.00016 USD and a market cap of 15,603,817 USD, KARMA is a perfect example of a low-cost, low market cap cryptocurrency with a lot of potentials. Given the low cost per token, you can collect a lot of them, which is another reason why it makes my list of best cryptocurrency under a penny.
What is a market cap and how can I calculate it?
In simple terms, the market cap is a coin's value in the market at any given time. To calculate it, you multiply the number of coins in circulation times the price of each coin.
Suppose you own an apple orchard and harvested 100 apples, which sell for one dollar apiece. Since the apples still on the trees aren't circulating, we won't take them into account. The market cap for your apples would be 100 dollars.
Let's do a real-world example now. Head on over to Coinmarketcap and let's look up EOS:
You can see here that currently, one EOS token sells for 3.66 USD, and that there are a total of 1,018,578,881 EOS tokens in circulation. If you multiply those figures, you get that the EOS market cap is currently just over 3.7 billion USD. Coinmarketcap also provides another interesting statistic: the global market cap. That means the total value of all circulating crypto tokens. At the time of writing, the global market cap is 268,656,490,134 USD. This means that EOS accounts for 1.39% of the global market cap. This is what is known as EOS's dominance.
Why is the market cap important?
Knowing a coin's market cap can give you an idea about how likely it is for a coin's price to skyrocket. In the example above, let's assume you would like to buy some EOS and wait for its price to give you a 100x profit. In other words, for the token's price to reach 366 USD. If it did, and you do the math, it would mean the EOS market cap would be just over 370 billion dollars. But wait! That figure is a lot higher than the current global market cap. So the price of EOS, though it may rise, is not getting anywhere near 100x profit right now.
EOS might not be your 100x token. But there are some coins out there that might be. The key is to not only find a token with a low price, but also one with low circulation. In other words, you want to find a low market cap cryptocurrency.
There are a lot of penny cryptos available for trading, and analysts agree that some of them have high-profit potential. But not all of them agree on which ones are on the verge of skyrocketing. After all, no one can predict the future. The matter of figuring out which is the best cryptocurrency under a penny is also the question of which is the most undervalued cryptocurrency. The list provided here is a start. But now you know how to use market caps to choose which cryptos to invest in. Do your research, pick some coins and start trading. You could very well be the next crypto millionaire.
Have you bought any of these coins before? Let us know in the comments!