The crypto market is booming, and investors eagerly seek the next ample opportunity. Penny cryptos, with their low entry price, are a tempting proposition. But are they a wise investment? In this blog, we will explore India’s top 5 penny cryptos with the potential for high returns. So, whether you’re a seasoned crypto investor or just starting, this guide will provide valuable insights to help you navigate the exciting world of penny cryptos & find the top penny crypto to invest in 2024
What is a Penny Crypto? How is it Different from Other Crypto Currencies?
Penny cryptocurrencies, called penny coins, are digital assets that trade for low prices. They are usually under a dollar and often for mere fractions of a cent, and even sometimes as low as fractions of a rupee.
Here’s a table that demonstrates the contrast between Penny crypto and ordinary crypto:
| Cryptocurrency Conversion Rates(Approx) | Penny Crypto Conversion Rates(Approx) | ||||
|---|---|---|---|---|---|
| Crypto | Price | Penny Crypto | Price | ||
| Dollar($) | Rupee(INR) | Dollar($) | Rupee(INR) | ||
| Bitcoin(BTC) | $69,915 | 58,20,069.47 INR | Dogecoin(DOGE) | $0.19 | 15.41 INR |
| Ethereum(ETH) | $3586.38 | 2,97,988.15 INR | Shiba Inu(SHIB) | $0.00003071 | 0.002559 INR |
| Tether(USDT) | $1 | 83.32 INR | Tron(TRX) | $0.1208 | 10 INR |
| Binance Coin (BNB) | $576.3 | 47,967.32 INR | Basic Attention Token (BAT) | $0.34 | 28.5 INR |
The table shows the approximate prices of these currencies as of Mar 2024, you can follow live prices of all cryptocurrencies on Mudrex price tracker
Many penny cryptos represent relatively new projects in the early stages of development. These currencies have not established themselves as having a clear purpose or utility beyond speculation.
Take, for example, Dogecoin and Shiba Inu, meme-based cryptocurrencies that skyrocketed in popularity in 2021 due to social media hype and celebrity endorsements by Elon Musk.
Now let’s take a look at the most popular Penny Cryptos in the crypto market—
Top 7 Penny Crypto that You Should be Investing on
1. Dogecoin (DOGE): The Meme coin
Dogecoin (DOGE) stands out as the original meme coin. Currently trading at a fraction of a dollar, it has seen massive surges in the past, primarily driven by social media hype and celebrity endorsements. While initially created as a joke, Dogecoin aims to be a fun, easy-to-use cryptocurrency for tipping and small transactions. Its technology is based on the Litecoin blockchain.
The DOGE community is known for its passionate support, meme-sharing, and charitable initiatives. Investing in Dogecoin is highly speculative. Its value heavily depends on social media sentiment rather than long-term fundamentals, making it highly volatile. However, its low price point and potential for explosive, hype-driven gains attract some investors.
2. Shiba Inu (SHIB): Yet Another Meme Coin
Shiba Inu (SHIB) is another meme-inspired cryptocurrency that gained immense popularity following Dogecoin’s success. It trades at a meager price, with trillions of coins in circulation. Part of the Shiba Inu ecosystem, SHIB promises future use cases within a decentralized exchange (ShibaSwap) and potential ventures into NFTs and gaming.
The development team remains anonymous, and the Shiba Inu community, known for its enthusiasm and “Shib Army” mentality, is a significant driver of the token’s popularity. Like many meme-based coins, investing in SHIB is incredibly risky. While its low price point might be appealing, it heavily relies on social media hype and lacks established real-world use cases.
3. Tron (TRX): Building a Decentralized World of Entertainment
Tron (TRX) aims to create a decentralized content creation and entertainment platform. While not strictly a “penny crypto,” its price remains relatively low compared to major players like Bitcoin. Tron focuses on giving creators ownership of their content and enabling direct consumer interactions.
The project is led by Justin Sun, a controversial yet well-known figure in the crypto space. Tron boasts a large and active community, particularly within decentralized applications (dApps) and gaming. While Tron has potential for long-term growth due to its focus on real-world use, it still carries risks. Competition in its niche is fierce, and its success hinges on the widespread adoption of its platform.
4. Basic Attention Token (BAT): Revolutionizing Digital Advertising
Basic Attention Token (BAT) seeks to revolutionize digital advertising within the Brave web browser. It aims to create a more efficient and equitable system, rewarding users for their attention and allowing advertisers to target their audience more effectively. BAT is built on the Ethereum blockchain, ensuring security and transparency.
The project was co-founded by Brendan Eich, the creator of JavaScript and co-founder of Mozilla Firefox, bringing credibility and experience. While it has a smaller community than some, BAT does have a dedicated following. BAT’s potential lies in the widespread adoption of the Brave browser, while the highly competitive digital advertising landscape remains challenging.
5. Stellar Lumens (XLM): Banking the Unbanked
Stellar Lumens (XLM) is another low-priced cryptocurrency specifically designed to make international money transfers faster, cheaper, and more accessible for everyone. Compared to traditional remittance services that can be slow and expensive due to high fees, Stellar aims to connect individuals and financial institutions globally with a decentralized network. This can be particularly beneficial for migrant workers sending money back home or individuals needing to receive funds quickly and securely across borders.
The Stellar Development Foundation, a non-profit organization, oversees the network’s development. It focuses on financial inclusion and empowering people worldwide to participate in the global digital economy.
6. VeChain(VET): The Food Supply Chain Tracker
What if you could verify the origin and quality of your food with a few clicks on your phone? VeChain (VET), trading at a fraction of a dollar with a sizeable circulating supply, focuses on enterprise applications.
Its blockchain technology aims to revolutionize supply chain management by tracking products like food and medicine from their origin to your hands.
This allows consumers to verify a product’s authenticity and ensure it has been stored under proper conditions throughout its journey. Companies can integrate VeChain’s solutions to improve transparency, product authentication, and logistics efficiency. Led by a team with experience in blockchain and supply chain management, VeChain boasts a solid and active community of developers and businesses building applications on the VeChainThor blockchain. However, investment in VeChain hinges on real-world businesses’ adoption of its platform.
While VeChain has established partnerships with various companies, its long-term success relies on widespread integration within the supply chain industry. The crypto market’s overall volatility presents an additional risk factor.
7. Ravencoin(RVN): Empowering Artists with Blockchain
Picture this scenario: you’re an artist looking to sell digital artwork or a musician wanting to distribute your latest songs without losing control of rights and royalties. Ravencoin (RVN), a low-priced cryptocurrency, offers a potential solution.
Focused on asset creation and transfer, Ravencoin allows you to tokenize your digital creations on its blockchain. This gives you ownership proof, enables easy transfers, and even creates opportunities for royalty distribution. The Ravencoin project prides itself on decentralization and community-driven development. While its use cases seem niche compared to major crypto players, for artists and creators seeking an alternative to traditional platforms, Ravencoin’s potential lies in addressing specific needs in the digital asset space.
Advantages of Penny Cryptos
- Lower Barrier of Entry: Unlike established cryptocurrencies that can trade for thousands of dollars per coin, penny cryptos allow you to invest in projects with smaller initial outlays.
For example, if a penny crypto trades at $0.05, you can buy 100 tokens for just $5. This significantly lowers the barrier to entry for new cryptocurrency investors or those with limited capital. It also allows for greater portfolio diversification, as you can spread your investment across a broader range of cryptos without exceeding your budget. - Early Adopter Advantage: This means that you become a pioneer, investing in potentially groundbreaking projects before the mainstream takes notice.
Imagine being an early investor in a project like Uber in its early days. Back in 2010, Uber was a new startup offering a ride-hailing service through a smartphone app. If you had invested in Uber back then, before it became a household name, you could have seen significant returns as the company grew and its stock price soared. The potential rewards for such foresight can be immense. - Explosive Growth Potential: Penny cryptos have the potential for massive price increases, even if they start at a meager price.
Let’s take Dogecoin (DOGE) as an example. In 2021, Dogecoin began the year priced at around $0.004. By May of that year, it had surged to over $0.70, representing a more than 17,000% increase in just a few months. This dramatic growth attracts some investors to penny cryptos, although it’s important to remember that such explosive gains are uncommon and not guaranteed.
Conclusion
The allure of penny cryptos is undeniable. The low entry point and potential for explosive growth strongly appeal to risk-savvy investors seeking the next big crypto success story. However, it’s crucial to remember that these opportunities come with equally high risks. Before diving in, remember the importance of careful research and understanding that you could lose your entire investment.
Selecting the right penny cryptos, determining your investment strategy, and staying informed in the ever-evolving crypto landscape can feel overwhelming. This is where Mudrex excels. Our platform simplifies crypto investing by providing curated portfolios designed by experts. Explore our penny crypto options and start your crypto journey with confidence. Download the Mudrex app today and unlock the potential of a diversified portfolio within a high-risk market segment.
FAQs
1. What is the best penny crypto to buy?
There is no single “best” penny crypto. These assets are hazardous. So thoroughly research any project you consider based on its technology, team, use case, and community.
2. Which penny crypto will reach $1?
Predicting this is impossible. Penny cryptos are highly volatile. While investing, focus on a project’s fundamentals rather than speculating on reaching a specific price point.
3. Which penny coin will boom in 2024?
Crypto markets are unpredictable. No one can guarantee a “boom” for any coin, especially penny cryptos. Avoid acting on hype. Instead, conduct your research and invest intelligently.
4. Which crypto is best to invest now in India?
The “best” crypto depends on your risk tolerance and goals. Established coins like Bitcoin and Ethereum generally have lower risk. Always do your research and invest only what you can afford to lose.
5. Which crypto will boom in 2024 in India?
Always take market forecasts with a pinch of salt. They can be unreliable, especially in the volatile crypto market. Instead of chasing speculative gains, research projects with solid fundamentals and potential for long-term growth.
Krishnan is a Bangalore-based crypto writer dedicated to simplifying complex crypto concepts. He covers blockchain, DeFi, and NFTs, with a focus on real-world asset tokenization and digital trust. Previously he has written on Real Estate related assets for NoBroker. Krishnan holds a B.Tech degree from the College of Engineering Trivandrum.
