Cryptocurrency is a lucrative investment for the future. While many of us may want to invest our money into crypto, the price of Bitcoin (the most popular and valuable crypto) may put us off. $42K is a huge amount of money to gamble with. If you cannot risk $42k, are there other lucrative alternatives? Of course! You can invest in some of the best penny cryptocurrencies.
Some of the best penny cryptocurrencies to invest in for long-term care:
- Stellar Lumens (XLM)
- Basic Attention Token
- VeChain (VET)
What happens if you don’t have money to invest in Bitcoin? Do you fold your arms and watch people make money off this coin, or do you seek an alternative? If you prefer to do the latter, this article will be quite helpful to you. Below, I have highlighted what you need to know before investing in crypto. I have also listed the best penny crypto to invest in for the long term.
Best Penny Cryptocurrency to Invest for Long-Term:
The word cryptocurrency, no doubt, has become a household name, and we can easily link that development to the meteoric rise of Bitcoin and other cryptocurrencies. When the first crypto was released by a yet-to-be-identified person or group, Satoshi Nakamoto, only a few people understood the concept behind cryptocurrency. Some of these individuals, no doubt, include you and me.
However, today, many individuals are delving into the world of crypto to understand how it works and probably use the knowledge acquired to make money off this wonderful innovation. In fact, in some schools like Cornell University, Duke University, Georgetown University, etc., courses on blockchain are being taught.
Investing in Cryptocurrency:
Bitcoin and other cryptocurrencies are among the most prominent trends worldwide. Thus, if you know nothing about cryptocurrency, you’ll be tagged outdated. Ever since the introduction of Bitcoin, several people have scaled their wealth by investing in a crypto. But does that mean you should follow suit? Of course, especially if you believe in the concept of crypto. However, if you cannot afford to buy a Bitcoin (current price is $42,500) or Ethereum (current price $3370), there are other cheap and lucrative alternatives that boast huge potentials. Before I highlight these cheap coins, let’s refresh our memories a bit.
What is Cryptocurrency?
A cryptocurrency is the opposite of physical cash. It is merely a digital asset backed by cryptography, thus making it very difficult to double-spend or counterfeit. Put differently, cryptocurrency is a virtual currency secured by cryptography.
Cryptocurrency operates with the aid of a technology known as blockchain. A blockchain is simply a unique type of directory where each record is connected to the former. Blockchain is decentralized, and they are mainly used to record transactions.
Components of a Blockchain:
The record: A record could be any data stored on the blockchain.
A block: This is a stack of diverse records
The Chain: The chain is comprised of various records connected together.
Ever since its inception in 2008, cryptocurrency has become one of the most common forms of payment and investment. Today, you can buy goods and services with cryptocurrencies like Bitcoin, Ethereum, and the likes. Some big companies like Tesla have come out to state that individuals would be able to purchase their cars with Bitcoin in the nearest future.
Also, major companies like Wikipedia, Microsoft, Subway, including football clubs like Benfica all acknowledge and accept bitcoin as payment.
How Many Cryptocurrencies Exists?
Bitcoin remains one of the most popular cryptocurrencies globally, with a market cap of almost 1 trillion dollars. However, aside from bitcoin, there are other cryptocurrencies. In fact, according to CoinMarketCap.com, there are more than 6,700 cryptocurrencies in the world, and they are being traded daily.
No doubt, as the use of cryptocurrency keeps increasing, we are bound to see the introduction of more cryptocurrencies. And who knows, soon we may not need paper currencies to perform certain transactions as it would be outdated.
Unlike our fiat currency (government-backed currency), crypto doesn’t depend on banks or other financial organizations. It is decentralized, making it hard for it to be under the influence or control of an individual or organization.
Cryptocurrencies are mined digitally, and they are usually exchanged and regulated by their owners, unlike our normal fiat currencies, which Central Banks and the Federal Government control.
The value of cryptocurrencies increase and decreases as per their purchasing power. The more cryptocurrency individuals buy, the more its value increases, and the more crypto individual sell, the more their values decreases. In other words, the value of cryptocurrency is controlled by supply and demand.
Benefits and Application of Cryptocurrency:
Cryptocurrency is ladened with several benefits. In fact, some financial experts and individuals will argue that the benefits of crypto outweigh that of the typical fiat currency. Put differently, some experts believe that owning cryptocurrency as an asset is far better than owning fiat currency.
Of course, you may have different views on the matter, especially if you are a cryptocurrency newbie. For that reason, I’ll be outlining some of the benefits and applications of cryptocurrency, after which it will be left for you to choose sides.
Application of Cryptocurrency:
The use of cryptocurrency is transforming how we perform transactions. Blockchain technology can be fused in several businesses that requires trust among several parties. And that is simply because Blockchains are not shady; they don’t encourage fraudulent practices, neither are they capable of being compromised.
Cryptocurrency has several applications. And if you are a keen follower of news surrounding cryptocurrency, you would have noticed a handful of them. One of the most common applications of cryptocurrency is in wealth generation. If done wisely, cryptocurrency has the potential to increase your wealth significantly, and this is mainly down to its volatility.
Other applications of cryptocurrency are:
- Wealth management
- Digital publishing engagement
- De-corrupting charities
There are still other applications of cryptocurrency. However, we won’t be delving into that aspect as it doesn’t relate to this article. To find out more, you can carry out research.
Now, we’ve all been hearing of how lucrative cryptocurrency is and how lots of people are making money off this goldmine. Of course, cryptocurrency has its benefits and downsides as well. Some people believe that its benefits outweighs its downsides, while others believe vice versa. Let’s take a brief look at the benefits of cryptocurrency.
Benefits of Cryptocurrency:
- Low Transaction fees:
When making fiat currency transfers, one major thing you need to worry about is transaction fees. Some transaction fees are quite high and discouraging. If you one day sit down and sum up each fee associated with writing a check, transferring funds, etc., you’ll be shocked at the total you’ll arrive at.
You see, transaction fees can significantly reduce your assets, especially if you perform many transactions. However, with the introduction of cryptocurrency, you can bid high transfer fees goodbye. And this is because cryptocurrency transactions are facilitated by data miners (remote and separate computer systems), and they get compensated by the cryptocurrency network, thus eliminating the need for transfer fees.
- Enhanced access to credit
Contrary to the traditional system of banking or exchange, access to cryptocurrency is unlimited. You can perform cryptocurrency transactions with the aid of an internet-enabled device and nothing more. You don’t need the approval or aid of a third party like it is with the traditional banking system.
Furthermore, cryptocurrency services are always available and easily accessible. Also, transactions are pretty fast and very secure.
- Very Secure
Immediately a cryptocurrency transfer has been approved; it cannot be rescinded as it is with “charge-back” transactions allowed by credit card issuers. This helps eliminate the possibility of fraud. And in a situation where there was a mistake, the buyer and seller can easily come to an agreement regarding a refund.
Also, the technology adopted in the blockchain and cryptocurrency transaction processes mitigates the occurrence of fraud, account meddling, identity theft, etc.
- Source of wealth
In January, Tesla announced that it had purchased bitcoin worth a whopping $1.5billion. And a few weeks later, it was alleged that Tesla made about $1 billion in profit on its bitcoin investment. If done right, one could accumulate wealth via cryptocurrency investments. However, also have it in mind that because of the volatility of cryptocurrency, one could lose all of his or her investments. So, ensure you invest wisely.
Best Affordable Crypto to Invest for Long-Term:
Certainly, this is one of the most famous cryptos in the market right now. It was known as OpenCoin when it was created in 2012. Ryan Fugger and Jed McCaleb founded Ripple and their angel investor Chris Larsen.
Ripple had hit its max price in Jan 2018 when it was $3.5; currently, it is priced at $0.791961. XRP is linked to it because it boasts of a utility factor which means you can carry out international transactions on it that would be completed almost immediately, and similar transaction takes a long time if you decide to complete them via a bank.
Current price: $0.7881
- Stellar Lumens (XLM)
Stella is another affordable coin to buy. It is a platform that focuses on remittance and cross-border payments. It has become one of the leading cryptos where over $531 million tradings are carried out each day. In addition, it is listed in the top 13 world’s most valuable cryptos.
Stellar or XLM is maintained by the Stella Development Foundation, a non-profit organization made in 2014. Jed McCaleb co-founded it. However, unfortunately, he left the company in 2014 to start his venture.
Current price: $0.2739
- Basic Attention Token (BAT)
Bat is one of the best and affordable cryptos to invest in as they have the most solid projects in the whole crypto world. They have a utility of ERC20 token and are created on top of Ethereum’s blockchain. BAT ranks the 34th position worldwide in terms of market cap. The Bat decentralized blockchain-based exchange also uses it for digital advertising.
Current price: $1.11
Cardano has gained a high ranking in this list because of its flexible network and lightning speed transaction. The co-founder of Cardano, Charles Hoskinson, was also the co-founder of Ethereum.
Cardano is a lucrative project and third-generation blockchain that has become very popular as it works on scalability and interoperability, which are the main issues crypto faces.
Current price: $1.28
- VeChain (VET)
VeChain is a blockchain-based supply chain platform designed to solve real-world economic problems. They strive to create an ecosystem that would solve common issues related to supply chain management. They offer two types of tokens to their users: VeChain Token (VET) and VeThor Token (VTHO).
Which Cryptocurrency Is Best for Long-Term Investment?
If you like the idea of crypto and believe in digital currencies’ potential, it makes sense to invest in some. If you wish to go for short term crypto, you should consider coins like Shiba Inu. But what if you want a coin that would serve as a long-term investment?
There are several cryptocurrencies in the crypto market. However, if you want to invest in a coin that can stand the test of time, the best pick will be no other crypto than Bitcoin. You can also consider Ethereum.
Ensure you do your due diligence before investing in any crypto. If needed, get ideas from a crypto expert on the best coin to buy and when.