Those who invested in Dogecoin (DOGE) and Shiba Inu (SHIB), which in 2023 grew by tens and hundreds of times, multiplied their wealth. Penny cryptocurrencies are considered high-risk assets, but it’s often sink or swim in such a business, right? Therefore, if you do not rush to the first coins that come across, given away almost for free, but invest wisely, you can really increase the value of your portfolio many times over. Check out some of the low-cost coins that deserve attention in 2023.
Why Buy Cheap Coins?
There are many stories of lucky people who bought cheap bitcoins for fun for 10 years and, having managed to save them, got rich. Some coins were simply handed out for free and only many years later they got to crypto exchanges.
This is the dream of any investor to invest a minimum and get a bumper crop. But this is not the only reason why investors are interested in cheap digital assets, although they have money to buy expensive ones. Here are a few more:
- easy start – opportunity to get an entrance ticket to the world of cryptocurrencies without large investments and a new experience in buying the first coins;
- speculation – low-cost assets are highly volatile, which means that in one day the value can double and bring serious profits;
- long-term investments – many coins have real potential; you just have to be patient and wait a few years to get a yield of several thousand percent;
- belonging to a crypto community – if the ideas and aspirations of a certain crypto project are congenial to the investor, it will be nice to be in the community of like-minded people;
- involvement in crypto projects development – some cryptocurrencies give the right to vote and determine the future of a particular platform. Often, investors not only calculate income, but also take real actions to optimize the network, which ultimately has a positive effect on the coin price.
Pros and Cons of Investing in Cheap Cryptocurrencies
Investing in penny crypto has both advantages and disadvantages that you should be aware of before you hit the buy button.
Low-cost coin benefits:
- volatility: the exchange rate of cheap coins is more volatile than that of expensive ones, and if successful, their price soars very quickly;
- profitability: buying tokens at an early stage can bring huge profits with minimal investment;
- diversification: such investments help to diversify the portfolio, which is recommended to be filled with crypto coins from the TOP-100 list;
- undiscovered potential: among cheap projects there are promising but underestimated young talents. When the public understands its value, they will become the counterparts of Apple and Google in the crypto space, and you will be the one who recognized their potential early.
Low-cost coin drawbacks:
- some coins have large capitalization: in this case an exchange rate will not grow higher, so only burning coins will be able to change the situation;
- volatility: this feature can be considered both an advantage and a disadvantage, since a cheap coin is prone to both rapid growth and an instant fall down to zero;
- complexity of assessing the potential: often starting crypto projects do not have sufficient biography to assess their reputation and prospects;
- high risk of scam: such cryptocurrency startups often turn out to be scams;
- low liquidity: there are few orders for transactions with such assets, which means long-term execution of orders.
TOP 3 Cheapest Coins
There are many more penny cryptocurrencies worthy of attention in 2023, but here we will consider only 3 of them.
Hedera (HBAR) is the proprietary token of the revolutionary Hedera Hashgraph project, aimed at creating a qualitatively new technology that is an alternative to the usual classic blockchain format.
At the time of writing, the value of HBAR was $0.06946. In the crypto ranking, Hedera ranks 36th according to its market capitalization of $1,806,467,338.
Over the past month, HBAR has shown steady growth, having increased by about two times. This gives hope that the asset has begun to recover after a long crypto winter and will be able to return its 2021 ATH of $0.5701 in the near future.
VeChain (VET) is a crypto built on the VeChainThor blockchain. The project aims to improve the efficiency of business process tracking and secure data exchange using its platform, where VET coin acts as a means of payment. In general, analysts are positive about the future of the coin. Since the project, and with it the VET token, offers useful technologies, it will remain in demand.
At the time of writing, the value of VET was $0.02465. In the crypto ranking, VeChain ranks 38th according to its market cap of $1,787,664,975. Just like Hedera, VeChain has been in an uptrend phase for a month now and will try to return to its ATH of $0.2782 this year. VeChain ROI is 63.65%.
XRP is a popular crypto among large financial institutions and banks worldwide. It is the most expensive of the proposed assets. XRP is often in the spotlight and on the lists of the most promising cryptocurrencies, along with Bitcoin and Ethereum. But don’t worry, it only costs less than 50 cents today.
The project has a huge market capitalization of $20,950,687,894, which is why it took the 6th position in the cryptocurrency ranking according to this indicator. The token’s all-time high was $3.84 in 2028, so many believe it will be able to bring it back. XRP ROI is 6944.06%.
XRP is associated with Ripple, which is currently in a legal battle with the SEC. However, experts believe that the crypto project will win this case and then the value of XRP will increase significantly.
Cheap coins should not be underestimated in terms of their ability to generate income. Not all of them will succeed, but some will bring wealth to their owners. You can invest in each of the above coins, perhaps one will work. Or compare their features and pick one that will go into your portfolio.
Hedera and VeChain have some similar market performance. You can buy both, or choose one by comparing them here: HBAR vs VET. You can also compare HBAR vs XRP, which will help you make an informed buying decision.