11 Best Penny Cryptos To Invest In For 2024

Penny cryptos present opportunities for investors with limited funds to maximize their exposure to buy penny crypto and utilize its potential price increase to earn passive income for themselves. The theory is that small moves can equate to significant profit if you own large enough volumes.

However, most penny crypto ends up failing, so how do you know which ones will perform well and which won’t? This is why we’ve put this guide together. We’ll walk through 16 of the most promising penny crypto so you have options.

We’ll list them, what they do, and why they could be good investments.

The Best Penny Cryptos to Invest in 2024

The Best Penny Cryptos Reviewed

What is a Penny Crypto?

A Penny crypto is any cryptocurrency that trades below $1. The point of penny cryptocurrencies is that they are cheap enough for anyone to buy without committing significant funds. Volume is key here as the goal for crypto investors is to accumulate a high enough number of crypto penny stocks to profit significantly from small price changes.

However, volume is not always the play as a penny crypto can grow to become valuable. In cases like this, the earlier that you buy the best cheap cryptos, the more profit you can realize.

How are the Prices Determined for a Penny Crypto?

Prices are determined for a penny crypto project the same way they are determined for all cryptos, by forces of demand and supply in the crypto market.

However, some penny cryptos have a caveat that their blue-chip counterparts do not have, depth, otherwise called liquidity. For example, it takes roughly $80 million to move Bitcoin’s price by 1%, according to analysts, meaning that it would take significant amounts of capital for price discovery.

Penny cryptocurrencies do not require as much volume to reach new highs (or lows), creating opportunities for easier price discovery amongst crypto investors.

Why Should You Invest in Penny Cryptocurrency?

Cheap

The most appealing reason to buy the best penny cryptocurrency coins is price. Penny crypto coins are cheap and therefore have a low (almost non-existent, in some cases) barrier to entry for future token holders.

Cheap prices also help with diversification as it is less expensive to acquire significant units of multiple crypto penny stocks than several blue-chip ones.

Potential Upside

Possibly the second most appealing reason to buy the best penny crypto coins is the potential upside. Penny crypto-assets do not require as much capital to drive their native token price skyward as blue chip cryptos.

There is a caveat to this, however, as not all penny cryptocurrencies will rise astronomically. The reason is revealed in their market capitalization.

Market capitalization is the market value of all tokens in circulation. It is determined by multiplying price by the circulating supply in the crypto market. Penny crypto with low market caps (below $1 million) can rise astronomically in the penny crypto market, however, some penny cryptocurrencies already have large market capitalizations.

A good example is Ripple, which trades at a token price of $0.46 as of writing but has a market capitalization of $23 billion. While there is still potential for price appreciation, we do not expect 10x or 100x gains simply because its market cap is already quite large. It is unlikely it will rise to $230 billion or $2.3 trillion anytime soon.

Volatility

Crypto traders love volatility as it provides opportunities to make gains. Penny cryptocurrencies are small enough to move erratically within short periods, far more than blue chip cryptos.

For example, you’d hardly see Bitcoin move 10% (in any direction) within 24 hours, unless something major rocks the entire industry and crypto market. However, a penny crypto like SuperFarm which has a market cap of $52 million can make those types of erratic moves.

How to Choose the Best Penny Crypto to Add to Your Portfolio

Gauge the value offering: Because you want to add promising penny cryptocurrencies to invest in to your portfolio (i.e. invest, not trade), you need to focus on projects that have sustainable value propositions. Do this by asking: will their solution be needed three years from now?
Join presales: Presales present an opportunity to buy top penny cryptos at a discount to their listing prices. For some or the best penny cryptocurrencies, this could mean a few extra billion tokens, which could be the difference between $1,000 and $10,000.
Gauge developer activity: The more developers you have using or building penny cryptocurrency products, the higher the chances that one of them builds a product that everyday people will want to use. Crypto is still in its early, technical stages, so developers need to like the projects you wish to invest in.

Risks Involved With Investing in Penny Cryptocurrency?

With all investments, there are risks, and even more with penny cryptocurrencies that are volatile and largely untested.

The most potent risk is a rug pull, where the developers abscond with monies that investors have sunk into a project, usually by purchasing cryptos from a liquidity pool. In this case, investors are left holding worthless coins while the developers run away with the valuable crypto.

The next risk is that the project simply fails. Most penny cryptocurrency projects don’t make it. The penny crypto projects that do usually have millions of dollars of VC funding and team members that have connections. The developers of penny crypto projects don’t usually have these and as such have less chances of success in the crypto markets.

Two Main Strategies of Investors in Penny Cryptos

There are several strategies that you can use to choose the best penny cryptocurrency to invest in. We’ll cover two of them.

The first is microcap hunting. Micro cap cryptos are tokens that have a market capitalization below $1 million. Some go as low as $45,000. Micro caps give an opportunity for tremendous growth as moderate buying power can push a $45,000 market cap to $100,000 or $200,000, depending on the crypto assets supply.

Microcap hunting also gives you the opportunity to vet a token before investing in it. You can check if there are buy/sell taxes placed on a penny crypto by the developers, if the developers can withdraw the liquidity from pools at any time, and the security ratings of the smart contracts.

You can also gauge community involvement after token launch and even wait for initial sell offs from presale participants and token holders before buying in. If everything checks out, you may have a gem on your hands.

The second way is to get in on the best crypto presales. Presales are events where projects offer a portion of their total supply to early buyers at a discount to the listing price to encourage participation and raise funds for development.

Usually, presale participants get their tokens at launch and can sell at the listing price for a profit.

You can get in on presales, however, it is riskier than hunting for micro caps because the project could get rug pulled or dump into oblivion at launch.

How To Buy the Best Penny Cryptos

You can buy penny cryptos on cryptocurrency exchanges. This guide shows you how.

1. Open an Account

Navigate to the exchange’s website and click to open an account. Alternatively, you can download the mobile app from the Play Store/App Store and click on Sign up. Fill out the form with your full name, email address, and password.

2. Verify Your Account

Complete your profile and submit KYC documents to verify your account. You’ll need a valid government ID and proof of residence documents like a utility bill.

3. Deposit Funds

Once your account is verified, deposit funds by using any of the available payment options. Choose a convenient method and set the amount you’d like to deposit.

4. Buy Penny Cryptocurrency to Invest in

Once your account is funded, search for any of the penny cryptocurrencies mentioned here. An interface like the one below should load. You can then set your parameters and buy.

Where To Buy New Coins

For new coins like iDEGEN or Poodlana, you’ll have to purchase them directly on their websites using a crypto wallet like MetaMask. This guide walks you through the process of doing that.

Step 1: Download a Wallet

We used MetaMask for this guide. Download MetaMask on your phone or laptop and create a new wallet. Ensure you keep your seed phrase safe and offline.

Step 2: Buy Some Crypto

You’ll need some ETH, USDT, SOL, or BNB to buy new coins. In the case of Piggy Bankster, you’ll need SOL. You can get some on an exchange and transfer to your wallet or use a fiat onramp like Simplex.

Step 3: Connect Wallet

Navigate to Piggy Bankster’s website and connect your wallet to join the presale. Buy PIGS using SOL. Ensure you have enough to pay for gas fees.

Step 4: Wait to claim

You’ll need to wait until the presale is over to claim your tokens.

Latest Penny Cryptos News

Dogecoin’s Daily Transaction Reached Lifetime Highs After ‘DRC-20’ Tokens were Introduced
PEPE’s price is showing worrisome signs as analysts believe holders are looking to sell in the short term.
Metacade’s price soars after listing on crypto exchange MEXC as investors add the token to their portfolios.
Alt Signals cryptocurrency presale hits $585k as investors show optimism for the coming platform.

Final Thoughts on the Best Penny Cryptocurrency to Invest in

We explored the best penny cryptocurrencies to buy for people looking to invest in cryptos with high upside potential and low prices, and chose Polygon as our overall choice because it has a healthy risk to reward ratio, is already an established project, and has room for growth.

Note that we don’t expect astronomical growth from Polygon as it already has a market capitalization of $8 billion. However, it could still grow significantly and investors can key into that.

Some other cryptos are primed for astronomical growth as their market caps are much smaller, like Metacade and Velodrome.

Methodology - How We Picked the Best Penny Cryptos

The best penny cryptocurrencies covered in this guide were chosen through rigorous research. We paid attention to reputation, price, market capitalization, and growth potential.

The tokens listed are the best we found for a crypto investment in the various categories we listed them. For example, we listed Ripple as the penny crypto with real-world adoption as its payment settlement system is already being used by businesses and institutions.

Check out our why trust us and how we test pages for more information on our testing process.

FAQs

Which penny cryptocurrency should I invest in?

You can invest in any of the penny cryptos on our list as all have the potential to grow in price and most are already established projects.

What is a penny cryptocurrency?

A penny cryptocurrency is a crypto that is below $1 in price.

Are penny cryptos worth it?

Penny cryptocurrencies can be worth it if their value offering is sustainable, they have a strong community, and you buy close to the bull market.

What is the best penny crypto coin?

The best penny crypto on our list is Polygon, but this is relative. Others on the list may resonate more with you.

The 11 Best Penny Cryptos to Invest in for 2024