What Penny Cryptocurrency Should You Buy?

A guide to help you make the best decision when it comes to penny cryptocurrencies. We’ll go over what you should look for and some of the top contenders.

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Introduction

Cryptocurrencies are becoming more and more mainstream, with big names like Bitcoin and Ethereum leading the way. But with so many different coins out there, it can be tough to decide which one is right for you.

In this guide, we’ll take a look at some of the different factors you should consider when deciding which penny cryptocurrency to buy. We’ll also provide our top pick for each category.

Bitcoin

Bitcoin is the original cryptocurrency, and it is still the most well-known. It was first released in 2009, and it has since grown to a market cap of over $100 billion. Bitcoin is by far the most traded cryptocurrency, with a 24-hour trading volume of $4 billion.

Bitcoin is often called a “digital gold”, and for good reason. Like gold, Bitcoin is scarce (there are only 21 million Bitcoins that will ever be mined), and it is decentralized (no one country or government controls it). Bitcoin’s price is also affected by similar drivers as gold: demand from buyers for an asset that can act as a store of value, inflationary pressures, and global geopolitical events.

If you’re thinking about buying Bitcoin, you should know that it is not like buying a stock or bond. When you buy stock in a company, you become a part-owner of that company. With Bitcoin, you are not buying any ownership stake in anything; you are simply buying the digital currency itself.

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Ethereum

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

Ethereum is used to build decentralized applications (dapps) on its platform. Bitcoin, on the other hand, is used as a peer-to-peer electronic cash system. Although both Ethereum and Bitcoin are cryptocurrencies that can be used for payments, they have different purposes.

Ethereum’s native currency, Ether (ETH), is mined through a proof-of-work consensus algorithm (like Bitcoin). Miners are rewarded with ETH for verifying transactions on the Ethereum blockchain.

Ethereum’s main advantage over Bitcoin is that it can support more complex smart contracts. Smart contracts are programs that run exactly as programmed without any possibility of fraud or third party interference.

On Ethereum’s blockchain, miners work to earn ETH, which is used to pay transaction fees and wages to employees of Ethereum-based companies. ETH is also used to buy gas, which is the fuel needed to run smart contracts on the Ethereum network.

If you’re looking for a penny cryptocurrency to invest in, Ethereum is a good option. Although it’s not currently worth very much, it has a lot of potential and could grow significantly in value in the future.

Litecoin

While Bitcoin is the undisputed leader of the cryptocurrency world, there are a number of other digital coins that are worth considering as well. One of these is Litecoin, which is often seen as the silver to Bitcoin’s gold.

Litecoin was created in 2011 as a fork of the Bitcoin codebase and boasts a number of features that differentiate it from its more famous sibling. For one, Litecoin has a faster block time, meaning that transactions are confirmed more rapidly. It also uses a different hashing algorithm (Scrypt) which is designed to be more resistant to ASIC mining than Bitcoin’s SHA-256.

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Litecoin has been one of the steadier cryptocurrencies over the past few years, weathering the various ups and downs of the market reasonably well. It currently sits in fifth place in terms of market capitalization, with a value of just over $3 billion.

If you’re thinking about investing in penny cryptocurrencies, Litecoin is definitely worth considering.

Bitcoin Cash

Bitcoin Cash (BCH) is a direct descendant of the original Bitcoin (BTC). BTC was intended to be a peer-to-peer electronic cash system, but it has morphed into something different. BCH is trying to stay true to the original vision of BTC. It has faster transaction times and lower fees than BTC. It is also more resistant to ASIC mining, which gives regular people a better chance of mining it.

Ripple

XRP, or Ripple, is a cryptocurrency that is designed for use in the financial sector. It is one of the most popular cryptocurrencies, and is often used by banks and other financial institutions.

Dash

With a market cap of $1.4 billion, Dash is the 13th largest cryptocurrency by market capitalization. Created in 2014, Dash is a fork of the Bitcoin protocol and focuses on speed and privacy. Transactions on the Dash network are confirmed almost instantly, and transactions are mixed together making it very difficult to determine where the funds came from.

Monero

Monero is a decentralized cryptocurrency, meaning it is not subject to government or financial institution control. Monero uses a special kind of cryptography to ensure that all of its transactions are completely untraceable. This makes it incredibly useful for people who value privacy and security.

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Ethereum Classic

Ethereum Classic is a strong penny cryptocurrency to buy in 2020. It focuses on being a completely immutable blockchain, resistant to any form of external interference or manipulation. With a current market capitalization of $600 million, it is the 14th largest cryptocurrency in the world.

Zcash

Zcash is a digital currency that offers privacy and selective transparency of transactions. Zcash payments are published on a public blockchain, but the sender, recipient, and transaction amount are all encrypted. Zcash is based on peer-reviewed cryptographic research, and built by a global team of experienced developers.

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