Want to invest in something a little more exciting than the stock market with potentially bigger gains? Look into investing into cryptocurrency along the lines of Bitcoin and Litecoin.

Top 5 Penny Cryptocurrencies to Invest In

The stock market, bonds, and other methods of investment might be tried-and-true plans for residual income, but there’s a new game in the market, relatively speaking: cryptocurrency. This currency has a lot more volatility and potential for quick gains than do stocks. Also, cryptocurrencies have less of a paper trail and are completely decentralized.

You’ve probably heard of BitCoin, which is the most well-known of its type. BitCoin, like many cryptocurrency models, is based on mathematical puzzles, and only a finite number of them can ever be found. In the parlance of the community, it’s called ‘mining’. Computers on a blockchain data network devote their processing power to solving complex mathematical problems.

Upon solving the algorithm of proof of work, the solved equations rewarded with a currency that can be exchanged for real, or ‘fiat’ currency just about anywhere in the world if you have the right software. You can also buy Bitcoin on a crypto exchange market like Coinbase. Some people choose to mine for Bitcoin, but doing so takes up far more energy and time than is worthwhile.

You don’t necessarily need a lot of money to invest in cryptocurrencies. Penny cryptocurrencies often trade for less than a dollar per token. We’re here to give you our list of five cryptocurrencies in which to invest your money.


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One of the biggest problems with Bitcoin is, as we mentioned, the energy-intensive processing requirements. Also, every computer on the network gets used for solving blockchains. With Nano, each node, or computer, produces its blockchain, leading to less processing power and nearly instant transactions.

Nano is used mainly in the digital marketing sector; as in, it’s used to provide digital access rights for online products. The online streaming service Twitch began accepting Nano payments in 2018.

This is one of simplest altcoins n the market, which makes it more appealing currency to new investors. Of course, the downside is that there is more competition. More investors increase the likelihood that the currency will be recognized and more widespread.

We think Nano has some potential, at least in the short term. The advantages we listed are good for a head start, but do bear in mind that as technology advances, other altcoins will catch up. We give it 4 stars.


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If you’ve ever tried to send money internationally, you know how much difficulty it can be, as well as how expensive it can be if you’re doing forex trading. Ripple functions similarly to Bitcoin and provides a means to be a bridge currency that works alongside many fiat currencies such as the dollar, euro, or yen.

A fiat currency is money given authority simply because the issuing body claims it has it.

One of the biggest differences between Ripple and other cryptocurrencies is that Ripple tokens (XRP) are owned by its parent company, Ripple.

As far as functionality, Ripple works on the consensus model, where every user on the network votes to determine which transactions occur first. Typical transaction time is no more than five seconds, whereas something like Bitcoin can take hours or days depending on the number of users online at any moment.

Ripple tends to hover at just under a dollar, but this is subject to change. Any cryptocurrency can rapidly appreciate or depreciate. Bitcoin, back in 2017, dropped rapidly from tens of thousands of dollars to just thousands of dollars virtually overnight.

Based on what we know about Ripple, we give it 5 stars. It is by far one of the best penny cryptocurrencies on the market.


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Bytecoin (BCN), although named similarly to Bitcoin, has much more appeal to newer users who are invested in their privacy. Whereas Bitcoin uses the blockchain technology that anyone on the network can view, Bytecoin makes use of a ring signature methods, In other words, a group of people on the network have authority to sign, and any one of them can do so.

However, there is no way to track who authenticated a transaction. Another advantage of Bytecoin is that it has the potential to generate far more tokens (BTC’s 21 million vs. BCN’s 84 billion). Granted, we don’t know how many are around because of loss over time.

Finally, the biggest advantage of BCN is its lack of transaction fees and quick turn-around time. In addition to the lack of traceability, this currency has a lot going for it, even if it doesn’t have the highest price at the moment. BCN trades for less than a dollar.

Overall, we’ll give this cryptocurrency 4 stars. It isn’t quite as popular as some of the more well-known altcoins, but over time it could be a serious contender.


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Digibyte (DGB) is another crypto to watch for. Its main asset is that it’s young. Most people haven’t heard of it, so you can easily get in early and start buying tokens  Each token can cost as little as three pennies, but again, this is subject to the changes of the market A big advantage that Digibyte has its security.

It uses five separate mining protocols to deliver one of the most secure platforms in cryptocurrency. It prevents over half the security attacks that occur. It eliminates hard forks, which are changes to the blockchain that render everything invalid.

We’ll give Digibyte 4 stars because of its security.protocols.


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This coin didn’t start as a serious investment, but it became one. Originally, it was based off an Internet meme of a Shiba Inu. It is intended as a more user-friendly coin and used in a more open context than other cryptocurrencies. Most of the time, it’s used on some social media platforms like Reddit to encourage users to post quality content.

One of the biggest advantages of Dogecoin is the lack of a limit on the number of

Dogecoins that can be found, or mined. Although there was initially a limit, it was removed early on. Also, the block processing time of one minute makes it appealing to people who want quick turnaround times. It has a similar price range to Digibyte,

We give Dogecoin 4 stars.

​​​What to Know About Cryptocurrency

As we’ve mentioned in several of the reviews, there are a few things to keep in mind when buying any penny cryptocurrencies.

First, keep track of your wallet at all times, and keep it secure. Your wallet is usually where you store and access crypto coins, and once you lose it, they’re gone forever. You cannot restore coins. You’ll receive private encryption for your access, and a public address to conduct transactions. Do not confuse the two. Write them down in a safe place.

​​​How Does Investing in Crypto Work?


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Investing in crypto works the same way as does investing in stocks or bonds, at least on the surface level. First, you’ll buy coins or tokens from an exchange like Coinbase. Then, you keep them in your wallet until you’re ready to use them. However, since you’re an investor, you’re likely to just keep them until ready to sell.

Keep an eye on the coin’s price relative to your native currency. Those familiar with Bitcoin saw how quickly it rose: up to $8,000 for a single Bitcoin token. IF you had managed to buy a coin back when it cost only a few cents, it would be the equivalent of buying Google stock back in 1998.

When you’re ready to sell your coins on the exchange, log in and do so. If you’re aiming to make a lot of money, keep an eye on the exchange rate of the currency. Because crypto isn’t tied to any fiat currency, it has no central market force dictating its worth. Because of this, its value can fluctuate far more quickly than stocks.

​​​Benefits of Investing in Cryptocurrency

Investing in crypto is a risky game, but like many high-risk endeavors, it comes with the potential of a high reward - and equally high chance of losing all your money, so be careful. Here are some of the benefits of this type of investment.


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  • Two-step authentication through private and public keys,
  • Greater security
  • No or few transfer fees between users, depending on the currency used
  • Verification of transaction

Equally, though, there are disadvantages to crypto investment:

  • No recovery of funds
  • Can be hard to use the money unless you convert to your native currency
  • Far more volatile than other forms of investment.
  • Easy to lose if you aren’t diligent about storage
  • Inherently dependent on computers

​​​So Why is Crypto Desirable?

Cryptocurrency, or altcoin, is desirable if you want some diversity in your investment portfolio, but you don’t always trust the stock market or want quicker returns. The anonymity of cryptocurrency also makes it appealing to a lot of Internet-savvy consumers, who understand the process of using things like Bitcoin.

It also promises to make exchanging money at the international level easier. If you deal with Ripple, you know that specific altcoins have that as their aim. They want to avoid all the exchange fees and allow people to get their money instantly. That is another benefit of crypto, aside from Bitcoin. You can get your money within a minute or two of the transaction.

Of course, the downside to crypto is the necessity for electrical power and computer infrastructure to remain active. If there were a disaster that destroyed our information infrastructure, all cryptocurrency would cease to exist forever. A standard currency has some backing to it, either as fiat currency or as gold and silver.

So What Should I Look For When Investing?


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The first thing you need to consider is the total market value of the currency, which is how you’ll figure out whether you’re likely to recoup your investment. The basic formula is Cv * Cn = Mt, where Cv is the value of an individual token, Cn is the number of coins presently in circulation, and Mt is the total market value of the currency.

For example, if you had coins worth $3 each, and there were 1,000,000 coins on the market, the total market value would be $3,000,000. If you bought a coin and wanted to recoup your investment by 200 percent, the total market value would need to be $6,000,000. Either the value of your coins needs to double, or there needs to be more of them in total.

Except for Dogecoin, most cryptocurrencies have a hard limit on how many can ever exist. For example, it’s believed that BitCoin has a cap of 21 million tokens. Once all of these are mined, there can be no more. If you want Bitcoin at that point, you have to trade for it.

​​​So Why Don’t People Just Mine?

As we said, mining for crypto is an energy-intensive process, to the point that your computer may not even be able to handle the demands even with high-quality equipment. If your mining costs you $300 per month in utility bills and you only find a single coin worth $200 each month, you’re still at a loss.

​​Final Thoughts


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Getting invested in penny cryptocurrencies is a potential route to making some extra money. However, the risk is equally great that you’ll lose all your money in your investment depending on how reliable you think the blockchain is.

Remember, if you invest, know what you’re getting into and keep all of your information accessible without forgetting your private and public keys. If you lose these, you’ve just lost your entire investment. Keep eyes on your crypto exchange platform to find out how much your currency is worth on a daily basis. Even missing one day of trading can lead to some serious loss of income.

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