W hen it comes to investing in cryptocurrencies, it can be difficult to tell which are likely to rise to the top. However, blockchain technology and web 3 offer a number of opportunities to look for potential winners for the future.
By getting in on the ground floor of a cryptocurrency, it’s possible to buy a large number of tokens for a relatively small price. Indeed, if you’re able to identify some good penny cryptocurrency investments, you could buy up a large number of tokens now, and if the coin gains in value, having a large number could benefit you.
If you’re searching for low-cost tokens, let’s take a look at a list of the best penny cryptocurrency to invest in for 2022.
8 Best penny cryptocurrency to invest in for 2022
While there is no guarantee that any of these cryptocurrencies will take off this year, it’s possible to buy a large number of tokens and potentially get in on the ground floor — and maybe benefit from gains later. If you’re looking for good deals, penny cryptocurrencies might be a good choice. These are cryptos that you can buy for less than $5 per token, so you can buy larger amounts with a relatively small investment.
Here are some ideas for the best penning cryptocurrency to invest in for 2022.
1. Stellar (XLM)
Stellar Lumens is fairly well known as a blockchain payment facilitator. The entire point of Stellar is to provide an open network to move and store various assets. The infrastructure is being fairly widely adopted, and it’s designed to make transactions faster and cheaper. In addition to sending payments worldwide, it’s also possible to use Stellar to transfer other assets, including other cryptos and even tokenized securities.
As of this writing, Stellar is about $0.20. However, with widespread adoption, Stellar could gain value and move much higher, especially with its fast payment capabilities and ability to integrate with the global financial system.
2. Decentraland (MANA)
Web 3 and the metaverse are gaining some traction in the mainstream consciousness, so it’s no real surprise that one of the first blockchain-based virtual worlds has been seeing an increase in interest in recent months.
Decentraland is a virtual world where you can interact with others, buy real estate, and see how the world evolves. It’s also possible to create and sell digital assets and artwork, game, and accomplish many other activities. The currency of Decentraland is called MANA, and, as of this writing, it costs about $2.71. If you think the metaverse will catch on, being a part of the first-ever virtual world might provide you with a headstart.
3. The Graph (GRT)
For those interested in a better way to organize, index, and access data, The Graph offers a method that is open and easy to use. Instead of having to configure private and custom servers, taking up a lot of space and requiring a great deal of expertise, The Graph is designed to store and process data across an open network.
If The Graph catches on as part of the integral structure of web 3, it could potentially be a big deal later on. In fact, it’s already one of the ways to access Ethereum and Filecoin, making it an easy way to access data in a way that could potentially help entrepreneurs and others build new applications and help the internet evolve to its next stage. Currently, GRT costs about $0.36.
4. The Sandbox (SAND)
One of the up-and-coming trends in blockchain technology is the idea of gaming for tokens — and making money when you complete different tasks and quests in the game. This is where The Sandbox comes in. You can earn non-fungible tokens (NFTs) for your efforts, which can be sold or exchanged later. It’s possible to buy and invest in virtual real estate and other assets. It’s also possible to develop games as well.
For those interested in getting in at the ground level with a well-supported gaming venture, SAND might be a good value, especially since it’s currently priced at $3.08.
5. TRON (TRX)
Named for the movie, TRON is another web 3 infrastructure attempt to change the way the internet is built. The focus with TRON is providing more access and power to users, rather than platforms like YouTube.
TRON has built out an entire ecosystem that developers and artists can access, creating their own projects. There’s also a side project, aimed specifically at developing apps and managing them in a way that allows TRON to maintain its high throughput, keeping stability and transactions high. Currently, TRON is priced at $0.60.
Rather than focusing as much on consumers, VeChain is more about managing enterprise so that businesses function more efficiently. Currently, VET is priced at right around $0.05 and VTHO is priced at $0.003.
6. VeChain (VET)
VeChain is considered an enterprise solution for companies hoping to better manage their supply chains. It’s built on top of the public VeThor chain (VTHO). It’s designed with logistics in mind and is meant to reduce counterfeiting. Additionally, VeChain supports research and technical insight, and well as encourages blockchain developers.
7. Polygon (MATIC)
As a scaling solution, Polygon is designed to make other blockchains, particularly Ethereum, more efficient and scalable. Designed by developers, Polygon is meant as a layer 2 solution that allows decentralized apps (dapps) to function more efficiently on top of the Ethereum blockchain in a way that is faster, and also saves on gas costs.
Polygon also considers itself as part of the web 3 rollout and seeks to build an infrastructure for the internet that is practical and overcomes some of the scaling issues inherent in blockchain technology. For those who are looking for simple solutions, and think that layer 2 is a good approach, Polygon might be a good choice. Its price is currently about $1.55.
8. Cronos (CRO)
The native coin of Crypto.com, Cronos is the new name for the token now associated with the Crypto.com blockchain.
Crypto.com is a crypto app that famously gained attention for its Super Bowl ad featuring Matt Damon. However, the Cronos Chain is built on Ethermint and is designed for decentralized apps — including decentralized finance (DeFi) and smart contracts.
Because CRO is used by two related chains that are gaining in popularity and usage, it might be a good choice for crypto investors. The current price is $0.42.
How to buy the best penny cryptocurrency to invest in for 2022
Once you decide which cryptocurrencies make send for your situation, you’ll want to be able to buy them. It’s important to note that not all cryptocurrencies are available on all exchanges.
For example, some major centralized exchanges, like Coinbase and Gemini, might not offer access to every coin that you’re interested in. For example, you might be able to buy MATIC, MANA, and XLM on Coinbase, but VET and TRX aren’t available on that exchange.
Instead, you might need to look on an exchange like Binance, Kraken, or Crypto.com to purchase tokens that might not be otherwise available. Additionally, if you want to buy obscure altcoins, you might need to turn to an exchange like Uniswap, which provides a way to exchange almost any ERC-20 token through the use of liquidity pools.
Before you decide to buy a penny cryptocurrency, it’s important to make sure that you have the currency needed to make the purchase. Depending on what you’re buying and the exchange you use, you might need to first acquire Bitcoin or Ethereum to complete the exchange.
Finally, be careful of fees. A centralized exchange like Coinbase might be easier to use — and accept fiat currency for purchases — but it often comes with higher fees. You might be able to save money by using Binance or Kraken instead.
Tips for choosing the best penny cryptocurrency to invest in for 2022
Because cryptocurrency is such a new asset class, it’s important to carefully consider how you will go about choosing which crypto tokens are likely to be the best choice for you. Indeed, there’s no sure way to guarantee that any crypto you choose will gain in value. However, there are a few tips you can use to help you decide what makes sense for your portfolio:
- Know the underlying use case. Look at the underlying use case. Does the crypto token offer something valuable and usable by a wider market? A solution like Polygon or VeChain offers practical solutions to current problems. Figure out whether the underlying use case could potentially solve an issue that many people can benefit from.
- Consider the governance. Review the governance and verification protocols. Do you like the consensus mechanism? Does it look like a well-organized project with good developers?
- Understand your own goals and portfolio. Don’t forget to consider your own portfolio goals. Just as you would evaluate any asset to determine where it fits in your portfolio and asset allocation, think about the place a crypto token has, and what it’s designed to do inside your portfolio.
Whenever you invest, it’s important to be careful and vet your investment. Consider risking only money you can afford to lose, and don’t put so much into any one crypto token that you would be financially devastated if it doesn’t work out in the end.