Best Penny Cryptocurrency to Invest in 2021 – 3 Cryptocurrencies to Consider for Under $1

With cryptocurrencies like Bitcoin and Ethereum now trading for thousands of dollars per token – this does make it somewhat unattractive for investors on a budget. The good news is that of the 12,000+ cryptocurrencies listed on CoinMarketCap – many are still trading for less than a dollar

In this guide, we analyze the best penny cryptocurrency to invest in and how you can complete your digital asset purchase with a regulated online broker!

#1 Broker for Penny Cryptocurrencies – eToro

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Best Penny Cryptocurrency to Invest in – Top Cryptocurrencies for Under $1

Below you will find an overview of the best penny cryptocurrencies to invest in right now.

  • Ripple (XRP) -Overall Best Penny Cryptocurrency to Invest in
  • Basic Attention Token (BAT) – Revolutionary Web Browser That Rewards Consumers
  • Tron (TRX) – Popular Cryptocurrency Aiming to Decentralize the Web

You will find a full review of each penny cryptocurrency further down in this guide.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider. 

Best Penny Cryptocurrencies to Buy – Full Analysis

With thousands of tokens now trading in the digital currency marketplace, knowing which project to invest in can be challenging. The good news is that with so many cryptocurrencies available to buy at less than $1 per token – you don’t need to risk huge amounts. In the sections below, you will find three of the best penny cryptocurrencies to invest in – based on the subjective views of the author.

1. Ripple (XRP) – Overall Best Penny Cryptocurrency to Invest in

xrp priceAlthough Ripple is one of the largest digital asset projects in this industry, its native token – XRP, is still a penny cryptocurrency at the time of writing. This is somewhat unprecedented when you consider when Ripple holds a market capitalization in the tens of billions of dollars. The reason for this disparity between valuation and market price is that there is a total supply of 100 billion XRP tokens.

Nevertheless, if you’re looking to add a significant number of tokens to your portfolio with a modest amount of money, this could be the best penny cryptocurrency for the job. For those unaware of what Ripple is, the project offers cross-border payments technology to banks and large financial institutions. The overarching problem that Ripple solves is the slow, cumbersome, and expensive transactions that currently take place in this space.

xrp buy etoro This is because most banks will use the SWIFT network to transfer funds overseas, which can take several days to arrive. Plus, SWIFT relies on correspondent banks when it comes to less liquid currency transfers, which can result in hefty fees. In the case of Ripple, cross-border transactions take less than 1-2 seconds to process – and at a network fee that amounts to just a small fraction of 1 cent. This is the case regardless of which currencies are involved in the transaction.

Crucially- and unlike many other cryptocurrencies in this arena – Ripple and its XRP token have a real-world use case. This is backed up by the fact that over 200+ financial institutions are already trialing the technology. In terms of price performance, this top-rated penny cryptocurrency can be extremely volatile. With that said, long-term holders have been rewarded in recent years – not least because XRP was initially trading at just $0.005 when it was first launched in 2013.

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At the time of writing, with XRP trading at around $0.89 per token – this represents 8-year gains of over 18,000%. Earlier in the year, XRP hit 52-week highs of $1.96. As a result, by entering the market while XRP is trading at sub-$1 – you are potentially getting yourself an attractive discount. In terms of how to invest in this popular digital asset-regulated brokerage site eToro requires a minimum stake of just $25. Based on current prices, this could get you just over 27 XRP tokens.

Pros

  • Sizable gains since XRP was launched in 2013
  • Cross-border payment technology being used or trialed by over 250 banks
  • Low-value crypto-asset – so you can buy a significant number of tokens with a small amount
  • Transactions take seconds to process and fees are minute

Cons

  • Huge number of tokens held and controlled by the Ripple management team
  • Many argue that the project is too centralized

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

2. Basic Attention Token (BAT) – Revolutionary Web Browser That Rewards Consumers

basic attention token buyIf you’re interested in new technologies and solutions to age-old problems – Basic Attention Token is one of the best penny cryptocurrencies to invest in. In its most basic form, this project seeks to revolutionize the global advertising industry. The main concept here is that Basic Attention Token connects consumers with relevant adverts. This is achieved through the Brave Browser – which is backed by Basic Attention Token.

The system incorporated by the project is a win-win situation for both consumers and advertisers for several reasons. First and foremost, marketing companies can be sure that they are showing their advertisements to people that are actually interested in their products and services. Similarly, consumers will only see ads that they are likely to want to explore further – as opposed to seeing promotions that have no relevance to their needs.

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Furthermore, and perhaps most importantly, Basic Attention Token cuts out the middleman. By this, we mean third-party platforms like Google, Facebook, and YouTube. In other words, when companies pay advertising fees, the funds will actually be distributed to those viewing the advertisements. This essentially means that users of the Brave Browser will receive rewards for viewing ads – paid in the form of BAT. This innovative concept has resulted in Basic Attention Token increasing in value by an attractive amount since it was launched.

For example, back in mid-2018, a single BAT token would have cost you just $0.16. Fast forward to mid-2021 and the same cryptocurrency hit highs of over $1.53. This means that in just 3 years of trading, Basic Attention Token has grown by over 850%. With that said, and like most digital assets, BAT tokens have since dropped in value. At the time of writing, you can obtain this popular cryptocurrency at just $0.57. Based on its 52-week high of $1.53 – this will allow you to enter the market at a discount of 62%.

Pros

  • Revolutionizing the digital advertising industry
  • Users are rewarded for viewing relevant ads
  • BAT is trading for less than $1
  • Great real-world user case
  • Backed by a proven team

Cons

  • It remains to be seen whether or not the BAT concept will take-off
  • Other digital currencies have performed much better in 2021

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

3. Tron (TRX) – Popular Cryptocurrency Aiming to Decentralize the Web

buy tron at etoroThe next penny cryptocurrency to consider adding to your portfolio is Tron. This popular digital asset was first launched in late 2017 at a price of just $0.003 per token. The overarching objective of this project is to “decentralize the web”. More specifically, the team at Tron aims to cut out third-party content platforms like YouTube and iTunes.

The reason for this is to put control of content rights back into the hands of the creator. In its present forms, third-party platforms – such as those mentioned above, which take a huge cut from content creators. Although this still allows music and video creators to earn money on their content – most of the gains paid for by advertisers will go to the respective platform. But, in the case of Tron, the project allows content creators to earn and keep 100% of any capital generator for their output.

tron price today

This is achieved through the Tron blockchain – which allows buyers, sellers, and marketing agencies to connect on a peer-to-peer basis. In terms of the TRX token, this is used to fuel the Tron network. That is to say, all funds generated from digital content sales will be paid in TRX. The blockchain itself is actually one of the best-performing networks in this industry. For example, it takes just seconds for a transaction to be confirmed by the network.

Plus, the Tron blockchain can handle around 2,000 transactions per second – and it can even facilitate smart contract technology. In comparison, fellow smart contract platform Ethereum can handle just 16 transactions per second. When it comes to pricing, Tron is currently trading at just $0.08 per token. With this in mind, an investment in this digital asset of just $100 would get over 1,250 Tron tokens for your portfolio. At eToro, you can buy Tron on a spread-only basis and at a minimum investment of just $25.

Pros

  • Looking to decentralize the web
  • Removes the need for third-party content platforms
  • Content creators earn Tron tokens
  • Tron blockchain can handle 2,000+ transactions per second
  • Smart contract capabilities

Cons

  • Several competitors in this industry
  • Very volatile

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Where to Buy the Best Penny Cryptocurrencies Today

Once you have decided which penny cryptocurrencies you wish to add to your portfolio, you then need to choose a suitable broker. Your chosen platform must not only list your preferred digital currencies – but at competitive fees and commissions. You do, of course, also need to ensure that the cryptocurrency broker is regulated. 

In the sections below you will find full reviews of which brokers to consider when investing in the best penny cryptocurrencies.

1. eToro – Overall Best Platform to Invest in Penny Cryptocurrencies

bitcoin todayAll three of the best penny cryptocurrencies that we have discussed today can be purchased at eToro – which is a popular online broker with more than 20 million clients. eToro is the best broker for the job when investing in digital currencies, not least because the provider is regulated on several fronts. In fact, eToro is both authorized and regulated by the FCA, ASIC, CySEC, and the SEC. This strong regulatory framework will ensure that you can buy the best penny cryptocurrencies in a safe environment.

When it comes to fees, eToro allows you to buy digital assets on a spread-only basis – which starts at just 0.75% per slide. You can also deposit funds for free if you are a US client, and the minimum stands at just $50. If you’re based outside of the US (with a few exceptions) the deposit fee amounts to 0.5% and the minimum increases to $200. Irrespective of where you are based, the minimum stake on the platform is just $25 – which is great for investing in volatile penny cryptocurrencies.

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You can easily fund your account too – as eToro accepts debit and credit cards, ACH, online banking, Paypal, Skrill, Neteller, and more. When it comes to supported markets, you will find over 30+ popular crypto assets on this platform. Non-US clients are also treated to stocks, ETFs, forex, commodities, and more. If you are a complete beginner in the world of digital currencies you might also consider the eToro CryptoPortfolio.

This will allow you to gain exposure to a wide variety of cryptocurrencies – with the portfolio being managed by the eToro team. You can also trade digital assets passively through the Copy Trading tool. This will see you select a successful cryptocurrency trader that uses the eToro platform – with all subsequent positions replicated in your own portfolio. Opening an account, depositing funds, and investing in your chosen penny cryptocurrencies should take no more than five minutes from start to finish.

Pros

  • Invest in cryptocurrencies on a spread-only basis
  • Buy thousands of UK and international stocks at 0% commission
  • Minimum investment per trade from just $25
  • Supports debit/credit cards, e-wallets, and local bank transfers
  • Regulated by the FCA, CySEC, and ASIC
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider. 

2. Coinbase – Best Way to Invest in Penny Cryptocurrencies UK for Beginners

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The next broker to consider when investing in the best penny cryptocurrencies is Coinbase. This platform – although expensive in terms of commissions, is a great option if you are new to the digital asset scene. This is because the entire process of opening an account, depositing funds, and completing your investment does not require any prior experience. In order to invest in cryptocurrencies at Coinbase, you will first need to upload a copy of your government-issued ID.

After that, you can instantly purchase digital currencies with your debit or credit card. The only issue here is that Coinbase charges a variable commission of 3.99% on all debit/credit card investments above $200. If your investment is less than $200, the fees are even higher. Other supported payment methods include a traditional bank wire, SEPA (Europe), Faster Payments (UK), and ACH (US). These payment methods – although much slower to process, are fee-free.

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You will, however, still need to pay a standard commission of 1.49% once the funds arrive and you complete your investment. This commission also needs to be paid when you eventually cash out your penny cryptocurrency investment – so do bear this in mind before getting started. You can store your cryptocurrency tokens in a private wallet by requesting a withdrawal after the purchase is complete. On the other hand, it might be easier to just keep your tokens in the main Coinbase web wallet.

In terms of supported markets, Coinbase offers dozens of digital assets – many of which fall within the remit of a penny cryptocurrency. security is also impressive at Coinbase, as the broker is regulated by the SEC. All account holders must install two-factor authentication (2FA) and any attempt to log in from a new device or IP address will require an additional security step. Finally, Coinbase offers a top-rated mobile app that allows you to easily invest in penny cryptocurrencies while on the move.

Pros

  • One of the most popular cryptocurrency exchanges
  • More than 68 million users
  • Supports instant debit card purchases
  • Dozens of digital currencies to choose from
  • Institutional-grade security practices

Cons

  • Debit card deposits are expensive at 3.99%
  • You will pay a standard trading commission of 1.49%

at eToro, #1 Broker in the Crypto Space

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

3. Binance – Best Platform to Invest in Penny Cryptocurrencies for Diversification

Make no mistake about it – if you are looking to build a portfolio that contains a highly diversified number of penny cryptocurrencies – Binance is arguably the best exchange for this purpose. This is because you will find hundreds of cryptocurrency markets on this platform – many of which were recently launched. This gives you access to a wide pool of projects – and by diversifying adequately, you can reduce your long-term exposure to a specific token.

In terms of fees and commissions-  this will depend on a number of variables – such as where you are based on how you intend on depositing funds into your account. For example, if you are funding your account in crypto – there are no fees. This will also remove the need for you to go through a KYC process (limits apply). Standard commissions on this platform amount to 0.10% per slide – which is very competitive. If, however, you want to buy penny cryptocurrencies with a debit or credit card – the fees will be much higher.

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For example, in the UK, the standard debit/credit card fee stands at 1.8%. Those based in the US get a much better deal, as the commission here is reduced to 0.5%. In some countries, bank transfers are also supported – as this is typically available on a fee-free basis. At Binance, you will find two trading suites – one for beginners and another one for experienced investors. The latter comes packed with advanced trading tools – such as technical indicators and integration with TradingView.

Once you have invested in your chosen penny cryptocurrencies, you can leave the tokens in your Binance web wallet. If you do choose this option, make sure that you set up 2FA. You can also withdraw the tokens to the Trust Wallet – which is backed by Binance. This is a decentralized storage option that comes in the shape of a mobile app – so you will retain full control of your private keys. Finally, Binance also offers savings accounts that allow you to earn interest on your purchased penny cryptocurrencies – so this is worth checking out.

Pros

  • Facilitates billions of dollars in daily trading volume
  • Supports hundreds of digital asset pairs
  • Near-instant deposits via debit/credit card
  • Trading commission starts at just 0.1% per slide
  • Offers crypto savings accounts
  • Ideal for both beginners and experienced traders alike

Cons

  • Not all supported cryptocurrencies can be purchased with a debit/credit card
  • No e-wallet deposits or withdrawals

at eToro, #1 Broker in the Crypto Space

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

How to Choose the Best Penny Cryptocurrencies to Invest in?

Earlier in this guide, we reviewed the three best penny cryptocurrencies to invest in – as per the subjective views of the author. However, as of late 2021, there are now more than 12,000 cryptocurrencies in existence – so it’s crucial that you do your own homework to fund the best digital asset for you.

Although this can be a long and cumbersome process – by following the core metrics outlined below, you will give yourself the best chance possible for selecting the right penny cryptocurrencies for your portfolio.

Objectives and Token Use Case

The first thing to look at when searching for the best penny cryptocurrencies is what the project is looking to achieve. For example, we highlighted earlier that Ripple is looking to revolutionize the cross-border payments industry with fast and low-cost transfers. You then have Tron, which is looking to decentralize the web through peer-to-peer content sales.

best cryptocurrencies to buy

Once you have established the objective of the project, you should then see what use case the respective token offers. For instance, XRP is used to bridge the gap between competing currencies that are being transferred via the Ripple technology. In the case of TRX, this is used to pay content creators that sell their material via the Tron blockchain.

Market Capitalization

Once you know what your chosen penny cryptocurrency is looking to achieve in its respective industry or sector, it’s then a good idea to see what sort of market capitalization the project currency carries.

  • For those unaware, this refers to the total value of the cryptocurrency – and it is calculated by multiplying the number of tokens in circulation by its current market price.
  • If you are looking to invest in penny cryptocurrencies because you want to chase larger financial returns – then it’s best to stick with projects that have a small market capitalization.
  • Anything of less than $100 million dollars would sit within this category. The reason for this is that the project still offers a huge upside potential – not least because many cryptocurrencies now have a market capitalization of over $1 billion.
  • On the other hand, if you strive to take less risk in this space, then you might want to choose penny cryptocurrencies that have a larger market capitalization. This should, in theory, result in less volatile pricing swings.

Ultimately, you need to assess what your risk and reward targets are in order to find a suitable penny cryptocurrency for your portfolio.

Price History

The next thing to look at in your search for the best penny cryptocurrencies is the pricing history of the respective project. This will give you an idea of how the digital currency has performed in both bullish (positive) and bearish (negative) markets.

For example, most cryptocurrencies enjoyed a very positive upward swing in the first five months of 2021. However, while some projects saw gains of over 10,000% during this period, others generated much more conservative returns.

Diversification

It goes without saying that the best way to invest in penny cryptocurrencies is to diversify as much as you can. This means that instead of buying one or two tokens, you will be investing in a broad basket of penny cryptocurrencies. The more the better in this respect, as this will ensure that you are not overexposed to a small segment of this industry.

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The good news is that by investing in penny cryptocurrencies, you won’t need a lot of money to diversify well. For example, if you were to invest $50 into Tron at a market price of $0.08, you would get yourself 625 tokens. Then, if you also invested $50 into Ripple, at a market price of $0.89, this would get you 56 XRP tokens.

Launch Date

In a similar way to buying shares straight after the company’s Initial Public Offering (IPO), many investors will look to purchase penny cryptocurrencies as soon as they launched on a public exchange. In many cases, this will give you the opportunity to invest at a highly favorable price.

For example, had you invested in Basic Attention Token when it was launched in 2018, you would have paid just $0.16. As noted earlier, BAT hit all-time highs of $1.53 earlier in 2021 – which represents an increase of over 850%.

Technology

It is also a good idea to look at the technology backing the respective penny cryptocurrency. The core metrics to look at in this respect are transaction speed, scalability, and cost-effectiveness. For example, the popular blockchain project Ethereum can handle just 16 transactions per second – and fees and notoriously high.

xrp price today

At the other end of the spectrum, XRP transfers take just 1-2 seconds and fees typically cost a fraction of 1 cent. Additionally, check to see if the project offers any innovative and unique features – such as cross-chain interoperability. Ultimately, the more attractive the respective blockchain is in terms of processing transactions – the more traction it’s native digital currency is likely to achieve.

How to Invest in Penny Cryptocurrencies – Detailed & Explained in Full

This guide has not only reviewed the best penny cryptocurrencies in the market today – but we have also explained what factors to consider when searching for a suitable investment yourself. To conclude, we are now going to walk you through the process of how to invest in the best penny cryptocurrencies at eToro – a regulated broker that requires a minimum trade value of just $25!

Step 1: Open an Investment Account

In order to buy your chosen penny cryptocurrency, you will first need to open a brokerage account with eToro. You can do this easily by following the on-screen instructions – which require some personal information and contact details.

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In the next section of the registration process, eToro will be required to verify your identity. Once again, this is something that can be completed easily – as you simply need to provide the broker with two documents.

  • The first is to verify your identity – and this can be a document issued by your government (e.g. passport).
  • Second, you will need to provide proof of address – which can be a utility bill, tax letter, or bank account statement.

eToro will automatically verify the documents – so you should be good to go in under two minutes.

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Deposit Funds

You will now be asked to make a deposit into your eToro account. As we covered earlier, US clients are required to deposit at least $50, while most other nationalities will need to add no less than $200. 

Supported payment methods on the eToro platform include:

  • Online banking
  • ACH
  • Bank wire
  • Paypal
  • Skrill
  • Neteller
  • Debit cards
  • Credit cards

For non-US investors, there will be a 0.5% transaction fee applied to all payment methods. If you’re a US client, there will be no deposit fee.

Step 3: Search for Penny Cryptocurrency

If you already know which penny cryptocurrency you want to buy, enter the name of the token into the search box at the top of the page. In our example below, are looking to invest in XRP.

buy xrp at etoroIf you want to have a browse at which penny cryptocurrencies eToro supports, click on the ‘Trade Markets’ button followed by ‘Crypto’.

Step 4: Buy Penny Cryptocurrency

Once you click on the ‘Trade’ button next to the penny cryptocurrency that you wish to invest in, you will then see an order box appear on-screen. This is where you will tell eToro how much money you want to invest in the asset. You can do this by stating your desired amount in US dollars.

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The minimum is just $25 per trade. To complete your penny cryptocurrency investment – hit the ‘Open Trade’ button. The tokens will then be added to your eToro portfolio – where they will remain until you decide to sell.

Step 5: Sell Penny Cryptocurrency

At some point in the future, you will hopefully be able to sell your penny cryptocurrencies for a higher amount than you originally paid. If this is the case, you will make a profit.

In order to sell your investment – go back to your eToro portfolio and look for the respective token. Once you click on the ‘Sell’ button and confirm the order, eToro will exchange your tokens back to cash. You then request a withdrawal from your account.

Best Penny Cryptocurrencies Buy – Conclusion

This guide has reviewed the best penny cryptocurrencies to consider right now – alongside some useful information on how to choose a suitable digital asset yourself based on independent research. Once you have decided which penny cryptocurrencies to buy – you then need to select a top-rated broker.

Our research team found that eToro is the best broker to invest in penny cryptocurrencies – not least because it is heavily regulated and requires a minimum stake of just $25. Plus, eToro offers some of the lowest trading fees in the cryptocurrency brokerage arena – so you can get started without breaking the bank!

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.