One of the extreme dangers of the burgeoning and vibrant cryptocurrency sector is that sentiment can turn on a dime, turning you from pauper to prince back to pauper within days, perhaps even hours. But that’s also the allure of digital assets, particularly the cheapest cryptos. No other sector combines the intense profitability potential of virtual currencies along with unfettered 24/7/365 access.
Despite the extraordinary risks, the main fundamental driver for the cheapest cryptos is that they fly under the radar. Unlike your mainstream virtual currencies, the small-capitalization coins and tokens don’t carry the pressure of being sector benchmarks. Further, this down-low profile enables tremendous upside potential if circumstances go your way. Good news — or even rumors of such — can yield tremendous gains.
At the same time, when it comes to the cheapest cryptos, you need to look out for number one.
In the years I’ve been covering digital assets, several blockchain project leaders have reached out to me, likely in attempts to sway my opinion favorably toward their underlying coins and tokens. But when you’re dealing with the cheapest cryptos, the entire sector is speculative. Only participate with money you can afford to lose because chances are, you will.
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Here are seven of the cheapest cryptos you can buy now for big gains:
Shiba Inu USD
XDC Network USD
Cheapest Cryptos to Buy: Shiba Inu (SHIB)
Arguably the most popular name among the cheapest cryptos, Shiba Inu (SHIB-USD) is fundamentally a difficult nut to crack. According to the description provided by Coinpaprika.com, “SHIB is an experiment in decentralized spontaneous community building.” It trades like a meme coin, moving on the whims of collective emotions.
While that’s not most people’s cup of tea, this dynamic is also what makes Shiba Inu appealing. While some other virtual currencies have enjoyed mainstream investment inflows, SHIB is a decentralized token of the people, by the people, for the people. Indeed, its underlying community is among the most supportive and enthusiastic in the blockchain realm. Therefore, it has upside potential.
Just don’t go too overboard with it.
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With the dramatic rise of virtual currencies, the sector understandably draws substantial hype. However, a consequence of this dynamic is the influx of what I’ve termed magic blockchain words. Suddenly, the underlying decentralized protocol is the key to addressing wealth disparities and other lofty — and frankly unrealistic — goals. In that sense, eCash (XEC-USD) is a breath of fresh air.
Rather than attempting to cure global hunger, the folks behind eCash have a simple, rational objective: become the cryptocurrency that’s designed to be used as electronic cash. By focusing exclusively on transactional facilitations for the payment of goods and services, XEC ramps up the utility of the blockchain without getting encumbered with unnecessary fluff.
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Still, it’s a risky proposition, so only gamblers should consider it.
Cheapest Cryptos to Buy: Holo (HOT)
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One of the most popular among the cheapest cryptos, Holo (HOT-USD) experienced a meteoric ascent in February 2021 after years of choppy sideways trading. From exchanging hands at fractions of a penny, each HOT unit was worth on average around three pennies at the peak of its valuation in early April 2021. Currently, HOT is again trading at fractions of a penny, thus drawing speculators aiming for a second bite at the apple.
Fundamentally, Holo is an intriguing project. Per Coinpaprika.com, the underlying “Holochain is a data integrity engine for distributed applications. It uses a validating DHT (Distributed Hash Table) where every user has their own chain. A transaction is signed and countersigned onto each parties chain and then this information is published to the shared Distributed Hash Table.”
While HOT has gained noticeable near-term momentum, it’s still a name to approach with extreme caution.
Although the blockchain has mainstreamed the concept of decentralized value transfers, not every user desires to actualize transactions immediately. For instance, the innovation of smart contracts requires the need to accommodate for collateral or payments that finalize only after certain stipulations are met. The evolution of blockchain-based transfers is what gives Amp (AMP-USD) relevance.
According to Coinpaprika.com, Amp is a “digital collateral token” for fast and efficient value transfer. “Amp tokens used as collateral are generally released when consensus for a particular transfer is achieved, making them available to collateralize another transfer.” Further, the network “facilitates instant, verifiable assurances for any pending or future value transfer, so that any actions dependent on the transfer can proceed without delay.”
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As one of the cheapest cryptos, AMP is enticing, but also warrants vigilance.
Cheapest Cryptos to Buy: VeChain (VET)
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Among the new wave of utilitarian blockchain projects, VeChain (VET-USD) “is the world’s leading blockchain platform offering Blockchain-as-a-Service to enterprises for products and information. By leveraging on blockchain technology, VeChain strives to build a trust-free and distributed business ecosystem, which is self-circulating and scalable.”
Undoubtedly, the narrative for VET is intriguing. However, my past criticisms regarding the project revolves around the questionable necessity to use decentralized protocols for every business function. For instance, supply chain platforms may work better under a centralized format. That way, when problems occur — which they inevitably will — end-users know which administrators to reach out to. In contrast, a decentralized system could be chaotic.
Still, after suffering severe losses, VeChain is among the cheapest cryptos available. Again, just be careful with your exposure.
XDC Network (XDC)
Source: Mahambah / Shutterstock
One of the most advanced blockchain projects available, XDC Network (XDC-USD) has attracted significant attention due to its stunning rise from the lows of 2019. According to Coinpaprika.com, the XDC blockchain is “built upon the paradigm of consortium blockchains. The architecture differs from conventional private/permissioned blockchains as well as public blockchains.”
In the simplest of terms, XDC is a hybrid blockchain, incorporating both public and private states and interoperable smart contracts. Therefore, the underlying digital asset isn’t just one of the cheapest cryptos around; it has the technical meat to justify speculation.
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Still, XDC may have further to fall, so prospective traders should only consider nibbling at the coin. Having gained over 300X between August 2019 and August 2021, its 77% loss from the peak valuation is substantial, but there’s probably more room for volatility.
Cheapest Cryptos to Buy: Harmony (ONE)
With the advent of the original blockchain, the decentralized network proved the viability of sending units of digital wealth across borders without the need of a human third-party intermediary. However, the blockchain had much greater implications than merely facilitating peer-to-peer transactions, giving rise to decentralized applications (DApps). To support this burgeoning field, developers created the Harmony (ONE-USD) network to promote the creation and use of DApps.
The key advantage for Harmony is its rapid-fire speed. Per Coinpaprika.com, the underlying blockchain architecture produces “blocks in a few seconds with instant finality.” In addition, Harmony’s “staking mechanism reduces centralization while supporting stake delegation, reward compounding and double-sign slashing.”
Having declined roughly 87% from its high, ONE is one of the more attractive names among the cheapest cryptos. Still, as with every other idea here, caution is paramount.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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