Cheap cryptocurrencies, bright earnings prospects, or wasted money
Many of us have regretted more than once that we didn't buy a couple of bitcoins at 3 cents apiece and missed out on the opportunity to make good money.
But it's not all bad. With the emergence of new, cheap cryptocurrencies, there's also the chance for record profits. Who knows, perhaps one of the altcoins will follow Bitcoin's lead and rise in price several thousandfold.
Surprisingly, this has happened more than once; for example, Ethereum was once worth less than 1 US dollar, and now its price is 4 thousand.
At the same time, there are also cryptocurrencies that have risen in price quite recently. For example, Polygon, which cost $0.03 at the beginning of the year, has increased in price by 75,000 times in a year and is now worth $2,270.
Therefore, we can say that there is a chance to get a record profit, and now the main thing is to choose the right asset, otherwise the money will be wasted.
Criteria for choosing a cheap cryptocurrency:
• Price – it should be as low as possible. If you buy digital currency at $1,000 per coin, it’s hard to imagine it increasing in price by 1,000 times and becoming worth $1 million.
Therefore, it is advisable to buy something that costs less than 1 US dollar, since these are the assets that have the highest growth potential.
• Capitalization – the cryptocurrency should not have a high level of capitalization , that is, too much money should not be invested in it.
The logic here is simple: take Dogecoin, which is currently trading at $0.18 and seems to have room to grow. But its market capitalization is already $23 billion.
Let's assume Dogecoin's price increases 1,000-fold, meaning its market capitalization will reach $23 trillion and surpass Bitcoin, which is simply unrealistic. Yes, Dogecoin could rise further, but it won't be the record-breaking growth we're hoping for.
Therefore, we invest in cheap cryptocurrencies with a capitalization of less than $1 billion.
• Popularity – the more often a cryptocurrency is mentioned in the news and on forums, the higher the chances that people will start “Pumping” it and pouring money into it to increase the market price.
Take Dogecoin, for example, which attracted attention thanks to its originality and TikTok advertising campaign.
Another important aspect of making money on cheap cryptocurrencies is diversification . Don't invest $1,000 in one asset and hope to become a billionaire. A more rational approach would be to split that $1,000 among 100 cryptocurrencies, investing $10 in each.
Buying cryptocurrencies is like a lottery, and the more assets you buy, the higher your chances of success.
Which cryptocurrencies are worth buying now? If you're looking for long-term investments, WAX, Ankr, IoTeX, NEM, Holo, and cryptocurrencies with even smaller market caps are currently of interest.
