Bitcoin is the most popular cryptocurrency, it is thanks to this coin that the cryptocurrency industry has become popular. Every day more and more people are trying to make money in the cryptocurrency market by trading bitcoin. However, in addition to bitcoin and ether, there are many unknown cheap cryptocurrencies.
Cheap coins, or penny coins, are altcoins that have a market price of less than one US dollar. Most of the digital coins existing on the market today fall into the category of cheap cryptocurrencies.
Let us analyze in detail the nuances of investing in little-demanded, unknown altcoins that exist today. Consider a special penny-stock strategy that brings profit from such an investment.
What is a Penny Stock?
The penny-stock trading strategy was originally formed in the global stock markets, and after the start of the cryptocurrency boom, it rapidly spread to the field of virtual currencies. It is extremely relevant to the digital coin market.
Penny-stock traders and investors use their capital to buy the maximum amount of cheap securities from various companies. The idea here is simple – it is assumed that some enterprises, whose shares have been acquired, will grow gradually, and their securities will rise in price. As a result, the subsequent sale of already valuable shares will significantly compensate for the previously made investments, plus will bring a solid profit.
Cryptocurrency investors use this term to refer to cheap, young altcoins, practically unknown to users. Coins of this type are also called shitcoins.
Shitcoin trading and penny stock strategy
The cryptocurrency market gives interested investors more opportunities and faster earnings. The explanation here is simple – an increase in the price of an altcoin even by $ 1, with 10,000 coins purchased earlier, immediately brings $ 10,000. Such price jumps often occur. Huge profits are obtained with larger volumes of purchased tokens, and the average waiting time for the first income according to the penny-stock strategy is about 2-3 months on the modern crypto market.
Features of the penny stock cryptocurrency strategy
First of all, an important point is that the quotes of almost all altcoins included in the Shitcoin group can actually increase by 1000% if a large investor or any investment fund is interested in these virtual currencies.
The size of the potential profit here is directly determined by the initial purchase price of cryptocoins, as well as the final mark that the quotes will be able to reach before selling digital money. Of course, this implies an increase in the cost of purchased Shitcoins.
And what shitcoins to buy to earn money using the penny-stock strategy?
Professionals here recommend the following decentralized tokens to be preferred:
- Cryptocurrencies issued by stable companies or rating organizations.
- Forks of expensive, well-known virtual currencies. These used to be: ethereum classic, bitcoin cash, bitcoin gold, litecoin, stellar, etc. Now these are very expensive, popular cryptocurrencies.
- Digital currencies, the names of which are consonant with well-known, popular coins. Here are actual examples – monero classic (XMC) and monero (XMR), lightning bitcoin (LBTC) and bitcoin (BTC) – there are many similarities in names now.
- New cryptocurrencies containing an original idea. Even if such an idea has not yet been claimed by anyone.
- Young altcoins with catchy, original names, for example, platincoin, coffeecoin, etc.
- Centralized coins, information on which is still extremely scarce.
The penny-stock strategy is very good for inexperienced, novice investors in the cryptocurrency market to earn money, since practical and specific skills are not required here. A beginner, with a relatively small capital, will quickly be able to form his own crypto portfolio of shitcoins. There are many young and promising cryptocurrencies today.
After some time, having mastered the crypto market and practicing trading strategies, such investors will be able to start serious activities on cryptocurrency exchanges, having the capital received from investing a penny stock. Perhaps some shitcoins will remain in the portfolio, increasing their potential, demand and popularity. From the investor, the penny-stock strategy requires patience, some prudence, as well as the ability to correctly select cheap cryptoassets. As a result, this tactic will yield colossal returns!