Most investors are aware of the highs and lows in the cryptocurrency market, especially with the volatility of Bitcoin being widely reported. However, Bitcoin isn’t the only cryptocurrency available – there are many other coins to choose from. In fact, many crypto investors have turned to low-priced cryptocurrencies called altcoins as an alternative.
The recent dip in a wide range of cryptocurrencies has seen many altcoins drop in price from where they were at their peak. This cheaper price could make them seem like attractive assets given their potential to rise in price again.
What makes cryptocurrencies cheap?
To understand which altcoins may be worth your investment, it is important to consider what the purpose of the coin is and what influences the supply and demand, and therefore, the price of it.
For example, some digital platforms and blockchain networks have launched their own cryptocurrency tokens which users must purchase to be able to engage and interact on their platforms. If the popularity of the platform increases as more people rely on it, the tokens rise in value.
It is important to remember that every cryptocurrency is unique and you should do your own research before investing to determine whether the cryptocurrency or altcoin is right for your portfolio.
Related article: What are the best penny cryptocurrencies?
What are the cheapest cryptocurrencies?
Stock Overview Site, Nasdaq, has considered the price of cryptocurrencies based on their potential future growth and real-life application. Here are five of the cheapest cryptocurrencies that could be worth considering:
1. Basic Attention Token
- 1 year price range: $0.17 to $1.64
- Current price: $0.4754
This token was launched by the co-founder of Mozilla and Firefox, Brendan Eich, with the purpose to track users’ attention and time online. It pays publishers for their content on a platform called Brave Rewards, and individuals can use a new browser called Brave. Advertisers benefit by being able to target groups of users more specifically. The browser currently has over 25 million users each month, so this token could be worth investigating further.
- 1 year price range: $3.68 to $52.88
- Current price: $14.09
Chainlink is an Ethereum powered token that powers the “Chainlink network”. Chainlink is what is known as a Decentralised Oracle Network or DON. Oracles are a data source between the blockchain and the physical world (for example, the use of smart contracts) so the role of Chainlink is to link blockchain projects to real-world data and applications.
- 1 year price range: $561.89 to $1,934.51
- Current price: $177.93
Although this altcoin is not a penny cryptocurrency, it is worth considering given the level of interest it has received from investors. Chia is considered a “greener”, more environmentally friendly alternative to Bitcoin. Since it has launched, the price of Chia has experienced volatility. Cloud platform, Amazon Web Services (AWS), now allows users to mine Chia. However, only a certain number of exchanges allow you to trade Chia, so the price could change as it becomes more accessible.
- 1 year price range: $0.0089 to $0.88
- Current price: $0.2458
This token exists in the non fungible token (NFT) space, mostly built on the Ethereum platform. The token is used on Chilix.net, a tokenised sports exchange where you can buy and sell sports-related tokens in the esports space. NFTs have become a popular crypto-asset recently, with these tokens standing as certificates of ownership of an asset (physical or virtual).
- 1 year price range: $0.00043 to $0.03157
- Current price: $0.004658
Holo, a token distributed on the Holochain is an alternative to blockchain technology that could be seen as more scalable or cheaper than blockchain. It provides an open-source distribution network to communicate securely without large storage and data exchange requirements through peer to peer applications.
No investor has a crystal ball and the cryptocurrency market can be a particularly volatile market, however, if you believe in the application of these crypto technologies, it could be worth exploring.
Cover image source: Nowie / Shutterstock.com
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