Investing in cryptocurrencies is more like buying a commodity like silver or crude oil than buying stock in a company like Apple. Having a stock or share in a company gives you certain rights within that company and allows you to benefit from company profits (known as dividends).
In cryptocurrencies, there is no dividend payment structure, except with a few coins like NEO and VeChain. This makes capital gains the desired end result of most investors. Capital gains means increase in value and in price.
While there are more than 1,600 cryptocurrencies today, most of them are investment guesses. A common philosophy in the crypto space is to buy when the value is very low and sell when high. However, buying penny coins comes with considerable risk, as the value can be substantially depleted or wiped out by market fluctuations. Take a look at some tips on how to analyze which one is worth your investment.
The cryptocurrencies considered in this article are those currently priced below…