Even though you can purchase small fractions of Ethereum or Bitcoin, there is something special about owning various coins of a digital currency. If you do not have thousands of dollars to make investments in crypto, then you will not be able to own a complete crypto like ETH or BTC. Luckily there are numerous other cryptos under 5 USD in the market and there are ample digital currencies where you can invest. They are also known as altcoins.
What Are Altcoins?
If you are associated with digital currency at all, you have probably heard about the term altcoin. The term altcoins imply any digital currency other than BTC (Bitcoin) with few exceptions. Stablecoins are digital currencies backed by other assets such as the U.S dollar and they are typically imposed as Ether or ETH, as their mass adoption and strong ecosystem put them in a category of their own. At the time of writing, this Ethereum price is $2,940.94.
Cryptocurrency Market Capitalization
Before purchasing a digital currency at its seemingly low value, you are required to make sure the value is low as its market cap is low. Digital currencies like Dogecoin have a huge market capitalization, as there are more than 100 billion tokens in circulation. What is more, 10,000 Dogecoin are mined each minute, effectively reducing the value of DOGE on a per token basis.
Let us take a look at how market capitalization, token supply, and token price are related. Let us look at 2 digital currencies: Dogecoin and Yearn.finance.
- Dogecoin comes with a circulating supply of 130 billion tokens. Every token is worth nearly 25 cents, and its market cap is $33 billion.
- Yearn.finance comes in a circulating supply of just 36,000 tokens, and every token trades for more than $28,000. Because of the low supply, the market cap of YFI is just more than $1 billion.
So even though Dogecoin has a much lower value, it is much more difficult to make a large portion gain from investing in DOGE. While a $1 billion influx of capital to yearn.finance may increase the price of the token, a $1 billion influx of capital into DOGE may only increase the value by a few percent. If you are looking for the best crypto under 1 cent 2022 then DOGE can be your option.
6 Best Cryptos Under 5 USD
Even though it is said that big cryptos cannot be bought completely with some mere dollars, there are certain cryptos under 5 USD that you can consider investing in. So without any further delay, let us begin with the list of cryptos under 5 USD that you can invest in this year. Here is the list of the best small crypto to buy.
This crypto is among the top competitors to Ether. It is the best crypto under 10 cents. Its proof-of-stake network enables for higher transaction throughput and also inexpensive fees. The founder, Charles Hoskinson, also helped formulate Ethereum. Cardano has the largest market cap of the coins on this list at $40 billion. The token is presently trading at $1.28, down from its all time high of more than $2 per coin. These are undoubtedly the cheap cryptocurrencies with huge potential.
This is an aggregator for DEX (decentralized exchanges) such as SushiSwap and Uniswap. The exchange enables investors to get the best value possible for the crypto they wish to invest in, and the platform has more than $40 million locked in its smart contracts. 1inch is trading at less than 50 percent of its value in May, coming in at just $2.40 for each token. The market cap of this token is also surprisingly low at just $414 million. If you believe in the DeFi sector, then 1inch may be an ideal investment for you.
Dogecoin began as something of a joke, but it has turned into quite real for those who have earned profit from it. The crypto is certainly “cheap” at nearly $0.12 (at the time of writing this) each coin as of April 10, primarily compared to its 52-week high of $0.7376. The present price is a slight rise from last month when DOGE was at its lowest value in more than 11 months. But this crypto has a lot of potential for the future, and if you are looking to invest in a crypto under $5, then this is the ideal option.
This crypto tries to make digital currency more accessible to the masses. Instead of using a long range of numbers and letters for users’ public keys, the project employs investors’ phone numbers as their public keys. This makes it convenient to send and get crypto from the contacts of the users. The token is presently trading at $2.96, and it holds a market cap of $734 million.
Curve DAO (CRV)
Curve DAO among the cryptos under 5 USD is the backbone of many DeFi (decentralized finance) services on Ether. The platform aims at its exchange on stablecoin trading, offering users the best value possible for fiat-pegged stablecoins. The token is presently trading at just $1.50, and its market cap is a modest $540 million.
Conclusion: Are Cryptos Under 5 USD Worthy?
Now that you know about the cryptos under 5 USD you may be wondering whether these cheap cryptos are worthy or not. Inexpensive digital currencies can be enticing because of their large growth ability, but they are not for everyone. Altcoins are riskier in comparison to Ethereum or Bitcoin, which are fluctuating assets themselves. Generally talking, the smaller the market capitalization a coin has, the more risky the investment is.
Having said that, altcoins typically offer higher returns in comparison to Bitcoin at the time of a bull market. Conversely, altcoins depreciate quicker in bear markets, so assure to only invest money you are able to lose. You will also find crypto under $1 which you can consider investing in.