Which Penny Cryptocurrencies Can Deliver 100X In The Next 5 Years?

Last Updated October 28th 2021
10 Min Read

Five years is a very long time in crypto, and anything can happen between now and that time. It’s especially a very long time for penny cryptocurrencies since they carry more risk than Bitcoin or Ethereum. There is a good chance that some of the penny cryptocurrencies that look so promising today may not even exist by that time.

This means you should focus on a little more than trying to get 100X gains from single penny crypto in the next 5-years. The last thing you want is a scenario where, in the hopes of getting rich quickly, you put all your money in an altcoin that folds up later.

Essentially, it is possible to make 100x or even 1000x off a penny cryptocurrency in the next 5-years. However, you need to be smart about it. Following the steps below can help you make money off penny cryptos in the next 5-years while minimizing the risks.

1. Mitigate The Risks

As mentioned above, penny cryptocurrencies carry a much higher risk than established cryptocurrencies. As such, they should only be part of a long-term crypto portfolio, not 100% of your portfolio. If you are risk-averse, you can allocate at least 15% of your portfolio to such altcoins. The rest can be spread among fundamentally strong cryptocurrencies like Bitcoin and Ethereum.

However, if you have the resources and feel like taking on a higher level of risk, you can push the percentage of penny cryptos to 50%. By doing this, you would be betting that if things go your way, and penny cryptos’ moon, you would make 100x off 50% of your portfolio. The other 50% of your portfolio can top up the gains.

You would also be betting that if things go wrong and your penny cryptocurrencies portfolio fails, the other 50% of your portfolio can help you recover the losses.

To further reduce the risk, consider buying as many penny cryptocurrencies as possible. The worst mistake you can make is to place all your hopes in one penny crypto. If it turns out to be a scam or simply fails to live up to expectations, the financial loss you experience could be catastrophic.

2. Analyze The Penny Crypto’s Fundamentals

When investing in a penny cryptocurrency, your primary focus should not be the number of zeros before the decimal. It may feel nice to buy millions of tokens for $100. However, if the project happens to be a scam or just worthless, then that money would be wasted.

In such a scenario, you would be better off buying a tiny fraction of Bitcoin, Ethereum, or any of the other big cryptos.

When analyzing the fundamentals of a penny cryptocurrency, the key factors to consider are as follows:

a) The use case

It is very easy for anyone to create a token. There are apps that anyone can use to come up with a token. That’s why there has been an explosion in tokens in the market, and most of them trade in pennies.

To differentiate between a money grab and a real project, look at the use case and how well it is presented. This, you can easily do by looking at the whitepaper.

If the whitepaper is less than 10-pages long and is made to be as graphically enticing as possible, then the chances are that it is nothing more than an advertisement meant to trigger you to invest.

Most serious projects tend to have very lengthy whitepapers. Such whitepapers also tend to be very detailed. In fact, a layman without a good background in tech may find it challenging to understand some parts of an excellent technical whitepaper.

After going through the whitepaper to get an idea of the use case, check whether it is unique or just a copy of another project. If the use case is just a copy of what is already in existence, then it’s time to move on.

That’s because a project that does not take time to come up with an original idea, or at least improve on what’s existing, is unlikely to deliver any tangible value to investors.  For instance, it is very difficult, almost impossible for penny crypto to compete with Bitcoin in the store-of-value market.

You are probably wondering, how can I tell if a project is original or just a copy-paste of other projects? Well, some creative individuals have already foreseen this problem.

Today, there are apps out there that can help you find out which projects have the exact use case and whitepaper to the project you want to invest in.

b) Look at the team

The team behind the penny cryptocurrency you are looking to buy is as important as the use case. If the team is weak, they are unlikely to deliver on whatever promises they make.

c) Look at the token distribution

Before investing in a penny cryptocurrency, it is important to look at how the tokens are distributed. As a rule, go for projects where most of the tokens are highly distributed. If only less than 10 wallets own more than 70% of the total supply, that’s a huge red flag. The chances of such a project being a scam are usually very high.

d) Adherence to a roadmap

Another factor you should consider before investing in a penny cryptocurrency is adherence to the roadmap. If a project keeps missing out on a key milestone by any chance, that’s a huge red flag.

It could either mean that the project does not have the technical capacity to follow through on its roadmap, or was just launched as a money grab, with no intention of following through with the roadmap.

The Best Penny Cryptocurrencies That Can Deliver 100X In The Next 5 Years

Below are some of the top penny cryptocurrencies that can do 100X or more in the next 5-years:

  • Shiba Inu (SHIB)
  • Dogecoin (DOGE)
  • Stellar Lumens (XLM)
  • VeChain (VET)

 

1. Shiba Inu (SHIB)

Shiba Inu has all the hallmarks of a penny cryptocurrency that can do 100x in the next 5-years or even earlier.

Not only did it outperform the market in the last Bull Run, it has also been doing very well since Bitcoin tested $67k. That’s an indicator that as long as the market trajectory is up, Shiba Inu could keep gaining.

Looking at the crypto market from a long-term perspective, it is clear that it has been in a Bull Run since it launched. With all the developments that are happening in this market, there is a high likelihood that it will be much higher than where it is today in 5-years.

In essence, if Shiba Inu keeps outperforming the market with every subsequent Bull Run, then 100x or more in the next 5-years is easily attainable.

Shiba Inu’s internal fundamentals look pretty good too. While SHIB launched as a joke, trying to capitalize on Dogecoin’s 2020 rally, the project metrics are getting better with time.

For a project that was nothing more than a meme coin, Shiba Inu now has a DEX, and volumes are on the rise. Thanks to this DEX, Shiba Inu’s liquidity levels are on the rise.

As liquidity levels grow, so will the value of this crypto. Since this is all happening in just 1 year, the chances of Shiba Inu doing 100x or more by 2025 are very high.

Then there is the fact that Shiba Inu is deflationary. The project launched with a quadrillion tokens in total supply, but over 50% of them are already out of circulation.

That’s because when it launched, the project donated 50% of the total supply to Vitalik Buterin. However, he was not interested, and donated $1 billion worth of SHIB to India’s COVID-19 relief efforts, then burned the rest to a dead wallet.

While his actions caused the price to dip at the time, it has actually turned out to be a blessing in disguise for SHIB. That’s because it drastically cut the total supply, while demand has been rising over time.

At the same time, Shiba Inu is designed to drop in supply continually. That’s because all Shiba Inu generated during transactions are burned. This means its supply will shrink significantly over the next 5-years. Applying the economics law of demand and supply, this is a factor that could easily see Shiba Inu trade at $1 in the next 5-years, not merely giving 100x on investment.

Shiba Inu adoption is also growing pretty fast. While it started as a joke, companies are already adopting it for payments. The most recent one is a French restaurant that has announced it would start accepting payments in SHIB.

This is a huge validation of the project and opens the way for many other companies to start adopting SHIB for payments. If this momentum sustains in the next 5-years, then Shiba Inu doing 100x or more is very much possible.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Dogecoin (DOGE)

At current prices, Dogecoin may feel like it’s a little bit overpriced. That’s because it is already up over 11,000% in a year, and it’s an inflationary cryptocurrency.

However, a closer look at Dogecoin reveals crypto that has a lot going for it, and could easily gain by more than 100x in the next 5-years.

For starters, Dogecoin’s market perception has improved since Elon Musk started pumping it in 2020. This has seen its adoption grow quite significantly, including by top basketball teams like the Dallas Mavericks.

It has also been adopted in real estate with a high-end apartment recently sold in Dogecoin. As adoption grows, the value of Dogecoin will also grow.

Besides, the Dogecoin developer team is back to work after years of neglecting the project. This further adds to the project’s improving fundamentals.

Considering how big the Dogecoin community is, there is a good chance that this penny coin will eventually do 100x or even more.

buy dogecoin

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Stellar Lumens (XLM)

Stellar easily makes it to the list of penny cryptocurrencies that can do 100x in the next 5-years. This is due to its fundamentals, and its recognition in the market.

Stellar Lumens is more like XRP, in that, they are both targeted at the cross-border payments market. This is a huge market that moves hundreds of billions of dollars daily.

While the use of cryptocurrencies in this market is still in its infancy, Stellar has been making inroads in this market. Recently, there was even talk that the Stellar Foundation was taking over MoneyGram.

Besides the growing adoption, Stellar is a low regulatory risk. The cross-border payments market is heavily regulated, and this explains why the SEC has been going after Ripple quite aggressively.

Stellar does not have such risks. That’s because the project is run by a foundation rather than a corporate entity. This low risk of regulation, coupled with a strong use, places it in a good position for exponential growth over the next 5-years.

Stellar is also attracting interest from institutional money, a factor that could to its demand. For instance, the project was recently added to the Grayscale Trust.

With institutional money now a key driver to crypto valuations, this will play a massive role in pushing up the demand for XLM. Besides, the project has been around for long enough to be trustworthy as an investment.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

4. Vechain (VET)

Going by its fundamentals alone, it would not be surprising if Vechain penny cryptocurrency does 100x or more in the next 5-years.

It has positioned itself in the global supply chain as an innovative way to deal with counterfeits and other issues.

The use case is so strong that the adoption of Vechain is already gaining traction all over the globe. The fashion industry, especially, seems to have accepted Vechain quite well.

As adoption levels grow, so will the value of Vechain (VET). It’s not hard to envision this penny crypto doing 100x pretty soon.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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