Best Penny Cryptocurrencies in 2024

Benzinga's pick for best penny stocks are SHIB, BAT, and PEPE this year. You can purchase these stocks on exchanges such as Gemini or some through Uniswap with ETH transfers from more mainstream exchanges such as Coinbase, eToro, and Kraken.

Penny cryptocurrencies often don’t make mainstream headlines amid the hype of more established cryptocurrencies like Bitcoin, Ethereum and Dogecoin. Penny cryptos cost under $1, are more volatile than larger cryptocurrencies and are susceptible to pump-and-dump schemes.

While investing in penny cryptocurrencies can offer the potential for high returns, it's important to remember that they also come with a higher level of risk.

This guide looks at the 10 best penny crypto to buy in 2024 and how you can buy them.

Best Penny Crypto to Buy in 2024

Altcoins refer to any cryptocurrency other than Bitcoin, and penny cryptos are all considered altcoins. Benzinga explores the best penny cryptos and why they stand out.

1. Shiba Inu

Since its debut in 2021, Shiba Inu has captivated the attention of the crypto community, especially on social media platforms. Named after a Japanese dog breed, Shiba Inu gained traction in the cryptocurrency community because of its playful branding and grassroots marketing efforts.

2. Basic Attention Token (BAT)

The project's goal is to provide a fun and engaging platform for users to participate in decentralized finance (DeFi) activities. The meme coin gained interest from crypto enthusiasts following its listing on decentralized exchanges and the introduction of innovative features such as the ShibaSwap decentralized exchange platform.

Basic Attention Token (BAT) aims to transform the digital advertising sector and enhance users' browsing experiences by paying advertisers and users for their attention. 

As an advertiser, you can enhance the effectiveness of your ads by targeting specific audiences based on their interests and browsing habits. You can also incentivize people to engage with your ads by rewarding them with BAT tokens for viewing your ads or interacting with your content.

As a user, you can choose to see privacy-focused advertisements. You can also use BAT tokens to show appreciation to content creators and support your preferred websites and publishers. Plus, you get to earn BAT tokens as a reward for your engagement.

3. Pepe Coin (PEPE)

Pepe Coin (PEPE) is a cryptocurrency developed on the Ethereum blockchain. The project's history is rooted in the meme culture of the internet, with Pepe Coin serving as a digital representation of the character.  Pepe Coin supports projects such as decentralized apps (dApps) and charitable causes.

In recent years, Pepe Coin has expanded its utility beyond meme culture, with initiatives aimed at promoting digital art, non-fungible tokens (NFTs) and blockchain-based collectibles. The project's emphasis on creativity, decentralization and community empowerment has attracted artists, developers and enthusiasts from diverse backgrounds.

4. TRON (TRX)

Justin Sun established TRON in September 2017. It is a blockchain-based operating system that aims to make the internet more decentralized and change the way digital entertainment is created. 

The goal of the project is to establish a decentralized platform that lets content creators avoid middlemen and do business directly with customers through peer-to-peer transactions. Smart contracts can run on TRON's architecture, which lets developers make dApps for games, social media and sharing content, among other things.

5. Sponge V2 (SPONGEV2)

Sponge V2 is a cryptocurrency that was created to address the scalability problem that affected the original SpongeCoin project (SPONGEV1). The project was officially launched on Ethereum’s Layer 2 sidechain, Polygon, on Feb. 8, 2024.

Sponge V2 aims to benefit from faster transaction processing and lower gas fees, enhancing the overall user experience.  Sponge V2 enhances the functionality of the original project by introducing a new protocol with increased security measures, faster transaction speeds and reduced fees in comparison to its previous version. 

One of the key features of Sponge V2 is its staking feature, which lets you stake your $SPONGE tokens and earn returns. When you stake your tokens, your earning potential depends on factors like the number of tokens staked and the duration of the stake.

6. Floki Inu (FLOKI)

Floki Inu (FLOKI) emerged in the wake of the meme coin frenzy driven by Shiba Inu (SHIB) and Dogecoin (DOGE). Named after Elon Musk's pet dog, Floki Inu quickly gained popularity in the cryptocurrency community because of its association with the influential entrepreneur and the meme culture surrounding his tweets.

Floki Inu is developing four major utility projects: FlokiPlaces, an NFT and merchandise marketplace; University of Floki, a content and education platform; an NFT gaming metaverse (Valhalla); and a suite of decentralized finance products launched under the FlokiFi umbrella.

Floki Inu sets itself apart from other meme coins by combining utility with memes. With NFTs, games and decentralized financial features, the team behind the project hopes to extend the utility of its token and create use cases for the Floki brand in the long run.

7. Stellar (XLM)

Founded in 2014 by Jed McCaleb and Joyce Kim, Stellar aims to provide easily accessible financial services to underbanked and unbanked people globally. 

Originally a fork of the Ripple (XRP) protocol, Stellar has developed into a stand-alone, open-source blockchain initiative. The project's fast, low-cost transactions make it an ideal solution for financial institutions, businesses and individuals looking to send money across borders.

Stellar also offers built-in support for token issuance, which allows you to create and trade digital assets on the platform. This functionality has enabled the development of various projects and use cases, including stablecoins, asset-backed tokens and decentralized exchanges.

8. BitTorrent

BTT is a Tron-based cryptocurrency token associated with BitTorrent, a file-sharing technology. BitTorrent protocol's efficiency and decentralization made it a popular way to distribute huge files like movies, music and software. By allowing users to share files P2P without a host, BitTorrent revolutionized the distribution of digital content.

In 2018, Tron acquired BitTorrent Inc. to integrate blockchain technology into the protocol's ecosystem. In 2019, BitTorrent introduced the BitTorrent Token (BTT), a major milestone in its progress. BTT, a utility token, pays BitTorrent users for bandwidth and storage contributions.

In addition to its utility within the BitTorrent ecosystem, BTT has also found use cases in dApps and services built on the Tron blockchain. These include decentralized storage solutions, content delivery networks and streaming platforms that leverage BTT to facilitate transactions and incentivize user participation.

9. Holo (HOT)

Holo (HOT) is a decentralized platform that enables users to create and host their own peer-to-peer applications on the internet. One of the key features of Holo is its use of Holochain, a framework for building decentralized applications that do not rely on blockchain technology. This allows for greater scalability, faster transaction speeds, and lower costs compared to traditional blockchain-based cryptocurrencies.

Holo also utilizes a unique consensus algorithm called proof-of-unique-hosting, which rewards users for hosting and maintaining the network. This incentivizes users to contribute to the network and helps to ensure its security and reliability.

10. Bonk (BONK)

BONK, which stands for "Blockchain Optimized Network Koin," is a decentralized currency that is built on blockchain technology.

One of the key features of BONK is its fast transaction speeds. With block times of just a few seconds, BONK offers near-instantaneous transactions that are ideal for everyday use. Whether you're buying a cup of coffee or sending money to a friend, BONK makes it quick and easy.

In addition to fast transactions, BONK also offers low fees. Because it is decentralized, there are no intermediaries taking a cut of your transactions. This means you can send money anywhere in the world for a fraction of the cost of traditional banking methods.

What Are Penny Cryptocurrencies?

Penny cryptocurrencies are digital assets that are sub $1 and may only be a fraction of that. In comparison to top cryptocurrencies such as Bitcoin or Ethereum, their market capitalization is comparatively low.

A higher degree of risk is associated with investing in penny cryptocurrencies because of their low price, limited liquidity and increased volatility. Their prices are susceptible to substantial swings within brief time periods, and a reduced number of buyers and vendors on the market may exacerbate such fluctuations. 

Penny cryptocurrencies attract investors despite their inherent risks, owing to the conviction regarding the projects' long-term viability or their desire to take more risk.

Where to Buy Penny Crypto

You can buy penny cryptocurrencies on various cryptocurrency exchanges that support them.  Coinbase, Kraken and eToro are examples of popular exchanges that support the trading of penny cryptocurrencies. These exchanges also provide learning resources that teach you how to trade penny cryptocurrencies.

Conduct thorough research when choosing an exchange to buy penny crypto. Considerations such as trading fees, liquidity and the number of supported cryptocurrencies should be factors that guide your decision. You’ll also want to move your crypto into a cold storage wallet as soon as you can. 

Are Penny Cryptocurrencies Safe?

While penny cryptocurrencies can offer you opportunities for high returns, they also come with increased risks. Traders looking to take extra risk may even look at penny cryptos worth less than $0.1.

Penny cryptos are more volatile than larger cryptocurrencies and subject to market manipulation. You should exercise caution and consider your risk tolerance before investing in penny cryptocurrencies.

If you are wondering if penny cryptocurrencies are safe investments, try to understand what the project is about and the viability behind it. Read the white paper, look at investor sentiment around the penny crypto and follow its community members to get insights.