The search for cheap cryptocurrencies that might explode in the coming year is gaining momentum. What factors drive this interest, and could this approach prove fruitful?

The collapse of several major crypto firms, including FTX, Celsius Digital, BlockFi, and Genesis Global, dampened the appetite for crypto investments in the last couple of years. However, a recent upturn in the crypto market, spearheaded by the impending approval of spot Bitcoin exchange-traded funds (ETFs), has reignited interest in digital assets.

However, many would-be investors are not just looking at leading cryptos like Bitcoin (BTC) and Ethereum (ETH), especially given that their prices may be beyond the reach of many. There’s a growing trend of crypto enthusiasts trying to discover cheap cryptocurrencies, often referred to as ‘penny cryptocurrencies’. 

그러나 많은 예비 투자자들은 비트코인(BTC)이나 이더리움(ETH)과 같은 주요 암호화폐만 바라보고 있지 않습니다. 특히 해당 암호화폐의 가격이 많은 사람들의 손에 닿을 수 없는 수준일 수 있다는 점을 고려하면 더욱 그렇습니다. 흔히 '페니 암호화폐'라고 불리는 저렴한 암호화폐를 찾으려는 암호화폐 애호가들이 늘어나고 있는 추세입니다.

The allure of such investments lies in their potential for exponential growth. For instance, if a cryptocurrency is priced at $0.01 and it rises to just $1.00, that would represent a 100x return on investment (ROI).

Of course, it is not an exact science, and given crypto’s inherently volatile nature, finding cheap cryptocurrencies that will explode is an exercise fraught with risks. 

물론 이는 정확한 과학이 아니며 암호화폐의 본질적인 변동성을 고려할 때 폭발할 값싼 암호화폐를 찾는 것은 위험이 따르는 작업입니다.

With that in mind, let’s delve into the factors that surround the desire to find cheap coins and how such an approach could be beneficial to investors, especially with the market showing signs of an upcoming bull run.

Reasons for investing in cheap cryptocurrencies

저렴한 암호화폐에 투자하는 이유

The main reason for investing in cheap coins is the potential for high returns. As mentioned above, even a small increase in price can lead to substantial profits. 

저렴한 코인에 투자하는 주된 이유는 높은 수익 가능성 때문입니다. 위에서 언급했듯이 가격이 조금만 상승해도 상당한 이익을 얻을 수 있습니다.

Such an approach may be particularly appealing to investors with a high tolerance for risk who would be willing to bear the notorious volatility of the digital asset market in exchange for the prospect of substantial monetary gain.

Another reason for gunning for low-priced cryptocurrencies is that they offer an effective means of portfolio diversification. Apart from allowing investors to spread their funds much wider than they would have if they had put their money in the bigger, more expensive cryptocurrencies, cheap coins have traditionally shown a low correlation to traditional asset classes, such as stocks and bonds.

Analysts attribute this low correlation to the unique factors that influence crypto prices, including technological updates, regulatory news, and market sentiment, which are often distinct from the factors that impact traditional financial markets.

분석가들은 이러한 낮은 상관관계가 기술 업데이트, 규제 뉴스, 시장 정서 등 암호화폐 가격에 영향을 미치는 고유한 요인에 기인한다고 생각하며, 이는 종종 전통적인 금융 시장에 영향을 미치는 요인과 구별됩니다.

It makes them potentially excellent tools for spreading risk across different types of investments, a factor that could enhance portfolio performance during unstable market conditions.

Perceived risks of investing in cheap cryptocurrencies

Despite their attractiveness as an investment option, low-cost coins come with several risks and limitations, including the following:

투자 옵션으로서의 매력에도 불구하고 저비용 코인에는 다음을 포함하여 여러 가지 위험과 한계가 있습니다.

Market volatility: Cryptocurrencies, whether cheap or highly priced, are known for their extreme price volatility. The dynamic nature of digital assets often translates into rapid and significant price fluctuations. In the past, we’ve seen coins experience sharp increases, driving investors into a buying frenzy with hopes for substantial returns.

However, we have also seen those soaring prices tumble just as abruptly. Therefore, investors interested in exploring this sector should be aware of these price swings and be ready to face the potential losses they may entail.

Insufficient regulation: Since coming to the fore, the crypto market has been characterized by a lack of significant regulatory oversight.

While it has been a vital factor in crypto’s rapid expansion, the absence of stringent regulations also presents potential challenges. It has created fertile ground for market manipulation strategies, including ‘pump and dump’ schemes, where certain groups or individuals artificially inflate a token’s price for personal gain, only to sell off their holdings once they have enticed other investors to buy, resulting in a precipitous price drop.

이는 암호화폐의 급속한 확장에 중요한 요소였지만, 엄격한 규제가 없다는 점은 잠재적인 과제도 제시합니다. 이는 특정 그룹이나 개인이 개인적인 이익을 위해 인위적으로 토큰 가격을 부풀리고 다른 투자자의 구매를 유도한 후에만 보유 자산을 매각하는 '펌프 앤 덤프' 계획을 포함한 시장 조작 전략을 위한 비옥한 기반을 마련했습니다. 급격한 가격 하락.

Additionally, a dearth of comprehensive regulations opened the door for unethical practices such as insider trading, which may affect a coin’s stability.

Liquidity risks: This refers to the potential difficulty an investor may face when trying to buy or sell a low-priced digital asset without affecting its price. 

Cheap cryptocurrencies are often more susceptible to liquidity risk, largely because they may not have as many buyers and sellers, making it harder to trade them without impacting their price.

저렴한 암호화폐는 구매자와 판매자가 많지 않아 가격에 영향을 주지 않고 거래하기가 더 어렵기 때문에 유동성 위험에 더 취약한 경우가 많습니다.

Technological risks: While the blockchain technology underpinning crypto is deemed to be more secure than the traditional financial system, it still has a few issues. These include potential security vulnerabilities that could lead to loss of investment.

기술적 위험: 암호화폐를 뒷받침하는 블록체인 기술은 기존 금융 시스템보다 더 안전한 것으로 간주되지만 여전히 몇 가지 문제가 있습니다. 여기에는 투자 손실로 이어질 수 있는 잠재적인 보안 취약성이 포함됩니다.

Current and future market trends

Ever since its invention, Bitcoin has been the most dominant cryptocurrency in the market. At one point, it made up approximately 90% of the crypto market capitalization. 

Currently, its market share stands at 52.3%, but between 2017 and 2022, data shows that the top 100 coins outperformed it by over 75% annually.

현재 시장 점유율은 52.3%이지만, 2017년부터 2022년까지 데이터에 따르면 상위 100개 코인이 연간 75% 이상 더 나은 성과를 냈습니다.

While not at Bitcoin’s level, several low-cost cryptocurrencies, including Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), and Polygon (MATIC), have carved out small niches for themselves in the digital asset market. These altcoins have gained traction, attracting users with lower transaction costs and specialized applications.

Analysts suggest that as the cryptocurrency market matures, the diversity between altcoins will become a key strength, disrupting the historical correlation often seen between Bitcoin and cheaper cryptocurrencies.

분석가들은 암호화폐 시장이 성숙해짐에 따라 알트코인 간의 다양성이 핵심 강점이 되어 비트코인과 저렴한 암호화폐 사이에서 흔히 볼 수 있는 역사적 상관관계를 무너뜨릴 것이라고 제안합니다.

Furthermore, regulatory developments could significantly impact the crypto market going forward. The US Federal Reserve’s potential pivot to interest rate cuts by mid-2024 could alleviate pressure on the crypto market, making less expensive digital assets more attractive to investors.

또한 규제 개발은 향후 암호화폐 시장에 큰 영향을 미칠 수 있습니다. 2024년 중반까지 미국 연방준비제도(Fed)가 금리 인하에 대한 잠재적인 전환을 통해 암호화폐 시장에 대한 압박을 완화하고 투자자들에게 덜 비싼 디지털 자산을 더욱 매력적으로 만들 수 있습니다.

At the same time, recent legal victories for XRP and Grayscale may pave the way for increased institutional investment in small cryptocurrencies.

동시에 XRP 및 그레이스케일에 대한 최근의 법적 승리는 소규모 암호화폐에 대한 기관 투자 증가의 길을 열어줄 수 있습니다.

However, market watchers have urged investors looking to add cheap cryptocurrencies to their portfolios to factor in prevailing macroeconomic conditions such as the Fed’s interest rate hikes since March 2022, which, while aimed at curbing inflation, have also made riskier assets such as crypto less attractive.

You might also like: The best cryptos for investors to keep an eye on in 2024

당신도 좋아할 수도 있습니다: 2024년에 투자자가 주목해야 할 최고의 암호화폐

Identifying promising, cheap cryptocurrencies

유망하고 저렴한 암호화폐 식별

When it comes to identify the best cheap cryptos that could explode, it’s crucial to conduct thorough market research. Here are key factors to consider:

Market capitalization: This refers to the total dollar market value of a cryptocurrency’s circulating supply. It is calculated by multiplying the total supply of coins by the current price of a single unit. 

시가총액: 이는 암호화폐 순환 공급량의 총 달러 시장 가치를 나타냅니다. 이는 코인의 총 공급량에 단일 단위의 현재 가격을 곱하여 계산됩니다.

According to experts, higher market caps can indicate stability and less risk. However, lower-cap coins may offer substantial potential for growth.

User adoption: Investment experts advise those interested in buying cheap cryptocurrencies to look for ones that have wide user adoption or show signs of growing adoption. 

사용자 채택: 투자 전문가는 저렴한 암호화폐 구매에 관심이 있는 사람들에게 폭넓은 사용자 채택이 있거나 채택이 증가할 조짐을 보이는 암호화폐를 찾도록 조언합니다.

Investors can gauge this by the number of active wallets, transaction volumes, and partnerships with other reputable organizations.

투자자는 활성 지갑 수, 거래량, 다른 평판이 좋은 조직과의 파트너십을 통해 이를 측정할 수 있습니다.

Development activity: Cheap coins from projects that have regular updates and active development may make for a better investment. To find out about such activity, investors can check a project’s GitHub repository.

Community engagement: Regardless of price, potentially successful cryptocurrencies will be backed by vibrant communities. It is advisable to check social media platforms like Reddit, X, and Telegram for active discussions and activities around a coin or project.

커뮤니티 참여: 가격에 관계없이 잠재적으로 성공적인 암호화폐는 활발한 커뮤니티의 지원을 받을 것입니다. 코인이나 프로젝트에 관한 활발한 토론과 활동을 알아보려면 Reddit, X, Telegram과 같은 소셜 미디어 플랫폼을 확인하는 것이 좋습니다.

Case studies

XRP (XRP)

리플(XRP)

XRP is coming off the back of a famous partial victory against the US Securities and Exchange Commission (SEC), which reinstated its standing in the crypto space. The coin is relatively stable and boasts a solid use case, facilitating transactions on the Ripple network.

With a market cap of $34 billion, XRP is currently valued at $0.6333 per unit, making it one of the cheapest cryptocurrencies in the top 100 right now. 

Although there are no guarantees that XRP’s price will spike any time soon, its current level means even small upticks could reflect large profit percentages.

XRP의 가격이 곧 급등할 것이라는 보장은 없지만 현재 수준은 작은 상승이라도 큰 이익률을 반영할 수 있음을 의미합니다.

Cardano (ADA)

카르다노(ADA)

Currently at $0.4095 and with a valuation of $14.4 billion that ranks it at #9 on the crypto market cap list, ADA remains one of the cheapest altcoins, even more so now as the crypto space recovers from the slump triggered by the FTX collapse.

Cardano’s price was 27.1% higher in December 2023 than it was at the same point in 2022. In the last 30 days, it has risen 25.7%, while also recording 6.7% and 6.3% jumps in the last week and fortnight, respectively.

카르다노의 가격은 2023년 12월 2022년 같은 시점보다 27.1% 높았습니다. 지난 30일 동안 25.7% 상승했고, 지난주와 2주 동안 각각 6.7%, 6.3% 상승을 기록했습니다.

ADA has a vibrant community, a strong development team, and numerous use cases, including staking on the Cardano network and transacting on decentralized apps built on it.

ADA는 활발한 커뮤니티, 강력한 개발팀, 그리고 Cardano 네트워크에 대한 스테이킹 및 이에 구축된 분산형 앱에서의 거래를 포함한 수많은 사용 사례를 보유하고 있습니다.

Dogecoin (DOGE)

DOGE is ranked #10 on the crypto market cap list. It has a fully diluted valuation of $12.8 billion, with each coin priced at $0.0903. 

The meme coin is reportedly owned by more than 4 million people, and its presence on social media is not to be sniffed at either. The r/dogecoin subreddit group on Reddit boasts more than 2.4 million members, while the coin’s official X (formely known as Twitter) page has 3.8 million followers, making it one of the largest and most active communities in the crypto space.

Additionally, Dogecoin has constantly been on the receiving end of good press spearheaded by celebrity endorsements, including X owner Elon Musk, rapper Snoop Dogg, and Kiss frontman Gene Simmons.

또한 Dogecoin은 X 소유자 Elon Musk, 래퍼 Snoop Dogg, Kiss 프론트맨 Gene Simmons를 비롯한 유명인의 지지를 받아 좋은 언론의 호평을 지속적으로 받고 있습니다.

Although the meme coin’s price is currently down 13.1% from last year, it jumped 31.1% in the last 30 days and 11.8% over two weeks.

현재 밈코인 가격은 지난해보다 13.1% 하락했지만, 지난 30일 동안 31.1%, 2주 동안 11.8% 급등했다.

Final thoughts

Investing in cheap cryptocurrencies entails a substantial amount of risk; therefore, it is advisable to proceed with caution. 

값싼 암호화폐에 투자하는 것은 상당한 위험을 수반합니다. 따라서 주의해서 진행하는 것이 좋습니다.

Expert advice for building a strategy that protects you while giving you the opportunity to make profits includes diversifying your portfolio across different coins and price ranges, doing your own research, staying informed and up-to-date with news and developments in the crypto market, using trusted platforms, and only investing what you can afford to lose.

Read more: Crypto analyst remains bullish despite recent pullback

더 읽어보기: 최근 하락세에도 불구하고 암호화폐 분석가는 여전히 낙관적입니다