Author: Alex Harper
While Bitcoin and Ethereum are obvious choices for beginner investors, others are looking to add cheaper alternatives with more growth potential to their portfolios. Even with the crypto industry now well established, there are a number of ‘hidden gems’ available for pennies on the dollar that have just as much or more growth potential than the larger scale coins. Here’s our guide to the top penny cryptocurrencies of 2021.
What are altcoins?
Altcoins are essentially cryptocurrency alternatives to Bitcoin. Bitcoin is unique because it was the first ever cryptocurrency and remains the largest of its kind in the world. Since Bitcoin’s inception in 2009, there has been a wave of crypto alternatives and blockchain-based projects flooding the market to cash in on the back of its success.
The quality of these altcoins varies significantly, however, there are some very worthy altcoins with real-world use cases. For instance, Ethereum is the largest altcoin in the world as it has pioneered the concept of a blockchain smart contract platform. Some argue that Ethereum is no longer an altcoin due to its exponential growth in recent months. Altcoins have gained a lot of traction in the past six months, and at times they have outperformed Bitcoin and Ethereum in a period colloquially referred to as ‘alt season.’
What are penny cryptocurrencies?
Penny cryptocurrencies are altcoins that you can buy for less than $1. They are similar to penny stocks as they are typically cheap to buy and can be quite volatile. However, penny cryptocurrencies have the potential to make strong gains.
Why invest in penny cryptocurrency?
There are a number of reasons you may want to invest in penny cryptocurrencies. Other than the fact that they are cheap, there is a chance that if blockchain technology and other cryptocurrencies become more mainstream, penny cryptocurrencies could rise in value and make strong gains. Also, having a diversified portfolio is often touted as the key to a balanced and healthy investment portfolio. It is the same when investing in cryptocurrencies.
Top cryptocurrencies under $1 to watch
With over 13,000 active cryptocurrencies globally at the time of writing, it can be difficult to distinguish the good from the bad, and which ones are going to earn you the best ROI. Below we’ve listed four exciting cryptocurrency projects under $1 to watch in 2021.
Stellar Lumens (XLM)
Stellar (XLM) was initially released in 2014, so it has been around a long time compared to a lot of other cryptocurrencies. It is an open-source blockchain network that allows money to be moved and stored. With large partnerships with companies like IBM and Franklin Templeton, Stellar has been able to stand the test of time i.e. three bear markets. XLM was recently added to Grayscale’s massive crypto trust fund. In just one day in April 2021, the firm added $1 billion more to its books. In 2018, one of the world biggest payments gateways, Stripe, announced plans to replace Bitcoin with XLM on its network.
ChiliZ (CHZ)
Cryptocurrency ChiliZ enjoyed the upward pull of the market as part of the fan token frenzy. Chiliz is essentially a digital currency for sports and entertainment and has introduced an innovative way for fans to interact with their favourite sports teams. Still one of the most under-discussed cryptocurrencies in the industry, ChiliZ fan tokens have become popular with football teams in Europe and other large sporting competitions around the world. Italian football giants Juvuents and AC Milan both have their own fan tokens that are available for purchase. Fan tokens give supporters of clubs and teams a tokenized share of influence on club decisions. For instance, token holders can vote on what uniform the team wears when they take the field. The number of sporting teams adopting Chiliz and its engagement platform, Socios.com, is continuously growing.
Hedera Hashgraph (HBAR)
Also on the IBM partner list in addition to Stellar is Hedera Hashgraph (HBAR). The team at Hedera works with IBM to help add interoperability for corporate blockchain networks that specifically seek the openness of public networks but retain the anonymity of permissioned networks. IBM actually joined the Hedera Governing Council for Hedera Hashgraph in 2019 because of how relevant the platform was even then. Ever since, according to IBM, Hedera has consistently delivered important technologies that sustain and improve capabilities in the corporate blockchain space. This is a huge compliment coming from one of the biggest tech companies in the world.
Vechain (VET)
Vechain is a blockchain-based supply chain platform that aims to create an ecosystem that solves common issues associated with supply chain management. The idea is to improve the efficiency and affordability of supply chains. Vechain is disrupting the traditional supply chain, management models. Its model appeals to businesses looking to improve their supply chain process whilst also giving clients more control. In terms of the real-world utilisation of blockchain technology, Vechain is a market leader. Vechain partners with hundreds of well-known Fortune 500 companies such as H&M and BMW China.
What makes these altcoins stand out?
One thing all these cryptos have in common is that they have partnerships with some of the biggest companies and brands in the world. These brand-name partnerships set them apart from the other thousands of cryptocurrencies, as it shows that these real-world companies understand and believe in the technology being developed.
This information is not an endorsement by Canstar of cryptocurrency or any specific provider. Cryptocurrencies are speculative, complex and involve significant risks. Canstar is not providing a recommendation for your individual circumstances or in relation to any particular product or provider.
Where to buy Crypto in NZ
The display order does not reflect any ranking or rating by Canstar. The table does not include all providers in the market.
| Provider | Fiat Currencies | Bitcoin | Other Currencies | Est. |
| Easy Crypto | NZD, AUD | Yes | 100+ | 2018 |
| Independent Reserve | NZD, AUD, USA | Yes | 24 | 2013 |
| Kiwi Coin | NZD | Yes | No | 2014 |
| Swyftx | NZD, AUD | Yes | 228 | 2017 |
This information is not an endorsement by Canstar of cryptocurrency or any specific provider. Canstar is providing factual information supplied by providers. Cryptocurrencies are speculative, complex and involve significant risks. Canstar is not providing a recommendation for your individual circumstances or in relation to any particular product or provider.
About the reviewer of this page
This content was reviewed by Content Producer Andrew Broadley as part of our fact-checking process. Andrew is an experienced writer with a wide range of industry experience. Starting out, he cut his teeth working as a writer for print and online magazines, and he has worked in both journalism and editorial roles. His content has covered lifestyle and culture, marketing and, more recently, finance for Canstar.
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