Are you finally deciding to jump in on the crypto craze and looking to invest? If you’re looking for the best cryptocurrency under $1, you’re in luck. All of the top coins initially started as a cryptocurrency under $1. You may be thinking that since you are starting so low, it can only go up from there, right?
If that is your strategy, you are in for even more confusion, as the market of $1 or under coins, also called altcoins, is ever-expanding. Each cryptocurrency claims to be the next big thing, but are they? Let’s clear the confusion and list some of the most promising under $1 cryptocurrencies that may cater to your particular investment goals.
- Also learn about: Best Cryptocurrencies to Invest In
Disclosure: No content in this article should be taken as financial advice. Investing can be risky, so it is recommended that you consult with your accounting, legal, and tax advisors before engaging in any kind of transaction.
The History of Altcoins
Many cryptocurrencies are often referred to as altcoins. The term altcoin basically describes every other cryptocurrency besides Bitcoin. However, the term today refers to cryptocurrencies other than the popular ones with major market capitalization like Ethereum or Binance Coin.
Coincidentally, many of these altcoins are currently trading near $1.
The very first altcoin was Namecoin, launched back in 2011. Since Bitcoin was an open-source cryptocurrency, many developers and companies created alternative coins with pretty much the same algorithms, albeit with slight divergence. For instance, Litecoin differs from Bitcoin in that it approves a transaction more frequently.
From the early days of Bitcoin to today, thousands of altcoins have popped up, many of which have failed. The coins discussed below are not simply hyped coins but coins with real technologies behind them or already proven winners in the market.
Best Cryptocurrency Under $1 to Invest In
Here are the best-performing (so far) altcoins with a value hovering under or around $1 with considerable market capitalization. Note that most of these cryptocurrencies are available on the major cryptocurrency exchanges.
| Cryptocurrency | Description | Key Use Case | Notable Partnerships |
|---|---|---|---|
| VeChain (VET) | A blockchain platform designed to enhance supply chain management and business processes. | Supply chain management, anti-counterfeiting. | BMW, Walmart China |
| Dogecoin (DOGE) | Originally started as a joke, Dogecoin has become a popular choice for small transactions. | Online tipping, small transactions. | N/A |
| Ripple (XRP) | A digital payment protocol that allows for fast, direct money transfers between two parties. | Remittances, payment settlement, and asset transfer. | American Express, Santander |
| Stellar Lumens (XLM) | A platform that connects banks, payment systems, and people, aiming to move money quickly, reliably, and at almost no cost. | Low-cost remittances, especially in developing markets. | IBM, Keybase |
| Request (REQ) | A decentralized network for payment requests. | Invoicing, auditing, tax compliance. | N/A |
| TrueFi (TRU) | Unsecured lending protocol that utilizes a credit model for loans. | Unsecured lending in DeFi. | N/A |
| Cardano (ADA) | A “third generation” blockchain aiming to improve upon the scalability, security, and sustainability issues found in previous iterations. | Infrastructure development, especially in developing countries, and peer-to-peer transactions. | Ethiopia’s Ministry of Education, IOHK |
1. VeChain (VET)
VeChain (VET) is among the growing number of companies using blockchain technology in supply chain management. Their mainnet was launched back in 2018.
There are two kinds of tokens in the system, native VeChain Token (VET) and the VeThor Token (VTHO). This system of dual tokens allows network fees to be distinct from the volatility of the main token VET. The VET token is the one that is on the exchanges.
Its focus is business applications in logistics and supply chain, using blockchain for inventory, tracking, and quality control. What is most impressive about VeChain is the partnerships and backing it has acquired since its inception.
One of the biggest audit firms in the world, PricewaterhouseCoopers (PwC), has been included in its incubation program. It’s also partnering with European automotive giants Renault and BMW.
VeChain is based on a Proof of Authority (PoA) consensus, which requires nodes to be authorized first. The nodes also don’t use a considerable amount of resources, leveraging less bandwidth with efficiency.
The many partnerships VeChain has developed showcase that the technology and cryptocurrency have the potential for real applications, mainly in the supply chain. Since the supply chain itself is a massive industry, VeChain could be used for anything from luxury goods to automobiles. The company is already partnering with LVMH to create a system for tracking authentic limited-edition luxury goods.
Even with such big names, VET price has been trailing around $0.12. However, it has shown promise with ambitious projects, the 2021 altcoins rally, and avoiding the late 2019 hacks. It is cheap enough and listed on many exchanges for anyone to invest in.
2. Dogecoin (DOGE)
What started as a joke became a full-fledged cryptocurrency with a market capitalization of over $37 billion. It wouldn’t be wrong to call Dogecoin the altcoin of the year, as it was on everybody’s radar this year.
Dogecoin is available on many exchanges and is basically the copy of Litecoin and, by extension, Bitcoin. In other words, it uses a permission-less way for transactions of Dogecoins. It uses the Proof of Work and specialized computers to mine them.
Some may argue it’s not as secure or sophisticated as Bitcoin or perhaps even Litecoin. However, it is available on many major exchanges worldwide, including Binance and Coinbase. Also, it can be mined solo or through a pool.
It is not news that Tesla and SpaceX CEO, Elon Musk, is a big fan of this cryptocurrency. His tweets have helped the price of Dogecoin climb overnight. For most investors, that is something pretty exciting but doesn’t guarantee long-term success.
Nevertheless, Dogecoin has a lot of potential, if not the same level of real-world applications as some of the top altcoins. Since it is similar to Litecoin and Bitcoin, if it ever does achieve the level of popularity of Bitcoin, it could be a major currency for typical goods and services exchanges.
It is clear that Dogecoin isn’t going away and may see price jumps once again as it did in 2021. Seasoned investors who, by now, know the ins and outs of crypto trading can make decent profits with these coins. For newbies, it may be wise to start with a smaller investment or just mining.
3. XRP (XRP)
XRP is simple to buy and is the cryptocurrency of the Ripple network. Even though its price in dollars is a little over $1 currently, it is counted as one of the top ten cryptocurrencies globally.
Developed by Jed McCaleb, Arthur Britto, and David Schwartz, XRP and Ripple network target the banking and finance sector. It is a payment settlement and currency exchange system that is completely decentralized. Unlike banks, it aims to make money transfer faster.
In simpler words, it’s a blockchain-based replacement for SWIFT, the current system for global interbank transactions. Of course, for every transaction, there’s a fee in XRP, which is way lower than what a bank would charge on fiscal money transactions.
XRP is a hard sell right now to investors because of its ongoing lawsuit with the Security and Exchanges Commission. This ongoing lawsuit is why it is not available on major exchanges currently. This is also the reason why its price hasn’t seen a massive rise in the last two years, like the ones it saw back in 2018.
So what about those who already have invested in XRP? And what about those who may want to? It is a promising and robust cryptocurrency with lasting real-life applications, especially considering that it directly impacts banking and finance, which is at the core of the whole blockchain and cryptocurrency movement.
The outcome of the lawsuit would not only have an impact on XRP but also on the whole crypto industry. If it ends in a settlement or perhaps a win for Ripple, the currency could see a massive surge.
4. Stellar Lumens (XLM)
Stellar Lumens (XLM) is similar to Ripple as it focuses on the banking industry, facilitating cross-border transactions for a small fee. Stellar Lumens (XLM) is the cryptocurrency of the system used for staking as well as for payments within the system.
Stellar, from the very beginning, has been doing well in the markets. Its market cap has exceeded $8 billion as of August 2021. The price has been steady for the most part of the year, ranging between $0.06 and $0.79.
Stellar is remarkably similar to Ripple in terms of technology, which may have contributed to its initial success. However, it’s also contributing to speculation following the Ripple lawsuit with SEC. So far, the lawsuit hasn’t had a major impact on this cryptocurrency, so it is still open for business and listed on major exchanges.
Mainly its low price right now and popularity in the crypto world is encouraging more investors to get a piece of the pie. As a result, its market cap has increased dramatically, further cementing its position as a viable investment in crypto.
Stellar has practical applications as the system aims to run fiat currency in line with cryptocurrency and not simply eliminate it. It uses a secure network of anchors to authorize and facilitate cross-border transactions. So far, the non-profit has partnered with major companies like Deloitte, ICICI Bank, IBM, and Stripe.
With more integrations of XLM, especially in the NFT space, analysts are predicting steady growth and major price gains in the next few years. Stellar Lumens are ideal for those investors who are in for the long haul.
5. Request (REQ)
Request and its crypto REQ are relatively new entrants in the world of cryptocurrency. However, they have shown immense success in their initial stages as a utility token.
What really distinguishes the Request network is that it doesn’t just accommodate crypto-to-fiat currency exchanges but also fiat-to-fiat exchanges. Therefore, you can find virtually every main currency on the network, be it physical or digital.
It is a decentralized payment system based on Ethereum, so security-wise, it should be solid. Furthermore, its market cap has grown to over $270 million in a short span.
You can now find REQ on Coinbase, the world’s biggest crypto exchange. From the very beginning, being listed on Coinbase has been a stamp of approval for newer coins. But then again, Coinbase has recently shaken up its strategy to accommodate most new cryptocurrencies.
Another important fact is that the engineers behind Request are playing by the rules, incorporating financial laws from around the world. That only adds to its credibility.
While it has yet to break the $1 milestone, it has seen good gains since its start in 2017. It was trading at less than $0.03 a few years back and is now trading around $0.20 currently.
For those who want to invest in something with reliable technology, a decent market cap, and a low price, REQ is a viable option. Even if it doesn’t make you rich overnight, the chances of walking away with a profit are good.
6. TrueFi (TRU)
TrueFi is pioneering the idea of a decentralized, automated credit rating and lending system. The protocol is for both lenders and borrowers, with increased transparency between both parties.
For lenders, it allows them to see where their money goes and earn competitive returns. For borrowers, it’s a no strings attached and no-collateral, quick fix for getting money. TRU is the crypto of the TrueFi system.
The way it works is that borrowers submit requests for loans with the amount they want, the percentage of APY they offer, and the Ethereum account the TRU will go to if approved. For those who default on the loan, there are legal consequences.
TruFi is more of a bridge between traditional finance and decentralized finance by incorporating fiat-pegged stablecoins from around the world. Compared with other coins on the list, the TRU coin has a smaller market cap of $77 million. However, the future predictions for the coin are optimistic, as the TruFi could cross half the dollar mark soon enough.
TrueFi is more suitable for investors with existing assets in crypto, as they can use these assets to get high returns on their lending.
7. Cardano (ADA)
Cardano (ADA) is a decentralized, open-source project that is building a public blockchain platform for smart contracts. Cardano’s blockchain operates in a uniquely layered structure, differentiating it from other blockchain platforms like Ethereum. It separates the ledger of account values from the reason why values are moved from one account to the other. This separation is done by creating different layers for the ADA cryptocurrency and smart contracts, which, in theory, improves the smart contract execution’s speed and security.
Cardano was founded by Ethereum co-founder Charles Hoskinson and is being developed by IOHK (Input Output Hong Kong). One of the most notable aspects of Cardano is its commitment to peer-reviewed research as its foundation. The development team consists of a large global collective of expert engineers and researchers who aim to evolve the software through a scientific philosophy.
The Cardano platform uses a unique proof-of-stake consensus algorithm called Ouroboros. It is designed to be a much more energy-efficient alternative to the proof-of-work systems used by first-generation cryptocurrencies like Bitcoin.
Cardano’s ADA token is used as a stake in the protocol’s operation, to vote on changes to the protocol, and as a form of transfer of value among participants.
One of the significant focuses of the Cardano project is to bring banking systems to developing countries that have fast internet and smartphone adoption but are still largely ‘unbanked.’ It has also found use in educational sectors, as evidenced by a partnership with the Ethiopian Ministry of Education to create a blockchain-based system to track student performance.
The Bottom Line
All of the above cryptocurrencies and the networks behind them are totally legit. Although XRP is the only one near the $1 mark, the others are fairly below that. Still, they have the potential to cross the $1 mark and break into the top cryptocurrencies club with the likes of ETH, ADA, and LTC.
While some have revolutionary real-world applications like VeChain with supply management, some are riding a never-ending buzz like the famous Dogecoin. Ultimately, you should invest in the ones you’re most confident about based on price fluctuations, market cap, and the network.
Frequently Asked Questions
What is the best cryptocurrency under $1?
Most cryptocurrencies at the moment are trading below $1, which makes it difficult to choose one. However, based on market capitalization and trends, VET and Dogecoin are the best cryptocurrencies under $1 right now. Both cryptos have a market cap of billions. VET, in particular, is actively partnering with big businesses to create futuristic solutions for logistics. Whereas, Dogecoin continues to be one of the most popular cryptocurrencies.
What is the best cheap cryptocurrency for long-term investment?
The cheapest cryptocurrency for long-term investment is Stellar Lumens (XLM). Currently trading around $0.30, it is one of the most affordable cryptos with massive potential. Industry analysts are predicting steady growth for this coin in the coming years. But that growth will be slow, which is why it is good for those who plan on holding.
What is the best cheapest cryptocurrency to buy on Coinbase?
The best and cheapest cryptocurrency to buy on Coinbase is Dogecoin. It has the biggest market cap right now amongst all the under $0.50 cryptocurrencies.
Are cryptocurrencies under $1 a good investment?
Investing in cryptocurrencies, whether they’re priced under $1 or not, is a decision that should be based on thorough research, careful consideration, and possibly consultation with a financial advisor. The price of a single unit of cryptocurrency is not necessarily indicative of its potential for return on investment. Here are a few important considerations:
- Market Capitalization: The market cap of a cryptocurrency is a more useful indicator of its size and potential for return than the price of an individual coin or token. Market cap is calculated by multiplying the total supply of coins by the price of a single coin. A cryptocurrency could have a price under $1, but if the total supply of coins is very large, its market cap could still be substantial.
- Project Fundamentals: It’s crucial to research the fundamentals of the cryptocurrency project. What problem is it trying to solve? Who is the team behind it? Do they have a track record of success? Does the project have partnerships or support from established companies or organizations?
- Risk and Volatility: Cryptocurrencies, in general, are much more volatile than traditional investment assets. Their values can fluctuate wildly in very short periods, and some projects may fail entirely, leading to a total loss of investment.
- Regulatory Environment: The regulatory environment for cryptocurrencies is evolving and can have a significant impact on the value of a cryptocurrency. Policies can vary by country and can change relatively quickly, adding to the risk and uncertainty of investing in cryptocurrencies.
- Diversification: As with any investment, it’s generally a good idea not to put all your eggs in one basket. Diversification can help manage risk and volatility in your investment portfolio.
- Long-term vs. Short-term: Consider your investment timeline. Are you looking for a quick return or are you willing to hold onto the cryptocurrency for a long period to potentially reap more significant gains?
Remember, just because a cryptocurrency is priced under $1 does not necessarily make it a good investment. You must consider a variety of factors before deciding to invest in any asset, cryptocurrencies included. Always do thorough research and consider seeking advice from a financial advisor.