What Is the Cheapest Cryptocurrency (And Is It Worth Investing In)?

Interested in bitcoin but concerned about its high price? Learn about cheap cryptocurrency options.
Last updated Jan 13, 2022 | By Lee Huffman | Edited By Melinda Sineriz
Various cryptocurrency coins

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Many investors are diversifying their portfolios with cryptocurrency. For some, it’s a strategic move, but others are hopping on the crypto bandwagon due to FOMO when a coin surges in value.

Although some investors choose to buy bitcoin, it has already seen a massive increase in its price over the last few years. Bitcoin is far from the only cryptocurrency option, however. In this article, you’ll learn how crypto prices work, explore cheap cryptocurrency options, and get simple tips on buying crypto.

In this article

How do cryptocurrency prices work?

Crypto coins are a mix of currency and investable asset. They can be used to make purchases at many businesses, but many owners of cryptocurrency view them as investments. As with any tradable security, the price is based on factors like supply, demand, and competition. When a coin makes the news, its value can increase or decrease based on investors’ perception of future value.

Many crypto coins have a finite number that can be mined. Once that number is reached, or when the supply gets close, the value may increase because no additional coins can be created.

For example, Bitcoin prices grew to almost $69,000 per coin in 2021 based on positive investor sentiment, higher demand, and how it is increasingly adopted as a form of currency for transactions. As of Jan. 7, 2022, it has an $802 billion market capitalization, which is the total value of all the coins that have been mined. Ethereum, another popular cryptocurrency, is $3,243.37 per coin with a market cap of $380 billion.

13 cheap cryptocurrencies with potential

To help you start investing money in crypto, here are a few of the cheapest crypto coins so that you can buy more with your money. There's no guarantee that any of these coins will increase in value, but with such low prices, even small movements could generate profits.

Prices are as of Jan. 7, 2022.

Cardano (ADA)

Cardano is a proof-of-stake blockchain platform that is founded on peer-reviewed research. It is a decentralized network that offers secure and transparent payments. Cardano's coin is ADA, which is named after Ada Lovelace, a 19th-century mathematician and the first computer programmer. Cardano has a current price of $1.23.

Dogecoin (DOGE)

Dogecoin became very popular in May 2021 with Elon Musk mentioning it on “Saturday Night Live.” Although it was originally formed as a joke in 2013 with its Shiba Inu dog meme, Dogecoin has evolved as an open-source peer-to-peer digital currency that has a loyal following of users and investors. Dogecoin is 16 cents

Stellar (XLM)

Stellar launched in 2014 as an open network focused on boosting inclusion for the world's unbanked populations. Over time, it transitioned to helping financial firms transact business through blockchain technology. The price of its coin has increased in the past year and is 26 cents.

XRP (XRP)

XRP by Ripple is part of a system that’s designed to help international finance companies send payments to each other more quickly. It can settle transactions in 3 to 5 seconds, which is considerably quicker than major crypto coins like BTC, LTC, and ETH. XRP peaked at $1.84 in April 2021 and is 76 cents.

Chainlink (LINK)

Chainlink is a crypto that encourages users to participate in Chainlink’s network of oracles. Oracles send outside data to a blockchain (in this case, an Ethereum blockchain), and that data is often used to execute smart contracts. Its technology has secured more than $82 billion worth of contracts so far. LINK peaked in May 2021 at $52.20 and is currently $24.74.

EOS (EOS)

EOS technology allows developers to create decentralized apps (DApps) that offer scalability, security, and flexibility. The EOS blockchain launched in June 2018. Its coins peaked at $14.37 in May 2021 and it’s now $2.85.

Polkadot (DOT)

Polkadot's technology enables cross-blockchain transfers of tokens, data, or assets. This allows customers to operate across platforms throughout the Polkadot network. Developers can easily create their own custom blockchain and link it to the network within minutes. The price of DOT is $25.64, which is down from its November 2021 peak of $53.88.

Tether (USDT)

Tether is a "stablecoin" that is always backed by reserves. Your digital currency can be "tethered" to the price of national currencies, like the U.S. dollar, Euro, and offshore Chinese Yuan. Tether's value is similar to a money market fund whose purpose is to store value in between transactions rather than to earn a return on the money. Therefore, its value remains at or near $1 per coin.

VeChain (VET)

VeChain is a public blockchain that enables smart contracts and is focused on supply chain management. One advantage is that VET requires low computation power to achieve network security, which saves computing power for other developer tasks. VET coins peaked at 26 cents in April 2021 and are now 8 cents.

IOTA

IOTA is a distributed ledger technology that enables a secure exchange between parties without any fees. Examples include usage-based car insurance, track and trace functionality for the supply chain, and a borderless digital identity that can be verified by anyone. IOTA is currently trading at $1.13, and prices peaked in April 2021 at $2.53.

Binance Coin (BNB)

BNB is a popular "utility token" that can be used to pay for goods and services, settle transaction fees on the Binance Smart Chain, and participate in exclusive token sales.

Although many coins are mined to increase the supply, Binance actually "burns" tokens quarterly to reduce the supply. A reduction in the supply of any asset generally results in an increased value for each coin. BNB has experienced staggering growth over the past year, with coins increasing in value from $27.70 to $453.19.

Litecoin (LTC)

Litecoin is a peer-to-peer Internet currency that enables almost instantaneous payments at a near-zero cost for anyone in the world. Its blockchain is capable of handling higher transaction volume than Bitcoin with faster confirmation times for merchants. Litecoin is $133.52, which is down from its peak of $384.53 in May 2021.

Crypto.com (CRO)

Crypto.com is a network of crypto projects that enable merchants to accept crypto as a form of payment. Transactions on the network are seamless, cost-efficient, and secure. Businesses can invoice customers and pay vendors through the platform with instant payments in CRO, stable coins, or fiat currency. CRO is 48 cents, and it recently peaked at 90 cents in November 2021.

8 tips for buying crypto

If you're wondering how to buy cryptocurrency, here are some do's and dont's first so you can trade more safely.

  • Prioritize security. Crypto accounts are secured by public and private keys. If you lose the keys to your crypto, you will lose your investment. Because crypto is unregulated, there is nobody to contact to reset your keys and recapture your investment.
  • Protect your coins in cold storage. Cold storage is the act of taking your crypto wallet offline and storing it on a physical device. With your wallet offline, it cannot be hacked.
  • Make sure that your phone and computer are secure. If hackers are able to access your device, they may be able to steal your cryptocurrency. Use a VPN when accessing public Wi-Fi, anti-virus software, and two-factor authentication to beef up your security.
  • Understand what you're buying. It can be easy to get caught up with the crowd and buy crypto because everyone else is. Before making a large investment, ensure you know what you're buying and how it fits within your portfolio.
  • Diversification is key. As with the rest of your portfolio, your crypto holdings should be diversified as well. This will minimize the impact if a coin goes bust. It also increases your chance of finding the next hot coin that surges in value.
  • Invest only what you can afford. Although it can be exciting to invest in something new and mysterious, make sure that you're handling all of your other financial obligations as well. Continue to contribute to your workplace and individual retirement accounts and keep your emergency fund topped off.
  • Put stop losses in place. Cryptocurrency market values can fluctuate wildly in a short period of time. If your brokerage or exchange allows it, consider putting a stop loss in place to limit your downside risk in case a coin crashes when you're away from your account.
  • Low prices don't mean value. Although it may be tempting to buy the cheapest crypto coins, sometimes a coin has a low price for a reason. Do your research and look at a range of investment advice from reputable sources to figure out if there's room for the coin to grow or if it’s just a dud.

FAQs

What is the cheapest cryptocurrency?

New coins are released on a regular basis and the prices of cryptocurrency change by the minute. At the time this article was written, 3X Short Algorange Token (ALGOBEAR) was one of the cheapest cryptocurrencies available on Coinbase. It had a price of $0.00000001 per coin. By the time you're reading this, this coin's price could have increased or another coin could be priced even lower.

What makes a cryptocurrency cheaper?

Cryptocurrencies are generally priced based on supply and demand. If there's a sudden increase in the supply of coins, its value will drop. Similarly, if there are more crypto investors selling than buying, the price also drops. In most cases, coins generally have a fixed supply or maximum limit of coins that can be mined, so a devaluation based on supply is less of a risk. As more investors choose to invest in cryptocurrency, demand will increase over time.

What is the cheapest way to buy cryptocurrency?

When you purchase crypto, the crypto exchange typically charges a fee to process the transaction. Fees vary depending on how you fund your purchase. Debit card purchases or EFT transfers from your bank generally are cheaper than if you used a credit card. Robinhood is one of the cheapest ways to buy cryptocurrency because its trades are commission free. Other platforms charge up to 4%, whereas Robinhood charges 0%. For more details, read our Robinhood review.

Bottom line

Remember that crypto investing is unregulated and doesn't require the same disclosures as public stock investments. Do your research and start slowly.

If you're ready to start investing in crypto or to diversify your crypto portfolio, you'll need to create an account at one of the best cryptocurrency exchanges. These platforms allow you to buy, sell, and convert your coins to invest and diversify your portfolio.

Robinhood Crypto Benefits

  • Trade crypto 24/7, commission-free
  • Your coins and personal information are protected
  • $0 minimum account deposit
  • Real-time market data

Author Details

Lee Huffman Lee Huffman is a former financial planner and corporate finance manager who now writes about early retirement, credit cards, travel, insurance, and other personal finance topics. He enjoys showing people how to travel more, spend less, and live better. When Lee is not getting his passport stamped around the world, he's researching methods to earn more miles and points toward his next vacation.