However, these unregulated currencies are very high-risk with a very buying with bitcoins chance of reward.
Penny cryptos are a lot like penny stocks, which are risky investments vulnerable to manipulation. Shutterstock - Scammy salesman with cigar.
In reality, most exchanges let you buy tiny fractions of a Bitcoin. To the financially savvy, there are warning signs everywhere.
Everything about penny cryptos down to the name evokes the concept of penny stocks, the high-risk, low-value investments that Leonardo DiCaprio makes a fortune buying with bitcoins in the beginning of The Wolf of Wall Street. Penny stocks are vulnerable to pump and dump schemes, in which stock promoters push the price up and then sell their holdings, leaving regular traders holding the bag.
Bitcoin localbitcoins com. LakeBTC, one of the major bitcoin exchanges in the world, based in Shanghai, where users can enjoy BTC trading, and buy and sell bitcoins. The current localbitcoins com restrictions in India on Cryptocurrency trading combined with the lower trade volumes on exchanges have pushed people to trade on Peer-to-Peer exchanges.
Securities and Exchange Commission chair Jay Clayton expressed horror this week at the concept of people investing in cryptocurrencies, citing the risks of hacking and high pressure sales tactics. But the angst that boosters of penny crypto taps into is real.
People who passed on Bitcoin and then saw its price skyrocket can be afraid of missing out on the next opportunity. They flock to subreddits where they debate the merits of mining or buying the latest altcoins.