Best Penny Crypto to Buy in October 2025 — Top 10 Low-Priced Coins

Bitcoin Hyper tops our best penny crypto to buy watchlist for October 2025, still a speculative bet, but it has 984M+ tokens staked, signaling real interest in Bitcoin Layer 2 experiments. Two alternatives worth watching are Maxi Doge, a leverage-trader meme, and PEPENODE, a mine-to-earn twist on Ethereum.

With Bitcoin above $124K (CoinGecko data snapshot, October 6, 2025) and fresh presales pulling in eight-figure sums, liquidity often rotates to sub-$1 coins with the most momentum.

This guide ranks the best penny cryptos to buy in 2025 and ends with a transparent methodology explaining how we score projects across presale traction, tokenomics, builder activity, and verified community data.

Best Penny Cryptocurrencies to Buy in 2025 – Editor’s Picks

Bitcoin Hyper (HYPER)

• First Bitcoin Layer 2 enabling fast, low-cost transactions
• Fixes Bitcoin’s speed and fee limitations with near real-time performance
• Enables a Bitcoin-native DeFi ecosystem

Launch

May 2025

Meta

Meme, Bitcoin L2

Learn More

Payment methods

Ethereum

USDT

USDC

Maxi Doge (MAXI)

• Degen meme coin inspired by max-leverage trading
• A tribute to high-risk hustle — fueled by sweat and conviction
• Ethereum-born, culture-driven, aiming for multichain

Launch

July 2025

Meta

Meme, Community, Deflationary

Learn More

Payment methods

Ethereum

BNB

USDC

+2 more

USDT

Credit Card

PepeNode (PEPENODE)

• Build your own virtual meme coin mining rig.
• 100% virtual and requires no additional computing power.
• Top miners get additional bonuses in Pepe, Fartcoin, and other meme coins.

Launch

August 2025

Meta

Meme, Mine-to-Earn, Play-to-Earn

Learn More

Payment methods

Ethereum

BNB

USDT

+1 more

Credit Card

Snorter Bot (SNORT)

• Fastest meme coin sniper on Solana and EVM
• Multichain Telegram bot with lowest fees and instant execution
• Snipe new tokens before bots and whales

Launch

May 2025

Meta

Meme, Multichain, Trading Bot

Learn More

Payment methods

Solana

Ethereum

USDT

+2 more

USDC

BNB

Best Wallet Token (BEST)

• Exclusive in-app access to vetted crypto presales
• Staking rewards with an annual percentage yield (APY) of up to 152%
• Upcoming Best Card enables crypto spending at millions of merchants with cashback

Meta

November 2024

Learn More

Payment methods

Credit Card

Ethereum

BNB

+1 more

USDT

SUBBD (SUBBD)

• AI-Powered Virtual Influencers
• 20% APY Staking Rewards
• VIP perks: livestreams, BTS content, credits, and more.

Launch

April 2025

Meta

AI, Payments, Content

Learn More

Payment methods

Credit Card

Ethereum

BNB

+1 more

USDT

10 Top Penny Crypto List 2025

According to our research, the best penny cryptos to watch in 2025 include:

1. Bitcoin Hyper (HYPER) – Bitcoin’s first L2 meme coin. Made for DeFi, built for speed
2. Maxi Doge (MAXI) – Ultra-ripped alpha Doge meme coin for 1000x leverage traders with extreme bodybuilding-crypto crossover appeal
3. PEPENODE (PEPENODE) – Mine-to-Earn Penny Crypto Where You Can Build Virtual Mining Rigs
4. Shiba Inu (SHIB) – Advanced meme ecosystem with billion-dollar liquidity
5. Snorter Token (SNORT) – Telegram-native trading bot with advanced scam detection
6. Dogecoin (DOGE) – Original meme cryptocurrency with mainstream adoption
7. Best Wallet (BEST) – Integrated wallet and DEX platform with enhanced user benefits
8. SUBBD (SUBBD) – AI-powered creator platform with 2,000+ creators and 250M followers
9. Bonk (BONK) – Solana-native meme token fueling community-driven DeFi
10. SpacePay (SPY) – A crypto payment solution enabling NFC and QR-based retail transactions

Top Penny Crypto to Invest in – Reviews and Analysis

After analyzing dozens of low-priced cryptocurrencies, we’ve identified the most promising options based on their use, community strength, technical innovation, and growth potential. Below, you will find the detailed characteristics of each crypto coin under $1.

1. Bitcoin Hyper (HYPER) – Bitcoin Layer 2 Meme Coin With SVM Speed and DeFi

Bitcoin Hyper turns BTC from a mostly hold-only asset into something you can use. It is a Bitcoin-focused Layer 2 built for quick confirmations and small fees, so you can pay, trade, and tap simple DeFi directly with BTC instead of swapping into a different token.

Bitcoin Hyper Tokenomics Chart Showing Allocation Breakdown With Treasury Having 25%. Source: Bitcoin Hyper

HYPER powers the network. You pay fees in it, stake it to help secure the chain and earn rewards, and use it for votes as governance rolls out. That ties token demand to real activity rather than hype alone.

Key Points on Bitcoin Hyper:

• Why it stands out: Bitcoin-focused L2 using SVM for high-speed execution, staking at 56% APY
• Target audience: BTC holders who want DeFi access and speed, meme coin traders, devs porting SVM apps to tap BTC liquidity
• Risks & considerations: Early in a competitive Bitcoin L2 field, real adoption and shipping speed remain the swing factors
• Community: 984M plus tokens staked, around 14.8K followers on X, presale live at $0.013095

Visit Bitcoin Hyper

2. Maxi Doge (MAXI) – Gym-Culture Meme Coin Built for Leverage Traders

Maxi Doge is a meme project on Ethereum designed for traders who appreciate high-energy, gym-inspired branding. The idea is to give active traders a clear, viral identity and maintain high engagement through frequent community activities.

A Staking Dashboard Showing 6B+ tokens staked with 122% estimated rewards. Source: Maxi Doge

MAXI’s holders stake it for daily smart-contract distributions, and it serves as entry to ROI-focused contests and rewards. A MAXI Fund is reserved to support potential partnerships with futures platforms. The presale runs at $0.0002615, with a fixed supply of about 150B.

Key Points on Maxi Doge:

• Why it stands out: Clear narrative crossover, dog-meme familiarity, plus trader lifestyle, staking at 125% APY
• Target audience: High-risk meme speculators, leverage-trading enthusiasts
• Risks & considerations: Large supply and unconfirmed partnerships make dilution and delivery timelines matter.
• Community: Early presale traction with rising X and Telegram engagement across crypto and fitness circles.

Visit Maxi Doge

3. PEPENODE (PEPENODE) – Mine-to-Earn With Block-Synced Rewards

PEPENODE is an Ethereum meme token that turns staking into a “mine to earn” experience. Participants deposit at $0.0010962 to reserve a spot in the rewards pool. Once the protocol goes live, rewards begin accruing continuously.

PEPENODE Cryptocurrency Presale Roadmap Showing Presale Process, TGE phase, and Mine-to-Earn Game. Source: PEPENODE

Rewards scale with how much users stake and how long they lock, and there is no vesting. Stakers can track yields in real time, with APY currently showing 794%.

Key Points on PEPENODE:

• Why it stands out: Real-time, block-synced rewards with a live dashboard
• Target audience: Yield chasers, GameFi tinkerers, and ETH users who want utility beyond pure memes
• Risks & considerations: Reward sustainability depends on ongoing demand versus emissions
• Community: Early traction via the live presale dashboard, with more than 1B tokens already staked

Visit PEPENODE

4. Shiba Inu (SHIB) – Meme Ecosystem with L2 and Utility Tokens

Shiba Inu is a meme-born project with its own low-fee network, Shibarium, built to make transactions cheaper and faster than the Ethereum mainnet. The ecosystem includes ShibaSwap and SHIB: The Metaverse, plus an automatic burn that ties usage to supply reduction. SHIB SHIB $0.000012 24h volatility: 0.9% Market cap: $7.12 B Vol. 24h: $177.50 M is widely listed on major exchanges.

Shiba Inu One Month Price Dynamics Shown on CoinGecko. Source: CoinGecko

SHIB is the flagship token. Holders can stake or provide liquidity on ShibaSwap to earn rewards, while ongoing burns aim to reduce the supply over time. For clarity, BONE pays gas on Shibarium and is used for governance, and LEASH offers access-style perks.

Key Points on Shiba Inu:

• Why it stands out: Meme coin with a live L2, native DEX, and burn mechanics that link activity to supply
• Target audience: Holders who want meme exposure with working infrastructure and a path to utility
• Risks & considerations: Sentiment-driven trading and concentrated holdings can amplify swings
• Community: One of crypto’s largest meme communities with deep CEX and DEX liquidity

Available in Best Wallet

5. Snorter Token (SNORT) – Telegram Trading Bot with Private RPC and Scam Filter

Snorter Token is a Telegram trading bot for Solana meme coins. It combines discovery, order placement, and position management into a single chat, with fast execution and a simple risk filter that flags suspicious tokens before you buy. Ethereum support is planned, so the same workflow carries across chains.

Four Stages of Snorter Bot Roadmap. Source: Snorter Token

SNORT holders pay 0.85% fees instead of 1.5% and can stake their tokens for yields. The presale is currently live at $0.1065 and will end on October 20, 2025.

Key Points on Snorter Token:

• Why it stands out: Telegram-first workflow, private RPC for fast fills, scam filter, holder fee at 0.85%, staking at 113% APY
• Target audience: Meme-coin snipers, active DEX traders, Telegram heavy users
• Risks & considerations: Anonymous team and concentrated supply in a crowded bot category
• Community: Rapid presale momentum with $4.19M raised, growing Telegram and X engagement

Visit Snorter Token

6. Dogecoin (DOGE) – Original Meme Coin with Real Payments

Dogecoin is the original meme cryptocurrency focused on everyday payments and tipping. It runs on its own blockchain, is widely listed on major exchanges, and aims to make small transfers simple and cheap.

Dogecoin Price One Month Dynamics. Source: CoinGecko

DOGE DOGE $0.25 24h volatility: 0.7% Market cap: $38.06 B Vol. 24h: $2.99 B is the network’s currency. You use it to pay transaction fees and send value, while miners earn new coins as block rewards. Issuance is fixed at 5 billion DOGE per year, which smooths supply but can dilute holders if demand doesn’t grow.

Key Points on Dogecoin:

• Why it stands out: Longest-running meme coin with real-world payments and independent Layer 1 security
• Target audience: Newcomers and mainstream users who want widely accepted crypto for payments and tipping
• Risks & considerations: Ongoing issuance dilutes supply, and price is sensitive to social sentiment
• Community: 4M plus followers on X, broad exchange support

Available in Best Wallet

7. Best Wallet (BEST) – Multi-Chain Wallet with DEX and Presale Launchpad

Best Wallet is a non-custodial app that brings swaps, staking, gasless transactions, and a built-in launchpad into one place across 60+ chains. Security uses MPC and independent audits by Coinsult and Solidproof, and you can join presales directly from the wallet.

Best Wallet Ecosystem Interface Showing Cryptocurrency Purchase Feature With Support For Over 60 Blockchain Networks. Source: Best Wallet

BEST is the utility token. Holders get 30% fee reductions, boosted staking at 81% APY, and priority access to Stage 0 rounds. The presale is live at $0.025765 with $16.42M processed to date.

Key Points on Best Wallet:

• Why it stands out: One app for self custody, DEX trading, gasless txs, and vetted presales
• Target audience: Users who want everyday DeFi plus first shot at curated presales from a single wallet
• Risks & considerations: Utility depends on sustained wallet adoption and on ramping users into BEST, especially after TGE
• Community: 70K social followers, first $100K presale stage sold out in 6 hours, growing on-chain participation

Visit Best Wallet

8. SUBBD (SUBBD) – AI SocialFi Creator Hub with Direct Payouts

SUBBD is a SocialFi platform that lets creators get paid directly by fans with low fees and publish faster. Built-in AI tools (voice cloning, image generation, auto-scheduling) streamline production and posting, while fans get access to exclusive content and interactions.

SUBBD Token Benefits Overview Displaying Six Key Features, Including Exclusive Content Access and Staking Rewards. Source: SUBBD

SUBBD is the in-app currency for tipping, paywalled content, and creator subscriptions. It also funds engagement rewards and can be staked for yields at 20% APY.

Key Points on SUBBD:

• Why it stands out: AI toolkit plus direct creator-to-fan payouts, 2K creators, and 250M followers
• Target audience: Creators, Social-Fi users, investors
• Risks & considerations: Creator migration and proof of active usage remain the key hurdles
• Community: Early traction via verified creators, growing X and Telegram presence

Visit SUBBD

9. Bonk Coin (BONK) – Solana Meme Token with Liquidity and DeFi Reach

Bonk is a Solana-native meme currency built for fast, low-fee transfers and everyday use. It has moved beyond a joke through burns, Solana Pay acceptance, and integrations across Solana DeFi.

BONK Coin Price Chart Dynamics Extended Over a Month. Source: CoinGecko

BONK BONK $0.000019 24h volatility: 3.3% Market cap: $1.49 B Vol. 24h: $241.45 M is used for tipping, small payments, and app incentives. Holders often provide liquidity or stake in partner pools to earn yields, while ongoing burns tie activity to a gradual supply reduction.

Key Points on BONK:

• Why it stands out: Liquid Solana meme with ongoing burns and wide DeFi integrations
• Target audience: Meme traders and users who tip or pay small amounts on-chain
• Risks & considerations: Highly volatile and correlated with Solana risk cycles
• Community: Strong presence on Solana DEXs and CEXs, active Discord and X channels

Available in Best Wallet

10. SpacePay (SPY) – Crypto Payments on Existing Android POS

SpacePay is a merchant payments protocol that lets stores accept crypto on existing Android terminals via NFC or a universal QR. It supports over 325 wallets, auto-converts to local fiat at checkout, and charges 0.5% processing fees compared with typical card rates of 2% to 3%.

SpacePay Official Presale Page Showing Coin Price and USDT Raised. Source: SpacePay

SPY is the utility token. It routes settlements across the network, unlocks fee discounts for merchants, and funds adoption incentives. Scale now depends on processor partnerships and onboarding merchants in a market with strong incumbents.

Key Points on SpacePay:

• Why it stands out: NFC and QR payments, instant fiat settlement, 0.5% processing fee
• Target audience: Retailers and payment providers, users seeking point of sale utility
• Risks & considerations: Adoption depends on signing processors and banks
• Community: About 20,000 registered users and nearly 1.3 million dollars raised

Visit SpacePay

Best Penny Crypto Timeline & Milestone Tracker – October 2025

Track major development phases, presale progress, and launch targets for the top low-cap crypto projects of 2025.

Why Penny Crypto Are Booming in October 2025 – Market Snapshot

Crypto risk appetite has kicked up a gear. In mid-August, Bitcoin set a new all-time high near $124K, then cooled to the low-$110Ks as spot BTC ETFs swung back to net inflows, led by Fidelity’s FBTC with $132.7M on September 2. Ethereum also printed fresh highs in late August. Together, these moves typically pull liquidity down the risk curve into small caps and presales.

Under the hood, two structural drivers stand out. First, exchange activity is brisk: August closed with a year-to-date peak in centralized spot volumes and a jump in DEX turnover to roughly $369B, with Uniswap far ahead. Second, Layer-2 usage keeps climbing; recent analytics show L2s now handle the lion’s share of transactions, with Base emerging as a leader. These pipes make it cheaper and faster to launch, trade, and bootstrap communities around sub-$1 tokens.

Looking ahead, institutions remain a tailwind. Coinspeaker has covered forecasts calling for higher cycle targets in BTC and renewed ETF expansion, alongside ETH scenarios that put $5K–$10K on the map if momentum persists. While outcomes aren’t guaranteed, they frame a backdrop where

Key Investor Signals – October 2025:

• Presales tied to working products or L2 rails are outpacing meme-only drops, as on-chain costs fall and liquidity improves. Coinspeaker
• Sub-$0.01 tokens with clear tokenomics and active teams are attracting flows during ETF-driven dips and bounces in majors.

Why Invest in Penny Cryptocurrencies?

In this section, we break down several reasons why investing in penny coins can be a good idea:

Key Reasons to Invest in Penny Cryptocurrencies. Source: Coinspeaker

The Upside: Massive Growth Potential

The most compelling reason to consider coins under a penny is their significant growth potential. While Bitcoin might double or triple in value during a bull market, penny crypto can deliver 10x, 100x, or even 1,000x returns.

Consider these real examples:

• Shiba Inu (SHIB) surged over 45,000,000% in 2021
• Dogecoin (DOGE) jumped from $0.0002 to $0.73 in less than a year
• Solana (SOL) grew from $0.77 to over $250 before cooling off

When it comes to penny cryptocurrencies, turning $100 into $10,000 can happen regularly.

Low Entry Barriers

You don’t need thousands of dollars to build a diversified, affordable crypto portfolio. With just $10-50 per position, you can spread your investment across multiple promising projects. This makes crypto under a penny particularly attractive for:

• Beginners testing the crypto waters
• Investors with limited capital
• Risk-takers looking for asymmetric upside

Portfolio Diversification

Even experienced crypto investors often allocate 5-10% of their portfolio to speculative penny crypto. This approach balances established coins’ stability with emerging projects’ explosive potential.

Penny Crypto That Delivered Real Growth in the Past

Many of the most successful penny crypto shared a few key traits: they launched in growth-driven sectors (like meme culture, DeFi, or Layer 2 scaling), had strong community momentum, and delivered a working product or clear utility early. Most importantly, these tokens entered the market with low valuations, allowing room for exponential upside as adoption and visibility grew.

Here are five past penny crypto that achieved significant returns:

These examples show that successful penny crypto often combine timing, strong narratives, community traction, and real or perceived utility. However, they also highlight how rare such outcomes are and why disciplined research remains essential.

What Are Penny Cryptocurrencies?

Penny cryptocurrencies are digital assets priced below $1, similar to  penny stocks in traditional markets. These low-cost coins typically have smaller market caps and are often inspected by mainstream investors.

To better understand, the appeal is simple:  when you can buy thousands or even millions of tokens with just $100, small price movements can lead to massive percentage gains. A coin moving from $0.001 to $0.01 represents a 10x return, the kind of growth virtually impossible with established cryptocurrencies.

But not all penny crypto are created equal. They range from:

• Meme coins: Community-driven projects built on viral appeal
• Utility tokens: Assets that power real applications and services
• Payment coins: Focused on fast, low-cost transactions
• Platform coins: Native tokens of blockchain ecosystems

At their core, crypto under penny offer accessibility for new investors and the  potential for high returns, but they have volatility risks compared to established cryptocurrencies.

Where to Buy Penny Cryptocurrencies

Finding the right exchange is crucial when investing in low-priced cryptocurrencies. The platform you choose affects everything from available token selection to trading fees and security.

Centralized Exchanges

For established budget-friendly cryptocurrencies like SHIB, DOGE, ADA, and TRX,  Binance stands out with support for all our top picks and competitive 0.1% trading fees.

KuCoin earns its reputation as “The People’s Exchange” by frequently listing promising projects like VET and ZIL before larger platforms.

MEXC and Gate.io specialize in emerging tokens for even earlier access, often being the first major platforms to list high-potential penny crypto.

Decentralized Exchanges

DEXs provide access to the newest low-priced cryptocurrencies without intermediaries.

• Uniswap remains the primary destination for Ethereum-based tokens like BTC BULL, offering permissionless trading with simple liquidity provision.
• Solana-based projects like MIND or Raydium deliver fast transactions with minimal fees.
• Jupiter aggregates multiple Solana DEXs to find the best prices across the ecosystem.

Presale Opportunities

The  highest-potential penny cryptocurrencies are often available directly through presales before exchange listings. We linked all of the websites when discussing each currency’s characteristics above.

When  participating in presales or using DEXs, always verify contract addresses from official sources and be wary of impersonation scams. The extra due diligence required for early-stage projects is often rewarded with more favorable entry prices before mainstream exchange listings drive prices higher.

Risks of Investing in Penny Crypto

While the upside potential is enormous, penny tokens carry significant risks that investors must understand:

High Volatility

Penny crypto can swing wildly in price, often 30-50% in a single day. This volatility creates opportunity, but also means you could lose half your investment overnight.

Liquidity Challenges

Many sub-dollar tokens have thin trading volumes, making it difficult to:

• Buy or sell large amounts without a significant price impact
• Exit positions quickly during market downturns
• Avoid slippage when trading

Always check daily trading volume before investing; under $100K is a red flag.

Scams and Rug Pulls

The penny crypto market is full of scams targeting inexperienced investors. Coordinated  pump and dump schemes artificially inflate prices before insiders sell their holdings, while rug pulls occur when developers abandon projects after raising funds, often disappearing with millions.

Honeypot tokens are an especially devious threat because they use smart contract code that prevents investors from selling their tokens. In 2024 alone, these scams collectively drained over $800 million from unsuspecting investors, primarily through penny cryptocurrencies with their lower liquidity and oversight.

Limited Regulation

Most tokens under $1 operate in regulatory gray zones without the protections investors might expect. The absence of financial disclosure requirements and legal recourse creates several risks. When projects fail, investors typically have no path to recovery, unlike in traditional financial markets. This regulatory uncertainty compounds the inherent volatility of penny crypto investments, demanding extraordinary due diligence from those entering this market segment.

Pros and Cons of Best Penny Crypto Investing

As we already mentioned, penny cryptocurrencies are the high-risk, high-reward segment. Their low prices make them accessible to everyday investors while offering exponential growth potential that established cryptocurrencies can no longer match. However, every coin has two sides, and these advantages come with substantial risks. In the table below, we compare their characteristics.

How to Evaluate a Penny Crypto Project Before You Buy

Before investing in any low-cap or penny crypto project, it’s essential to conduct thorough due diligence. These tokens can offer significant upside but also carry high risk due to limited liquidity, market manipulation, and a lack of regulation. Rather than relying on hype or social buzz alone, take time to assess the fundamentals and transparency of the project.

Start by reviewing the project’s whitepaper and official documentation. This should clearly outline the token’s purpose, mechanics, and roadmap. Next, examine the team (if public), the level of community engagement, and whether the project has undergone any third-party audits. Look for signs of credibility: working demos, open-source code, or partnerships with known entities can help validate the project’s legitimacy.

Here’s a checklist to guide your research:

• Read the whitepaper. Is it clear, detailed, and realistic?
• Check the smart contract address on a blockchain explorer
• Look for independent audit reports (e.g., from CertiK, Hacken)
• Assess community activity on platforms like Telegram, X (Twitter), and Discord
• Review tokenomics – supply, vesting, and allocations
• Investigate the team or anonymous developers’ past projects
• Confirm whether there is a working product or TestNet
• Scan for exaggerated claims or aggressive marketing tactics

Careful evaluation doesn’t eliminate risk, but it significantly improves the odds of making informed investment decisions in the high-volatility world of penny crypto.

Is It Legal to Invest in Penny Crypto in 2025?

The legality of investing in penny cryptocurrencies varies across different regions. Each jurisdiction applies its own regulatory standards, tax implications, and consumer protection measures to low-priced digital assets.

USA

Penny crypto investments are legal in the United States, with comprehensive regulatory oversight from multiple federal agencies. The SEC and CFTC issued a landmark joint statement in September 2025 clarifying that registered exchanges are not prohibited from facilitating trading of certain spot crypto asset products.

The SEC’s Project Crypto and CFTC’s Crypto Sprint coordinate efforts to enable trading of spot crypto asset products on registered exchanges. Under this framework, penny cryptocurrencies are subject to the same regulations as higher-priced digital assets, with classification depending on whether they qualify as securities or commodities.

Investors can legally purchase penny cryptocurrencies through registered exchanges, with transactions subject to capital gains taxation. The SEC has brought numerous lawsuits against crypto creators and platforms that failed to register their offerings as securities, emphasizing the importance of regulatory compliance for issuers.

United Kingdom

Investing in Penny cryptocurrency is legal in the United Kingdom under the evolving regulatory framework, although legislation is still being developed. The Property (Digital Assets) Bill, introduced in 2024, marks a pivotal moment in the legal recognition of crypto assets.

The UK is positioning itself as a pragmatic, innovation-friendly jurisdiction with a more iterative approach than the EU’s prescriptive frameworks. The Financial Conduct Authority is developing a “same risk, same regulation” model requiring crypto firms to meet standards similar to traditional financial institutions.

The CIS Amendment Order 2025/17 clarifies the regulatory perimeter regarding staking arrangements and removes “qualifying cryptoasset staking” from collective investment scheme regulations. This came into force on January 31, 2025, providing clearer guidance for certain crypto activities.

Europe

Penny cryptocurrency investments are legal across the European Union under the Markets in Crypto-Assets (MiCA) regulation framework, which took full effect in December 2024.

Starting January 2025, Crypto Asset Service Providers (CASPs) must apply for licenses to operate within the EU, with a period of up to 18 months for existing providers. This establishes uniform rules across all 27 EU member states for trading crypto assets.

MiCA classifies digital assets into asset-referenced tokens (ARTs), e-money tokens (EMTs), and other crypto-assets, including utility tokens and non-classified digital assets. Penny cryptocurrencies fall under these categories with corresponding regulatory requirements.

Asia

Asia has the most diverse regulations for penny cryptocurrency investments, with approaches ranging from complete acceptance to total prohibition across different nations.

• Japan recognizes cryptocurrencies as legal property under the Payment Services Act, with crypto and yen transactions managed by the Financial Services Agency. Citizens are free to own or invest in crypto, including penny cryptocurrencies, with exchanges required to register with the FSA.
• Singapore has established itself as a leading cryptocurrency hub, with the Monetary Authority of Singapore granting 30 major payment institutions licenses for digital payment token services. Cryptocurrency trading and possession are legal but highly regulated under strict AML and CFT requirements.
• China maintains some of the strictest cryptocurrency legislation worldwide, prohibiting cryptocurrency trading and mining in 2021 due to concerns about financial stability and capital flight. Investing in penny cryptocurrencies remains illegal for Chinese residents.
• South Korea is progressing with regulation after the Virtual Asset Users Protection Act in 2023, which creates stronger user protections through record-keeping and transparency requirements. Penny cryptocurrency investments are legal under these protective frameworks.
• India maintains a dual policy alternating between restrictive measures and regulatory oversight, with a 30% flat tax on all cryptocurrency earnings and 1% tax deduction at source for large transactions. Penny cryptocurrency investments are legal but heavily taxed.

Africa

Most African nations lack comprehensive frameworks, while some implement specific restrictions or allowances. Most countries have not established cryptocurrency regulations, creating legal uncertainty for penny crypto investments. However, the growing usage of digital financial services suggests potential regulatory development.

• Nigeria has implemented restrictions on bank cryptocurrency transactions while allowing peer-to-peer trading. The legal status of penny cryptocurrency investments remains in a regulatory gray area
• South Africa maintains a relatively permissive approach with ongoing regulatory development. Penny cryptocurrency investments are generally legal under existing financial services regulations
• Kenya is showing growing acceptance, accompanied by increasing regulatory clarity for digital assets. Penny cryptocurrency investments are not explicitly prohibited under current frameworks
• Egypt has implemented some restrictions on cryptocurrency use, though specific regulations regarding penny cryptocurrency investments remain undefined.

Do You Pay Taxes on Penny Crypto in 2025?

Simply put, yes, you owe taxes on penny cryptocurrency transactions. Price doesn’t matter. If you sell, trade, or stake a token worth $0.0001 or $0.99, the IRS and most tax authorities treat it the same as Bitcoin. Profits trigger capital gains tax, and rewards count as income.

Why Penny Cryptos Are Still Taxable

Tax liability isn’t about token price; it’s about gains. Buy a penny crypto at $0.001, sell at $0.005, and you owe tax on that 400% profit, even though the dollar amount might be small. The same rules apply whether you’re trading SHIB at $0.00001 or selling Bitcoin at $124K.

Swapping one penny crypto for another also creates a taxable event. Trade BONK for PEPENODE? The IRS sees that as selling BONK (triggering capital gains) and buying PEPENODE with the proceeds. Staking penny tokens for rewards adds another layer: you pay income tax when you receive the rewards, then capital gains tax when you eventually sell them.

Common Taxable Events for Penny Crypto Investors

Three situations trigger taxes most often. First, selling penny crypto for fiat generates capital gains, short-term (under a year, taxed 10-37%) or long-term (over a year, taxed 0-20%).

Second, trading one penny token for another counts as a disposal, even if you never touch dollars. Third, earning rewards through staking or liquidity pools creates taxable income at the token’s fair market value on the day you receive it.

DeFi adds complexity. Providing liquidity, claiming yield, or participating in governance all create potential tax events. Each transaction needs documentation: date, amount, dollar value, and what you paid originally.

Regional Tax Rules for Penny Cryptocurrencies

Various regions have different tax rules. So, let’s discuss them.

• In the United States, the IRS treats all crypto as property. Starting January 2025, brokers must report digital asset sales via Form 1099-DA. Missouri eliminated the state capital gains tax on crypto in May 2025, but federal taxes still apply.
• In the European Union, most countries tax crypto gains, like France at 30%, Italy at 26%. Germany and Belgium exempt holdings that are held for over one year. The EU’s DAC8 directive now covers DeFi and NFT platforms, closing previous reporting gaps.
• In Asia, Singapore exempts capital gains but taxes business income at 17%. Japan applies progressive rates up to 55% (proposals to lower to 20% are under review). India charges a flat 30% with 1% deducted at source.
• Other regions: Canada taxes crypto as business income or capital gains, depending on trading frequency. Australia applies capital gains tax with a 50% discount after 12 months. Most African nations lack specific frameworks, though South Africa generally permits trading under existing financial regulations.

Best Practices to Stay Compliant with Penny Crypto Taxes

It’s important to track everything from day one. Record the date, purchase price, sale price, and fees for each transaction, even $5 trades add up. Use crypto tax software like Koinly, CoinLedger, or TokenTax to automate tracking across exchanges and wallets.

Hold longer to cut your tax rate. In the US, waiting 12+ months can drop your rate from 37% to 15%. Use losses strategically: if a penny crypto crashes, sell it to offset other gains. The US allows $3,000 in annual loss deductions against regular income, with excess carrying forward.

If there is a complex situation, like multiple presales, DeFi yields, and cross-chain bridges, you can consult a crypto-specialized accountant. Tax authorities worldwide are tightening enforcement through exchange data sharing and blockchain analytics. Penalties for non-reporting include fines, back taxes with interest, and potential criminal charges in severe cases.

Conclusion: Final Thoughts on Investing in Penny Cryptocurrencies

Penny cryptocurrencies are accessible entry points and have explosive upside potential that established coins can’t match. With Bitcoin above $124K and DEX volumes hitting $369B, liquidity is flowing into sub-$1 tokens. Potential catalysts like Solana ETF approval and continued institutional buying could trigger another meme coin season in Q4 2025.

For presale opportunities, Bitcoin Hyper (HYPER) stands out with its Bitcoin Layer 2 infrastructure and 984M+ tokens already staked, solving BTC’s DeFi limitations. Also, Shiba Inu (SHIB) leads with proven infrastructure, Shibarium, ShibaSwap, and automatic burns, backed by a $7.1B market cap and multi-cycle survival. Both offer clear utility beyond speculation, but HYPER carries higher execution risk while SHIB provides more stability with lower multiples.

Remember that penny crypto swings 30-50% daily, and 90% of projects eventually fail. Only invest what you can afford to lose completely, keep penny tokens to 5-10% of your portfolio, and always verify smart contract audits and tokenomics before buying. The next 100x winner is likely here, but so are dozens of projects that’ll drop 90% and disappear.

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Otar Topuria

Crypto Editor, 21 posts

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I’m a crypto writer and analyst at Coinspeaker with over three years of experience covering fintech and the rapidly evolving cryptocurrency landscape. My work focuses on market movements, investment trends, and the narratives driving them, helping readers what is happening in the markets and why. In addition to Coinspeaker, my insights and analyses have been featured in other leading crypto and fintech publications, where I’ve built a reputation as a thoughtful and reliable voice in the industry.

My mission is to demystify the crypto markets and help readers navigate the noise, highlighting the stories and trends that truly matter. Before specializing in crypto, I worked in the IT sector, writing technical content on software development, digital innovation, and emerging technologies. That made me something of an expert in breaking down complex systems and explaining them in a clear, accessible way, skills I now find very useful when it comes to unpacking the intricate world of blockchain and digital assets.

I hold a Master’s degree in Comparative Literature, which sharpened my ability to analyze patterns, draw connections across disciplines, and communicate nuanced ideas. I’m particularly passionate about early-stage project discovery and crypto trading, areas where innovation meets opportunity. I enjoy exploring how new protocols, tokens, and DeFi projects aim to disrupt traditional systems, while also evaluating their potential risks and rewards. By combining market analysis with forward-looking research, I strive to provide readers with content that is both informative and actionable.