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We all know that low market cap cryptocurrencies are cryptocurrencies that are below $1 billion in marketcap. However, low capital cryptocurrencies can be considered the most profitable among the other asset capital types such as large market cap and mid market cap. Reason is because they have a lot of room for growth and price increase. A low capital cryptocurrency can grow as high as over 1000x before it even gets close to becoming a large capital cryptocurrency. That is why a lot of investors like cryptocurrencies under the low capital category to invest with risk capital funds[.](https://hive.blog/hive-175254/@designieplay/low-market-cap-cryptocurrencies-and-why-they-are-considered-to-be-highly-profitable)
**Pros** - The advantages of low capital cryprocurrencies are; it can be highly profitable short term investment, Very high return on investment, Have a lot of room for price increase, Little investment capital can generate very high profit.
**Cons** - It is a highly risky investment, Highly volatile, Investing in low capital cryptocurrencies can lead to loss of invested capital, manipulation in the market is high on low capital cryptocurrencies because it is not yet popular and is mostly concentrated by few whales[.](https://steemit.com/hive-175254/@designieplay/low-market-cap-cryptocurrencies-and-why-they-are-considered-to-be-highly-profitable)
Aside from the market capitalization of cryptocurrencies and their effect on cryptocurrency investment, there are also other factors when it comes to investing in cryptocurrency assets[.](https://steemit.com/hive-175254/@designieplay/low-market-capitalization-cryptocurrencies-and-why-they-are-considered-to-be-highly-profitable) Risk capital is one of the factors when it comes to cryptocurrency investment[.](https://steemit.com/hive-108451/@designieplay/crypto-academy-course-6-types-of-crypto-assets-capital-risk-capital-in-penny-cryptocurrency-by-stream4u) Risk capital are investment funds or capital that are mainly used for speculative investments or investment on risky assets. Risk capital are mostly used to invest on good projects that are new, in the early stages or unproven with low marketcap.
They are called risk capital because they are funds that will not cause any harm if they are lost on the risky investment, but can generate great return of investment. Penny cryptocurrency is another factor when it comes to cryptocurrency investment. Penny cryptocurrencies are simply cryptocurrencies that are a penny or less than a penny or cent. A lot of penny cryptocurrency are under the low capital and can go as high as over 100x in a short time. Some penny cryptocurrencies still fall under mid capital as well.
**Final Thoughts** - Investing in cryptocurrency is a very sensitive thing to do and have to be taken very seriously. It is very important to always do proper research before investing in any cryptocurrency and try to make the best decision. Large capital cryptocurrencies, mid capital cryptocurrencies and low capital cryptocurrencies all have their pros and cons, it is important to choose wisely when investing in any cryptocurrency.
