When altcoins trade for less than $1, they can really move. A case in point is Harmony (CCC:ONE-USD), as traders have witnessed Harmony’s price launch into the stratosphere and then fall back to Earth.

And that has all taken place in 2021. It’s been an epic, nearly round-trip journey, and we’re only halfway through the year.

InvestorPlace contributor Tezcan Gecgil identified the  token as one of the best sub-$1 altcoins to buy in July. I tend to concur with Gecgil’s assessment.

On the other hand, there’s a vast sea of altcoin upstarts out there. Why is the ONE token so special?

That’s a valid question, so let’s dive in see what Harmony is all about -and why it deserves a place on any list of sub-$1 altcoins.

A Closer Look at Harmony’s Price Action

The ONE token was off of most traders’ radars in February 2021. Its price was close to 2 cents – until the bulls took over, that is.

It didn’t happen overnight, but a massive rally picked up steam in February and March. Before long, the Harmony coin was worth 22 cents.

Generally speaking, I recommend that anyone whose investment surges 900% should take profits. Remember: greed  destroys accounts.

The price action of ONE coin provides a textbook example of that principle. The currency entered a painful decline in late March, and though there were brief recoveries along the way, the bears would eventually prevail.

By July 2, the Harmony coin was changing hands for around 6 cents. That was a painful situation, no doubt, for the folks who bought it for 10 cents or higher.

On the other hand, you might just be learning about the ONE token today. In that case, you may be able to start a position in it at a pretty good price point.

Shards of Value

There’s a lot of excellent information to be gleaned from Gecgil’s list of top “penny cryptos.” For instance, Harmony was founded in 2017 by Stephen Tse, and its platform facilitates the creation and use of decentralized applications, or DApps.

Here’s where it gets really interesting and a little bit arcane.

Harmony is a sharding protocol. This type of protocol splits “the overheads of processing transactions among multiple, smaller groups of nodes” to improve network speed.

As Harmony’s website explains, “Sharding is proven to scale blockchains without compromising security and decentralization.”

Thus, a chief objective of sharding is to keep networks as secure as possible.

Harmony truly takes the sharding concept to the next level by dividing not only its network’s nodes, but also the blockchain states, into shards.

Furthermore, each shard has 250 nodes for enhanced security. Consequently, Harmony provides assurance against attacks . That’s a key differentiator at a time when some businesses are skeptical of the security of the blockchain.

A Greener Blockchain

One of the more intriguing movements on the blockchain is the emergence of green cryptocurrencies.

The latter term refers to more eco-friendly, less energy-intensive cryptocurrencies and blockchain networks.

Some cryptos use a proof-of-work concept, which causes miners to utilize a lot of energy. That’s an expensive process, and some cryptocurrency users might complain that it’s wasteful.

Harmony, in contrast, dispenses with the proof-of-work concept entirely.

Instead, it uses a proof-of-stake model. Or more precisely, it utilizes an effective proof-of-stake protocol.

Harmony points out that this protocol is both energy-efficient and inexpensive  for node runners (not to be confused with traditional crypto miners).

Moreover, folks with higher numbers of tokens take on a greater share of the network’s responsibility.

As Harmony explains it, “validators with a large amount of staked tokens are obligated to run more nodes to support the network while validators with less stake run fewer nodes.”

It’s a system that, overall, promises to be fair and efficient at the same time.

The Bottom Line

Currently, the ONE token is extremely affordable and has reached an attractive price point.

Meanwhile, the Harmony network stands apart as both highly secure and eco-friendly.

It’s the type of technology that could change the landscape for the blockchain, while enriching early-stage investors.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.