6 tips that can help you find undervalued cryptocurrencies
This article would like to tell you how to research the cryptocurrencies and how to see that they are undervalued. Take a closer look at the following tips and you will find the best digital currency to invest in.
1. Team and community
First of all, take a look at the team.
Are they are active on the social platforms? Do they promote their product actively? Are they experienced enough and do they have necessary knowledge?
Apart from these questions, take a look at their community. Check if there is an active community of traders or miners within the project and if they create any fan websites and forums besides the official platforms.
All these questions help to find out if the team and the community can push the project forward. All these signs can tell you which cryptocurrency to invest in.
2. Technology
Always check the technology behind this or that coin.
Check if it is based on bitcoin or ethereum
If a cryptocurrency is based on Bitcoin technology, it is mostly concentrated on the payments. In this case it will need to offer the market something new that will help it stand out, like lower fees, faster transactions or anything else that makes it unique.
If a cryptocurrency is based on Ethereum technology, then it is mostly concentrated on smart contracts. In this case check its features and see if it can beat Ethereum at least in some points.
3. Partnerships and hype
Check out all the blog articles and Slack channels for any significant news about partnerships, as such events always bring more people to invest into this coin and thus increase its price.
Also, the partnerships sometimes mean new technologies implemented into the crypto.
Hype factor should also be considered. Look out for different coins that are discussed on the major forums like Bitcointalk and Reddit. These forums my help you see if the coin is getting more popular in time.
4. Market and exchanges
Find out at which exchanges this specific currency is available.
Check out if this cryptocurrency is available both on western and eastern markets. Digital coins usually increase in value when they are available on both sides of the world. I can often see that if specific coin was previously only available at the US market and then when it was added to the Chinese market, after that it is usually spikes in value.
Also check if the coin is available at the major exchanges like Changelly, Poloniex or BitFinex. Coins also tend to spike in value once they are added on several trading platforms.
Coinmarketcap.com is also a very good source of information. You can find the other day trading volume for the coin and how its price has changed over time.
5. Roadmap
Roadmap is one of the most important things to look at.
Check the roadmap of the coin you are investigating to find out if there are any exciting new features planned, as such big events can quickly rise the price. The same applies to any significant updates to the technology or the software.
Github is also a very useful source as you can track the development progress there.
6. Price history
Finally check the price graphics for the coin you are investigating, see what was the all time high price and how much it costs at the moment.
Analyse if the coin is usually stable or if it gets regular pumps and dumps.
You may find all this information at coinmarketcap as well.
Conclusion
Investing in digital currency to invest in is not that difficult. Check out these 6 signs and they will help you see if the currency is going to win in the future.
