How to Find Potentially Undervalued Coins with Solume.io

Adam Shahaf
Dec 7, 2017 · 3 min read

Whether you’re an adventurer looking to make a hit with a coin you are not familiar with, or a disciplined trader with a clear goal, here are a few steps on how to use Solume.io to identify potentially undervalued coins. We do not presume to argue that these steps by themselves form a sufficient basis to make trades, but rather they offer a supplementary routine to identify opportunities and to make better trade decisions.

We recommend to start by sorting coins according to the rate of change in social volume over the last 24 hours. Unless you have specific coin in mind, you can focus on looking at coins that have significantly grown in social volume, but have also had a negative change of price in the last 24 hours.

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Another criteria is the actual social volume in the last 24 hours and market cap. The bigger the market and the community are(high social volume suggests activity of a large community), the bigger the change needs to be in order to indicate upcoming market change.

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After choosing two or three potential candidates, visit each of their coin-pages. In their coin-pages you can play with the zoom. Activating the price curve will help you get a view of the relationship between coin price and coin social volume.

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In the coin page below the chart are curated social media posts from Twitter and reddit. Since the list is composed of sources gathered from multiple filtered sources (and multiple sub-sources), a quick look on the list can indicate whether the rise in social volume expresses a positive or a negative sentiment [We’re working on adding the sentiment analysis feature, and it is coming soon 😁 ]

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The next step would be to check the authenticity of social volume. While we do filter spam, we still recommend sifting through collection of posts. Good indicators would be the measure of up-votes/likes and language diversity. Monotonous posts/tweets may indicate potential pump and dump activity. Another possible indication of market manipulation attempts comes in the form of social media channel diversity. The more widespread the social chatter over a certain coin of an ICO, the more chances that it’s genuine.

It is worth considering the fact that even if you identify a pumping activity, it might be a good idea to get into position; however do bear in mind the risks involved and be sure to set your stop loss.

Below are a few examples from our archive that show events where rising social curves preceded rising price curves.

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A 100% rise in Vertcoin’s social volume precedes a 13% in its BTC price
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A 50% rise in Litecoin’s social volume precedes a 5% rise in its USD price
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A 25% rise in Monero’s social volume precedes a 5% rise in its BTC price

It’s important to clarify that the hints provided above are not a conclusive strategy. It’s a way to use solume.io and we think it can help our users gain more value and identify more opportunities.

We would love to hear your feedback and ideas on how to use solume.io and make it better.

You can reach us by mail, or tweet us @solumeIO

Love you,

Adam

Solume.io

Thanks to Eran Hirsch

Adam Shahaf

Written by

CEO at Solume.io

Solume.io

Solume.io

Solume builds a platform that monitors all online communication related to crypto, on a real time and historical basis, in order to provide its users with asset ranking, risk assessment and real time event discovery

Adam Shahaf

Written by

CEO at Solume.io

Solume.io

Solume.io

Solume builds a platform that monitors all online communication related to crypto, on a real time and historical basis, in order to provide its users with asset ranking, risk assessment and real time event discovery

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