How do you know a Crpyto is undervalued ?

There are hundreds of types of Crpytocurrency in the market right now and there are many under values ones or some which is overvalued. So in order to be able to to determine which one to invest in for the long terms or short terms there are a few basic steps which I would suggest that we could take into account before deciding which is divided into the following manner :-

(A) The Team or Community

Always look into the team or Community of behind the projects. Do some search on the crucial people who are in charge of the project. There are also fake ID accounts around the cyberworld. Check if the people handling the coins has the background and necessary experience or knowledge to handle the coin or platform as they will be indirectly handling your money which you have invested to push the market forward.

Then look into the way the way the team delivers or communicate on the social platform and how responsive are they. Look into all their communication channels like slack, Twitter, Facebook, Telegram and such. Do they actively promote their product via social platform or expos or presentation or roadshows. As they more marketing means more sales , more exposure, more awareness, you'll build more trust between the team and investors, you'll build a social asset and may more.

You should always look at the community boards or platform including miner or traders behind the project to check that is they have a community or fan base which will always help push the coin to preform better at a better price. Look if the have a website or forums and how committed are the followers. The more people supporting the coin the more it will grow.

(B) The Market and Exchange Platforms

Before you are able to buy a coin you need to know where you can buy the coin so you have to know check which exchanges is the crypto available at. The more exchanges it has the more better liquidity is the coin which mean better investment. However, it is always better to check if the crypto is available in both western and eastern exchange as you can alway find a gem which might only be listed on one exhcange and then listed to another exchange in the future as one tends to increase a value if the are added to another a market . See also if the current crpyto is planning to be a dded from a small exchange like cryptopia to any other major exchanges like Bittrex or Poloniex as this will cause an increase in the amount of buyers into the market and will increase in value once its listed.

(C) Partnerships and Hype

As they as the more the better the merrier, two head is better than one . So this works in the same was in the cryto world, so always keep a look out on the crypt's social platform such as blogs or channels whether there are any new significant announcements of partnership as new partnerships will bring new people and new money and this will increase investor's faith in to coin itself such ETH which they have new members came joined them and pushed the price up EEA.

Sometimes partnership also means new developments of the projects which they are hitting their workmap or their goal in their white papers and developments and achievements brings more confidence to the community.

One of the major significant area that we must always keep in mind is the HYPE of a crypto. The more hype the more popular the more money coming in meaning more value will be added as there is a trend of FOMO. A lot of HYPE will depends on the marketing and development of the crypto itself. A good place to look at the hype of the coin are place like reddit . botcointalk, steemit, facebook or youtube.

(C) Price History

Always check the charts or price histroy of the crypto. Look at their all time high (ATH) price and compares it to the current price. Some background of technical analysis will always help in this area. Try to analys the general trends to see if the coin get pumped or dumped or its usually stable and slow growth which can sustain or recover fast in market crashes. Its always better to be careful when you are investing in a pumped or dumped crypto as you can lose a lot of money. Always check on the volume of the coins as well and the lock up capital of the coin as it will be able to provide some insight on the stability of the coin price. Site like Coinmarketcap , cyptocompare or Coins is helpful.

(D) Technology and Innovation

Crypto is a relatively new area. The main cryto are such as Bitcoin or Ethereum. So once a crypto is lauched it is always to be compared to Bitcoin and Etheruem. So it is imporatnt to look at the technology behind the crpto if it is a new technology or what does it offer and is it in a single market or does it has other cryptos which functions the same or competitors with the same technology with it.

So identify what are their strong point or weak points such as if its a cryptocurrency that concentrates mostly as a payment i will have to compete with Bitcoin which it has to prove that it can transacts faster, safer, cheaper, anonymously, or anything unique compare to bitcoin. Other than bitcoins there are other cryptocurrencies like Zcash or ripples.

If it concentrates on smart contracts it will compete with the likes of Ethrerum or Ethererum classis or Waves. So you will have to compare its features and see if it has any advantages over any other smart contracts cryptos.

So always see what does this crypto has to offer that none other competitors has and will they be able to deliver or it is easily adapted by the market.

(E) White paper and Road map

Always look into the white paper to see what is the crypto is all about and study them if they provide a road map so we will have a clear picture if there are any exciting developments or expositions planned. If they are going to achieve the their goal according to the road map or any big event or announcement it will create a hype and an increase of price will usually follow. So any significant updates to the software or technology will always be great news for investors and always follow the general outline of the coin to see how busy the development team is and you can Github to see the development progress.

Hence there are the some of the most basic steps that you can take to identify the value of a coin.
You can always check up on the coins at the official websites, twitter or Slack channels where you can directly talk to the devs/marketers.

I am **NOT ** a financial advisor and I recommend you to consult a profession financial advisor if you are planning to invest or you have to do your own due diligent and research.

If you like my post please feel free to donate some
BTC : 1PkjVmYVwAHfAHUW1q9yjN9HVjSZB3GJiU
ETH : 0xb02776a1d7ba9dbc0cdacaa00fe368e12ffe7166
ZEC : t1dorDAEVhH4Eyq1UERaKSZtdyKouw1weih
Waves : 3P8X2J6up8ragNk47cfCXvzch6YYdjayzNx

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