Why do I belive Ethereum is well undervalued? How do I invest and why

I have been looking at how people invest in cryptocurrency as day traders, it's easy to panic and sells at the wrong time. So, my advice is to bite the nerve and hold out. Go away and write an article, make a cup of coffee or tea, take a walk get some fresh air. Else you will make a silly decision and will cost you 1000s. Been there done that had the scars in the form of negative balance to show for it.

I suggest you Focus on a coin you really believe in. Invest your time in learning about that coin. Understand it's capabilities and limitations. learn about who are the big boys in town who are interested in your favourite coin. Join slack groups, Facebook groups, make friends and share your knowledge with everyone. Then we all win. So here is my favourite coin and how I invest, hopefully, this will help you grow your knowledge. Please do not take my comments as financial advice.

As a strategy, I treat Ethereum as the fiat currency/dollar. So when I buy coins using fiat I generally buy Bitcoin. I know you are thinking WHAT? that's odd!

Well, this is due to its convenience and support on many platforms that you can buy BTC. Most people offline have also heard about Bitcoin. They may not be investors, miners or in businesses that accept Bitcoin YET.

Also at the moment, BTC seems to be a bit more "stable", compared to Ethereum. Ethereum is a "bit more volatile" than BTC. I am using those words very carefully as things could change by the time I finish writing this post. This is just the nature of the crypto market.

With that in mind, I use the BTC to buy other coins that I research and find to turn a profit. How I research will be in my next article. I then check my balance and sell the profit margin I have earned on the coins. I sell the margin to buy Ethereum. So my Ethereum is used as a savings bucket. The idea is I add more cash into my Ethereum wallet daily from the profits. Why?

Although I believe there is plenty of room for BTC to grow. Especially once mums and dads starts investing, and I get 1/2 dozen of my local cafes start accepting it. My advice is that we all talk to our local businesses as just as a question "do you accept Bitcoin and Ethereum as a payment?" Then let them wonder and ask questions.

Having said that I rather focus more on Ethereum, as it is the second most popular coin in the market. Additionally, it is only about 7.7% of the value of a BTC at this stage. I find it hard to believe that Ethereum will remain 92% below the value of a Bitcoin.

Looking at the two coins, there are 16.5 Million Bitcoins in Circulation with a total market cap of $71.9 Billion. Compared to Ethereum has just over 94 million coins in circulation with a total market cap of over $31.5 Billion. If the value is based on supply and demand, then there are 5 times more Ethereums’ in the market than Bitcoin. As a result then Ethereum should be 1/5th the value of BTC. But then we all know that's not the driver of the value.

The value of Ethereum comes from the underlying technology and what it's capable of. Although the same can be said about Bitcoin. I believe the driving force behind the growth of Bitcoin is due to media coverage. As new buyer come onboard and buy Bitcoins after hearing about it on Radio and TV. Where as Ethereum is more of a platform to build other applications on top of. Once major banks, retailers and technology giants start developing systems and supporting the Ethereum project, we will see a massive increase in its value.

My final thought is that I find it difficult to believe out of the two of the most popular cryptocurrencies, one would be valued less than 10% of the leader.

What are your thoughts?