Thanks to the blockchain and a host of serious investors, cryptocurrency stands poised to change how we make money in the next century–and possibly even the next decade. Where does that leave us, as consumers? The good news is there’s tons of opportunity for individuals willing to take a risk on undervalued cryptocurrencies.
Are you prepared to navigate the murky, potentially dangerous waters of cryptocurrency? Keep reading for our buyer’s guide which included tips on avoiding scams, plus the market’s favorite undervalued cryptocurrencies.
Bitcoin Cash (BCH)
The Cryptocurrency Buyer’s Guide
You’ll probably notice quickly that we’re taking a long-range view to building wealth with undervalued cryptocurrencies, and you’d be right. While you can stand to make tons of money very quickly with cryptocurrencies like Bitcoin and other altcoins, you can also stand to lose a ton.
This is exactly what happened in the first half of 2018 when cryptocurrency traded at an all-time aggregate of more than $800 billion and then plummeted to something in the $200 billion range within six months. By the middle of 2018, there were somewhere between 800 and 1,000 (or more) dead coins–cryptocurrencies that had been revealed as scams or had lost money.
Similarities to Internet Dot-Coms
Most cryptocurrency experts are quick to point out that internet dot-coms had a rough go of it in the beginning, too–sites like Pets.com are remembered for their meteoric rise and subsequent disgrace, losing a terrifying amount of money on behalf of their investors on the way. Ultimately, however, the market righted itself, and we trade now on the ups and downs.
Ultimately, when you’re doing any kind of investing, there are two basic ways of approaching things. In truth, there are much more than two, but most strategies fall under one of two umbrellas. The short-term view means buying low and selling high, and the long-term approach means a fundamental belief in the market’s integrity as a whole and the conviction that, if you hold a portfolio long enough, over time it will make you money.
Increase Over Time
These convictions generally hold correct in the stock market (every business student, for example, learns that the overall stock market’s trend, even in the face of recessions and depressions, is up) and there are a lot of people betting a lot of money that the same will hold correct for cryptocurrencies, and especially undervalued cryptocurrencies.
There are also lots of people looking for opportunities to buy low and sell high. Sometimes, these two focuses overlap. You might choose to hold onto your cryptocurrency for twenty years, for example, or you might decide you want to hold it for a year and then look for a good opportunity to sell. Or, you might decide you want to get rid of it as soon as you can make any sort of profit.
How Conservative is Your Approach?
The more conservative approach is one of the former; holding cryptocurrency for at least a year, if not much longer, and that’s mostly what we’ll be focusing on below. We’re looking for project stability. Who is behind the cryptocurrency project? What is their history? What is the cryptocurrency’s purpose and what is its trend?
We’ll note, also, that now, as cryptocurrencies are still not back to the wild highs of early 2018, is probably still a terrific time to start investing. You might argue further that the market undervalues all cryptocurrencies. This is the line we tend to adopt, simply because it’s still incredibly easy to uncover scams in this world.
Honestly, It’s All Undervalued
We’d prefer to see a fairly well-known cryptocurrency as undervalued since we believe that the entire market, despite some lows and bubble-bursting, will continue to increase. We’re not the only ones who think this way–this article has rounded up some of the experts’ most bullish investment recommendations for the future of cryptocurrencies. Without exception, they’re positive.
Without any more fuss or explaining then, here are our top undervalued cryptocurrencies, with a quick note on how we chose our ratings.
How We Chose Our Ratings
We haven’t “tried” any of the following cryptocurrencies ourselves, but we’ve scoured the internet carefully for expert opinions, trends, and forecasts. Below is our best attempt at compiling good, solid picks for your portfolio.
Keep in mind; you should always do your research. The quickest way to lose money in this business is to let somebody else dictate how you spend your hard-earned money! And, of course, remember not to invest anything you can’t afford to lose.
Top 7 Best Undervalued Cryptocurrencies
Ethereum is relatively new. It was created in 2015 and heralded as the coin that would finally dethrone Bitcoin. That hasn’t happened yet, but Ethereum lost no time in becoming a significant player in the world of cryptocurrencies.
One of its most influential moves occurred before its launch. In 2014, Ethereum helped to create what’s known as an initial coin offering (ICO), similar to an IPO. This initial presale established support for the new alternative to Bitcoin.
A white paper written by Vitalik Buterin, a programmer, created Ethereum. Buterin had argued in the publication he was involved in (Bitcoin Magazine) that the established cryptocurrency was in need of a scripting language. In 2014, he joined forces with three others to offer what he called Ethereum.
An ether is a coin in the world of Ethereum, and ether has been through a lot in the last several years, including a $50 million theft in 2016. Ethereum continues to have tremendous market staying power, however, so we don’t think it will be going anywhere any time soon. We do, however, expect it to continue rising as more and more people become comfortable with cryptocurrencies.
Bitcoin Cash (BCH)
If you were the owner of Bitcoins in 2017, you made out like a bandit because when a code change to increase Bitcoin’s block size went into effect in August; you ended up with the same number of the new Bitcoin Cash cryptocurrency in addition to your Bitcoins. Something called a hard fork created Bitcoin Cash and as a result, has been one of the most stable undervalued cryptocurrencies consistently since its inception.
This added value for Bitcoin users is just another example of the opportunities available when investing in undervalued cryptocurrencies. Plus, the ensuing changes to Bitcoin Cash have made for improvements, such as faster transaction times due to those larger block sizes.
We believe Bitcoin Cash will see many of the rises that Bitcoin sees, but since it’s currently less expensive, you have the opportunity to get in for a lower investment now, whether you’re planning on selling high quickly or you’re planning on hanging onto your coins for the long haul.
Like Ethereum, EOS operates as a smart contract platform. It also has the distinction of so-called eliminated transaction fees and millions of transactions every second. After its white paper release, published in 2017, EOS set a record by raising more than $4 billion. ICOs are not legal in the United States, so the company behind EOS, block.one, is registered in the Cayman Islands.
There are two reasons we think EOS, despite its high ICO, is still one of our favorite undervalued cryptocurrencies. The first is because of who is behind it, and the second is because of Everipedia.
First, who’s behind it. The current CTO (Chief Technology Officer) of block.one is Daniel Larimer. Larimer is a programmer who has worked in robotics, virtual reality, defense, and more and created a blockchain tech consulting business with his father, who worked for Boeing.
Larimer is also known for his work on Bitshares, a decentralized exchange, and Steemit, a decentralized social media platform. He has a good reputation and has been at work in this world for over a decade!
The other reason we like EOS as an undervalued cryptocurrency is because of Everipedia, an online encyclopedia based on EOS’ blockchain. Everipedia plans to decentralize and host itself on the EOS platform, which will enable countries that block Wikipedia (including Iran and Turkey) to still access it. In short, EOS has a future, and we think more and more people will be operating on it.
NEO used to be called AntShares (its founded Da Hongfei rebranded it to NEO in 2017) and is the largest cryptocurrency to come out of China. As China is a sleeping dragon right now, flush with cash and hungry for growth, this fact alone should be enough to interest you and make you realize NEO is likely undervalued, especially when its down.
However, it’s also an extremely strong buy for other reasons. It’s yet another smart contracts platform (just like Ethereum and EOS) and has sent strong signals to indicate how willing it is to work with governments. This means that as countries like China and the United States move to start regulating cryptocurrencies, something that will likely take place sooner rather than later, EOS will be poised to reap the benefits.
Plus, it’s well established that China likes to work with native products instead of bringing in foreign firms. This places NEO at an extremely appealing position. Finally, we feel NEO is a sound buy because of its support of a variety of existing programming languages, including C++, Java, and many others.
In the world of cryptocurrencies, Ripple is practically ancient. A version of it has been around since 2004 when programmer Ryan Fugger created a new payment protocol to create a decentralized monetary system.
Later, investors like Google Ventures and Andreessen Horowitz, owned by the creator of the internet browser, got involved, indicating how valuable they believe this undervalued cryptocurrency will one day become.
Ripple is different from other coins in that it doesn’t run on the blockchain. Instead, it uses something called a consensus ledger and no mining, so it’s faster and extremely enticing to financial institutions that are already using it to move money across borders. This is a currency that will only go up–so buy low when you can.
While coins like NEO and Ripple are going out of their way to appeal to regulatory bodies, Monero is untraceable. It’s an open-source coin that uses an obfuscated public ledger. This means that its ledger cannot be seen or tracked by anyone but the sender and the receiver.
While this privacy has great appeal, we must caution that Monero has also been used extensively for darknet activities. Often, however, where this is a great risk, there is an opportunity for a lot of rewards, which is why we consider this to be yet another undervalued cryptocurrency.
Despite setbacks, Monero trades at a multi-billion dollar market cap. While tremendous, this cap is still much less than some other major players in the field, making it a coin to watch. Our consensus on Monero is that the demand for security and private, untraceable transactions will only grow as government oversight does, making Monero an increasingly popular choice.
Our Final Thoughts
We hope by now you feel empowered to make some great buys. Certainly, we’ve provided with seven of the best-undervalued cryptocurrencies available today, but as you probably understand by now, the world of crypto can change on a dime. In our opinion, the winners will be the ones who figure out how to hold on tight through all the ups and downs!