How to Spot undervalued Coins Step by Step
The Journey To Finding That undervalued Coin Step By Step
Cryptocurrency is rising at an exponential rate, yet it isn't adopted by the general public, click here to view the latest crypto updates, with that said, let's dive in to our topic.
Publicly listed corporations always have balance sheets when it comes to stock market investing. Investors may evaluate the financial health of the company in great details.
In the case of cryptocurrencies, the companies and initiatives with the biggest profile and the most money to spend on promotion have tended to draw the most investment attention. This isn't to say that other coins aren't worthy of consideration. On CoinMarketCap, there are over two thousand cryptocurrencies listed, so there's enough to consider when it comes to investing in the Crypto market, but spotting the right coin is sure an excruciating task, but hey we here to give you tips on how to do just that.
There are no balance sheets in crypto. Prices are mostly determined by the promise of cutting-edge new technologies and a great deal of marketing hype. This is why navigating the world of micro-cap coins can be so tough, especially with concerns like frauds and project failures.
You might have asked yourself if there are ways to figure out what these coins are worth, what technologies/companies they represent, and how they will perform in the near future?
Sure, after all it's not all that different from how ordinary value investors examine stocks.
Here are some wonderful steps that will guide you to maybe the next BTC!
Learn about the coin's founders and developers who are developing the technology it represents. Investors trust the developer/founder more than the coin/project that they're doing. e.i ETH's explosive growth massively depended on the skill and the strong leadership of its founder Vitalik Buterin
Find out the real problem that they're tackling with, are they solving Climate issues, Logistics tracking, Data Loss, etc?
Find out which trading platforms they're listed on, as coins get more exposure to the masses, numerous exchanges offer them to be traded on their platform, resulting in increased trading volume and price. There is a lot of potential upside if you acquire an inexpensive coin before it becomes available on many cryptocurrency exchanges.
Find out if the coin you're looking into is being used or partnered with other business and entities. e.i, Microsoft's and Visa's cooperation in Ethereum is a positive indicator.
The value of a new coin will considerably increase if it is adopted in the real world.
Study the coins price history. Is it consistent over a period of weeks or months? Did it react to a hype cycle before collapsing? (pump and dump)
Most Importantly read the Coin’s Whitepaper
With That out of the Way, Let's Examine a Coin Which I Think is Undervalued!
The Graph (GRT)
Q1. Who're the founders of The Graph?
A1. Electrical engineer Yaniv Tal, computer scientist Jannis Pohlmann, and roboticist Brandon Ramirez founded The Graph.
Q2. What does the Graph Solve?
A2. Due to the complexity of Ethereum's data, it is very hard to build dApps that are complex. This issue can be solved through a combination of better algorithms and more transparency. So they built The Graph to tackle this issue.
For simplicity it is help users when indexing and querying data. Developers can utilize the Graph protocol to find and publish the public data required when building dApps.
Q3. On which exchanges is The Graph listed on?
A3. The lists of exchanges include Binance, Kraken, OKEx, Kucoin, and Coinbase.
Q4. Are they partnered with any companies or entities?
A.4 Although The Graph is still gaining some traction it didn't partnered with entities as far as I'm concerned, but The Graph’s data protocol is being used by developers at Uniswap, Synthetix, Decentraland, Aragon, and many others. Over 3000 subgraphs have been listed on The Graph Explorer so far, and The Graph Network is processing around *half a billion* data queries per day!
5. Price history (Come on….. Seriously I thought that was supposed to be done by you)
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