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#1 18-02-2023 14:17:02

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3670
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The most undervalued cryptocurrencies to invest in this year

The most undervalued cryptocurrencies to invest in this year


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With last year's cryptocurrency market crash, the term devalued cryptocurrencies became widely used. A devalued asset is an asset that is trading below its true value. This means it has great potential for growth over time.

However, it's key to note that only certain cryptos that have lost much of their value are devalued.

Also, you'll notice that there's very little overlap with our recent article on the best future cryptocurrencies to invest in (in 2023).

According to our analysis, here are the most undervalued cryptocurrencies to invest in this year:

   Arrow  Trust Wallet Token (TWT): A cryptocurrency that is growing rapidly as self-holding of cryptocurrencies expands.
   Arrow  Chainlink (LINK): The main cryptocurrency that wants to decentralise the Oracles data market.
   Arrow  Filecoin (FIL): a devalued cryptocurrency that seeks to decentralise cloud storage.
   Arrow  Bitcoin (BTC): a reliable cryptocurrency suitable for beginners
   Arrow  Dogecoin (DOGE): one of Elon Musk's favorite meme* cryptocurrencies
   Arrow  Binance Coin (BNB): the cryptocurrency that powers the largest cryptocurrency exchange.
   Arrow  Ripple (XRP): a cryptocurrency with huge potential if Ripple wins its current lawsuit.
   Arrow  Cardano (ADA): one of the most advanced smart contract cryptocurrencies on the market.
   Arrow  Ethereum (ETH): the leading cryptocurrency for the rapid execution of smart contracts
   Arrow  Shiba Inu (SHIB): the biggest meme cryptocurrency to enter the metaverse
   Arrow  Decentraland (MANA): one of the leading cryptocurrencies in the growing metaverse space.

(*meme crypto = a term for popular currencies, sometimes depicted with comical or animated memes, that are supported by enthusiastic online traders and followers. While meme coins may appear fun, they are also highly risky investments.)

How can I know if a cryptocurrency is undervalued?

Many people believe that crypto-assets are currently undervalued. Although there is no guarantee that this will remain the case, buying an undervalued asset provides the opportunity to enter at a discount. Of course, it can be difficult to correctly identify a devalued asset and there is always a risk that the asset will never reach its perceived value. However, for those willing to take that risk, buying an undervalued crypto asset can be a great way to invest.

So how do you find undervalued cryptocurrencies? Here are some steps you can use to identify undervalued cryptocurrencies to invest in today.

Look at macro trends

Crypto markets are notoriously volatile. However, like most tradable instruments, crypto markets also go through bullish and bearish sentiment cycles. During a bull market, prices tend to rise steadily for weeks or even months. This can be a good time to buy into the market, as prices are likely to continue to rise.

However, bull markets eventually come to an end and are usually followed by a period of falling prices, known as a bear market. Bear markets can last for long periods of time and can be quite painful for those who hold losing positions. However, bear markets also provide an opportunity to buy low and sell high. Understanding market cycles is key for any investor looking to profit from the cryptocurrency markets.

Take a look at the cryptocurrency market capitalisation

When evaluating a cryptocurrency, one of the first things to consider is its market capitalisation. This figure gives you the size of the project and can be used to compare different assets. Market capitalisation is represented by multiplying the total number of tokens in circulation by the current price.

This figure can give you a good idea of how popular this product is with traders and investors. However, it is important to remember that market capitalisation is only one of the factors to consider when evaluating an asset. For best results, also review the team's experience, roadmap, and project use case. If a project has solid fundamentals, it may be interesting to invest in it despite a lower market capitalisation.

It should also be noted that cryptos with a low market capitalisation tend to be riskier, but have a higher return. Indeed, even a small amount of money can have a big impact on the price. A new low-cap crypto may be riskier than Bitcoin, but it has the potential to quickly gain 15 times or more during bull markets.

Conclusion

This article has touched upon the 11 most undervalued cryptocurrencies to buy in 2023. Each of these cryptocurrencies has the potential to perform well this year. However, our analysis shows that Trust Wallet Token could outperform the others in 2023. Indeed, with the collapse of FTX and other negative events this year, more people are likely to turn to decentralised cryptocurrency storage.

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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