There are undervalued cryptocurrencies in the market for sure. Although almost all news and noise in the crypto sphere are Bitcoin related, some other tokens and alt-coins also provide you with revenues, great experiences, and exciting ideas.
As the saying goes, not all that glitters is gold, but certain lights shine strong enough that deserve to be considered as gold.
In that framework, this article will talk about undervalued cryptocurrencies with great potential for the year to come and what are the best cryptos to invest.
The crypto industry is a volatile market which is the place where thousands of tokens coexist, so let's take a look at cryptocurrencies with huge potential and why you should have them under your investment radar.
First of all, allow me to tell you that this article is not a piece of financial advice or trading recommendation. It is just our opinion on assets that are cheap in relation to a set of characteristics inherent to the token itself.
This article is a conducted research about cryptocurrencies that would have an essential role in the development of the blockchain and crypto industries in the next few years and how their progress would be transposed into their price and value in 2020.
Now, let's talk about topics we researched to define why a cryptocurrency is undervalued in relation to its potential for 2020.
We watched over three critical topics and other few components that we believe will determine the fate of every single cryptocurrency in the world. These can be grouped mostly in three major areas: Sentiment, work, and people, where each aspect focuses on one of these areas. Let's talk about it:
● Is the cryptocurrency experiencing proper development?
The first thing we should watch in a cryptocurrency is the technology behind and what is it all about. What kind of necessity the platform is trying to solve and how it is approaching it. What makes the technology unique, useful, and innovative.
How often are upgrades launched?
What is the traction of their product innovation?
What are their expectations in terms of product implementation in the future?
All of these three questions will provide us with useful information about where the project is going and its potential success.
● Is the platform community strong enough?
As we are talking about a new product and platform that want to be used by millions, it is essential to have a significant and robust community. People are important because they will share the message, and they will be the first prophets of the product. The community will share their experiences and the product itself.
Another critical point here is to check who are the most influential players of the network as they will control the cryptocurrency. Do they want to have a strong cryptocurrency, or they don't care? Are they well-known players in the cryptocurrency and blockchain industries? Key questions.
● Is the sentiment regarding the product right?
It is called the secret sauce. Does the product have a good marketing and communication program? It is very important as the right message regarding the platform will provide the token with the stamina to move higher in valuation and growth.
In the same way, we followed tokens and its platform behind to check if they have media print and noise surrounding it.
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1. Bitcoin - BTC: The undervalued crypto giant
Bitcoin was the first cryptocurrency launched when a pioneer, or group of pioneers, who called themselves Satoshi Nakamoto published the Bitcoin white paper in 2008. It represents the blockchain itself and accounts for over 75% of the whole crypto currency market by capitalization.
Bitcoin price analysis:
While it is true that Bitcoin reached its all-time high of 19,666.00 in December 2017 after climbing 1,336% that year, it is also true that it collapsed by 73.39% in 2018. However, the last year, BTC/USD double its price from 3,693.30 on January 1, 2019, to the 7,350.00 traded during the last days of December 2019.
Some experts say that Bitcoin already bottomed, and now it is building a new leg that would drove the pair around 20,000 again. But is it true? Nobody knows it as no human being can predict the future. But the odds are aligning to that place.
According to the Mitrade chart in the image, the BTC/USD weekly price has a consolidation pattern with the 6,000 level as strong support. Most of the forecasts are also talking about an upcoming rally that would lead the BTC/USD price to the 12,000 first and then to the 19,000 boundaries again. ( Update on March, 2020)
Why is bitcoin undervalued?
Yes, everybody talks about bitcoin, and it is the more expensive cryptocurrency in the market with the most significant share of value in terms of capitalization. So, how it could be called an undervalued secret? Well, the answer is easy. Bitcoin is still cheap.
With a price of over 7.000 dollars per unit, BTC is still the king of cryptos and the future of blockchain.
Most of the traders actually buy tokens to gain exposure and then have profits to purchase BTCs.
Every time the crypto industry has a new development, Bitcoin increases intrinsic value. It is basically the reserve currency in the crypto sphere.
2. Holo - HOT: The new player
Holo is not even in the top 100 cryptocurrencies on Coinmarketcap, how it could be one of the most undervalued cryptocurrencies in the world? Well, it is because nobody is doing research and commits in the crypto industry, and it is incredibly cheap.
This decentralized cloud computing platform was founded just in February 2018 and just a year after it has over 104 million dollars in market capitalization. According to its white paper, Holochain, the network behind the crypto, is a "scalable, agent-centric distributed computing platform." It works by shifting from a data-centric to an agent-centric model and allows clients to host dApps on their computers and make money from it.
Holo price analysis
The HOT/USD is trading near to its lowest prices ever around 0.0023 dollars per Holo coin. But at the same time, the chart seems to have found the floor, and it looks ready to perform a decent gain. Obviously, it is a risky bet but as a matter of context, just returning to the range the token was trading in mid-2019, it would mean a 200% return profit.
Why is Holo undervalued?
Holo was the top technology with more commits in Github in the last three months of 2019, and the second in the previous 12 months. According to CryptoMiso, just in 2019, more than 1,461 commits were registered in the network. That means a lot of work done by the network.
Holochain green paper is a well-stipulated and detailed roadmap
It opens the door for sharing and hosting information while generating revenues to main street people.
Its team is also a well known group of people with years of experience in the industry.
3. Chainlink - LINK: Two worlds connected
Data bridge facilitator Chainlink serves as a medium for smart contracts to the "real world" and external resources. Its coin, LINK owns the 18th place in the crypto world by capitalization with 660 million dollars.
Link price analysis
With a current price of around 1.8620, Link is trading near to its lowest level since mid-2019. However, the pair looks ready to go up as the token is consolidating and accumulating bullish interest. After 2.000 resistance, the price could jump quickly to 3.000.
Why is Link undervalued?
Partnerships from outside of the industry well support chainLink.
It also has a strong marketing presence and well experienced team.
Chainlink was the second network with more commits in Github in the last three months of 2019.
4. Tron - TRX: Fastest growing dApps platform
With almost a billion dollars in market cap, Tron is the coin number 12 in the world. It works to build a truly decentralized internet with blockchain technology, active marketing campaigns, and a sexy revenue plan.
TRX price analysis
Tron is trading near its lows of 0.0110 against the USD; however, the TRX coin is starting to build a bullish sentiment with only the 200 and 50 days moving averages as resistance. A possible return to 0.020 would mean a 60% profit return.
Why is TRX undervalued?
Tron focuses its efforts on two things, technology and marketing.
They are always on the mouth of experts.
It is also the fastest-growing dApps platform.
Offers a complete set of programming tools for developers.
5. Ripple - XRP: The establishment token
Ripple is the digital token of the XRP Ledger. It is said to be the most efficient settlement option is well accepted for financial institutions and liquidity providers. It could work with interbank flows.
XRP price analysis
According to the Mitrade chart, XRP is trading near lows at 0.1740. However, it is also building up a bullish interest that for now is capped by the 0.2000 resistance. Any movements above that would lead the pair to trade as high as 0.3000, which would mean a 60% return of investment.
Why is XRP undervalued?
In terms of potential impact in the traditional economy, XRP is undervalued as it is trading just at lowes.
Given that the globalization of the economy is more needed than ever and a solution that is accepted by the traditional banking industry is always a good bet
Ripple is well-positioned in that framework. No matter you like it or not.
6. Ethereum - ETH: The queen also rules
Ethereum is the queen of the crypto world, but it rules in smart contracts. With over 13 billion dollars in market cap, ETH is the second crypto in the world. It works as smart contracts and dApp platform with no downtime, censorship, fraud, or external interference.
ETH Price analysis
Although it is trading at multi-month lows, Ethereum is well supported by the 120.00 level and with the support of technical indicators that are showing signals of bullish revival. Next frontier would be the 160.00 area about a more natural approach would send the ETH to 220.00 in the middle term.
Why is ETH undervalued?
The Ethereum network is among the most secure platform in the industry
ETH is the standard in smart contracts
Ethereum 2.0 is about to be launched
7. Cardano - ADA: When the dark horse comes
Cardano provides secure and scalable complex programmable transfers of value. It works with a scientific philosophy and a research-first driven approach and offers advanced features on smart contracts in a democratic governance system.
ADA price analysis
Cardano is another coin trading at multi-month lows just above 0.030. However, the sentiment is changing quickly to the token as fundamentals and technical approaches are suggesting a bullish trend is forming. ADA/USD needs to clear above 0.0350 for sure to build up that needed leg. A simple run to 0.0450 would provide a decent 30% return.
Why is the ADA undervalued?
The sentiment is everything in the market, and Cardano just got an excellent bullish rating from Weiss Crypto Ratings. According to Weiss:
Cardano is easily one of the most deeply undervalued #crypto assets on the market.
When new features roll out in Cardano, they're thoroughly tested
It reintroduced fees by introducing REX, which is also broken and stuck at maximum capacity.
8. Maker - MKR: When getting a 1-million-dollar loan for 73 cents is possible
Maker is the 25th digital coin in the world by capitalization, with 430 million dollars represented by 1,000,000 MKR. It is a smart contract platform on the Ethereum chain that backs the stablecoin DAI with Collateralized Debt Positions (CDP), independent feedback mechanisms, and incentivized external players.
MKR price analysis
The price of MKR is not that volatile as other cryptocurrencies, but the potential is inherent. Recent implementations of debts and projects with MKR make the token looks brilliant. Now MKR is trading near to Q3 2019 lows around $433, but MKR/USD looks too light to stay there. Technically it can fly to 500.00 quickly and then 600.00 in the middle term.
Why is MKR undervalued?
MKR is not a stablecoin but works to stabilize the DAI, a stablecoin.
Any bet on MKR is a bet on the platform, which is gaining traction and headlines in the industry.
The MakerDAO platform allows you to take a loan of $1 million for just 73 cents
MKR is seen as a potential replacement of ETH, so its price is low.
9. Basic Attention Token - BAT: Revolution in advertising
The BAT is the digital coin of the Basic Attention Token, a project that works to address the fraud and opaqueness in digital advertising. It is an open-source, decentralized ad exchange platform that works with the attention of the reader instead of the page they search.
BAT price analysis
BAT recently found support at 0.1450 against the US Dollar and now it is trading on consolidation for its recovery. The unit is fighting with the 0.1800 resistance, but technical indicators are suggesting that an uptrend is forming in the middle term. The 0.2060 is the next resistance, then 0.2080 would be the frontier, a nearly 70% return.
Why is BAT undervalued?
Bravo platform offers superior features to clients
BAT's ecosystem still in development
Potential integration with other dApps would increase its framework
Solid developers team
10. Litecoin - LTC: Old rockers never die
Litecoin is a network that works with a different hashing algorithm that allows common-people computers and software to mine coins. It processes block at 2.5 minutes, significantly lower than Bitcoin's 10 minutes.
LTC price analysis:
Litecoin and its token LTC have lost value steadily in the last few months, and it is now trading below 40.00 for the first time. However, their fundamentals remain pretty much the same. So, it turns out that the price fell because of the overall downtrend in the crypto industry.
As the Mitrade chart shows, it could be a risky bet, but a long position can be very profitable when the crypto market returns to the upside as LTC is a well-established network and coin.
Why us LTC undervalued?
Fundamentals remain the same, but prices are down.
Litecoin is working to implement MimbleWible in the protocol
Experts' forecast suggests LTC will see growth by triple digits in the next few years.
There are two ways to find and therefore to trade cryptocurrencies. One is when you want to buy it and store it, so you maintain the ownership of the underlying asset. In that way, you will need to have a safe wallet to keep your cryptos securely.
Buying tokens in Crypto Exchanges
The best way to buy and sell real cryptocurrencies is to go to crypto exchanges like Coinbase or Binance. Be aware that every venue has different rules and should face particular regulations depending on the country they are working in. So, you should follow different rules depending on the place you are investing.
Trading assets in Crypto Brokers
The other way to trade cryptocurrencies is to invest with Contracts For Differences, also known as CFDs. In that way, you will not retain ownership of the digital asset, but you will trade with the difference between the prices of pairs.
With CFDs, you will make money if you buy a crypto pair, and then you sell it more expensive, also in the case, you sell it expensive and then buy it cheaper.
With CFD will can trade crypto versus cryptos like BTC/ETH or ETH/LTC but also cryptos versus fiat currencies such as BTC/USD or ETH/USD. In any case, you can trade it in regulated and well-known brokers such as Mitrade.
Although in the past two years, digital assets have experienced something like a crypto winter with steady declines and a downtrend from record highs, all the infrastructure that was built in the crypto golden years remains intact.
So, the future is already planted and cryptos are just emerging from their childhood to become more mature assets. Besides bitcoin, there are thousands of altcoins in the market that are backed by strong networks and revolutionary technologies.
These coins will have the opportunity to flourish in 2020 and beyond.
Check the way to invest crypto derivatives as an option, no matter if you are a beginner or an experienced trader, the opportunities are there.
Remember, study, learn, and invest; the ten most undervalued cryptocurrencies in 2020 are waiting for you.
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