When you think about cryptocurrency, what pops into your head? It’s probably bitcoin, right? There’s nothing wrong with that at all. That is the case because bitcoin is, by far, the most popular cryptocurrency out there. It was the catalyst for all the cryptocurrencies. Without it, would cryptocurrencies even exist?
The point is, although people are generally more aware of bitcoin, there are over 2,000 cryptocurrencies out there that are overlooked. Some of these undervalued cryptocurrencies have a lot of potential and today, we’re going to be looking at the best 10.
Undervalued cryptocurrencies are kind of like penny cryptos but penny cryptos are restricted to cryptos that are valued at 1 USD or less. They’re similar because these cryptos, compared to bitcoin, are much cheaper to purchase. The main reason bitcoin is valued higher is because it’s the first cryptocurrency. With that being said, there are several factors that determine the value of a cryptocurrency. Here are a few factors:
Supply and demand
Will the supply be able to compensate for the demand? What is the nature of the demand? The supply and the demand of the cryptocurrency highly dictate the value.
How the general public views a specific cryptocurrency has an immediate effect on the value of the currency. This includes what the media and news outlets, as well as the market influencers, think about it.
The way a country’s laws regulate the cryptocurrency also have an effect on its price. For example, South Korea once declared all the cryptocurrency exchanges closed. This caused the market to totally collapse.
Why should I invest in undervalued cryptocurrencies?
You might be asking: “Why would I invest in other cryptocurrencies if bitcoin is clearly the most valuable and most popular? Why should I go beyond Ethereum and Ripple?” Well, although it’s a fair question, there are two main reasons why you should invest in undervalued cryptocurrencies:
Different cryptocurrencies serve different purposes
Bitcoin is advertised as a “peer-to-peer electronic cash system” by Satoshi Nakamoto’s white paper. It’s safe to assume that that is the true purpose of bitcoin: to have a currency to use in a peer-to-peer system for everyday situations.
In Ethereum’s case, it was developed to enable smart contracts and decentralized applications. It’s not only a platform but it’s also a programming language as well.
Each cryptocurrency has a purpose and investing in cryptocurrencies that aren’t bitcoin means you’re looking for crypto with different purposes.
What’s the next bitcoin?
Some people believe that bitcoin’s value has already peaked and it’s never going to reach that amount again (almost $20,000 in late 2017). Some people believe otherwise. Although no one knows for sure, it does seem that bitcoin has been stabilizing around the $4,000 area.
Investing in a cryptocurrency with a lot of potentials could yield you a lot of profit in the future. It’s a big risk but if you’re willing to take it, then by all means! You never know, the price of the crypto you invest in can skyrocket overnight.
Top 10 undervalued cryptocurrencies
Disclaimer: The information regarding the cryptocurrencies shown below are for informational purposes only. They are not to be taken as investing advice.
*All the cryptocurrency values mentioned below are true as of the time of writing – 28 March 2019.
There are over 1,000 different cryptocurrencies out there to choose from. How do you even know where to start? Luckily for you, we’ve compiled a list (in no particular order) of some of the best-undervalued cryptocurrencies to look out for:
Launched in 2018, Siacoin is a decentralized cloud storage system platform. It allows users to share their unused hard disk space with other users. The aim of the Sia team is to transform the way data is stored on the cloud.
Binance Coin (BNB)
Binance is a popular cryptocurrency exchange. Their cryptocurrency, Binance Coin, is based on the Ethereum blockchain and is quite similar to Ether. BNB fuels all operations on their exchange. Users can pay the fees (trading fees, listing fees, exchange fees) of the exchange with BNB.
*Their coin is currently valued at 16.67 USD.
Both a cryptocurrency and a digital platform, Particl allows the creation and deployment of decentralized applications. Particl Marketplaces, its first decentralized application, allows anyone to use e-commerce on the blockchain. The focus of the open source cryptocurrency is privacy. One of its key features includes “confidential transaction”, a way for users to conduct their transactions publicly, blindly, or anonymously.
ICON aims to build the largest network of communities. This includes schools and hospitals. It allows decentralized blockchains with different governance structures to interact with each other without third-party intervention. The main goal is to enable quicker money remittances and frictionless exchanges of value.
As odd as it sounds, the goal of Substratum is to decentralize the internet. It allows internet users to enjoy censorship-free internet. It’s an open source network that aims to fix the problem of net neutrality (rather the lack thereof). They want to change how the internet works and with their Alpha test being a success, who knows where they’re going to go next?
The goal of ARK is to connect the blockchain with all the cryptocurrencies that exist. It’s a platform that focuses on the mass market. It was created for decentralized applications and the ARK token is the fuel that powers the entire ecosystem of the platform.
Ethos was designed to simplify the process of cryptocurrency trading. It aimed to do that by boosting mass adoption. It has a social part that allows traders to share insights and follow their investments.
Cobinhood is a decentralized exchange that is said to be ideal for peer-to-peer trading. The platform doesn’t charge any fees and they’re assembling a team to help companies launch their ICOs on the platform.
Welcome to the Jungle
The cryptocurrency world can be a confusing one. Learning the ins and outs of a single cryptocurrency can be difficult enough. With over 1,000 more to explore, it can get a tad overwhelming. The trick is to take things one by one.
Each of the cryptocurrencies mentioned above serves a specific purpose and it’s important that you find your reason for getting into cryptocurrencies. If you’re in it solely to make money, going with the popular cryptocurrencies may suit you better (BTC, ETH, LTC, XRP). If you’re more interested in the undervalued ones, be sure to do your research before you start pouring big money into them.
As cliche as it sounds, the important thing out of all of this is that you do you. Cryptocurrencies are generally risky investments and it’s better to put your money into a cryptocurrency you actually believe in.
What do you think of undervalued cryptocurrencies? Are you looking to start investing in something other than bitcoin? If you’ve already done so, what advice can you share to those that are still on the fence? We’d love to hear your thoughts! Let us know in the comments section down below!