Investing in the most undervalued cryptos can be a smart investment strategy to multiply your returns. Putting bets on beaten-down stocks is a time-tested strategy in the stock market. Investing legend Warren Buffett often invested in undervalued stocks to reap excellent returns in the long run. What if we apply the same rules to crypto investing?
The market is not always perfect. There are times when a cryptocurrency with potential is available for a lower price. However, with time, their true potential is recognized and the market price aligns with the potential value. So, if you can identify the most undervalued cryptocurrencies and invest in those today, the odds of your success are greater than putting money in assets that everyone else is buying.
In this guide to invest in undervalued cryptos, we talk about why it can be a smart strategy to invest in undervalued cryptos. Plus, this guide to the MostUndervalued crypto in 2024, discusses the techniques to find the top undervalued cryptos. Moroever, we have zeroed in on a list of the top 7 undervalued cryptos to invest in in 2024. Keep reading to explore those.
In simple words, an undervalued crypto is a cryptocurrency that is trading at a lower price than its fundamental or intrinsic value. Now, it’s a bit tricky to find out the fundamental value of a crypto. In stocks, you can calculate the intrinsic value from a number of data points like the profitability of the company, its growth rate, or market share. Cryptos are not companies, and they have a different value-creation process.
For crypto, its fundamental value is more related to its use cases or chances of large-scale adoption. So, if there is a crypto that can have many potential use cases, it’s likely to have huge demand in the future. With higher demand, the price of the crypto is likely to go up. If such a crypto is trading at a lower price, you can call it undervalued. So, an undervalued cryptocurrency is more like a crypto asset on sale. It makes sense to buy something of value when it’s available for a discount.
We often hear questions like ‘How do I tell if a cryptocurrency is undervalued?’ It’s a legitimate question. Identifying undervalued cryptos easier said than done. There are more than 10,000 active cryptocurrencies, and the undervalued ones don’t come with a tag. Also, when many investors consider a particular crypto as undervalued and put their money into it, its value appreciates and the crypto no longer remains undervalued.
So, how to find undervalued cryptocurrencies? and how to determine if a crypto is undervalued?. Let’s look at some easy ways of finding the most undervalued crypto.
2. How to find the most undervalued cryptocurrencies?
First of all, the most undervalued crypto assets trade at a significantly lower price than at the price they should be trading. So, how do we know at what price a crypto should be trading? It’s a bit subjective here - but, you can determine the fair value of a crypto asset based on factors like:
What are the use cases of the crypto?
Is there any institutional investment?
Who are the key investors in the crypto
Who are the people behind the project?
How are similar other cryptos performing?
What is the trend in the overall crypto market?
What is the price chart of the crypto telling?
Analyze the market and find the best undervalued cryptocurrency in 2024!
If a crypto asset has many potential use cases, and it’s trading at a lower price, it’s probably undervalued. Also, when a similar crypto is trading at a high price, but a particular crypto is trading at a much lower price, it’s probably undervalued too. Moreover, looking at the chart if you see crypto is trading at a much lower price than it historically does (and nothing significant has changed for the crypto), it’s probably undervalued at this moment. These are just some of the key attributes that make a cryptocurrency undervalued and there are many more.
3. How to find undervalued cryptos using RSI
RSI can help you identify oversold cryptos that can potentially give high returns in the future. RSI, short for relative strength index, is an indicator showing whether crypto is currently overbought, oversold, or neutral, making it one of the best analysis tools for crypto.
When the RSI value goes above 70, it shows that the crypto is overbought. This means the trend can change anytime, and the crypto can see lower trading prices in the near future. On the other hand, when the RSI value falls below 30, it indicates that the crypto is oversold and it’s a potential buying opportunity. This is where you will find the most undervalued cryptos to invest. You can use crypto screeners like altFINS or BitScreener to find cryptos trading at an RSI value lower than 30. This will make your task of finding undervalued crypto for 2024 much easier.
4. What are the most undervalued cryptocurrencies to invest in 2024?
Based on our analysis, here is the list of the top undervalued cryptos in 2024. These are the top undervalued cryptocurrencies that have the potentialto multiply returns. These cryptos offer solid utility and strong use cases. This means they are likely to see much better valuation in the future.
Ethereum (ETH)
Ripple (XRP)
Cardano (ADA)
Axie Infinity (AXS)
Pepe Coin (PEPE)
Decentraland (MANA)
dYdX (DYDX)
As you can see, Ethereum is at the top of the list, even though it is one of the best known crypto in general. It is because we believe that its price will grow exponentially, and if you want to find out how to buy Ethereum in 2024 to secure a better price, you can read our related article which answers that question.
5. Is it worth investing in undervalued cryptocurrencies?
Yes, investing in undervalued cryptocurrencies can prove to be a solid investing strategy, especially for long-term investors. When you want to buy something important, it makes more sense to buy it when it's being sold at a discount. When a crypto has undervaluation, it’s like a good crypto is being sold at a discount. Eventually, when the larger market recognizes its investing potential, the crypto is likely to experience strong growth.
6. How to invest in undervalued cryptos?
The first step to investing in an undervalued cryptocurrency is to find one. After identifying undervalued crypto assets, you can buy them using leading crypto exchanges such as Bybit, KuCoin, or BTSE. The process of buying undervalued cryptocurrency is the same as buying any other cryptocurrency.
Discover the best crypto exchanges on the market!
BTSE
Bonus Crypto
Range of Earning Options, Trading Features and Prizes
However, while investing in an undervalued cryptocurrency, keep an eye on the overall crypto market and crypto market volatility. High volatility increases the risk of crypto investing. Also, investing in undervalued crypto is a long-term investing strategy. Don’t expect an undervalued crypto to bounce back just after you have bought it. It may take several months before an undervalued crypto generates high returns.
7. Risks involved in investing in undervalued cryptos
While investing in undervalued crypto assets can be a sound investing strategy, it contains several risk factors. First of all, identifying an undervalued cryptocurrency is not easy. Unlike stocks, you won't have profitability or market share numbers to guide you. So, many investors end up picking the wrong undervalued cryptos.
Also, some beaten-down cryptos may not bounce back at all, or they may bounce back after several months or even years. So, it’s not a guarantee that buying an undervalued crypto is automatically going to generate good returns in the future. This is, however, nothing new to anyone who has tasted the water of the crypto market.
Understand the risks that go together with trading cryptos, and choose undervalued cryptos carefully.
Then there are other undervalued crypto that may continue losing value after purchase. This may lead some investors to panic and sell at a loss. So, investing in undervalued crypto needs patience and critical judgment. Remember, you need to have strong control over emotion to make sound investment choices. If you are really interested in investing money in crypto in general, we strongly advise you to make sure you understand the risk.
8. Final words
Undervalued cryptos trade at a lower price than their potential value. The main assumption behind investing in an undervalued cryptocurrency is that the market is going to realize its true value in the future and the prices of these cryptos are going to go up in the future. However, this assumption may be flawed. Many cryptocurrencies continue losing value even after they are oversold. This is a reason many people follow an opposite strategy - momentum investing, in which they bet in cryptos that are going up in value rather than getting beaten down.
9. Most undervalued cryptos - FAQs
9.1 ❔ What are the most undervalued cryptos?
Some of the most undervalued cryptos right now are Ethereum (ETH), Ripple (XRP), Cardano (ADA), Axie Infinity (AXS), Pepe Coin (PEPE), Decentraland (MANA), and dYdX (DYDX). These most undervalued crypto coins have strong use cases and they are trading at a significantly lower price than their fundamental worth. In other words, these are the most undervalued crypto projects available to purchase right now.
9.2 ❔ How do you tell if a crypto is undervalued?
Some of the ways to identify undervalued cryptos are by looking at their use cases, historical price charts, and technical indicators like RSI or comparing their price performance with similar other cryptos.
9.3 ❔ Are undervalued cryptocurrencies good to invest in?
Investing in undervalued cryptocurrencies can offer high profitability in the long run. However, like everything else in investing, there is no sure-shot investing strategy in crypto.
9.4 ❔ What makes a cryptocurrency undervalued?
An undervalued crypto trades at a lower price than its fundamental value. Investing in the most undervalued cryptos can be a sound long-term crypto investing strategy when executed in the right way.
Most Undervalued Cryptos
Investing in the most undervalued cryptos can be a smart investment strategy to multiply your returns. Putting bets on beaten-down stocks is a time-tested strategy in the stock market. Investing legend Warren Buffett often invested in undervalued stocks to reap excellent returns in the long run. What if we apply the same rules to crypto investing?
The market is not always perfect. There are times when a cryptocurrency with potential is available for a lower price. However, with time, their true potential is recognized and the market price aligns with the potential value. So, if you can identify the most undervalued cryptocurrencies and invest in those today, the odds of your success are greater than putting money in assets that everyone else is buying.
In this guide to invest in undervalued cryptos, we talk about why it can be a smart strategy to invest in undervalued cryptos. Plus, this guide to the MostUndervalued crypto in 2024, discusses the techniques to find the top undervalued cryptos. Moroever, we have zeroed in on a list of the top 7 undervalued cryptos to invest in in 2024. Keep reading to explore those.
Contents
1. What is an undervalued crypto?
In simple words, an undervalued crypto is a cryptocurrency that is trading at a lower price than its fundamental or intrinsic value. Now, it’s a bit tricky to find out the fundamental value of a crypto. In stocks, you can calculate the intrinsic value from a number of data points like the profitability of the company, its growth rate, or market share. Cryptos are not companies, and they have a different value-creation process.
For crypto, its fundamental value is more related to its use cases or chances of large-scale adoption. So, if there is a crypto that can have many potential use cases, it’s likely to have huge demand in the future. With higher demand, the price of the crypto is likely to go up. If such a crypto is trading at a lower price, you can call it undervalued. So, an undervalued cryptocurrency is more like a crypto asset on sale. It makes sense to buy something of value when it’s available for a discount.
We often hear questions like ‘How do I tell if a cryptocurrency is undervalued?’ It’s a legitimate question. Identifying undervalued cryptos easier said than done. There are more than 10,000 active cryptocurrencies, and the undervalued ones don’t come with a tag. Also, when many investors consider a particular crypto as undervalued and put their money into it, its value appreciates and the crypto no longer remains undervalued.
So, how to find undervalued cryptocurrencies? and how to determine if a crypto is undervalued?. Let’s look at some easy ways of finding the most undervalued crypto.
2. How to find the most undervalued cryptocurrencies?
First of all, the most undervalued crypto assets trade at a significantly lower price than at the price they should be trading. So, how do we know at what price a crypto should be trading? It’s a bit subjective here - but, you can determine the fair value of a crypto asset based on factors like:
If a crypto asset has many potential use cases, and it’s trading at a lower price, it’s probably undervalued. Also, when a similar crypto is trading at a high price, but a particular crypto is trading at a much lower price, it’s probably undervalued too. Moreover, looking at the chart if you see crypto is trading at a much lower price than it historically does (and nothing significant has changed for the crypto), it’s probably undervalued at this moment. These are just some of the key attributes that make a cryptocurrency undervalued and there are many more.
3. How to find undervalued cryptos using RSI
RSI can help you identify oversold cryptos that can potentially give high returns in the future. RSI, short for relative strength index, is an indicator showing whether crypto is currently overbought, oversold, or neutral, making it one of the best analysis tools for crypto.
When the RSI value goes above 70, it shows that the crypto is overbought. This means the trend can change anytime, and the crypto can see lower trading prices in the near future. On the other hand, when the RSI value falls below 30, it indicates that the crypto is oversold and it’s a potential buying opportunity. This is where you will find the most undervalued cryptos to invest. You can use crypto screeners like altFINS or BitScreener to find cryptos trading at an RSI value lower than 30. This will make your task of finding undervalued crypto for 2024 much easier.
4. What are the most undervalued cryptocurrencies to invest in 2024?
Based on our analysis, here is the list of the top undervalued cryptos in 2024. These are the top undervalued cryptocurrencies that have the potentialto multiply returns. These cryptos offer solid utility and strong use cases. This means they are likely to see much better valuation in the future.
As you can see, Ethereum is at the top of the list, even though it is one of the best known crypto in general. It is because we believe that its price will grow exponentially, and if you want to find out how to buy Ethereum in 2024 to secure a better price, you can read our related article which answers that question.
5. Is it worth investing in undervalued cryptocurrencies?
Yes, investing in undervalued cryptocurrencies can prove to be a solid investing strategy, especially for long-term investors. When you want to buy something important, it makes more sense to buy it when it's being sold at a discount. When a crypto has undervaluation, it’s like a good crypto is being sold at a discount. Eventually, when the larger market recognizes its investing potential, the crypto is likely to experience strong growth.
6. How to invest in undervalued cryptos?
The first step to investing in an undervalued cryptocurrency is to find one. After identifying undervalued crypto assets, you can buy them using leading crypto exchanges such as Bybit, KuCoin, or BTSE. The process of buying undervalued cryptocurrency is the same as buying any other cryptocurrency.
Discover the best crypto exchanges on the market!
However, while investing in an undervalued cryptocurrency, keep an eye on the overall crypto market and crypto market volatility. High volatility increases the risk of crypto investing. Also, investing in undervalued crypto is a long-term investing strategy. Don’t expect an undervalued crypto to bounce back just after you have bought it. It may take several months before an undervalued crypto generates high returns.
7. Risks involved in investing in undervalued cryptos
While investing in undervalued crypto assets can be a sound investing strategy, it contains several risk factors. First of all, identifying an undervalued cryptocurrency is not easy. Unlike stocks, you won't have profitability or market share numbers to guide you. So, many investors end up picking the wrong undervalued cryptos.
Also, some beaten-down cryptos may not bounce back at all, or they may bounce back after several months or even years. So, it’s not a guarantee that buying an undervalued crypto is automatically going to generate good returns in the future. This is, however, nothing new to anyone who has tasted the water of the crypto market.
Then there are other undervalued crypto that may continue losing value after purchase. This may lead some investors to panic and sell at a loss. So, investing in undervalued crypto needs patience and critical judgment. Remember, you need to have strong control over emotion to make sound investment choices. If you are really interested in investing money in crypto in general, we strongly advise you to make sure you understand the risk.
8. Final words
Undervalued cryptos trade at a lower price than their potential value. The main assumption behind investing in an undervalued cryptocurrency is that the market is going to realize its true value in the future and the prices of these cryptos are going to go up in the future. However, this assumption may be flawed. Many cryptocurrencies continue losing value even after they are oversold. This is a reason many people follow an opposite strategy - momentum investing, in which they bet in cryptos that are going up in value rather than getting beaten down.
9. Most undervalued cryptos - FAQs
9.1 ❔ What are the most undervalued cryptos?
Some of the most undervalued cryptos right now are Ethereum (ETH), Ripple (XRP), Cardano (ADA), Axie Infinity (AXS), Pepe Coin (PEPE), Decentraland (MANA), and dYdX (DYDX). These most undervalued crypto coins have strong use cases and they are trading at a significantly lower price than their fundamental worth. In other words, these are the most undervalued crypto projects available to purchase right now.
9.2 ❔ How do you tell if a crypto is undervalued?
Some of the ways to identify undervalued cryptos are by looking at their use cases, historical price charts, and technical indicators like RSI or comparing their price performance with similar other cryptos.
9.3 ❔ Are undervalued cryptocurrencies good to invest in?
Investing in undervalued cryptocurrencies can offer high profitability in the long run. However, like everything else in investing, there is no sure-shot investing strategy in crypto.
9.4 ❔ What makes a cryptocurrency undervalued?
An undervalued crypto trades at a lower price than its fundamental value. Investing in the most undervalued cryptos can be a sound long-term crypto investing strategy when executed in the right way.