Finding undervalued altcoins…Is it possible to reveal the principles of working trading strategies? How to start earning income from promising and developing crypto projects? Find out more in our new LATOKEN review.
We have been watching the price of Bitcoin drop for more than two months now. The first and leading cryptocurrency price began to decline after it updated its all-time high above $69,000 in early November 2021. On January 24, the asset’s value fell to $32,900 for the first time since July last year. On January 27, Bitcoin was trading at about $36,600 on LATOKEN, and its capitalization was $716 billion, according to CoinGecko.START TRADING BTC
Against the backdrop of a decrease in the price of Bitcoin, altcoins also fell in price. For example, Ethereum is currently trading at about $2,480 (down 49% from its all-time high) on the LATOKEN crypto exchange, while Cardano is trading at around $1.058 (67% below its all-time high). ADA can also be purchased on LATOKEN.START TRADING ETH START TRADING ADA
Correction or something more? How to find underestimated projects with prospects for further growth in such conditions? Find out more in our LATOKEN review!
Developing a strategy to find undervalued altcoins
First, it is essential to study all the factors that guide investors. It is necessary to objectively assess the development team’s reputation and the project’s target audience.
Ideally, this should not be an existing niche in which the project founders want to introduce digitalization, blockchain, NFTs, etc. It must be a completely new niche. Is it real? Who knows.
It is also worth applying a deeper price analysis to the token, which may indicate its undervaluation. Factors to pay attention to:
- Growth below market average in 2021;
- Growth below the historical high reached in 2017-2018;
- Significant growth in user base and/or liquidity without a similar increase in price.
Undervaluation can be a set of growth factors for technical and user indicators about the growth rate of the token price over the same period.
The easiest way to make money on undervalued tokens is to look for large projects that have fallen in price more than the market average over the past few weeks. It is also important to consider the fundamental potential and major expected events that may increase the price of a particular altcoin in the future.
The relative strength index (RSI) can be very useful. Upon reaching extremely low levels, the token may have a high chance to start a corrective upward movement.
First of all, you should pay attention to those projects that have been working for more than a year and have a customer flow. The fact is that for some of these projects, development may be more important than exchange speculation, so the token price may be underestimated. When projects start promoting the asset and integrating it with more prominent market participants, the token price can skyrocket, and investors may take advantage of it.
Looking for undervalued tokens. LATOKEN review
Keep in mind that this is just one of the existing opinions! Don’t forget about the tips we have repeatedly given in our LATOKEN reviews. You can’t be 100% sure of anything when you’re trading. Do your own research, don’t get emotional, and always stay up to date with all the events.
- It may be better to buy tokens at the moment when there are massive sales on the market;
- Do not buy tokens when it seems that a reversal has occurred and the asset should start to rise in price. It is necessary to consider technical analysis, focus on trading volumes and the depth of the market panel at such moments.
- Do not forget that joining the “pumps” might be very risky.
- Don’t try to beat the market. Most likely, it is better to trade in equal shares and at regular intervals. This might more or less evenly distribute the price of entry into the asset.
- Try to break the “active volume” into several parts and always leave an amount of your deposit free.
- Ranked #2 worldwide in the startup tokens primary market with 220+ IEO’s since 2017.
- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.