you read an article about a coin online stating how amazing it is. You agree with the article, but you just do not know how it is possible for the coin's value to increase any more.
Then, a month later you see another post stating how said coin has gone up in value by 500%! You get frustrated and start trying to find a coin to invest in with the same potential, but you just don't know where to start!
That being said, let's get in to it:
Evaluate the Team
The chances are that if a cryptocurrency has a team of people with a proven history of success, the chances are that they are going to succeed with this endeavour too.
Check out the team behind the coin - their work history and LinkedIn profiles. All you have to do is look at the team members of the top 10 cryptocurrencies to see the amazing talent in the cryptocurrency industry at the moment.
Check for Partnerships
If a coin has partnerships with large companies, this is always a great sign.
Take Stellar Lumens, for example. They have partnerships with companies such as IBM, Deloitte and Stripe.
Any coin with partnerships like this (alongside complying with the other points made in this post) deserves a very high spot in the market. This is why it is no surprise that the value per coin has increase by almost 10 times in the past month.
Check its Competitors
If a coin is offering better features than its competitors yet its market cap is much lower, there is a good chance that it will grow - as long as the coin is offering something more than its competitors.
Take Litecoin - it offers all the features that Bitcoin offers and more, at a faster and cheaper rate. There are 4 times more of a total supply of LTC than BTC, so technically if Litecoin's price could be a quarter of Bitcoin's and it would only be equal to its market cap.
That being said, Litecoin's value could double and its market cap would still only be 1/10 of Bitcoin's, which is probably more realistic.
These are just a few tips on how top spot undervalued coins. There are many other ways to do so, such as analysing the price history using technical analyses, checking the coin's road map for its big releases and more. If you liked this post, let me know in the comments and I will post a full tutorial on Steemit about how to spot undervalued cryptocurrencies!