If coin has active development team, have support from community then I'd say it is undervalued.
Regarding icos, they cap their token's price to certain ether price. For example, $400/ether rate will be default when you purchase tokens.
Topic: How do you determine if coin is overpriced or undervalued (Read 260 times)
In my opinion, the value of a coin includes the following criteria:
- Project community
- Total supply of the project.
- The application of the project is appreciated?
- are Sharks interested in the project?
- The current price of the BTC, because most of the fluctuations of the BTC cause the altcoin will fluctuate
- Project community
- Total supply of the project.
- The application of the project is appreciated?
- are Sharks interested in the project?
- The current price of the BTC, because most of the fluctuations of the BTC cause the altcoin will fluctuate
Hi guys,
I'd like to know your views on how to determine whether a specific crypto currency has a fair price, or overpriced or undervalued. For example, what exactly do you look at when you value a coin/token like NEO or Stellar or ETH or Monero, or XRP or TRON and the list goes on..I read in some articles, certain coins/tokens are undervalued but i've not seen somewhere detailed explanation to back up such concern.
Also, for new ICOs, how can you tell if the price proposed is fair according to the market as I've seen some ICO sell their token for 1 dollar and even 2 dollar. Also another concern, on what basis ICO set the price during ICO and who set the price when it hits the exchange sites? - How can I say, yea I can make profit from this ICO once it hits the exchange?
Another thing, all ICO sell their tokens based on ETH or BTC not based on USD - but at the same time, they say our token is equal to xx USD - and as you know the BTC and ETH value changes every minute. This means by the time you purchase ETH using USD and trade it with the ICO, you may get less amount of token - Do you consider this factor as well?
Thanks Guys
I'd like to know your views on how to determine whether a specific crypto currency has a fair price, or overpriced or undervalued. For example, what exactly do you look at when you value a coin/token like NEO or Stellar or ETH or Monero, or XRP or TRON and the list goes on..I read in some articles, certain coins/tokens are undervalued but i've not seen somewhere detailed explanation to back up such concern.
Also, for new ICOs, how can you tell if the price proposed is fair according to the market as I've seen some ICO sell their token for 1 dollar and even 2 dollar. Also another concern, on what basis ICO set the price during ICO and who set the price when it hits the exchange sites? - How can I say, yea I can make profit from this ICO once it hits the exchange?
Another thing, all ICO sell their tokens based on ETH or BTC not based on USD - but at the same time, they say our token is equal to xx USD - and as you know the BTC and ETH value changes every minute. This means by the time you purchase ETH using USD and trade it with the ICO, you may get less amount of token - Do you consider this factor as well?
Thanks Guys
I strongly believe that ETH is undervalued at the moment as the market took a serious dump. Looking when it was at it when ETH was at its high months before, there was no reservation in anyone setting high GWEI to pay for transactions to get mined, this to me signals that many are very willing to pay ridiculously high transcation fees to get their trades through/get into ICO's. The resulting effect caused greater which is a whole other story.
I have not yet discovered the ideal technology for myself. Only intuition and nothing more.
It can not tell anyway for sure that when is the high rate or low, it depend on market demand and also depend highly crisis most probably it grows for market cap. Sometimes few people going very fast and get a good profit, sometimes loss.
interesting discussions here
i have more knowledge now to help me analize price of the coin or token
from most of the opinion above i think i agree the most is with supply and demand value
so to understand it we must stick with the people or community
i have more knowledge now to help me analize price of the coin or token
from most of the opinion above i think i agree the most is with supply and demand value
so to understand it we must stick with the people or community
It is necessary to look at the quality of technical documentation, the openness of the team, the distribution of tokens
This how your trading skills will come into work. There is no literally a standard answer for your question because cryptocurrency world is really risky and volatile. That is why you should be aware in the news and articles about altcoins, how they work, their function ang how many people are into it. If you think it's undervalued, there is a reason why you should joy it's bounty campaign.
Supply and Market Cap compared to actual product and tech: Eg - platform, mobile apps, wallets, community size, partners etc shall determine if a coin is undervalued or overvalued. A good example is to look at the top 10 currencies - compare what features the different currencies has and also transaction speed/cost. The latter is very important to be a viable product. I wish there was this comparison. And I am looking forward to the grading that will be done by Weiss in a week. Though I am betting there will be some surprises based on this, and some balloons will be popped. And some undervalued coins will get their rightful spot in the light.
In general a coin with a big supply with high price per coin (depending on the features obviously) is overvalued. A coin with a low supply, low price and good technology is generally undervalued.
first, you need know about supply of the coins, and then whitepaper or roadmap, form there, you will know that coins have great future or not. this method also work for ico, and who set ico price?, its from community, buyer and holder. about value in crypto and dollars, for me its risk, you will get double if you want to be patient
about ICO-Six months ago I bought tokens on one ICO on pre-sale with good bonuses. Then on 1 ethereum, I bought 10,000 tokens. Now there is a token sale of this ICO and now on 1 ethereum I could buy already 30,000 tokens.interesting mathematics... I am very sad. I advise you to pay attention to this.
Always check on the volume of the coins as well and the lock up capital of the coin as it will be able to provide some insight on the stability of the coin price. Site like Coinmarketcap , cyptocompare or Coins is helpful. It is also imporatnt to look at the technology behind the crpto if it is a new technology or what does it offer and is it in a single market or does it has other cryptos which functions the same or competitors with the same technology with it. Always look into the white paper to see what is the crypto is all about and study them if they provide a road map so we will have a clear picture if there are any exciting developments or expositions planned.
I try to do it personally and discussing with group of friends. It is not that hard. You need to look at supply first to see if coin deserves the price and then whitepaper. For last, final product. And compare to opponents.
Yes it is definitely true!Honestly it`s not so easy to determine what is the best ICO or the value of it but we have a basis.Our basis was the whitepaper,road map and the groups of originator on how they facilitate their ICO to be the opponent for us to believe and recognized of their coins value.Everything in ICO is not easy to determine but our trust for every ICO can keep us alive.
I have not yet discovered the ideal technology for myself. Only intuition and nothing more.
Easy. Look at other ALTS on the market and see where they are doing. Do they have a superior technology/ token economics or team behind it? If once you've done your research yu will the be able to see if this coin is overpriced or undervalue. For example... STK by STACK is coming out soon (a mobile touch payment app for crypto) other competition like TenX and Monaco have had 13/14$ rates - STK has a working product and far superior tech so it will surpass that easily so i will HOLD until then. 
Agreeing with peach, look at how and where the coin can go.Compare it with other similar coins.Then you will be able to guess whether the coin is a true bubble or not.
Just look at doge and how it is going up.
Even though the dev team haven't done anything special since last year.It didn't even have any major update since last two years, and still it reached a market cap of 2B$.Making doge an obvious bubble!
It's pretty easy to detrmine for a pretty young project. For example if the price of some coin is much lower than ICO price and the founders have more ETH collected during the ICO than the capitalization of the project. It's an exellend point to get in. Of cource I'm talking only about reliable projects.
Easy. Look at other ALTS on the market and see where they are doing. Do they have a superior technology/ token economics or team behind it? If once you've done your research yu will the be able to see if this coin is overpriced or undervalue. For example... STK by STACK is coming out soon (a mobile touch payment app for crypto) other competition like TenX and Monaco have had 13/14$ rates - STK has a working product and far superior tech so it will surpass that easily so i will HOLD until then.
I would always wait for a few days and wait for the dip to purchase my altcoins and if you think, there is going to be a big price difference, while you purchase the coins. Then you gotta wait patiently, till it reaches the right value for the purchase. This is a huge factor because If you just blindly purchase it with the current market price, It might turn out to be a loss for you. So, patience is the key here.
Let us say there was an ICO a few weeks ago - many people missed that ICO sale and they have been waiting for the token to be listed on the exchange, and society believe that this particular ICO project will have a great future as they will achieve what they mentioned in the whitepaper - the question is, will you purchase it straightaway once it hits the exchange knowing that it might go up to 100x times within one year or you wait a few days in hope that you buy in the dip, but again it's so hard to know whether it might go in dip if there is a huge demand to purchase the token- and there has been scenarios like ethereum, stratis, neo and the list goes on. thanks for your opinion
This whole crypto market prices understanding is very hard because everything just based on demand and supply and people investing just by thinking that their product may success in future. Many people want to invest money in crypto so there is a lot of money available so if you just come up with nice white paper then you can collect a good sum of money and that's what happening now. I don't think it is an easy thing to find out the correct price tag for any of these coins.
Usually i look at what they have achieved compared to the price, if they already released a lot of updates then it's normal if the price is expensive but if they only have whitepaper and people hype it too much then it is certain that the coin is overvalued. I will also avoid some coin that get shilled a lot on twitter or YouTube.
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