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What are The Most 10 Undervalued Cryptocurrencies To Buy?

Last Updated January 11th 2021

Undervalued Cryptocurrencies & How To Buy Them

Are you looking for the most undervalued cryptocurrencies to add to your portfolio in 2021? Read on for our guide to the most 10 undervalued cryptos to buy in 2021. 

So without further ado…

The Most 10 Undervalued Cryptocurrencies To Buy in 2021:

1. Ethereum

2. Binance Coin

3. Cardano

4. Bitcoin

5. Bitcoin Cash

6. EOS 

7. IOTA

8. Tezos

9. Zcash

10. Dash

 

What Are Undervalued Cryptocurrencies?

Undervalued cryptocurrencies are those that do not provide anything new or simply can’t be marketed as real game-changers. Some never say boo and remain obscure in the crypto community.

But why are so many cryptocurrencies undervalued? Why do traders prefer to buy well-performing and popular coins?

Well, to put it simply, valued coins are those that have proper development, a strong community, and positive market sentiment. To become popular, a cryptocurrency has to be based on an innovative platform, with regular updates and promising product implementation. It also has to be supported by a positive marketing image and a strong community to help it conquer the market.

The cryptocurrency industry is developing at a rapid pace, with more than 7,000 cryptos in existence. From crypto traders to blockchain developers, cryptocurrencies attract more and more people from all over the globe.

Blockchain technology, on the other hand, has the potential to create a new economic world. Here we should note that blockchain technology has applications far beyond the financial sector, and can be used to improve areas, such as medicine, gaming, and voting.

At the same time, cryptocurrency investing is still veiled in myths and misconceptions, which makes it undervalued. Even in 2021, not many understand the potential of decentralised financial systems in making payments safer, cheaper, and faster; some are even quick to label them as a modern whim.

The increasing number of digital assets adds more fuel to the fire, leaving many cryptos under-performing. And when we consider the high volatility of the market, we shouldn’t be surprised that some investors stay away from cryptocurrency trading and its unpredictable nature. 

That said, there are some popular cryptos that remain undervalued despite their potential and price growth. Many analysts believe that some of the crypto assets on this list are far stronger than other investments.

10 Undervalued Cryptocurrencies To Buy In 2021

Here’s a look at the top 10 undervalued cryptocurrencies to consider in 2021: 

1. Ethereum - ETH

ethereum price chart

Though Ethereum (ETH) is the second-largest coin by market cap and adoption, you might be surprised that ETH is dramatically undervalued.

Ethereum is a decentralised open-source blockchain-based platform that is used not only for cross-border payments but for the development of smart contracts and decentralised applications (dApps). In fact, Ethereum is often referred to as the king of smart contracts.

Ethereum also enhanced the initial development of numerous ERC-20 tokens, including Binance Coin and BAT, and blockchain games like CryptoKitties.

On top of that, the team behind Ethereum - with visionary Vitalik Buterin in charge - has impressive support across the crypto community, which is a factor that drives market sentiment further.

The shift to Ethereum 2.0 with its proof-of-stake mechanism (released on December 1, 2020) has also caused excitement among cryptocurrency enthusiasts and investors and may somehow send ETH prices flying.

At the same time, some experts suggest that the DeFi’s wider appeal across traditional payments and financial institutions is still limited; others argue that some of Ethereum’s competitors have better prospects.

EOS, for example, offers a simpler programming language, which is an important aspect that may attract investors.

Will Ethereum remain undervalued in 2021? The truth is that despite its challenges, ETH is expected to increase and reach $872 by the end of this year, as reported by Wallet Investor.

2. Binance Coin - BNB

binance coin chart

Binance Coin - the native token within the Binance ecosystem - is another undervalued coin worth considering in 2021.

Binance Coin (BNB) was initially launched on the Ethereum blockchain but moved to its own blockchain, Binance Chain. Though Binance Chain doesn’t support smart contracts, the truth is that Binance Coin is one of the top utility coins in 2021.

Binance’s unique burndown policy - to get back and burn BNB tokens in order to reduce the total supply of BNB until 100 million coins will be left - ensures its steady growth.

On top of that, the popular Binance exchange is one of the crypto exchanges with the highest trading volumes worldwide, which pushes the use of BNB even further. 

And guess what? Binance is much more: we have the Binance Academy, Binance Cloud, Binance Research, and many more departments that aim to support users and their financial decisions.

Nevertheless, some consider Binance Coin as the DeFi underdog in the crypto sector as its image is somehow limited to Binance and can’t take a flight on its own.

Will Binance Coin remain an undervalued coin in 2021? According to data, BNB price may go up to over $100 by the end of this year.

3. Cardano - ADA

cardano price chart

Cardano, being one of the main competitors of Ethereum to become the leader of smart contracts, is an innovative blockchain platform.

To be more precise, Cardano uses a two-layered blockchain and a proof-of-stake algorithm to improve scalability and energy-efficiency. On top of that, Cardano supports democratic governance principles to facilitate updates over time.  

Cardano’s token ADA was actually designed to ensure that users can participate in the operation of Cardano and vote. No surprise that in 2017, Cardano saw a huge increase of almost 450%.

Though Cardano can be used by merchants, agricultural companies, and educational platforms among others, many claim that Cardano is still very undervalued.

According to Weiss Crypto Ratings, Cardano is one of the most undervalued coins in 2021 - with current prices still down over 60% from its all-time high.

Yet, some experts, such as Adam Web, claim that Cardano’s future is bright and ADA may reach $2.5 this year and hit $10 per coin in the years to come.

4. Bitcoin - BTC

Wait! What?! Bitcoin? Yes, we know. Despite its popularity, Bitcoin - the oldest and largest coin in terms of market cap and trading volume - is one of the most undervalued cryptos in the cryptocurrency trading world.

Bitcoin needs no introduction, though! Launched in 2009 by the mysterious figure of Satoshi Nakamoto, Bitcoin has been ruling the world of cryptocurrency for over a decade now.

Developers, traders, and financial experts often call Bitcoin the gold standard in the world of crypto investing. BTC facilitates cross-border transactions and ensures transparency and accessibility.

Unlike fiat currencies and traditional payment methods, Bitcoin is decentralised and eliminates the need for third parties and costly fees.

Moreover, Bitcoin led to the creation of thousands of altcoins and the total transformation of the financial sector.

Yet, Bitcoin has some drawbacks. Bitcoin has become an investment instead of day-to-day currency.

Some claim that it’s Bitcoin’s scalability issues and inefficient energy consumption that make it an undervalued coin in 2021. Believe it or not, data show that Bitcoin consumes more energy than the whole of Switzerland.

But hey! Bitcoin is here to stay, and there’s still room for investment. Bitcoin hit its all-time high of more than $40,000, with prices expected to increase even further.  

5. Bitcoin Cash - BCH

bitcoin cash price chart

Created in 2017 as a hard fork of Bitcoin, Bitcoin Cash gained a lot of popularity. Bitcoin Cash increased the size of blocks from 1 MB to 8 MB and further to 32 MB to improve scalability and processing times.

Increased processing times can also allow cryptos and Bitcoin Cash, in particular, to compete with traditional payment methods, such as Visa, and start being used for everyday transactions and online purchases.

Because of its potential and prominent proponents like Roger Ver - often referred to as the Jesus of Bitcoin - Bitcoin Cash gained mainstream traction, which also led to an increase in prices.

Nevertheless, Bitcoin Cash is often undervalued. In a way, Bitcoin often casts a shadow on Bitcoin Cash and many outside the cryptocurrency community are unaware of Bitcoin’s forks.

Note that Bitcoin Cash underwent various forks itself, such as Bitcoin Cash ABC and Bitcoin Cash SV.

That said, though Bitcoin Cash has its branding issues, many expect this undervalued coin to increase in value in 2021, with Internet entrepreneur Dotcom having tweeted: Bitcoin > great for asset storage. Bitcoin Cash > great for payments. Bitcoin Cash at $310 today. I expect $3,000+ next year. Why? More and more vendors accept crypto. Vendors want low fees and fast transactions. I’m bullish on [Bitcoin Bash].”

6. EOS 

eos price chart

Another undervalued coin to buy in 2021 is EOS.

Though the start of EOS was impressive, with a massive advertising campaign that led to the collection of an unprecedented $185 million ETH during the first five days of their Initial Coin Offering (ICO) token sale, EOS is underrated.

EOS is a decentralised platform for smart contracts and dApps, often referred to as the Ethereum killer.

The EOS team has big plans and claims that EOS is scalable, flexible, and usable. One of the most notable features is EOS horizontal scalability that allows the parallel executions of transactions and contracts.

Founder Dan Larimer also incorporated the innovative delegated proof-of-stake consensus protocol to ensure that the system would use less energy and would be less centralised.

As explained in their whitepaper: “The EOS.IO software is designed from experience with proven concepts and best practices, and represents fundamental advancements in blockchain technology. The software is part of a holistic blueprint for a globally scalable blockchain society in which decentralized applications can be easily deployed and governed."

Despite its capabilities and potential to run enterprise-grade and industrial-grade decentralised applications, EOS remains undervalued and is still trading at lower prices compared to its main competitor, Ethereum

invest in eos

7. IOTA - MIOTA

iota price chart

IOTA is another asset worth watching in 2021. IOTA is a decentralised ledger that performs transactions between devices in the Internet of Things (IoT) ecosystem. 

This is revolutionary because, according to data, billions of devices were connected to the Internet by 2020 and could exchange data and payments, taking interoperability to a whole new level.

Transactions are confirmed via Decentralised Acyclic Graph (DAG), a system of nodes, called Tangle in which each new transaction confirms two previous ones.

IOTA is a partner with different automobile companies,  supply chains, and eHealth projects. 

As Tobias Schmailzl, CTO at Blackpin, said: “IOTA, as a technology partner, makes complete sense to us. With its decentralized payment system and other features based on distributed ledger technology (similar to Blockchain), this technology has the best prerequisites for a long-term strategic partnership. After all, IOTA is the optimal solution for secure communication and payment between humans and machines in the context of (i)IoT issues.”

Despite its potential, IOTA has its flaws. It even became a target of a phishing attack that resulted in the theft of $3.94 million MIOTA coins.

Nevertheless, this undervalued coin is slowly showing signs of improvement. In 2020, MIOTA started with a market capitalisation of $446 million, and in December 2020, it reached $900 million (a gain of over 100%).

8. Tezos - XTZ

tezos  price chart

Tezos is another promising network but undervalued crypto, linked to a token called tez. Tezos is a blockchain network that uses an innovative proof-of-stake mechanism, self-amending protocol, and democratic governance. 

In fact, XTZ democratic nature (letting participants vote and decide on its development) is one of its most alluring features.

Here we should note that baking is an important process in the Tezos ecosystem. Baking is the process of validating Tezos transactions, which is crucial in the proof-of-stake mechanism.

No surprise that after its launch in 2017, Tezos had a successful ICO. It went to earn around $232 million. However, its successful start was followed by numerous delays, in-house drama, and legal problems.

That led to the underappreciation of XTZ prices.

The good news is that the price of XTZ tripled between October 2019 and February 2020 and started attracting attention again. So, if you are willing to bet on Tezos in 2021, read more about its investment potential here.

invest in tezos

9. Zcash - ZEC

zcash price chart

Though Zcash is a popular crypto network that aims to offer more privacy, Zcash is still undervalued. In fact, Tyler Winklevoss once said that Zcash is one of the most undervalued cryptos (after Bittrex had announced plans to delist Zcash, Monero, and Dash).

Tyler tweeted: “Zcash is easily the most underrated crypto right now. It brings privacy to money, which is a fundamental building block of a free and open society. Proud that Gemini supports this novel project with NYDFS (the New York Department of Financial Services) approval.”

But what is Zcash? Zcash is a decentralised blockchain that is similar to Bitcoin: it includes an open-source code, but adds more privacy and fungibility. Note that fungibility is a term that refers to the ease with which one asset can be replaced for another.

Zcash offers two types of transactions: transparent transactions that make data public and private transactions that don’t reveal any information.

There are many reasons why one would seek anonymity, reasons that are not related to the Dark Web at all: a company may try to protect its trade secrets from competitors or a couple may try to purchase adult toys.

Because of its importance but controversial image, Zcash remains an underrated coin to purchase. 

Yet, according to price predictions, Zcash has a bright future. Experts at Trading Beasts claim that ZEC will grow from $70 in 2021 to $100 in 2023. Other more bullish predictions, such as those provided by Coin Liker, reveal that Zcash may hit $1,444 in 2025.

10. Dash

Last but not least, let’s talk about Dash - another undervalued token on our list. Dash is an open-source blockchain that offers fast cross-border payments.

Dash, whose name comes from the term “digital cash”, was launched in 2014 as a fork of Litecoin. Dash gained momentum with different innovations, such as its two-tier network with incentivised nodes and optional privacy for transactions.

According to its website, Dash aims “to be the most user-friendly and scalable payments-focused cryptocurrency in the world” designed for individuals, merchants, and institutions all at the same time.

Though Dash has different features, such as ChainLock to ensure security, InstantSend to improve instant transactions, and CoinJoin to add privacy, this coin has been under the radar of investors for a long time.

Yet, its limited supply of 18 million coins and constant updates may promote scarcity and pump Dash. Learn more about it here!

Why Should I Buy Undervalued Cryptocurrencies in 2021?

Investing in cryptocurrencies is a financial venture worth considering. After all, cryptos and blockchain technology aim to improve and replace traditional financial transactions.

How? As stated above, cryptos are decentralised. You do not need banks or third parties to charge you extra only to make a payment or store your money. Let’s admit it: this is enough to make cryptos - even those that are underpriced - worth investing in.  

In fact, when an undervalued coin with great potential and impressive underlying technology is underpriced, this can be also a real bargain. When an underpriced coin gains its momentum and price appreciation, traders can start selling and potentially make a profit far beyond 2021.

Last but not least, many crypto investors look for undervalued cryptocurrencies just because they know that crypto trading is a great way to diversify their portfolios and reduce risks.

Remember, however, to invest only money you can lose. Always do your research and consider the reward-risk ratio of the asset you are willing to invest in.

How Can I Buy Undervalued Cryptos?

trading undervalued cryptocurrencies

While buying undervalued cryptocurrencies can be eventually a profitable financial endeavour, finding undervalued coins worth considering can be hard, especially during the ongoing coronavirus pandemic. 

Honestly, it requires a lot of knowledge and experience to find an underrated and underpriced crypto with a lot of potential in 2021!

As crypto prices are based mainly on tech innovations, supply and demand, and market sentiment, traders have to invest lots in trading education. Studying indicators and following the news can be also crucial to help investors find successful deals.

And one more thing! Even if you get carried away by the hype in the crypto sector, you should be always aware of cryptocurrency scams and frauds, especially when it comes to new and micro-cap tokens.

“But what about the practical side of crypto trading?”, you may ask now. Well, you have different options to invest in undervalued cryptos. First of all, you can buy and store cryptos in a crypto wallet, maintaining ownership. Crypto exchanges, such as eToro, can be a great place to buy and sell digital assets. 

Before you start buying undervalued cryptos, however, do not forget that cryptos are regulated differently throughout the globe. So make sure you are familiar with regulation as well as taxation in the country you’re based in.

In the end, whether you decide to invest in an undervalued or a well-known cryptocurrency, it’s important to establish healthy trading habits and discipline. To provide an example, controlling your emotions while trading is a crucial factor that can help you succeed and eliminate fear, greed, euphoria, or overconfidence.

eToro – The Best Cryptocurrency Platform For Both Traders and Investors

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

Key Points

  • The world of cryptocurrency and blockchain technology is developing at a rapid pace, with more and more altcoins emerging every day.
  • Though cryptocurrencies are still misunderstood, buying cryptos is a great way to diversify your portfolio, potentially make a profit, and join the new economic world that blockchain technology is about to create.
  • While many investors prefer to buy well-known cryptos, undervalued coins are also worth considering. In fact, some underrated and underpriced assets offer impressive innovations but are simply not marketed well.
  • Some of the undervalued coins that you should consider in 2021 are Ethereum, Binance Coin, Bitcoin, Bitcoin Cash, Tezos, EOS, MIOTA, Zcash, DASH, and Cardano, among others.
  • When it comes to new coins, always be aware of crypto scams and make sure you follow the crypto regulations imposed by the country you’re based in.
  • To find an undervalued crypto worth considering in 2021, however, one must first invest in proper trading education, practice, and emotional self-control. 

 

If you like our article The Most 10 Undervalued Cryptocurrencies To Buy, Then please share it with anyone else interested in cryptocurrency investing.

Further Reading:

Top Cryptocurrencies and Their Challenges

How To Trade Cryptocurrency with $100

Top 10 Most Important Cryptocurrencies Other Than Bitcoin

The 5 Most Popular Cryptocurrencies In The USA

What are the Top 9 Altcoins To Invest In 2021?

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