If I take a look through the top 100 cryptocurrencies on CMC it's hard to find anything now that screams undervalued.
Many coins have had spectacular runs up, gaining 10x, 20x or more in the past couple of months. Even coins in the top 20 have seen these kinds of gains, which is impressive given their size and market cap.
Even though many of these are great projects, as an investor I simply won't buy something that has already gone up significantly. I will only buy at the bottom, when a cryptocurrency is at the end of a long correction.
I'm also very cautious in buying smaller, less known projects, particularly ERC20 tokens. I always take large positions only in actual cryptocurrencies or platforms, not tokens, and only in projects that I see as being permanently "Top 20" coins. I've just seen it happen too often that an ERC20 token takes off like a rocket into the top 20 or 30, has a sharp run up, and then falls back into the bottom half of the top 100, or lower, and stays there.
As a buy and hold investment this is not something I want to see, it's pretty demoralising! Stability on the way down is as important as gains on the way up if you are going buy and hold.
Taking all these factors together, the one project I really like right now is NEO.
It's not a project I would ever have as a majority position in my portfolio, as there are many unanswered questions around the speed of their development, decentralisation, and number of active nodes actually running. But from a fundamental perspective I still think the project is solid.
We have already had a number of ICOs released through the platform as NEP5 tokens, something which will only see more of. There is a large and loyal development community surrounding NEO, and a very active subreddit with over 50,000 subscribers. NEO also has a very real advantage over Ethereum in terms of scalability, something which the release of Hash Puppies, something like Cryptokitties but on NEO, will make very evident in the near future.
But perhaps most importantly, I do believe it's inevitable for the ban on ICOs in China to be lifted at some point in the future. It just has to happen. And when we do see that, NEO will absolutely skyrocket, and be able to achieve it's full potential. Now is really the time to accumulate, before that news comes out, whenever that is.
Although having said all of that, I'm not buying NEO, I'm buying GAS.
Looking at the chart of NEO above you can see that we have already had a breakout from the descending triangle correction that has been in place since September, which has taken up from around to $40 to a recent high of $80. After the consolidation we've been seeing over the holiday period is over, I fully expect this breakout to continue and accelerate.
You can see a similar breakout waiting to happen on the GAS chart, also from a descending triangle correction, but it has only barely started, if at all. At the time of writing GAS is still sitting very close to multi-month lows in BTC, and even USD, considering how much the rest of the market has gone up. Right now GAS only has a market cap of $282 million, and is sitting at number 78 on CMC.
If we look at the same chart, but with GAS plotted against NEO, this pattern becomes even more pronounced.
You can see that GAS is at the tail end of a very long descending triangle correction, even longer than in BTC or USD. This means there is that much more pent up energy in this asset. It's like a coiled spring, pushed into a tighter and tighter range. NEO and GAS are twin coins in the NEO ecosystem, and it is well known that GAS is leveraged to NEO, which means that when NEO goes up, GAS goes up more, and when NEO goes down, GAS goes down more.
In the past we have seen a 1:1 price ratio between NEO and GAS, and I think we will see that again, or GAS even being worth more as a coin than NEO. At the moment 1 GAS is worth only 0.4 NEO.
Because of this I'm buying GAS now, as a way to essentially buy NEO in the future, but at a 60% discount.
As always this is not financial advice, it's just my thoughts and what I'm doing. Please make your own decisions, and let's see if this one can do as well as Litecoin and Ripple!
Once again, we think alike! But what is an ERC20? not familiar with that term. VERY interesting point on Gas following Neo, and perhaps being undervalued by 150% (potential gain) at the moment, didn't know that relationship before ur article.
Since you're into the Neo/Gas, check out our similar thinking for an overnite tonite....
we have an overnite rec on Neo's "Gas"....
https://steemit.com/cryptocurrency/@harpooninvestor/poopcoins-overnite-gas-and-decred
Also some longer term recs (but without explanation at the moment) at the bottom of the page.
An ERC20 token is a token on the Ethereum blockchain, as opposed to a coin with its own blockchain. I tend to put more value on coins rather than tokens as they have their own independent ecosystems, and have the potential to themselves support tokens of their own.
GAS is starting to look good, I think takeoff is imminent!
yeah i agree with you
Cryptocurrencies are the future and thank goodness that we are part of it..and thanks for this information..
@Resteem
Thank you for your support!
thanks for sharing the experience@adamantine!!!!!!! i will keep that in mind for any future comments i might be making. thanks for preventing new steemians from making those mistakes :) by the way i like what your doing here on steem, you keep it real, i can appreciate that for sure :)
thanks for sharing your experience :) ..
Thank you bro, I'm really glad you got something from my post. For me investing really just comes down to staying calm, being in control of your emotions, believing in yourself and only buying quality. The emotions are the hardest part though!
wellcome friend😍😍😍😍😍
It's ok thank you very much it helps!
@adamantine Great article, I like your fundamentalist approach!
I've never gived neo the atention it deserves, but after reading your post I took some time and studied it and I have to agree with you. NEO is already fully functional and more scalable than eth, other great point that you've mentioned is the ban in icos in China, that i also think will happen as soon as icos start to gain more attention of the chinese government.
I think there are so many great projects out there it's hard to choose. I always try and look at what I think is undervalued relative to the rest of the market.
A lot of the other "blue chip" cryptocurrencies, like Ripple, IOTA, Cardano, EOS and others have gone up significantly. NEO is the only one that's been quite flat for a few months, and especially GAS. The charts look so bullish though, I think something very big is just around the corner for NEO.
Yeah, even steem is going up in the last couple of days and gaining the value it deserves! In the other hand, NEO seems forgotten, like ETH some months ago. I'm also going to fill up my tank with some GAS, thanks for the suggestion!
Followed for these thoughts, logical, concise, and just what I'm looking for as far as crypto discussion
Thank you! I think avoiding emotional decisions is the most important thing in investing. That's why I only buy at the bottom. GAS seems to be doing pretty well now!
Okay.... so these are the articles on crypto I really like... the TA articles that are posted regularly on Steem seem to require immediate timing to action and a careful eye on exactly when to exit. ... and I just can't spend that kind of time and focus on my portfolio.
So, this, this type of article I'm really excited about because I only seem to hear of alt-coins in the middle or after a pump. I love long term holding and have made some great money in the big players and Salt, Steem, TenX, etc. .. but I'll be looking at GAS now... if it doesn't do anything for a while, totally fine. I'm a 'set and forget' kinda guy. Thanks so much for taking the time to research and post about it. So good!!!
Thank you so much for the feedback bro! I'm exactly the same, I like to take my time and stay calm when thinking about my investments. I also like to buy and hold, and try to choose something I can accumulate over a longer period.
I mean, I've already got money tied up in my major holdings which I'm not selling, but if they've already gone up a lot I don't want to buy more either. I'm always on the lookout for cryptocurrencies to buy over a period of a few weeks or a couple of months while they're kind of sleeping, but that I can feel safe will always be top players, so I can just keep them and forget about them.
I used to have quite a bit of NEO and GAS but I sold them, in part to buy Steem, but now I'd really like to get at least part of my position back. Cardano and IOTA are amazing projects too, but they're already way too expensive for me.
Ah damn... I only use Bittrex and GAS isn't available there... bummer. It's probably not a terrible thing, all my spare cash is on my other alts, and new money isn't coming in from Coinbase for another 8 days (I can't believe how long they take) - so I might have struggled to take advantage of this as it were.
I very much look forward to your future articles. This was incredible research! Keep it up!
sir Such a wonderful and thankful work my dear friend... Actualy....I'm always respect to your works and…
thanks for this blog
Thank you @michelhenry! I'm really happy to hear you find my writing valuable!
I am actually accumulating NEO myself and listed it in my top 5 for 2018. With GAS, however, I am formulating a different opinion.
There has been a long-held belief in the cryptoeconomy that Ethereum's price is held down by the constant dumping of ETH raised during the ICO phase of ERC20 tokens. Many NEP5 tokens are creating "NEO reserves" where instead of dumping all the NEO raised during ICO, the NEO is held and the GAS sold off to fund ongoing development.
This should have two effects. It will reduce the supply of NEO on the market and increase the supply of GAS. This coud see GAS prices pushed to an even lower ratio to NEO than we are currently seeing.
Great article!
Fish
Thanks for the perspective bro! I have to admit I'm not an expert in NEO, it's not a major position of mine, so I've not had the time to research as deeply as some others. It's great to have your input here on this. I do want to find out more, as I honestly think the ICO ban will be lifted at some point and NEO will be a major player.
At the same time I think market hysteria will play a large part when these coins do start to rise. Once the hype kicks off I think the fundamentals will take a back seat. I mean just look at EOS, they're printing 2 million tokens a day, and it didn't stop it going 20x!
Good informations thank you very much it helps!
Useful and informative post thank you dear friend
Thank you for your support and kind words!
great analysis
thanks for the important info
that was rich of informations thank you very much it helps!
Thank you for your kind words and support!
Learn some new from your post. Love to read it. And thanks for this chart..
Thanks for giving the chance to enjoy this beautiful news!!