Value Investing

Happy weekend!
Seeing this title, some may ask, is there value investing in the cryptocurrency world? My understanding here is that while I cannot say there is absolute value, there is certainly relative value.

Probably anyone who has done trading knows that buying low and selling high is the golden rule for making a profit. However, things often go contrary to expectations, and in the end, people always end up buying high and selling low. So, what exactly is low and what is high? This brings us to the topic of value investing. Simply put, a price below value is low, while a price above value is high.

This brings up the concepts of price and value. Price is an instant snapshot of market sentiment at this moment, while value is something deeper and more essential. It is the project's ability to solve real problems, the potential to generate economic returns, whether the team is genuinely working hard, whether the community truly has cohesion, and whether the token model is designed reasonably, among other factors.

Value changes slowly, like tides, with its inherent规律. It is the anchor that supports prices. Although it may be submerged by prices in the short term, in the long run, the power of the tides will bring everything back on track.

However, the cryptocurrency world is quite magical; air coins can soar to the sky while practical projects may sink to the bottom of the sea, so it's easy to be misled, so it's important to observe more.
Token economics: total token supply, circulation, unlocking schedule, and the actual use of tokens in the system.
On-chain data: Are the number of users, transaction volume, and TVL (Total Value Locked) experiencing real growth?
Team: Are you a Builder or a Bluffer.
Community: Are they believers or gamblers.

There is a saying that goes well, you have to wait for dawn to see the light, and this dawn is the moment when price returns to value. The cryptocurrency market is characterized by declines that are ten times more severe than traditional markets. When prices continue to fall, investors can easily fall into self-doubt. Holding firm and buying more as prices drop seems so hollow at this time, and then they end up selling their coins at the bottom.

This requires absolute belief in one's own research, and iron-blooded discipline to fight against group panic. No matter how right the value judgment is, it will become a waste of paper, however, don't be blindly confident, you have to make sure that you are right, which is also the most difficult, no matter how deep the research is, it may also ignore the fatal loophole, value investment is not to buy and win, but to continue, dynamic verification of your logic is still not there, today's right logic, tomorrow may collapse, when the value cornerstone is loose, it is not a belief to carry it, it is stupid!

Price will make you trade, but value will make you rich.

‍#价值投资 #低买高卖  #投资心得 #BTC