Happy weekend!
Seeing this title, some might ask, is there value investing in the crypto world? My understanding here is that while I can't say absolute value exists, there is definitely relative value.
It's generally known by anyone who has traded that the golden rule of making money is to buy low and sell high, but often things turn out contrary to expectations, and in the end, it’s always buying high and selling low. What really is low and what is high brings us to discuss value investing. Simply put, a price below value is low, and a price above value is high.
This brings us to the concepts of price and value. Price is an instant snapshot of the current market sentiment, while value is something deeper and more essential. It’s 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, whether the token model is reasonably designed, etc.
Value changes slowly, like tides, following its inherent laws. It acts as an anchor supporting price; although it may be submerged by price in the short term, in the long run, the power of the tides will bring everything back on track.
However, the crypto world can be quite magical; air coins can skyrocket, while practical projects may sink to the bottom. Thus, it’s easy to misjudge, so it’s important to observe more:
Token economics: total token supply, circulation, unlock schedule, and the actual utility of the token within the system.
On-chain data: Are user numbers, transaction volume, and TVL (Total Value Locked) genuinely growing?
Team: Are they Builders or Bluffers?
Community: Are they believers or gamblers?
There's a saying that goes, you have to wait for dawn to see the light of day. This dawn is the moment when price returns to value. The characteristic of the crypto world is that declines can be ten times harsher than in traditional markets. When prices continue to fall, investors can easily fall into self-doubt; holding firm and buying more as prices drop can feel so hollow, and then they end up selling at the bottom.
This requires an absolute belief in one's own research and a steely discipline to resist crowd panic. If you can’t hold on? Even the right value judgment turns to waste paper. However, don’t be blindly confident; you must ensure you are correct, which is the hardest part. No matter how deep you research, you might overlook fatal flaws. Value investing isn’t about buying and lying back to win; it requires continuous, dynamic verification of whether your logic still holds. What is correct today might collapse tomorrow. When the foundation of value shifts, holding on stubbornly is not faith; it’s foolishness!
Price will make you trade, but value will make you rich.
#价值投资 #低买高卖 #投资心得 #BTC走势分析 #BNB
