Value investing in the crypto world is not a false proposition, but rather a survival rule misunderstood by 99% of people.
Today, we won't talk about technical aspects, only the underlying logic that allows you to survive three rounds of bull and bear markets.
1. The only correct approach to value investing in the cryptocurrency world: earn money in three ways.
1. Earn money from 'consensus upgrades.'
Bitcoin has evolved from a geek toy to digital gold, relying on a globally reinforced value storage consensus.
Screening Criteria:
Solve real pain points, such as Ethereum's smart contracts.
Form a positive cyclical ecosystem, such as UNI's liquidity mining.
The community continues to break boundaries, like Dogecoin's Meme culture.
Stay away from 'air consensus' — false prosperity built on celebrity endorsements and exchange listing fees.
2. Earn money through 'time compounding.'
The myth of sudden wealth in the cryptocurrency world causes anxiety, but value investors only do one thing: exchange time for space.
Operational Rules:
① Do not sell at the bull market peak, do not buy at the bear market bottom, only hold across cycles.
② Invest 20% of profits in Bitcoin/Ethereum every year, without fail.
③ Ignore 90% of short-term fluctuations, only look at weekly trend lines.
Bitcoin's annualized return over the past decade is 230%, but 90% of people hold it for no more than 3 months.
3. Earn money from 'cognitive monetization.'
The cryptocurrency world is never short of information; what it lacks is the ability to transform information into cognitive filtering skills.
In-depth Research Checklist:
Is the economic model deflationary?
Is the development team open and transparent?
Is the on-chain data (such as address distribution, trading volume) healthy?
All favorable information that is not written in white papers but boasted by KOLs are hooks to trick you into taking over.