Price and Value
In cryptocurrency investing, price is the current market number of a coin, determined by supply and demand, investor sentiment (FOMO/FUD), news, and liquidity. Prices fluctuate continuously and reflect the market's willingness to trade at that moment.
In contrast, value is the true potential and intrinsic benefits of a coin or project. It is based on technology, use cases, development team, community, roadmap, and economic model (tokenomics). Value is qualitative and difficult to quantify, representing the potential for sustainable long-term growth.
A smart investor looks for opportunities when the price is below the true value of the asset, believing that the market will correct and price it accurately in the future. Understanding this difference helps investors make decisions based on solid foundations rather than just chasing short-term price fluctuations.
