Just because prices are high, doesn't mean that is a good investment. - page 4.

TheUltraElite

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Quote from: Findingnemo on October 10, 2021, 03:20:17 PM

High price is not actually justified if they doesn't have enough volume and liquidity rate even in cryptos there were some coins raised.all of a sudden but they didn't last longer like Bitcoin does that is the difference of original and copycat projects.

If you check the daily % rise of price, everyday you will find some never-heard-of project showing 400% gains or so. Why this occurs?

If there is not specific news for that project, there is a pump and dump going on - the dirty part is that these prices are well manipulated to attract small fires to buy it and then the whales who are running the pump will dump all their coins on the market and exit.

Basically a trap for the newbies. But this is applicable more to the crypto market which is not regulated. On regulated markets like stocks or commodities you will immediate stop on trading and starting of legal investigations as to the reasons behind the price rise.

Of course those people who use such methods to manipulate, will always argue that this is false and they will always have anti-regulation stance for crypto.

pinggoki

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Commodities are deemed valuable not for what they are in the present but what they are capable of in the future. Use-case, and supply is the biggest defining factor of whether a stock would be valuable or in this case a good investment or not. It has to have a relevant use-case, being novel too would help in its utilization, plus the supply. There is a certain balance between supply and projected demand that must be met in order to ensure that the price of the stock, as well as its availability in the future is not jeopardized.

Quote from: Cling18 on October 10, 2021, 12:07:37 PM

Cryptocurrencies have been running for years and I believe that lots of us already know whom and what to trust. We already know the coins that are just carried by the hype coins with huge potential. Yes, not all coins that strike high are worth buying. It's still better to check everything about it including its whitepaper as well as the team behind it.

Some coins with poor use-case like DOGE and a number of others became sleeper and had remained dormant in the market for quite some time, that is until one shiller came along and everyone went bananas on investing in these cryptocurrencies. Price could still determine whether a stock or in this case a coin could thrive in the market or not because it is the sum of all the things that define the coin itself. Although it is not something you should really focus on when investing on.

uneng

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I've seen this saying or strategy regards stocks and it makes a lot of sense, but personally I don't think it's a good idea to apply this concept in crypto currencies, because if you avoid a high price asset, you aren't going to focus your investment in bitcoin and I believe that is the most important option disponible in crypto universe someone should go for.

To invest in cheap crypto currencies can be profitable, but you never know if it is going to work until it does. On this aspect bitcoin is much safer when compared to its pairs and still offers a decent financial return, although its price is extremely expensive.

RealMalatesta

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Quote from: perfect999 on October 09, 2021, 11:49:18 AM

Quote from: MNbag on October 05, 2021, 10:44:31 AM

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

Personally, I don’t think that having a high price is what makes an asset to be worth investing in. Before you start investing in any asset you have to face the fall understand what it is all about and no everything about it before you can consider it. The price doesn’t really matter that much because the developers can decide to just start from any price for the asset.

An asset can be worth less than $1 maybe due to the supply, and still be much better than an asset that has a price of over $100and even $1000. Take the cryptocurrency market as an example, you will see some coins that has a high price but a lesser market cap than those with a lesser price.

The good value of an asset is not determined by the price. Yes, I do understand that the price can play a part as well, though it depends, you have to calculate it to know whether it is really worth looking at the price or not. The supply is one thing that plays an important role in the price of a cryptocurrency, though you have to know how many supply that the market has, and also judge whether the market is worth how much you are paying for it. There are some coins you will see that are not really worth anything much, but their prices will be very high. So, you just look at the cryptocurrency and evaluate it.

Kemarit

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On the contrary, if the prices are low, it also doesn't mean its a bad investment, so tit-for-tat.

Crypto is open for everyone, and I think there's no single formula that can fit how the market moves or work as regards to the price. Maybe it was just pure pump and dump that's why the price is high, and then we have those low market cap, that is gem but people forget to realized it. So still up to the individual, on how he is going to trade, i.e. short or long term.

shield132

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High prices aren't problem because they are new normal right now and if you want to still invest and think that prices are high and they'll lower, then you can open short contract on futures trading. But I want to remind you that it's not a good investment when prices are increasing and increasing like a bubble because the bigger it is, the quickly and strongly it will explode.
You better to stick with long-term trading and not on a daily one. Daily trading just will mess up with your mind and make the life worse, really, I hate the pressure it can put on you.

Findingnemo

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High price is not actually justified if they doesn't have enough volume and liquidity rate even in cryptos there were some coins raised.all of a sudden but they didn't last longer like Bitcoin does that is the difference of original and copycat projects.

Cling18

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Cryptocurrencies have been running for years and I believe that lots of us already know whom and what to trust. We already know the coins that are just carried by the hype coins with huge potential. Yes, not all coins that strike high are worth buying. It's still better to check everything about it including its whitepaper as well as the team behind it.

oHnK

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Quote from: Sithara007 on October 09, 2021, 09:52:21 PM

In the cryptocurrency sector a lot of people give attention to unit price, rather than the market cap. This is a wrong strategy. Take the case of Bitcoin for example. The unit price is $54,000 per coin, and the market cap is $1 trillion. On the other hand, Ripple (XRP) is having a unit price of $1.16 and a market cap of $53 billion. So there is a 20 times difference in the valuation between BTC and XRP, but some of the noobs just look at the unit price and conclude that the difference is 50,000 times. And using the same logic, they assume that BCH is more expensive than XRP, when it is not the case.

No matter how high the price and the comparison in terms of the valuation of each crypto will still be ignored by people who follow investments just because of FOMO. Like me, sometimes I take investment choices that are stupid enough to buy assets at their peak prices and suffer losses later. In fact, in making investment choices there must be a strong basis to support our analysis.

zanezane

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Don't let this negativity discourage you from investing, the price will get more expensive than what it is right now and you don't want to wait for that time to happen, remember that investment is expensive already, why wait for it to go to that point.

Sithara007

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In the cryptocurrency sector a lot of people give attention to unit price, rather than the market cap. This is a wrong strategy. Take the case of Bitcoin for example. The unit price is $54,000 per coin, and the market cap is $1 trillion. On the other hand, Ripple (XRP) is having a unit price of $1.16 and a market cap of $53 billion. So there is a 20 times difference in the valuation between BTC and XRP, but some of the noobs just look at the unit price and conclude that the difference is 50,000 times. And using the same logic, they assume that BCH is more expensive than XRP, when it is not the case.

chrisculanag

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Quote from: tabas on October 09, 2021, 04:57:09 PM

Quote from: pjwaffle on October 09, 2021, 04:32:55 PM

That is not to say when low prices mean a good investment. That's why finding a good investment is sometimes so difficult, it's like predicting the future. What is trend identification?. What features will the project have or will the team be enthusiastic about continuing to develop in the future, new roadmaps and methods this will be difficult to find real projects and I don't think high prices mean a good investment .

It is difficult if you don't follow the trend. But if you've been a follower of the trend then that means that you're good as you are in determining what you must invest.
It's true that high price doesn't give assurance to tell that an investment is good. But if we're going to relate that with bitcoin, it's a different thing. There's always the separation and differences with crypto and traditional investments.

I agree that , good followers gain more success and profit. Trend is number one we need to check always every minutes because theres a time a minutes make us a big profit. Investing is not easy , thats why we need always focus. True that high prices is not a way to invest this like other said many investment start in high but going down , the only thing to do is keep researching some new kind of investment before we put some .The more you choose the more you chances to get profit. Right , bitcoin or crypto and any investments are so much differences.

tabas

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Quote from: pjwaffle on October 09, 2021, 04:32:55 PM

That is not to say when low prices mean a good investment. That's why finding a good investment is sometimes so difficult, it's like predicting the future. What is trend identification?. What features will the project have or will the team be enthusiastic about continuing to develop in the future, new roadmaps and methods this will be difficult to find real projects and I don't think high prices mean a good investment .

It is difficult if you don't follow the trend. But if you've been a follower of the trend then that means that you're good as you are in determining what you must invest.
It's true that high price doesn't give assurance to tell that an investment is good. But if we're going to relate that with bitcoin, it's a different thing. There's always the separation and differences with crypto and traditional investments.

pjwaffle

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That is not to say when low prices mean a good investment. That's why finding a good investment is sometimes so difficult, it's like predicting the future. What is trend identification?. What features will the project have or will the team be enthusiastic about continuing to develop in the future, new roadmaps and methods this will be difficult to find real projects and I don't think high prices mean a good investment .

perfect999

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Quote from: MNbag on October 05, 2021, 10:44:31 AM

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

Personally, I don’t think that having a high price is what makes an asset to be worth investing in. Before you start investing in any asset you have to face the fall understand what it is all about and no everything about it before you can consider it. The price doesn’t really matter that much because the developers can decide to just start from any price for the asset.

An asset can be worth less than $1 maybe due to the supply, and still be much better than an asset that has a price of over $100and even $1000. Take the cryptocurrency market as an example, you will see some coins that has a high price but a lesser market cap than those with a lesser price.

xSkylarx

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Quote from: ?? on ??

Quote from: Kittygalore on October 06, 2021, 08:57:55 AM

That won't apply to investing because assets appreciate overtime but at the same time, people are still investing in those so-called expensive investments, they're bound to grow, that's why you need to get in as early as possible.

Exactly, you either arrive early or late in investing so you got to do what you got to do in the time that you've invested you're money in, it's our fault after all that we've invested in something too late and now we risk loss because people at that point are going to sell to take some profit.

That is, indeed, why people are interested in it. However, due to the expensive price, I believe it will be quite difficult to purchase one as an investment, but if you are truly interested, it will be excellent for retirement. I'm not saying it's too late or anything, but the price isn't as low as it once was. Those who purchased it at least four years ago were fortunate because the price was significantly lower than it is today.

LUCKMCFLY

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Quote from: wxa7115 on October 07, 2021, 05:06:47 PM

Quote from: Kakmakr on October 05, 2021, 11:14:16 AM

Well.... Bitcoin and Crypto currencies has now been around since 2009 (12 Years) ..... so if this was one of those "Dot Com" bubbles... it had to burst a long time ago. The pre-bubble period of the Dotcom bubble went from 1995 to 1997, the actual bubble took place from 1998 until March 2000 and the bubble-burst from March 2000 until the low-point of the NASDAQ score in October 2002... +/- 6 years. Roll Eyes

Source : https://www.grin.com/document/197166

Berkshire Hathaway are one of the most desired shares in the world.. because one of the richest men in America owns most of it and stupid people follow rich people's recipe... but they never get it right, because they do not get the insider information that these rich people get. Roll Eyes

I think the point of the OP is to not fall into the FOMO that is present in all markets, especially this one, people see altcoins going up in value really quickly and they want a piece of the action as well without taking the time to think if that is what they should actually be doing.

Then the coin begins to go down shortly after their investment and they suffer losses they could have avoided if they just took the time to think for a few moments if what they were doing was right.

They are very accurate and important opinions to digest, however it should be noted that when investing in the stock market, in real estate, there is a factor called time, under which most investors trust despite the fact that many things can happen in the market. future and it can all go down.

In the investment of Bitcoin and cryptocurrencies the whole concept changes, only the fact that BTC is taking around 3-4 years in its accumulation period + another period of bullish trend and / or re-accumulation to finally reach the distribution phase It is usually faster than any other market, apart from the ingredient of volatility.

Considering that a Stock Market investor can wait 8-10 years to see profits, the investor in BTC or crypto sometimes only has to wait 1,2 or 3 years to see a big profit.

geegaw

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Quote from: Shenzou on October 06, 2021, 02:17:23 PM

I think that you have a point, bitcoin and cryptocurrency have gained their popularity from the fact that its price is high and that same high volatile price is what got people hooked on it and investing millions of dollars in it, but this came at the cost of forgetting the true nature of what it is, because at first people invested in it for the concept and the fact that it is a new currency that will replace fiat, but now people do it just for the money and the profit and they don't care about it.

But those concepts have been blurred by investment thought, we've abandoned an innovative monetary theory of the future, we're just thinking about profits and when the meaning no longer retains an original shape, it will degenerate to the will of the investor. and although the original definition may have deviated from reality quite a bit, the value of bitcoin is no longer in the range of a currency but at least it shows that a very high price is very good, this meaning may not be for all investments, but it is a criterion for evaluating an investment

Darker45

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Well, the most basic of all rules is that you do not invest in something you do not understand. Of course, you speculate, but it doesn't mean you do not understand it first. Speculation has to be founded upon informed analysis. Speculation is not merely wild guess. So a commodity or a stock, whether the price is high or low, has to be carefully scrutinized so that when you invest money in it, you are more or less sure that it will yield some ROI in the future.

However, I cannot speak the same of the crypto market. A meme coin, for example, whose development has been pretty much stagnant could suddenly rise simply due to a tweet. The crypto market sometimes defies logic.

Hydrogen

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Here is a chart of the inflationary dollar losing value over time.

Bitcoin is a deflationary currency. Which could mean natural forces dictate, it will trend upwards in value, opposite of inflationary assets like usd. Looking at a life history chart of bitcoin, it appears to represent the mirror opposite of the euro, dollar, bolivar, zimbabwe dollar and assorted inflationary currencies.

It could all come down to fundamentals. Printing increasingly larger quantities of something over time will devalue it, while printing increasingly smaller quantities of something will increase scarcity and value over time.

Of course there are rogue actors involved. China and central banks do not appear too fond of cryptocurrencies atm.

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