Topic: This is how I calculate the fair value of an altcoin in satoshis. Am I right? (Read 104 times)
August 30, 2019, 09:45:11 AM
It's not subjective. It's based on demand and supply. I don't think you understand what subjective is or means.
August 30, 2019, 07:17:35 AM
This is how I calculate the fair value of an altcoin in satoshis. Am I right? 
I look at the buy side and sell side on all exchanges that the altcoin is listed on. This is almost impossible with some widely adopted alts such as Litecoin in which case I tend to look at the most liquid exchanges only. I calculate the demand and then the supply. I divide the demand by supply and whatever I get becomes the fair value of that altcoin in my mind. Then to get an even better estimate, I tend to only look at the orders 50% lower and 100% higher than current market price. I then pick the lower price as the fair value of the altcoin. It becomes a potential buy if it's trading lower than its fair value.
Does it make sense to do what I do? Let me know what you think below!
I look at the buy side and sell side on all exchanges that the altcoin is listed on. This is almost impossible with some widely adopted alts such as Litecoin in which case I tend to look at the most liquid exchanges only. I calculate the demand and then the supply. I divide the demand by supply and whatever I get becomes the fair value of that altcoin in my mind. Then to get an even better estimate, I tend to only look at the orders 50% lower and 100% higher than current market price. I then pick the lower price as the fair value of the altcoin. It becomes a potential buy if it's trading lower than its fair value.
Does it make sense to do what I do? Let me know what you think below!
It does not make any sense because what you are doing is subjective, to me there is no fair price for any Altcoin including Bitcoin because of these is based on sentiments rather than fundamentals and technical analysis, until we start having trong exchange with clean data for their order look that is when fairness will come to the space
August 30, 2019, 06:46:11 AM
This is how I calculate the fair value of an altcoin in satoshis. Am I right?
I look at the buy side and sell side on all exchanges that the altcoin is listed on. This is almost impossible with some widely adopted alts such as Litecoin in which case I tend to look at the most liquid exchanges only. I calculate the demand and then the supply. I divide the demand by supply and whatever I get becomes the fair value of that altcoin in my mind. Then to get an even better estimate, I tend to only look at the orders 50% lower and 100% higher than current market price. I then pick the lower price as the fair value of the altcoin. It becomes a potential buy if it's trading lower than its fair value.
Does it make sense to do what I do? Let me know what you think below!
I look at the buy side and sell side on all exchanges that the altcoin is listed on. This is almost impossible with some widely adopted alts such as Litecoin in which case I tend to look at the most liquid exchanges only. I calculate the demand and then the supply. I divide the demand by supply and whatever I get becomes the fair value of that altcoin in my mind. Then to get an even better estimate, I tend to only look at the orders 50% lower and 100% higher than current market price. I then pick the lower price as the fair value of the altcoin. It becomes a potential buy if it's trading lower than its fair value.
Does it make sense to do what I do? Let me know what you think below!
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