Fundamental valuations make no sense these days in any market. You get businesses like IBM which profit year after year that get slaughtered and then SNAP gets billion valuation losing money on the daily. You have the USD thats no longer backed by gold standard... Nothing makes sense so if you're trying to find value for yourself, you may as well stop because that won't mean anything investment wise and is no longer an "edge".
Id rather use long term technical analysis than fundamental valuations to make picks in any market.
Topic: Valuing in value investing (Read 249 times)
Value investing doesn't really work in cryptocurrencies the way it does for stocks, because it's hard to find metrics on which to base your value.
Is it the marketcap? Is it the activity on social media to indicate a community? Is it the searches on Google Trends to indicate new interest? Is it the number of on-chain transactions which indicate people are using it? Is it all of the above? The jury is out as to what gives a cryptocurrency it's basic value.
Is it the marketcap? Is it the activity on social media to indicate a community? Is it the searches on Google Trends to indicate new interest? Is it the number of on-chain transactions which indicate people are using it? Is it all of the above? The jury is out as to what gives a cryptocurrency it's basic value.
Of course, and how about valuing bitcoin and altcoins value ?
Depends on intellection, analysis and people's judgement about the value, experiences will make your mind sharp to consider which is better than others. Investors without this skills, only rely on experts valuation, but there's no experts in bitcoin-altcoins trading imo.
It just themselves claims as an experts, lol
. Unless they've never lose in trading, then I guess they are just lucky.
Depends on intellection, analysis and people's judgement about the value, experiences will make your mind sharp to consider which is better than others. Investors without this skills, only rely on experts valuation, but there's no experts in bitcoin-altcoins trading imo.
It just themselves claims as an experts, lol
. Unless they've never lose in trading, then I guess they are just lucky. Valuing, as you observe to most investors, is often seen as a complicated, time-consuming, difficult to perform and sometimes beyond the ordinary investor's mind. . Because of this, many investors ignore this work, invest without valuation, or use expert valuations (from securities companies, forums, etc.). The basis for its investment. However, valuation is not at all complicated, and understanding the nature of valuation can help us a lot in the investment process.
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