Intro to Cryptocurrency Value Investing
2017 was a year of exuberant investing in cryptocurrencies. In many cases, investing and trading was driven by hype and FOMO. So far in 2018 hype and FOMO are probably still large influences in why someone would invest in or trade any specific altcoin. In fact, outside of classic swing trading or just trading an altcoin on the charts, I suspect that most would not really be able to tell you why they're mid or long term investors in any specific token.
They watched a Youtube video or saw a Twitter post about it and felt then needed to get in on it. There's really nothing wrong with discovering a good crypto project that way, but to become an investor (not a trader) it takes a deeper understanding of any specific project.
But 2018 will hopefully see more investors looking at the longer term value of specific crypto project and evaluate them on the utility and application of the project behind the token. This is becoming a Value Investor.
Value investing is looking at the crypto and project behind it as a longer term investment and also a way of identifying those crypto projects you may want to be an advocate for rather than just a swing trader.
If crypto projects with a good utility or application behind it are going to realize their potential, they will need to find traction and adoption to be successful in the long run. They will also need project advocates to help them gain that needed traction.
There are a few projects I'm a long term supporter of as well as specific crypto projects that I flat-out advocate for.
To give you an introduction to being a Value Investor in the crytocurrency world, a member of one of the Discord groups I'm in put together a great guide to get you started and describes how to think more like a Value Investor.
Download Value Investors Guide to the Crypto Galaxy here.
I'm not saying that day-trading or swing-trading cryptocurrencies is bad or that value investing is a better option. But, it does introduce another way of thinking about how and, maybe more importantly, why you invest in any specific cryptocurrency. But also as I mentioned above, for projects to grow into their potential they're going to need advocates and value investors with skin in the game to help get them to the goal.