All of the cryptocurrencies run on one factor that determines its value. Supply and demand. Literally, the main thing that determines the price is volume/ awareness and potential usefulness. When you invest in a cryptocurrency people don’t invest based on the price that’s how you make short-term gains. So to merge the stock investment world into cryptocurrency. Warren Buffett one of the richest men in the world, makes all of his investments based on an investment paradigm known as value investing. And what that means is you base your investment by utilizing fundamental analysis, that determines if its undervalued and then you buy in if you actually see that it’s worth more than its current price. That should be your perspective for cryptocurrencies only invest if you know the technology, see the potential behind it, and if it can save time and improve upon an existing system. So let’s talk about the factors that increase the value of a cryptocurrency and what can help you figure out..png)
News: Ever heard the term any publicity is good publicity? Well, it couldn’t be truer have you noticed how all the major news sources have been saying bitcoin is in a bubble, bitcoin is a ponzi scheme, bitcoin to reach 100000. All these bring awareness to the currency and the meteoric rise lately to 20000 will bring an influx of even more people. This is absolutely amazing because ‘its not just something a few select people know and understand it is getting into the hands of the average consumer. Couldn’t be a better time to be in cryptocurrency the volume of new people with the limited amount of bitcoin is driving the price up rapidly and this is just a snowball effect as more people bandwagon on to this. This happens with other currencies as well but here comes the important long-term part.
Application and Usage: This is the most important part for of cryptocurrency investment for the long term is figuring out if it's actually useful and what problems it solves. Most things in the world have a 3rd party that already handles stuff you don't know but that usually comes at a hefty cost or commission such as realtors, insurance, car salesmen, mortgages etc. So being able to identify what a cryptocurrency actually does rather than the monetary part is a very critical part on investing in any cryptocurrency.Having an affinity with the coin is very important as well if its a good community such as Steem and enjoy the services or content it provides it can also apply to other people that see the value as well therefore making it a synergy effect of word of mouth.
Hope you guys enjoyed the article if you guys want to discuss and talk please comment below and Id love to talk to you guys. :) Have a wonderful day and amazing gainz.
