Comparative or relative valuation methods for cryptocurrencies | DYOR
Looking comparative or relative values can yield a lot of high value information that should not be overlooked, especially when starting out.
Looking comparative or relative values can yield a lot of high value information that should not be overlooked, especially when starting out.
The crypto market is far from mature, and so the current price of a crypto token or asset might not accurately be the best gauge of its value.
In some regards, bitcoin net accumulation is like the fancy way of articulating the popular “hodl” meme.
APY in crypto or DeFi is short for annual percentage yield. APY is a somewhat standard metric for measuring the potential return on investment (ROI) of a crypto asset or DeFi project during one year.
Market cap is a basic financial metric used across all markets and describes the value of a particular cryptocurrency. Part of the reasons why market cap is useful is that it also provides a uniform ranking system.
The good news is that the ability to perform really solid crypto asset research is becoming easier — or at least more straightforward.