Value investing in cryptocurrency market

Every investor need a strategy, how to trade for longterm succeed on the markets. Why do you need a strategy? Because, If you don’t have a strategy, your trading will be based only on random trades. From a long-term perspective, it is not possible to trade randomly and always win. You can hit the right coin at right time but you cannot repeat this regularly. In our opinion value investing is the overall best strategy, how you can make money on the market.

If you read about us, you know, that we started with intraday trading on Forex markets. We tried dozens of strategies, how to trade and succeed but nothing works. So, after disappointing results on forex markets. we decided try value investing on the stock market. After all applied trading strategies and approaches, value investing has proven to be the most profitable strategy from a long-term perspective.

When you look who are the most successful investors in the world, you will see names like Benjamin Graham, Warren Buffett or Irving Kahn.  These famous investors use value investing in their trading style because they know, that value investing is the best way how to make money on market.

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What is exactly Value investing

Basically, the value investor is trying to find undervalued stocks with strong fundamentals factors. Fundamentals factors mean, that you expecting situations, which can affect the stock price. It can be politics, release of a new technology, competitive advantage or sales increase announcement.

what is exactly value investing

We tried to transfer main principles from value investing in cryptocurrency market. In our opinion, it makes sense to use this strategy in cryptocurrency market. Freely transferred value investing in cryptocurrency market means, that you searching for undervalued coins with strong fundamentals analysis to the future. Specifically, they can be coins, which are at the beginning of development with ambitious development plan (for example new technology). It’s just up to you if you are able to find coins, which have the interesting technology, promising future, and low price.

Long-term holding of your positions is a key to returns

It is necessary to mention, that real value of an undervalued coin is usually shown in long-term perspective. So, You have to be able to hold your coins for months or years, if you really want to make big money! For example, Warren Buffett keeps his positions for decades than he sells. Yes, this can be a boring way but If you want to make some fast money, a better option is going to the casino, not investing. If you want consistently take profit you will need discipline. You trade for profit, not for adrenaline!

Why value investing

Like I said before – value investing is the most proven way, how you can make big money by investing on stock/cryptocurrency market. The whole idea was invented by Benjamin Graham and David Dodd in their book Security Analysis. Graham also later taught and mentored Warren Buffett, which is one of the richest people in the World. If you want to know, how value investing is efficiently, You can look on Warren Bufett invesment Company – Berkshire Hathaway. Here you can see the graph of BRK-A.h As you can see, BRK has gained return in thousands percentage since the foundation of the company.