Too Long; Didn't Read
Crypto is a probability game. You can increase or lower your chances depending on what projects you choose.
An investment strategy should answer four questions:
Investment Process -> How to choose.
Screening -> What to choose.
Selection -> How to evaluate it.
Back-tests -> How to check it.
Price is the result of supply and demand. It is set by these forces and will reflect everything that investors collectively believe, hope for, and fear.
Value is not equal to the price. It is driven by fundamentals (cash flows, growth, and risks).
Demand = Real Utility (Value) + Financial Utility (Earning on token/coin in Defi) + Valuation Changes (Speculation)
Financial Utility is the ability to earn on our tokens in DeFi.
Real utility is an answer to the question “what value is provided by this protocol”?
Valuation is the most important factor in the short and very often mid terms in crypto. As this market will be more mature, its impact will diminish. Master it if you are a trader.