These are indeed heady days for cryptocurrency investors, and with fortunes being made (and lost) quickly, it is easy to forget the difference between "price" and "value". Many investors are focusing on the quick turnaround – they are buying the "hottest" ICO and are hoping to sell immediately for huge profits once the crowdsale is over.
There is nothing wrong with this approach per se, and some have been very successful. However, it is much easier and safer to make profits by buying and holding, and in this case, investors must clearly differentiate the price of a token from its value.
Many tokens and currencies represent big potential projects. Some of them are likely to disrupt traditional ways of doing things, which could generate significant profits in the future. As investors begin to realize that the days of turning over ICO tokens are disappearing. Fast profits must give way to long-term potential.
Investors should question the current and potential value of the projects they are evaluating. The fastest way to lose money is to buy an overvalued token that has little potential and therefore a low value. On the other hand, investors with enough foresight to buy Bitcoin (or altcoins of quality) last year have seen massive returns. The need to research and properly test a team's business model can not be overstated.
It is important to understand what will stimulate demand for the token on the market. This requires an honest and unbiased evaluation of the project. Many projects require a perfectly executed idea to succeed, and investors should consider that perfection rarely happens in this world.
Market factors such as an increase in cryptographic adoption will come into play. This remains in the future, however, and is not certain. Investors should not be content with a project whose symbolic value depends solely on speculation. They should not be swept away by the hype either.
Investors need to look beyond the commonality of chips and focus more on the unique proposition of each project. As a new project begins to copy existing projects, investors should step back. Investors do not need to follow other investors without knowing why they are putting their money into a project. Every investor must impartially assess the present and future value of any project in which he invests.