Every crypto token can be traded for The short term, but crypto investors would do well to invest in those tokens that have sound fundamentals in order to benefit from long-term Capital appreciation.
-from a value investing perspective, It is advisable to invest in only those crypto tokens with an underlying blockchain project that offers a product or Service and which are adding tremendous value by decentralizing traditional businesses like banking, art, gaming and Trading amongst others.
-It is important to ensure that The crypto token can consistently function even during bouts of market volatility and support The Central product or Service, without crashing in value.
-When crypto tokens are launched through an initial coin offering (ICO), The cryptocurrency equivalent of an initial public offering (IPO), The funds raised are used to power The underlying blockchain project and documented in The tokens whitepaper.
-factors such as The maximum permissible token supply, The current number of tokens in circulation, percentage of tokens being held by large investors or crypto whales and how The tokens are minted or burnt are important to understand how The particular token will fare in The longer term.
-Despite all The above factors, It is pertinent that investors consider key indicators such as volatility, risk to return ratio, Sharpe ratio and Other technical indicators before taking a fresh position in a particular crypto token.