Just because prices are high, doesn't mean that is a good investment.

[MNbag]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

However, there is the potential that high prices don't actually show genuine interest in a stock, but rather frenzied speculation on a commodity that has poor fundamentals.

A prime example of this happening was at the dot com bubble in the early 2000s.

What happened was companies that were, to be frank, pretty shit had managed to get multi-billion dollar evaluations because investors believed that the internet had fundamentally changed the business landscape forever.

As a result, people quit their jobs to trade full time, media stoked up the desires of getting rich and everyone believed that this gravy train will carry on rolling on and on forever.

Then the combination of increased interest rates, the majority of the aforementioned companies burning through cash and investors becoming aware of it all lead to the technology and by extension the entire economy to collapse while a few key members making big money.

This entire situation was the very exemplar of the title as companies that had billions of dollars turned out to be worthless at the end.

Be vigilant.

[mu_enrico]

Commodity differs from Common stock.

In an efficient market (EMH), it is said that the price reflects all available information. So if the price is high, yep, it really is a valuable stock. But "investment" means %-return thus the future and not the present that is important. It is how you predict the future profitability of a firm, basically predicting the future.

In commodity, I believe it is easier, basically depends on utility and scarcity.

Anyway, I believe your point is to warn people about risk in investing, sadly there will always be dumb money. And the dumb money usually comes from uninformed everyday people.

[Kakmakr]

Well.... Bitcoin and Crypto currencies has now been around since 2009 (12 Years) ..... so if this was one of those "Dot Com" bubbles... it had to burst a long time ago. The pre-bubble period of the Dotcom bubble went from 1995 to 1997, the actual bubble took place from 1998 until March 2000 and the bubble-burst from March 2000 until the low-point of the NASDAQ score in October 2002... +/- 6 years.  
Source : https://www.grin.com/document/197166

Berkshire Hathaway are one of the most desired shares in the world.. because one of the richest men in America owns most of it and stupid people follow rich people's recipe... but they never get it right, because they do not get the insider information that these rich people get.  

[HeRetiK]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment. [...]

General rule of thumb: Don't invest in an asset because its price went up. If the price moving upwards is your only reason to get invested, you'll have no reason to stay invested once the price inevitably drops.

That being said, dismissing an asset only because its price is high can be just as bad as blindly investing for the same reason. Arguably pretty much all assets are overvalued these days but remaining on the sidelines can be just as bad a proposition as inflation eats away on your purchasing power while you're waiting for a dip.

[mk4]

An asset in general having a price doesn't automatically mean good investment, but it doesn't automatically mean it's a bad investment either. It's simply just that solely looking at the price itself is a really bad metric to make decisions upon.

[The Sceptical Chymist]

Commodity differs from Common stock.

Thank you, I was going to point that out myself.  I'm not sure if OP understands the difference or just wrote the wrong term (repeatedly).  Oh, and I'm a believer in the efficient market hypothesis myself, to an extent.  There are times when the market can be very, very irrational and valuations can either be inflated or less than the true value.  That's what makes Warren Buffett such a good investor.

If you take a look at most stocks right now, you'll see that they're trading at P/Es that are extremely high.  That indicates to me that they're not good investments right now.  Some of them may represent great companies, but you have to buy their stock at the right time, when it's close to its real value (or undervalued).

And with crypto, who the hell knows what the real valuation should be for any of them?  Your guess is as good as anyone else's.  I think the crypto market is probably the best example of an efficient market, because a coin is worth exactly what the market says it's worth at any given point.

[MNbag]

Commodity differs from Common stock.

Thank you, I was going to point that out myself.  I'm not sure if OP understands the difference or just wrote the wrong term (repeatedly)

I understand the difference between commodity and common stock.

I used commodity as a way to also include anything that can be speculated on like oil and soybean futures.

I am sorry for the confusion that had ensued as a result.

An asset in general having a price doesn't automatically mean good investment, but it doesn't automatically mean it's a bad investment either. It's simply just that solely looking at the price itself is a really bad metric to make decisions upon.

I didn't intend to imply that an asset with a high price is always bad, I just made this post to state that sometimes prices rise due to reasons other than the actual fundamentals of the actual commodity in question (e.g. hysteria or wild prices).

And with crypto, who the hell knows what the real valuation should be for any of them?  Your guess is as good as anyone else's.  I think the crypto market is probably the best example of an efficient market, because a coin is worth exactly what the market says it's worth at any given point.

Well, I would like to disagree.

In a perfectly efficient market, all information about a particular coin will be available to everyone in it.

This is in stark contrast to the actual information that most coins show, which is often very scant.

If crypto is an efficient market, then Bitconnect, OneCoin and all of those other scams wouldn't have got to the size they had.

Well.... Bitcoin and Crypto currencies has now been around since 2009 (12 Years) ..... so if this was one of those "Dot Com" bubbles... it had to burst a long time ago.

Not every bubble lasts the same, some last for decades and others for mere hours.

Also, the starting year of 2009 is not when the bubble started as it took until 2017 when Bitcoin hit $20k that the crypto industry started growing.

That makes this bubble around four years old, less than the dot.com bubble.

[Turbolinea]

I definitely agree with you on this. The value of the price doesn't guarantee anything about the potential of a cryptocurrency. There have been so many cryptocurrencies in the market whose price was really high but decreased very sharply at some point and never was able to recover since then. People shouldn't fall for every cryptocurrency just because its price is at a nice level. The most important thing is to do a detailed research about the project and then decide.

[HeRetiK]

Not every bubble lasts the same, some last for decades and others for mere hours.

Also, the starting year of 2009 is not when the bubble started as it took until 2017 when Bitcoin hit $20k that the crypto industry started growing.

That makes this bubble around four years old, less than the dot.com bubble.

2017 seems like a rather arbitrary starting point though. Bitcoin has been called a bubble as early as 2011. Heck, 2013 alone saw two bubbles, both of which hit mainstream media at the time.

The thing is, when it comes to Bitcoin the term "bubble" has lost all meaning since the market cycles are just much, much faster. Looking at the broader market, stock market bubbles like the dot com bubble or even the 1920s crash ruined people's lives because it took decades to recover. With Bitcoin bubble cycles lasting 4 years each so far getting caught at the top has been less of a problem. Of course there might come a time when the timeframes between ATHs become longer and painful, but when that will be is anyone's guess. Maybe 65k USD was as expensive as BTC ever will get. Maybe 300k will. Or maybe 1MM. We'll see.

[hatshepsut93]

If you take crypto as a whole, it's a lot like the dotcom bubble, except this bubble lasts for much longer and it's also not as big and mainstream. And some companies survived the dotcom bubble to become the tech giants we know today. How many coins will remain relevant after a potential crypto bubble burst? I think aside from Bitcoin, no coin is safe. Even Etherem, the second biggest coin, is not that useful as it pretends to be.

[Marykeller]

Humans beings do apply such logic in their ways of life. They normally correlate the same situations to the things they buy and invest into. We often have the mindset that costly things have more durability than cheap ones. Which is so wrong.
That has been a norm that will be difficult to change from people's mindsets. The same applied in the crypto sphere

A potential coin can't define base on her price rather it's her usefulness purpose when it's able to survive a bearish market and bounce back strong in price

[Sterbens]

If you come when the price is high then obviously it's not the time to go in and place a price order. They grew because of the high level of investor confidence in the past. And you come at a time where it's impossible to show anything when looking at crypto prices already having foreign commodities and holding on so far. It shows that investing in crypto has provided huge benefits.

[Wexnident]

Judging investments should be done on what it would be in the future, and not the current. That being said it also doesn't mean that when the price is low, it means it's a good investment. That's why finding a good investment at times is hard, it's like predicting the future. Identifying what the trend is, looking out for possible advancements that a project could bring, stuff like that. One should probably look at multiple factors instead of just a single factor before judging an asset.

[Rajamuda]

If you have been familiar with crypto for a long time, you will know when it is time to enter or be able to re-enter investing. The more we know about market trends, the more we know about price movements and the right time to enter.
On the other side, high prices can also attract new people to enter, and attract other enthusiasts as if that price has indeed shown its superiority and seems to provide concrete evidence that over time, crypto has shown its increasing popularity, esp on investment.

[TheUltraElite]

There will be stocks that are "over-priced" but commodities? I dont indulge myself much in the commodity market, but I can say that there is a constant demand for metals like Copper and Aluminum and they will maintain prices enough for their sellers to make a profit.

Before investing in a certain stock one needs to do some groundwork on what they are buying. I agree that crazy buying can happen but these people get washed out quickly and probably never come back again. The situation of bubbles that happened, a lot of reasons were there but these bubbles cannot be foreseen.

Today we can criticize those who had lost money back then but we forget that if we were in that same situation probably we also would have done the same.
Now comparing with the crypto market, altcoins are "over-hyped" there is no doubt it. But the hype with bitcoin is less and the situation that happened with fiat is less likely with bitcoin. For those who are bitcoin maximalists, I dont think there is any problem here.

[Kong Hey Pakboy]

If you come when the price is high then obviously it's not the time to go in and place a price order. They grew because of the high level of investor confidence in the past. And you come at a time where it's impossible to show anything when looking at crypto prices already having foreign commodities and holding on so far. It shows that investing in crypto has provided huge benefits.

The people in that situation would be in a deadlock, if they don't go in now and invest even if the prices are high and the prices continues to go up, they will end up with nothing but regret and get in at a wrong time. For me, it's faith in the investment is what we should have so we don't do anything wrong with our investments.

[davis196]

It doesn't matter if the price of a financial asset is high or low.
What matters is whether or not the value of that asset is overvalued or undervalued.The financial markets aren't perfect.Some assets are overvalued,others are sometimes undervalued.Asset valuation is a pretty important part of finance.Some assets are more scarce than others,that's why their price behaves in a different way.
Having a high price doesn't necessarily mean that the asset is overvalued.
Also having a low price doesn't always mean that the asset is undervalued,most of the time assets with low value are just financial junk-just look at all the penny stocks on the stock markets or all the shitcoins in the cryptocurrency market.

[Sanugarid]

Well, bitcoin has a high price, does that mean that bitcoin isn't a worthy investment? Pretty sure that you can invest little by little if you want to or probably you might even try saving to afford the investment but that's not going to be easy.

[Victorycoin]

doesn't matter if the price is higher or lower in cryptocurrency for this the market needs to be alert when the value of the currency rises and falls no one can control the proper movement of prices because there is always volatility in the market. Investors are often at a disadvantage when investing in high prices. Before entering the crypto market know well and go ahead and research its sites its price increase attracts a lot of investors but if you can choose the right currency.

[DU18]

In my opinion, an investment asset with a high price is certainly very worthy of consideration, especially if the investment asset had a low value before but now has a high price, of course there are certain reasons and causes that make the price of the asset increase and last all this time high prices, as we have seen so far, bitcoin is the most expensive asset in crypto and one of the reasons why bitcoin prices are expensive is the fundamentals and limited stock that has been the trigger for the price increase, but even so it's a good idea to find out first and analyze in detail about what you will invest.

[AicecreaME]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

However, there is the potential that high prices don't actually show genuine interest in a stock, but rather frenzied speculation on a commodity that has poor fundamentals.

A prime example of this happening was at the dot com bubble in the early 2000s.

What happened was companies that were, to be frank, pretty shit had managed to get multi-billion dollar evaluations because investors believed that the internet had fundamentally changed the business landscape forever.

As a result, people quit their jobs to trade full time, media stoked up the desires of getting rich and everyone believed that this gravy train will carry on rolling on and on forever.

Then the combination of increased interest rates, the majority of the aforementioned companies burning through cash and investors becoming aware of it all lead to the technology and by extension the entire economy to collapse while a few key members making big money.

This entire situation was the very exemplar of the title as companies that had billions of dollars turned out to be worthless at the end.

Be vigilant.

In short term, don't just follow the hype and do not FOMO. Not everything that you see going an uptrend in the market chart is worth the investment. Most of the coins in the market that are going up can be a really good form of investment but always do your own research about something that you'll put your money in. Make sure to check if that certain coin has a strong project ongoing or strong planned projects ahead that could establish the foundation of the coin. Check the white paper of it to ensure stability and reliability. If the coin does not exhibit a long-term goal, make sure to put that in mind too, otherwise, you'll lose money. Because there are coins that are just ideal for short-term investment or spot trading. If you fail to remember this, consider your money gone. Instead of "buy low, sell high" you might end up "buy high, sell low" just to get back some of your capital.

[mu_enrico]

And with crypto, who the hell knows what the real valuation should be for any of them?  Your guess is as good as anyone else's.  I think the crypto market is probably the best example of an efficient market, because a coin is worth exactly what the market says it's worth at any given point.

Well, I would like to disagree.

In a perfectly efficient market, all information about a particular coin will be available to everyone in it.

This is in stark contrast to the actual information that most coins show, which is often very scant.

If crypto is an efficient market, then Bitconnect, OneCoin and all of those other scams wouldn't have got to the size they had.

You know EMH is just a theory; In reality, there's no such thing as perfectly efficient market where there's no overvalued and undervalued stocks. I think maybe semi-strong is the highest attainable form of efficiency in the US stock market.

Previously my point is to distinguish commodity vs stocks. You can see the quality (present) by its price tag since the stock market is "reasonably efficient." Try to do that in crypto and you'll get busted real quick.

Crypto market isn't even a weak form per the definition since up to this date I believe it's possible to earn excess return using historical data. Furthermore, publicly available information is not robust to the point that some of "the team" are anonymous, no accountability, etc.

[Kittygalore]

That won't apply to investing because assets appreciate overtime but at the same time, people are still investing in those so-called expensive investments, they're bound to grow, that's why you need to get in as early as possible.

[ethereumhunter]

But in crypto, if you invest in a high price coin, that price can get down anytime, and that will happen too with bitcoin. But the difference is bitcoin price can rise and make a new ATH while the altcoin needs longer to reach the new ATH. If you want to invest in altcoin, you need to wait for the big bear run so you can buy many good coins at the lowest price. But investing in bitcoin is worth doing, even if the price now is at $51k. We can only suggest you research before you do something with the investment.

[iv4n]

Just recently I saw about "greater fool theory":

The Greater Fool Theory is the idea that, during a market bubble, one can make money by buying overvalued assets and selling them for a profit later, because it will always be possible to find someone who is willing to pay a higher price.

Interesting logic, and when you give it a thought it's exactly about people who are just buying at high prices... what is expensive must be good, but that is not always the case! This headline reminded me of this, it's something that happens all the time, with many people... draw your own conclusions from that!

[Shenzou]

I think that you have a point, bitcoin and cryptocurrency have gained their popularity from the fact that its price is high and that same high volatile price is what got people hooked on it and investing millions of dollars in it, but this came at the cost of forgetting the true nature of what it is, because at first people invested in it for the concept and the fact that it is a new currency that will replace fiat, but now people do it just for the money and the profit and they don't care about it.

[michellee]

I think that you have a point, bitcoin and cryptocurrency have gained their popularity from the fact that its price is high and that same high volatile price is what got people hooked on it and investing millions of dollars in it, but this came at the cost of forgetting the true nature of what it is, because at first people invested in it for the concept and the fact that it is a new currency that will replace fiat, but now people do it just for the money and the profit and they don't care about it.

indeed the main orientation about cryptocurrency is profit. until now there will be more people who view crypto as a tool for profit rather than as a currency. but that's the real fact and we have to be able to adapt to it. there will be more people who know about crypto, of course, more and more people will invest, and that means profits for early investors

If they can see the chance to make a profit, they will not lose that chance instead will trying to get involved. The more they can involve, the more the chances they can make money but they need to learn more to get that way. Although the price is too high to buy, if they decide to invest monthly or some certain time, they will have the chance to make a profit in the future. It is about how consistent they can invest in crypto so their profit will be bigger.

[Zanab247]

When the price is high, it mean so many things in the market. It mean it is time to invest in a particular potential project that has so much to offer in the future. The moment the price of bitcoin increase there are many sellers and few buyers in the market who will confirm the price to other investors that is good to invest or not.
Many professional traders who really understood investment, that when the price of bitcoin increase does not mean is a good investment until the end of the investment to see what will be the out come of the results. When the price is high and you purchase a coin, is either you make profit or loss in the investment.

[ninkdwi]

An asset in general having a price doesn't automatically mean good investment, but it doesn't automatically mean it's a bad investment either. It's simply just that solely looking at the price itself is a really bad metric to make decisions upon.

technically all depends on the assessment and research that we do.
It is true that any form that has value is not necessarily a good thing but it is also not necessarily a bad thing because it really depends on what is being done both in the project and in others.
but of course here when it comes to assets we must be able to really identify because that's the most important thing.

[fiulpro]

Price is definitely a very important factor when it comes to an asset, in general it's not the only thing to look for but you also have to understand the fact that it shows the overall economic health of the company.

Other than that there are few things that one can look for as well.

1. Profits
2. Graph
3. Sales
4. Market value
5. Growth rate
6. Legal issues
    
At the end of the day if the company is strong thus the whole price per asset would be strong as well, no doubt, I do think price is defiantly important, also the profit percentage can be calculated as well, you can look for a fixed amount of time in the past and then calculate the overall profit the people made and how the price rose.

Just do final - initial value and do it for fixed intervals, this way you would have much better idea of what you are getting into and would also be able to get a hang of the Volatility.

[el kaka22]

The amount of people who quit their jobs because they believe they will continue to make the type of profit they will make forever is way too high and it is very dangerous as well. People hate working nowadays, it is not like back in the day and we are not getting what we are worth, it is obvious that 90%+ of the world works for less than what they worth, and that is the biggest reason why we have so many wealthy people while having 100 million more than that poor people, for every billionaire there is 100 million people who are under poverty level.

So, people try to quit their job as soon as possible since it doesn't pay what they are worth, yet they do that as soon as they make some profit on crypto during bull run, and realize their mistakes during bear run and that is why it is such a huge problem, I do not know what could happen to prevent this, but it is definitely an issue in crypto.

[wxa7115]

Well.... Bitcoin and Crypto currencies has now been around since 2009 (12 Years) ..... so if this was one of those "Dot Com" bubbles... it had to burst a long time ago. The pre-bubble period of the Dotcom bubble went from 1995 to 1997, the actual bubble took place from 1998 until March 2000 and the bubble-burst from March 2000 until the low-point of the NASDAQ score in October 2002... +/- 6 years.  
Source : https://www.grin.com/document/197166

Berkshire Hathaway are one of the most desired shares in the world.. because one of the richest men in America owns most of it and stupid people follow rich people's recipe... but they never get it right, because they do not get the insider information that these rich people get.  

I think the point of the OP is to not fall into the FOMO that is present in all markets, especially this one, people see altcoins going up in value really quickly and they want a piece of the action as well without taking the time to think if that is what they should actually be doing.

Then the coin begins to go down shortly after their investment and they suffer losses they could have avoided if they just took the time to think for a few moments if what they were doing was right.

[Hydrogen]

Here is a chart of the inflationary dollar losing value over time.

Bitcoin is a deflationary currency. Which could mean natural forces dictate, it will trend upwards in value, opposite of inflationary assets like usd. Looking at a life history chart of bitcoin, it appears to represent the mirror opposite of the euro, dollar, bolivar, zimbabwe dollar and assorted inflationary currencies.

It could all come down to fundamentals. Printing increasingly larger quantities of something over time will devalue it, while printing increasingly smaller quantities of something will increase scarcity and value over time.

Of course there are rogue actors involved. China and central banks do not appear too fond of cryptocurrencies atm.

[Darker45]

Well, the most basic of all rules is that you do not invest in something you do not understand. Of course, you speculate, but it doesn't mean you do not understand it first. Speculation has to be founded upon informed analysis. Speculation is not merely wild guess. So a commodity or a stock, whether the price is high or low, has to be carefully scrutinized so that when you invest money in it, you are more or less sure that it will yield some ROI in the future.

However, I cannot speak the same of the crypto market. A meme coin, for example, whose development has been pretty much stagnant could suddenly rise simply due to a tweet. The crypto market sometimes defies logic.

[geegaw]

I think that you have a point, bitcoin and cryptocurrency have gained their popularity from the fact that its price is high and that same high volatile price is what got people hooked on it and investing millions of dollars in it, but this came at the cost of forgetting the true nature of what it is, because at first people invested in it for the concept and the fact that it is a new currency that will replace fiat, but now people do it just for the money and the profit and they don't care about it.

But those concepts have been blurred by investment thought, we've abandoned an innovative monetary theory of the future, we're just thinking about profits and when the meaning no longer retains an original shape, it will degenerate to the will of the investor. and although the original definition may have deviated from reality quite a bit, the value of bitcoin is no longer in the range of a currency but at least it shows that a very high price is very good, this meaning may not be for all investments, but it is a criterion for evaluating an investment

[LUCKMCFLY]

Well.... Bitcoin and Crypto currencies has now been around since 2009 (12 Years) ..... so if this was one of those "Dot Com" bubbles... it had to burst a long time ago. The pre-bubble period of the Dotcom bubble went from 1995 to 1997, the actual bubble took place from 1998 until March 2000 and the bubble-burst from March 2000 until the low-point of the NASDAQ score in October 2002... +/- 6 years.  
Source : https://www.grin.com/document/197166

Berkshire Hathaway are one of the most desired shares in the world.. because one of the richest men in America owns most of it and stupid people follow rich people's recipe... but they never get it right, because they do not get the insider information that these rich people get.  

I think the point of the OP is to not fall into the FOMO that is present in all markets, especially this one, people see altcoins going up in value really quickly and they want a piece of the action as well without taking the time to think if that is what they should actually be doing.

Then the coin begins to go down shortly after their investment and they suffer losses they could have avoided if they just took the time to think for a few moments if what they were doing was right.

They are very accurate and important opinions to digest, however it should be noted that when investing in the stock market, in real estate, there is a factor called time, under which most investors trust despite the fact that many things can happen in the market. future and it can all go down.

In the investment of Bitcoin and cryptocurrencies the whole concept changes, only the fact that BTC is taking around 3-4 years in its accumulation period + another period of bullish trend and / or re-accumulation to finally reach the distribution phase It is usually faster than any other market, apart from the ingredient of volatility.

Considering that a Stock Market investor can wait 8-10 years to see profits, the investor in BTC or crypto sometimes only has to wait 1,2 or 3 years to see a big profit.

[xSkylarx]

That won't apply to investing because assets appreciate overtime but at the same time, people are still investing in those so-called expensive investments, they're bound to grow, that's why you need to get in as early as possible.

Exactly, you either arrive early or late in investing so you got to do what you got to do in the time that you've invested you're money in, it's our fault after all that we've invested in something too late and now we risk loss because people at that point are going to sell to take some profit.

That is, indeed, why people are interested in it. However, due to the expensive price, I believe it will be quite difficult to purchase one as an investment, but if you are truly interested, it will be excellent for retirement. I'm not saying it's too late or anything, but the price isn't as low as it once was. Those who purchased it at least four years ago were fortunate because the price was significantly lower than it is today.

[perfect999]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

Personally, I don’t think that having a high price is what makes an asset to be worth investing in. Before you start investing in any asset you have to face the fall understand what it is all about and no everything about it before you can consider it. The price doesn’t really matter that much because the developers can decide to just start from any price for the asset.

An asset can be worth less than $1 maybe due to the supply, and still be much better than an asset that has a price of over $100and even $1000. Take the cryptocurrency market as an example, you will see some coins that has a high price but a lesser market cap than those with a lesser price.

[pjwaffle]

That is not to say when low prices mean a good investment. That's why finding a good investment is sometimes so difficult, it's like predicting the future. What is trend identification?. What features will the project have or will the team be enthusiastic about continuing to develop in the future, new roadmaps and methods this will be difficult to find real projects and I don't think high prices mean a good investment .

[tabas]

That is not to say when low prices mean a good investment. That's why finding a good investment is sometimes so difficult, it's like predicting the future. What is trend identification?. What features will the project have or will the team be enthusiastic about continuing to develop in the future, new roadmaps and methods this will be difficult to find real projects and I don't think high prices mean a good investment .

It is difficult if you don't follow the trend. But if you've been a follower of the trend then that means that you're good as you are in determining what you must invest.
It's true that high price doesn't give assurance to tell that an investment is good. But if we're going to relate that with bitcoin, it's a different thing. There's always the separation and differences with crypto and traditional investments.

[chrisculanag]

That is not to say when low prices mean a good investment. That's why finding a good investment is sometimes so difficult, it's like predicting the future. What is trend identification?. What features will the project have or will the team be enthusiastic about continuing to develop in the future, new roadmaps and methods this will be difficult to find real projects and I don't think high prices mean a good investment .

It is difficult if you don't follow the trend. But if you've been a follower of the trend then that means that you're good as you are in determining what you must invest.
It's true that high price doesn't give assurance to tell that an investment is good. But if we're going to relate that with bitcoin, it's a different thing. There's always the separation and differences with crypto and traditional investments.

I agree that , good followers gain more success and profit. Trend is number one we need to check always every minutes because theres a time a minutes make us a big profit. Investing is not easy , thats why we need always focus. True that high prices is not a way to invest this like other said many investment start in high but going down , the only thing to do is keep researching some new kind of investment before we put some .The more you choose the more you chances to get profit. Right , bitcoin or crypto and any investments are  so much differences.

[Sithara007]

In the cryptocurrency sector a lot of people give attention to unit price, rather than the market cap. This is a wrong strategy. Take the case of Bitcoin for example. The unit price is $54,000 per coin, and the market cap is $1 trillion. On the other hand, Ripple (XRP) is having a unit price of $1.16 and a market cap of $53 billion. So there is a 20 times difference in the valuation between BTC and XRP, but some of the noobs just look at the unit price and conclude that the difference is 50,000 times. And using the same logic, they assume that BCH is more expensive than XRP, when it is not the case.

[zanezane]

Don't let this negativity discourage you from investing, the price will get more expensive than what it is right now and you don't want to wait for that time to happen, remember that investment is expensive already, why wait for it to go to that point.

[oHnK]

In the cryptocurrency sector a lot of people give attention to unit price, rather than the market cap. This is a wrong strategy. Take the case of Bitcoin for example. The unit price is $54,000 per coin, and the market cap is $1 trillion. On the other hand, Ripple (XRP) is having a unit price of $1.16 and a market cap of $53 billion. So there is a 20 times difference in the valuation between BTC and XRP, but some of the noobs just look at the unit price and conclude that the difference is 50,000 times. And using the same logic, they assume that BCH is more expensive than XRP, when it is not the case.

No matter how high the price and the comparison in terms of the valuation of each crypto will still be ignored by people who follow investments just because of FOMO.  Like me, sometimes I take investment choices that are stupid enough to buy assets at their peak prices and suffer losses later.  In fact, in making investment choices there must be a strong basis to support our analysis.

[Cling18]

Cryptocurrencies have been running for years and I believe that lots of us already know whom and what to trust. We already know the coins that are just carried by the hype coins with huge potential. Yes, not all coins that strike high are worth buying. It's still better to check everything about it including its whitepaper as well as the team behind it.

[Findingnemo]

High price is not actually justified if they doesn't have enough volume and liquidity rate even in cryptos there were some coins raised.all of a sudden but they didn't last longer like Bitcoin does that is the difference of original and copycat projects.

[shield132]

High prices aren't problem because they are new normal right now and if you want to still invest and think that prices are high and they'll lower, then you can open short contract on futures trading. But I want to remind you that it's not a good investment when prices are increasing and increasing like a bubble because the bigger it is, the quickly and strongly it will explode.
You better to stick with long-term trading and not on a daily one. Daily trading just will mess up with your mind and make the life worse, really, I hate the pressure it can put on you.

[Kemarit]

On the contrary, if the prices are low, it also doesn't mean its a bad investment, so tit-for-tat.

Crypto is open for everyone, and I think there's no single formula that can fit how the market moves or work as regards to the price. Maybe it was just pure pump and dump that's why the price is high, and then we have those low market cap, that is gem but people forget to realized it. So still up to the individual, on how he is going to trade, i.e. short or long term.

[RealMalatesta]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

Personally, I don’t think that having a high price is what makes an asset to be worth investing in. Before you start investing in any asset you have to face the fall understand what it is all about and no everything about it before you can consider it. The price doesn’t really matter that much because the developers can decide to just start from any price for the asset.

An asset can be worth less than $1 maybe due to the supply, and still be much better than an asset that has a price of over $100and even $1000. Take the cryptocurrency market as an example, you will see some coins that has a high price but a lesser market cap than those with a lesser price.

The good value of an asset is not determined by the price. Yes, I do understand that the price can play a part as well, though it depends, you have to calculate it to know whether it is really worth looking at the price or not. The supply is one thing that plays an important role in the price of a cryptocurrency, though you have to know how many supply that the market has, and also judge whether the market is worth how much you are paying for it. There are some coins you will see that are not really worth anything much, but their prices will be very high. So, you just look at the cryptocurrency and evaluate it.

[uneng]

I've seen this saying or strategy regards stocks and it makes a lot of sense, but personally I don't think it's a good idea to apply this concept in crypto currencies, because if you avoid a high price asset, you aren't going to focus your investment in bitcoin and I believe that is the most important option disponible in crypto universe someone should go for.

To invest in cheap crypto currencies can be profitable, but you never know if it is going to work until it does. On this aspect bitcoin is much safer when compared to its pairs and still offers a decent financial return, although its price is extremely expensive.

[pinggoki]

Commodities are deemed valuable not for what they are in the present but what they are capable of in the future. Use-case, and supply is the biggest defining factor of whether a stock would be valuable or in this case a good investment or not. It has to have a relevant use-case, being novel too would help in its utilization, plus the supply. There is a certain balance between supply and projected demand that must be met in order to ensure that the price of the stock, as well as its availability in the future is not jeopardized.

Cryptocurrencies have been running for years and I believe that lots of us already know whom and what to trust. We already know the coins that are just carried by the hype coins with huge potential. Yes, not all coins that strike high are worth buying. It's still better to check everything about it including its whitepaper as well as the team behind it.

Some coins with poor use-case like DOGE and a number of others became sleeper and had remained dormant in the market for quite some time, that is until one shiller came along and everyone went bananas on investing in these cryptocurrencies. Price could still determine whether a stock or in this case a coin could thrive in the market or not because it is the sum of all the things that define the coin itself. Although it is not something you should really focus on when investing on.

[TheUltraElite]

High price is not actually justified if they doesn't have enough volume and liquidity rate even in cryptos there were some coins raised.all of a sudden but they didn't last longer like Bitcoin does that is the difference of original and copycat projects.

If you check the daily % rise of price, everyday you will find some never-heard-of project showing 400% gains or so. Why this occurs?

If there is not specific news for that project, there is a pump and dump going on - the dirty part is that these prices are well manipulated to attract small fires to buy it and then the whales who are running the pump will dump all their coins on the market and exit.

Basically a trap for the newbies. But this is applicable more to the crypto market which is not regulated. On regulated markets like stocks or commodities you will immediate stop on trading and starting of legal investigations as to the reasons behind the price rise.

Of course those people who use such methods to manipulate, will always argue that this is false and they will always have anti-regulation stance for crypto.

[wxa7115]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

Personally, I don’t think that having a high price is what makes an asset to be worth investing in. Before you start investing in any asset you have to face the fall understand what it is all about and no everything about it before you can consider it. The price doesn’t really matter that much because the developers can decide to just start from any price for the asset.

An asset can be worth less than $1 maybe due to the supply, and still be much better than an asset that has a price of over $100and even $1000. Take the cryptocurrency market as an example, you will see some coins that has a high price but a lesser market cap than those with a lesser price.

True, however many times that is the only thing many traders are interested in, they see that a coin is going up in value and then they want to invest in it, they do not care what is the vision of the developers or the fundamentals of the coin, they are interested in the fact the coin has gone up in value and they want some of those profits for themselves.

And while I understand their posture as the whole point of a trader is to make money, at the same time that kind of attitude can be very risky as the majority of the times they do not know in what kind of coin they are investing and this can create some problems for them as they invest in coins that are obvious scams for the community and then they lose their money in that way.

[TimeTeller]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

Personally, I don’t think that having a high price is what makes an asset to be worth investing in. Before you start investing in any asset you have to face the fall understand what it is all about and no everything about it before you can consider it. The price doesn’t really matter that much because the developers can decide to just start from any price for the asset.

An asset can be worth less than $1 maybe due to the supply, and still be much better than an asset that has a price of over $100and even $1000. Take the cryptocurrency market as an example, you will see some coins that has a high price but a lesser market cap than those with a lesser price.

True, however many times that is the only thing many traders are interested in, they see that a coin is going up in value and then they want to invest in it, they do not care what is the vision of the developers or the fundamentals of the coin, they are interested in the fact the coin has gone up in value and they want some of those profits for themselves.

And while I understand their posture as the whole point of a trader is to make money, at the same time that kind of attitude can be very risky as the majority of the times they do not know in what kind of coin they are investing and this can create some problems for them as they invest in coins that are obvious scams for the community and then they lose their money in that way.

This is usually why a lot of traders are getting screwed, if they will only look at the price movement and not the actual development per se.
Because if they are caught in the middle, they can really lose money as they won't know if the price will ever go up again.
So yes, it is important to follow also the updates and progress of the coin you are investing with, because it will give you insights if they have future or not.
Be careful touching pump and dump coins, because you can lose money here and not recover even your initial funds.

[breathlessz]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

Personally, I don’t think that having a high price is what makes an asset to be worth investing in. Before you start investing in any asset you have to face the fall understand what it is all about and no everything about it before you can consider it. The price doesn’t really matter that much because the developers can decide to just start from any price for the asset.

An asset can be worth less than $1 maybe due to the supply, and still be much better than an asset that has a price of over $100and even $1000. Take the cryptocurrency market as an example, you will see some coins that has a high price but a lesser market cap than those with a lesser price.

True, however many times that is the only thing many traders are interested in, they see that a coin is going up in value and then they want to invest in it, they do not care what is the vision of the developers or the fundamentals of the coin, they are interested in the fact the coin has gone up in value and they want some of those profits for themselves.

And while I understand their posture as the whole point of a trader is to make money, at the same time that kind of attitude can be very risky as the majority of the times they do not know in what kind of coin they are investing and this can create some problems for them as they invest in coins that are obvious scams for the community and then they lose their money in that way.

This is usually why a lot of traders are getting screwed, if they will only look at the price movement and not the actual development per se.
Because if they are caught in the middle, they can really lose money as they won't know if the price will ever go up again.
So yes, it is important to follow also the updates and progress of the coin you are investing with, because it will give you insights if they have future or not.
Be careful touching pump and dump coins, because you can lose money here and not recover even your initial funds.

if we choose the right coin and have an investment goal, I don't think there is a problem, because later the price will go up again from the moment we bought it. sometimes many people are impatient and tend to look at assets from a nominal usdt, even though the number of coins held remains the same

[mindrust]

That's how investing (or trading) works in general. You buy it when the prices are low and sell when the prices are high. It is a game of risk management. The media during the dotcom bubble was advising everybody to buy stocks and it went up and up and up. Then it went down massively. Maybe we are following a similar pattern now. That's possible.

[dark1234]

Everyone has their own way of dealing with the price.... and we can't help but say that a commodity or a non-commodity is valuable or not because what affects it is the value and price.... and every media whether it's Bubble.com or Tuktuk.com all must provide news according to trends and prices and of course the highest will be the topic

[maydna]

if we choose the right coin and have an investment goal, I don't think there is a problem, because later the price will go up again from the moment we bought it. sometimes many people are impatient and tend to look at assets from a nominal usdt, even though the number of coins held remains the same

I think that can happen to bitcoin but not an altcoin because in altcoin, you better buy the altcoin when the price is dropping to get a lot of amount of that coin. If you want to buy bitcoin, let say you want to buy at a price now, that will be okay as the price will increase higher in the future so even if you buy now, you will have a chance to make a profit.

[LUCKMCFLY]

Whenever we put in context that "Cheap is expensive" is a cliché according to what is going to be purchased. Cunaod we talk about goods and services I think that the most expensive is the best, because the quality of a service is guaranteed, when we talk about charging expensive certain work is synonymous with its guarantee and efficiency, when a person charges cheap it is not recognized for being Well, if not to collect cheap, in this aspect I think that there should be a balance, for certain things cheap is good (according to experience) such as actions in the stock market and the purchase of a cryptocurrency and even BTC (When it is cheap) I think that it depends on the context is that you can do a more specific analysis, but when it comes to stocks or to buy crypto I think that it is not buying cheap, it is buying with a very good opportunity.

[dezoel]

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

[qwertyup23]

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

I think in general, that is the norm that everyone should follow: "purchase low, sell high" in order to maximize any profit from our investments.

The only problem that I see is that people sometimes mistakenly invest into BTC without even knowing what it is. Then, they start to complain once their investment goes down by 5-10% without even knowing about its volatility. Then, they start to spread rumors and fake information about BTC being regarded as a 'scam' since their friends profited and they lost.

Before you invest, it is advisable to do proper research into any investment. Blindly investing into something without even knowing its nature, history, and currency would lead to one's downfall.

[pinggoki]

I think that's one of the most common mistakes people make when they first get into crypto. They see an asset, they assume it was good because it was pumping like crazy, invest hundreds of dollars, some even putting their life savings on the line, and then at the end of the day fill the r/suicide section of reddit when the asset drops so low. People gotta understand that despite the fact that price determines a lot, you have to also understand that it only determines the current implications and conditions of the asset itself, never what it could be in the future. That is to be decided by its use-case and utilization.

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

That's just something we would have to live with for the rest of our lives I think. A rookie mistake will always happen on rookies no matter what. So what can we do as experienced investors and cryptocurrency enthusiasts you ask? Well easy. Invest more and don't be stingy with the information we gather. Remember that the community's success is our own success so as an individual not only should you think of yourself when you speculate and study an asset, you also want to think about the people whom you would let know of what the asset is and its pros and cons, from there allow them to make an educated decision for themselves.

[Bollexz1]

For me, it's faith in the investment is what we should have so we don't do anything wrong with our investments.

Well of course, one has to have faith on its investments but that hold the thinnest percentage in determining what a good project is. What seem matters most is having to research by oneself so you don't have to rain a curse on yourself in a later time when you get to realise the project plans which may however not favours you.

[wxa7115]

True, however many times that is the only thing many traders are interested in, they see that a coin is going up in value and then they want to invest in it, they do not care what is the vision of the developers or the fundamentals of the coin, they are interested in the fact the coin has gone up in value and they want some of those profits for themselves.

And while I understand their posture as the whole point of a trader is to make money, at the same time that kind of attitude can be very risky as the majority of the times they do not know in what kind of coin they are investing and this can create some problems for them as they invest in coins that are obvious scams for the community and then they lose their money in that way.

This is usually why a lot of traders are getting screwed, if they will only look at the price movement and not the actual development per se.
Because if they are caught in the middle, they can really lose money as they won't know if the price will ever go up again.
So yes, it is important to follow also the updates and progress of the coin you are investing with, because it will give you insights if they have future or not.
Be careful touching pump and dump coins, because you can lose money here and not recover even your initial funds.

Something that traders are missing is that electing which markets to trade is also part of a strategy, if someone selects strong markets like bitcoin and other solid altcoins then at least he knows that even if those coins can crash from time to time when this happens it has nothing to do with some issues on their development and it has to do with some manipulation going on or a natural crash coming to the market due to the decrease in the demand.

But when it comes to altcoins with a low volume there are way more chances for the drop to be simply because there was some kind of issue with the developers or the vision they had for their coin cannot be realized at all or they were scammers, so there are more risks you need to watch for and instead of giving more attention to those coins they give them none, causing all the tragedies we have to read on the forum and outside of it.

[Bitstar_coin]

I think a lot of things are overpriced including btc, can we really say this price at which btc is trading is the actual value base on its fundamental and usage! It is hard to telll, but investors seem to develop more interest whenever the btc price is increasing, it is like a norm especially in the crypto space when people consider a project successful when it's able to attain a high price, the fundamentals always comes last.

[mindrust]

This argument also has another side.

It also doesn't mean it is a good investment because it is cheap neither.

So a good investment usually don't depend on the price. High prices and go higher and low prices can go even lower.

It might not be a good investment when it is high already but how do you know it is not going even higher?

[wxa7115]

This argument also has another side.

It also doesn't mean it is a good investment because it is cheap neither.

So a good investment usually don't depend on the price. High prices and go higher and low prices can go even lower.

It might not be a good investment when it is high already but how do you know it is not going even higher?

And we have many examples of this, how many times we have seen newbies in the forum being attracted to XRP or dogecoin because they see the price is cheap for those coins, not understanding that the supply of those coins is enormous which is why their price is so low.

But newbies being newbies do not understand this explanation and invest anyway on those coins, and then when they obtain poor results they comeback to complain about it while ignoring the fact they were warned against investing in those coins.

[Sebas.tian]

Well, bitcoin has a high price, does that mean that bitcoin isn't a worthy investment? Pretty sure that you can invest little by little if you want to or probably you might even try saving to afford the investment but that's not going to be easy.

With your determination, it can be easy for you to save a lot for the future if you really understand the market price right now. Buy when the price drop and sell when the market is suitable for you to make a good profit from the investment.

[Fredomago]

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

I think in general, that is the norm that everyone should follow: "purchase low, sell high" in order to maximize any profit from our investments.

The only problem that I see is that people sometimes mistakenly invest into BTC without even knowing what it is. Then, they start to complain once their investment goes down by 5-10% without even knowing about its volatility. Then, they start to spread rumors and fake information about BTC being regarded as a 'scam' since their friends profited and they lost.

Before you invest, it is advisable to do proper research into any investment. Blindly investing into something without even knowing its nature, history, and currency would lead to one's downfall.

This is how proper investment should be taken, understand the both benefits and risk in order to analyze and balance your investment well, there are many people who lose their investment because of wrong mindset, thinking that they can buy low and sell high not realizing that what they've thought is low to them can probably drop for more due to volatility.

If you are new to this investment, before you invest, better to observe how the market works and how things run around this industry, from that point you'll be able to analyze and have a better anticipations.

[perryxi2]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

However, there is the potential that high prices don't actually show genuine interest in a stock, but rather frenzied speculation on a commodity that has poor fundamentals.

A prime example of this happening was at the dot com bubble in the early 2000s.

What happened was companies that were, to be frank, pretty shit had managed to get multi-billion dollar evaluations because investors believed that the internet had fundamentally changed the business landscape forever.

As a result, people quit their jobs to trade full time, media stoked up the desires of getting rich and everyone believed that this gravy train will carry on rolling on and on forever.

Then the combination of increased interest rates, the majority of the aforementioned companies burning through cash and investors becoming aware of it all lead to the technology and by extension the entire economy to collapse while a few key members making big money.

This entire situation was the very exemplar of the title as companies that had billions of dollars turned out to be worthless at the end.

Be vigilant.

The rule that we should hold in this market is not to invest in coins that have risen too high because I am sure it will fall and you will become a peak buyer with the highest price of the coin. that coin. follow and analyze the price of the market chart wait for the price of DIP then start to be able to buy it this is simpler than you buy the coin with the price trending up and very difficult to control get it, and buying DIP you should buy 2 times and watch at the lowest possible price. I believe those with long-term trading experience will be like me.

[harizen]

There are too many people who buy when it is going up and sell when it is going down. That is a bit of a problem in the crypto world, I do not know how we can fix it but I believe that it is certainly something that would be a bit weird if you consider what we are doing right now. I mean if we buy when it is going down and sell when it is going up then we are making a profit and that is how trading is done, that is exactly what we should be doing.

However, if we are making a loss right at when we should be making a profit because we are doing exactly the opposite then I am not going to be really sure how to help these people out neither.

I think in general, that is the norm that everyone should follow: "purchase low, sell high" in order to maximize any profit from our investments.

The only problem that I see is that people sometimes mistakenly invest into BTC without even knowing what it is. Then, they start to complain once their investment goes down by 5-10% without even knowing about its volatility. Then, they start to spread rumors and fake information about BTC being regarded as a 'scam' since their friends profited and they lost.

Before you invest, it is advisable to do proper research into any investment. Blindly investing into something without even knowing its nature, history, and currency would lead to one's downfall.

Even with research prior to investing in crypto, without actual experience, those new investors won't understand anything. They won't know the pressure until they are now currently in the situation.

To become a good and better investor in the long run, they should experience all the worst things in crypto for them to become more be careful in their next actions. Those worst experiences will also be served as their foundation to minimize their mistakes along the way. And more importantly, that's their test if they really want to continue or pursue their crypto journey for long.

Professional traders nor investors, won't reach their status of being a better one if they didn't experience lots of mistakes while they progress.

[2double0]

Bitcoin is not a company, nor is it owned by own. You are free to keep or sell it. It is people who decide the value of btc.

Your title also applies on coins with low prices and market capitalisations. Bitcoin had been here for more than a decade, its value went up after going dead many times. In other words, it revived. Take out any altcoins from the list and show me if any of them proved to have the potential to do a comeback like btc did? Btc was said to be a bubble before, but now, institutions are putting in their money to incentivise this market and all of its new aspects. Crypto is not btc alone, but crypto is nothing without btc. So this superiority gives btc an advantage over others and gives it a reason to be unique and rule over. Internet changed everything but nobody was ready to get adapted to it, but crypto has given all of us a great opportunity to change our future with our hands. I cannot speak about other coins but btc can give guaranteed* returns on your investment at any price bought.

* Based on historical performance.

[Hippocrypto]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

However, there is the potential that high prices don't actually show genuine interest in a stock, but rather frenzied speculation on a commodity that has poor fundamentals.

A prime example of this happening was at the dot com bubble in the early 2000s.

What happened was companies that were, to be frank, pretty shit had managed to get multi-billion dollar evaluations because investors believed that the internet had fundamentally changed the business landscape forever.

As a result, people quit their jobs to trade full time, media stoked up the desires of getting rich and everyone believed that this gravy train will carry on rolling on and on forever.

Then the combination of increased interest rates, the majority of the aforementioned companies burning through cash and investors becoming aware of it all lead to the technology and by extension the entire economy to collapse while a few key members making big money.

This entire situation was the very exemplar of the title as companies that had billions of dollars turned out to be worthless at the end.

Be vigilant.

It doesn't mean that when the price of bitcoin is too high, it is already good for investment. No, it's not like that, maybe, the price of it is good for now, but we can't predict what will happen in the future. It's better to choose a good coin, a coin with lot of potential for you to invest. Bitcoin is not a company or even owned by us. We all are free to keep or sell our coins. It is us who will decide the value of Bitcoin.

[FanEagle]

No, high price does not determine or mean that an asset is a good investment. Any project can be given any price as long as the team behind the project wants it to start from that price. Developers can decide to set the price of their coin starting from $100 when they launched the project, that doesn’t mean that the project is going to be a good investment.

So when considering an investment to make in the cryptocurrency market, it's not really advisable to be looking at how high the price of that coin is . What you should be looking at is the growth of that coin, the growth of a particular coin is what shows the success. Some coins will have a high price and when you check the chart you will see that it is mostly going down and not even increasing that much. So, it’s not worth it at all.

[Fatunad]

This argument also has another side.

It also doesn't mean it is a good investment because it is cheap neither.

So a good investment usually don't depend on the price. High prices and go higher and low prices can go even lower.

It might not be a good investment when it is high already but how do you know it is not going even higher?

High price does significantly means that there's a demand which is the most important factor where people should really consider on looking on because it wont able to reach out that state if it doesnt really have any potential or real use case on where the community could look upon and decide whether they do tend to engage out or would simply ignore. It is indeed true that everything will not really vary on the price because there are some offerings which are
expensive but not really totally that has potential but we have seen on how bitcoin did reach out this price which do came first from on the floor.

[Fredomago]

No, high price does not determine or mean that an asset is a good investment. Any project can be given any price as long as the team behind the project wants it to start from that price. Developers can decide to set the price of their coin starting from $100 when they launched the project, that doesn’t mean that the project is going to be a good investment.

So when considering an investment to make in the cryptocurrency market, it's not really advisable to be looking at how high the price of that coin is . What you should be looking at is the growth of that coin, the growth of a particular coin is what shows the success. Some coins will have a high price and when you check the chart you will see that it is mostly going down and not even increasing that much. So, it’s not worth it at all.

You have to consider everything behind. Following your statement, developers can easily place the price and they can also hype it up. That's how most scammers are doing, they alluring investors to believe that the project are good as it's getting attentions and hypes are really moving the value up, unknowing that's it's just an artificial pump where at any moment dumped can happen right away.

Make sure to deal with good research, investigate deeper and not just follow or invest in the project without doing your homework.

Most of those who perform all these precautions are succeeding from this investment venue.

[dothebeats]

This is what newbie investors think: high price equate to the performance of an asset. While it holds some degree of truth to it, it still isn't enough since some are just partially inflated and are pumped temporarily to attract more and more people. I've been asked by some of my friends on whether or not buying bitcoin, or any other crypto at X price is smart. I just say that if their wallet can afford to lose the money they want to invest, and if they have done their research well enough, that is when buying such crypto becomes justified.

[adzino]

No, high price does not determine or mean that an asset is a good investment. Any project can be given any price as long as the team behind the project wants it to start from that price. Developers can decide to set the price of their coin starting from $100 when they launched the project, that doesn’t mean that the project is going to be a good investment.

So when considering an investment to make in the cryptocurrency market, it's not really advisable to be looking at how high the price of that coin is . What you should be looking at is the growth of that coin, the growth of a particular coin is what shows the success.

If it's a decentralized currency, then no, the developers don't set the price. The market decides the price. But if most of the supply/coins are held by the developers, then yeah, they can decide/control the price. They can manipulate the price for their own advantage. And no, you shouldn't look at the "growth of the coin" (not even sure what that means) when considering the  price and investment. You should be looking at the supply and the market capitalization. A coin having a high value doesn't mean its a good coin. The supply might be very low causing the price to be very high. Look at the marketcap.

Some coins will have a high price and when you check the chart you will see that it is mostly going down and not even increasing that much. So, it’s not worth it at all.

So according to you, when the price starts to crash, the coin is useless?

[SquallLeonhart]

you shouldn't look at the "growth of the coin" (not even sure what that means) when considering the  price and investment. You should be looking at the supply and the market capitalization. A coin having a high value doesn't mean its a good coin. The supply might be very low causing the price to be very high. Look at the marketcap.

Even you are sounding like having all the valid arguments, when we are considering the case of bitcoin, it is valuing high today because people feel and find it is a good investment and moreover it is time proven. Bitcoin is consistently growing higher and higher for every four years which makes it is a good investment and being a good investment helps it to have higher value; an interlinked reaction.

Basically bitcoin is having higher value because of it limited supply. Yeah, limited supply must be a initial trigger for attracting investors and then higher value again attracts investors to have further higher value. So, a chain reaction happened and will keep happening in near future as well. Hence, these higher values are not due to manipulation but for a reason which means bitcoin must be a good investment unlike what OP argues.

[wxa7115]

I think a lot of things are overpriced including btc, can we really say this price at which btc is trading is the actual value base on its fundamental and usage! It is hard to telll, but investors seem to develop more interest whenever the btc price is increasing, it is like a norm especially in the crypto space when people consider a project successful when it's able to attain a high price, the fundamentals always comes last.

Technically speaking since the price of everything is always determined by supply and demand this means that the price that something has is always its correct price, you may think the price of bitcoin and many other assets is overpriced but if this is what the market dictates then that is its true price, as if the price is currently at 63k you are not going to find anyone willing to sell for a price much lower than that.

However even if you are correct and the price of bitcoin is too high compared to its fundamentals now we need to wonder why this is the case? And I think that people are not really confident the economy is going to recover at the speed governments want, and this means they are looking for a way to protect themselves and this means they have to buy bitcoin for a premium as many people are thinking and doing the same thing.

[LUCKMCFLY]

I think a lot of things are overpriced including btc, can we really say this price at which btc is trading is the actual value base on its fundamental and usage! It is hard to telll, but investors seem to develop more interest whenever the btc price is increasing, it is like a norm especially in the crypto space when people consider a project successful when it's able to attain a high price, the fundamentals always comes last.

Technically speaking since the price of everything is always determined by supply and demand this means that the price that something has is always its correct price, you may think the price of bitcoin and many other assets is overpriced but if this is what the market dictates then that is its true price, as if the price is currently at 63k you are not going to find anyone willing to sell for a price much lower than that.

However even if you are correct and the price of bitcoin is too high compared to its fundamentals now we need to wonder why this is the case? And I think that people are not really confident the economy is going to recover at the speed governments want, and this means they are looking for a way to protect themselves and this means they have to buy bitcoin for a premium as many people are thinking and doing the same thing.

Well, only those who have certain powers are the ones who have access to having BTC at a premium price, currently the price of BTC is given by the amount of demand and that demand has a lot to do with adoption, it is the only way by which the price is growing at the moment for this reason it is not unreasonable to invest in BTC despite the latent risk of a possible very radical fall, many are betting on it, in fact when they see such high prices in BTC they are in doubt For investors and some prefer to withdraw for fear of losing what they have invested, it does so as a way to protect itself.

[josephdd1]

It is recommended not to buy on highs as after a rapid growth, it must be a correction, so you may lose. It is better to buy only on dips. Personally I follow such a strategy of buying on drawdowns and then hold. If you buy on highs, you are greedy, so you will not earn. You should sometimes let the bull run go and wait for the correction accumulating stable coins so as to buy when it will be the high time.

[ningrum]

It is recommended not to buy on highs as after a rapid growth, it must be a correction, so you may lose. It is better to buy only on dips. Personally I follow such a strategy of buying on drawdowns and then hold. If you buy on highs, you are greedy, so you will not earn. You should sometimes let the bull run go and wait for the correction accumulating stable coins so as to buy when it will be the high time.

When we want to buy we need to look at the conditions and analyze them so that the decisions we make can be right,
and indeed the right time to buy is certainly when the price is down,
the most important thing is to continue to follow the movement and development of the price

[Botnake]

It is recommended not to buy on highs as after a rapid growth, it must be a correction, so you may lose. It is better to buy only on dips. Personally I follow such a strategy of buying on drawdowns and then hold. If you buy on highs, you are greedy, so you will not earn. You should sometimes let the bull run go and wait for the correction accumulating stable coins so as to buy when it will be the high time.

When we want to buy we need to look at the conditions and analyze them so that the decisions we make can be right,
and indeed the right time to buy is certainly when the price is down,
the most important thing is to continue to follow the movement and development of the price

It's always a good buying moment when the price is certainly low, but that does not mean that we should buy all those coins who have low prices. Others might don't have the potentials to grow more, so we'll still end up losing. Just like never be deceived with all those coins who have high prices because not really all of them are good investments, some of them are just hyped, and when the hype is done, their value will definitely fall again. Although having a high price means there is a high demand on it, but still always DYOR so we will not end up regretting because we do invest in those wrong coins.

[Shasha80]

It is recommended not to buy on highs as after a rapid growth, it must be a correction, so you may lose. It is better to buy only on dips. Personally I follow such a strategy of buying on drawdowns and then hold. If you buy on highs, you are greedy, so you will not earn. You should sometimes let the bull run go and wait for the correction accumulating stable coins so as to buy when it will be the high time.

When we want to buy we need to look at the conditions and analyze them so that the decisions we make can be right,
and indeed the right time to buy is certainly when the price is down,
the most important thing is to continue to follow the movement and development of the price

It's always a good buying moment when the price is certainly low, but that does not mean that we should buy all those coins who have low prices. Others might don't have the potentials to grow more, so we'll still end up losing. Just like never be deceived with all those coins who have high prices because not really all of them are good investments, some of them are just hyped, and when the hype is done, their value will definitely fall again. Although having a high price means there is a high demand on it, but still always DYOR so we will not end up regretting because we do invest in those wrong coins.

It is true that coins with high pumps are not always good for investment, sometimes the coins are manipulated and hype occurs. If we choose coins
like that, the risk is very high, even though we buy them at low prices, there is no guarantee that the coins will pump high again. That's why
it's important for us to do our own research and analysis, to make sure the coins we choose are worth buying. That's why I always say over and over
that don't invest based on other people's opinions, because sometimes some influencers often influence investors to invest in the coins that
he recommends. In fact, these influencers only use their followers to create FOMO and provide personal benefits. So make it a habit to believe
in yourself, and learn to do the analysis correctly, thus preventing us from investing in the wrong coins.

[harizen]

It's always a good buying moment when the price is certainly low, but that does not mean that we should buy all those coins who have low prices.

That's the main concern of others, how to determine if the price can now be called "low"?

In that particular situation, people should make their own factors and criteria on how to able to know or determine if the coin's price is now good to buy.

I suggest that they just need to continue working with any strategies. As soon as they are used to it, they can now, at least, make a decision if the certain coin is now reaching its buying point without looking at the market chart.

[tippytoes]

It's always a good buying moment when the price is certainly low, but that does not mean that we should buy all those coins who have low prices.

That's the main concern of others, how to determine if the price can now be called "low"?

In that particular situation, people should make their own factors and criteria on how to able to know or determine if the coin's price is now good to buy.

I suggest that they just need to continue working with any strategies. As soon as they are used to it, they can now, at least, make a decision if the certain coin is now reaching its buying point without looking at the market chart.

A lot of these coins with low prices are not worth to invest with. One should look about the reason why it exists and why would it continue to exist? If you find that it has active application in the market and people are indeed using their app or services , then, they have chance to survive. But if not, don't bother buying this coin even if it is very cheap. Because you may be buying cheap coins but later on, it will be worthless and you are just holding worthless coins.

[karanggatak]

price cant be one of the benchmark for investment, but this statement not 100% true. sometimes, high price can be good investment, with many rule inside. low price, doesnt mean you should buy that thing than it price will raise as much as it can, no. you can buy low price be high price if the rule accepted.
we should know about that history if we want gain money back.

[Obito]

There are some exceptions to rule though like bitcoin which even though it's going down, the price is still expensive for everyone, but you're right that we should be cautious, it's not like your investments are going to go up indefinitely without suffering any loss, that's just utterly impossible.

[worldofcoins]

Yes, I do agree that just because prices are high, doesn't mean that is a good investment. We must look for the market trends and people's views regarding any product or goods. Demand and supply is an important key factor in the price hike. If there would a huge demand for any product it would definitely impact the supply which would result in a price hike. What I believe here is quality is more important than quantity. Always try to invest in some stable and long run items the market trend must be considered as well.

[Issa56]

You investing in a coin because the price have gone up is really a bad idea most of us that have been in Cryptocurrency for a long period of time have different experience about cryptocurrency, I believe we have all seen a situation where the team of a project pump the coin there self just to attract investors and then later dump it on investor so pls don't invest in a coin because the price have gone high.

[n0ne]

You investing in a coin because the price have gone up is really a bad idea most of us that have been in Cryptocurrency for a long period of time have different experience about cryptocurrency, I believe we have all seen a situation where the team of a project pump the coin there self just to attract investors and then later dump it on investor so pls don't invest in a coin because the price have gone high.

Yes, there are coins that are highly manipulated by the teams. While choosing an investment of is a must to go with a coin that grows without any external factors. There are pump and dump groups that do this. Just shatter the coin once good investment is attracted towards it. So, many things are to be noted before investing. It is good to invest on well known cryptocurrencies of the top order than unknown coins.

[marilynmanson21]

when viewed from finance, ordinary people usually say that, but wise people often invest relying on logic and the purpose for which they invest, bitcoin is expensive but bitcoin has been notarized as digital gold, so people are competing to own it as well as physical gold, it can be concluded that in Fundamentally, financial markets are imperfect.

[macson]

It is recommended not to buy on highs as after a rapid growth, it must be a correction, so you may lose. It is better to buy only on dips. Personally I follow such a strategy of buying on drawdowns and then hold. If you buy on highs, you are greedy, so you will not earn. You should sometimes let the bull run go and wait for the correction accumulating stable coins so as to buy when it will be the high time.

the condition for profit in investing in crypto is the timeliness of buying or selling, investing in crypto is not much different from other investments, if buy when the price is high or hype then the chances of making a profit are very small.  trying to analyze before buying is important, don't be greedy and be fooled by the hype.

[xSkylarx]

You investing in a coin because the price have gone up is really a bad idea most of us that have been in Cryptocurrency for a long period of time have different experience about cryptocurrency, I believe we have all seen a situation where the team of a project pump the coin there self just to attract investors and then later dump it on investor so pls don't invest in a coin because the price have gone high.

Yes, there are coins that are highly manipulated by the teams. While choosing an investment of is a must to go with a coin that grows without any external factors. There are pump and dump groups that do this. Just shatter the coin once good investment is attracted towards it. So, many things are to be noted before investing. It is good to invest on well known cryptocurrencies of the top order than unknown coins.

Yes, but there are some teams that will take your money and run. It is extremely difficult to put your trust in anything right now, unless it comes from a well-known source. Also, with regards to the price, I believe that newbie investors primarily base their decisions on the fact that if the price is high, it is a good investment rather than looking for the lowest possible price. It is preferable to look for the cheapest coin that has a promising Whitepaper and make an investment in it.

[carlfebz2]

You investing in a coin because the price have gone up is really a bad idea most of us that have been in Cryptocurrency for a long period of time have different experience about cryptocurrency, I believe we have all seen a situation where the team of a project pump the coin there self just to attract investors and then later dump it on investor so pls don't invest in a coin because the price have gone high.

Yes, there are coins that are highly manipulated by the teams. While choosing an investment of is a must to go with a coin that grows without any external factors. There are pump and dump groups that do this. Just shatter the coin once good investment is attracted towards it. So, many things are to be noted before investing. It is good to invest on well known cryptocurrencies of the top order than unknown coins.

Yes, but there are some teams that will take your money and run. It is extremely difficult to put your trust in anything right now, unless it comes from a well-known source. Also, with regards to the price, I believe that newbie investors primarily base their decisions on the fact that if the price is high, it is a good investment rather than looking for the lowest possible price. It is preferable to look for the cheapest coin that has a promising Whitepaper and make an investment in it.

You couldnt really say that all of those who invested early are newbies or noobs because there are people who do really take risk into those early points

and believing that they could make out enormous profits once the price had increased that much thats why it wont really be that right on generalizing everything.

On every decision you would make specially on investment then you should really be wise on doing that.

[Alisha FR]

good advice from you to me as a reader, I myself do not count on high or low prices. but how the stock operates and how far it has gone so far. if they just came with a high price i would also think twice with those stocks. but speaking of trading, whatever it is we must be vigilant and always do a good analysis.

[palle11]

good advice from you to me as a reader, I myself do not count on high or low prices. but how the stock operates and how far it has gone so far. if they just came with a high price i would also think twice with those stocks. but speaking of trading, whatever it is we must be vigilant and always do a good analysis.

What matters is the utility of the project, if it is cheap enough you need good research through social media and there community to see what people are talking and reviews about it. And doing your own analysis about it to take your decision, not just doing blind investment that regret will come.

[bitzizzix]

I don't think it's about price, it's about fundamentals and good analytical knowledge.
If a project is fundamentally strong, the management is good, the business prospects are good going forward and there is no problem to invest even though the price is already high.
and the price only determines how much quantity you can buy and for long term goals because you believe in the future it will give good results.

[Fredomago]

I don't think it's about price, it's about fundamentals and good analytical knowledge.
If a project is fundamentally strong, the management is good, the business prospects are good going forward and there is no problem to invest even though the price is already high.
and the price only determines how much quantity you can buy and for long term goals because you believe in the future it will give good results.

If the fundamental is good, the chance of success is also good, from that point of view investing is not be wasted. The price can be manipulated but the success always define by continuous development. It's making sense that by choosing project that have solid fundamentals will have a better chance of success in the long run.

Hypes is just another part of this investment that you needed to understand. You can play and make a good profits
if you know when to place your entry and exit point.

[magneto]

Shouldn't it actually be the reverse?

If prices are low, then it is more likely that it is going to be a good investment going forward.

People tend to forget that returns is a function of both present and future price. The higher present values are the lower the percentage returns are going to be as well.

[jostorres]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

Price doesn’t say whether the coin you’re investing in is good or not, unless we are talking about the market cap. I have seen coins/assets with ridiculous prices, but their market caps are nothing to write home about’ lol. While there are assets with a very low price that might even be $0.001, but when you check their market cap you will see that their market cap is really huge.

That’s when you would be prompted to check the price chart to see how the coin has performed over days, weeks, months, and you would see that they have really made a huge percentage, and some of them would go from something like $0.00001 to $0.01. That’s still a low price, but it’s a huge profit from if you calculate it. So it’s not really a matter having an expensive price.

[Cindella]

You cannot judge an asset based on its price and invest in it. Through the analysis of the market, understand the price changes and the right timing of investment.

[andriarto]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

Price doesn’t say whether the coin you’re investing in is good or not, unless we are talking about the market cap. I have seen coins/assets with ridiculous prices, but their market caps are nothing to write home about’ lol. While there are assets with a very low price that might even be $0.001, but when you check their market cap you will see that their market cap is really huge.

That’s when you would be prompted to check the price chart to see how the coin has performed over days, weeks, months, and you would see that they have really made a huge percentage, and some of them would go from something like $0.00001 to $0.01. That’s still a low price, but it’s a huge profit from if you calculate it. So it’s not really a matter having an expensive price.

right, a large market capitalization supported by a large and solid community will bring a coin to its glory, on the other hand, with the support of a product or a large plan of a coin will certainly add to its positive value. so a high price, not necessarily a good coin, it is different with bitcoin where it only has a small supply, and because it has trust, the price is even higher, even though ethereum actually has more features than bitcoin

[Mauser]

I fully agree with you that a high price is no indication that it's a good investment. The only thing that a high price tells us is that it was a good investment in the past. All the investors who gave been part of the rally made money. But this is not a guarantee that the price is going to rise higher in the future. There are many factors that determine if a project is a good investment. Also the price could have been manipulated to be high without any fundamental justification. A ponzi scheme also has a very high price, right until the moment the bubble burst, then it becomes worthless. Better not to trust a high price alone.

[TheGreatPython]

I fully agree with you that a high price is no indication that it's a good investment. The only thing that a high price tells us is that it was a good investment in the past. All the investors who gave been part of the rally made money. But this is not a guarantee that the price is going to rise higher in the future. There are many factors that determine if a project is a good investment. Also the price could have been manipulated to be high without any fundamental justification. A ponzi scheme also has a very high price, right until the moment the bubble burst, then it becomes worthless. Better not to trust a high price alone.

If it was just a thing about the past then I would understand, but as we can see even in the last 1 year we have seen 2x increase in bitcoin and that should tell you that every single year it is going up like crazy. Sure we had bad years as well and people are not entirely sure about if we will have a bad year or good year, that part is understandable. But to say that bitcoin did all the increase it could and will stop here would be naive to think about.

Bitcoin may drop here and there, it may not be 2x every year, but usually it is, in 2017 we had an amazing year, 2018 was bad, 2019 started with 3.6k and ended with 7k and 2020 started with 7k and ended with 30k and 2021 started with 30k and ending with 50k or so, reached higher but lets forget about that and just say ending with close to 50k. So if you still want to doubt bitcoin, then go ahead and doubt it, but I won't.

[dmamigo]

Obviously not, with the current news in India that a bill might be introduced, people are panic selling nearly every time the market trends go down, and with all these, people who bought BTC or any alts at their highs, their money will be stuck so as said in the topic it is true, moreover very much practical. But personally, I believe at a certain point it will be a profitable buy because I believe the all-time high will also cross, but that is my speculation.

[stadus]

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

[Fatunad]

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

There would be always that wrong impression in all of things on which you would really be believing until reality would happen and slap into your face and made you realize that you were wrong.
Learning do always comes in the end whether it is acquired through research or would be acquired with bad experiences.This is where people do make out
decisions basing on what they had done in the past.
Be wise and Be aware on what are things happening because this will really be helpful on your investment journey.

[Wawa2013]

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

There would be always that wrong impression in all of things on which you would really be believing until reality would happen and slap into your face and made you realize that you were wrong.
Learning do always comes in the end whether it is acquired through research or would be acquired with bad experiences.This is where people do make out
decisions basing on what they had done in the past.
Be wise and Be aware on what are things happening because this will really be helpful on your investment journey.

Sometimes we are too late to realize the mistakes we made, that investing during a bullish trend is not always good. But it doesn't matter,
because we will learn from those mistakes. So that in the future we don't repeat the same mistakes, bad experiences when investing can make us
more careful and wise when making decisions. We will become more and more aware of how to invest properly. I admit that being a successful
investor is not easy, we do have to go through a long process to be able to make the right decision. Learn by doing is what everyone has to do
if they want to make a profit when investing. It doesn't matter at first we experience losses, but next we know how to minimize losses and
maximize profits. Never give up if we experience failure, must rise again to achieve success.

[habebe]

Well, the price of bitcoin is high, does that mean you deserve to join an investment into bitcoin?  however, it's really that simple that you need to make sure that you can invest little by little just in case or maybe you can hold on to what you can invest first and try to be patient before joining so that you don't regret it later, the  investing is like gambling you never know when you will win or lose so you need not immediately trust make sure really if you want to invest.

[istiak2277]

Shouldn't it actually be the reverse?

If prices are low, then it is more likely that it is going to be a good investment going forward.

People tend to forget that returns is a function of both present and future price. The higher present values are the lower the percentage returns are going to be as well.

Your concern is valid when that project has enough potential utilities. A project with no use case or development won't even survive the market no matter what the price is. Privet investors would dump their tokens to the market at any price they got. Lower percentages of return are also good if they reduce your risk.

The higher present values are the lower the percentage returns are going to be as well.

It's not true if you can hold that project for a long time. The highest BTC price in 2013 was 1100$ and if you were in 2013 you must have thought it became too valuable and won't go higher. But look at the price of BTC right now. The longer you can hold the more you will get profits.