David Irvine said a year or two ago (paraphrasing from admittedly so-so memory): In the near term the price is anyone’s guess, but over time, price tends to follow value.
So it’s a double-edged sword:
PRO: The ability to take advantage of the market’s extreme lack of efficiency. An investor’s goal is to buy low and sell high—that’s pretty much it. Because of the crypto market’s inefficiency, there are a lot of opportunities to buy low.
CON: Watching your token from a top project languish or fall in the markets while clowncoins soar can feel demoralizing.
As much as I’m susceptible to the Con (the past 1.5 years wasn’t exactly fun), I personally try to remind myself that focusing on the Pro is the best way to succeed as an investor. In fact it’s the only way.
It’s just that it’s anyone’s guess when price will begin to more accurately follow value. So sometimes you have to wade through deserts, and sometimes it’s a brief stroll. You can try to time it, but the problem with that just happened to me, actually: I was interested in investing in a token (QNT) but it had been falling for several months and so I decided to wait for it to plateau. Instead, it rebounded off its steady downward slope and shot up. I decided to wait for the pull back. It never happened. Long-story-short: I never ended up buying in, and the token is up 169.92% over the past month.