I am (still) in the process of realigning my crypto portfolio. While doing that I am thinking that I have to categorize the different projects/coins I have because the behavior and evaluation seems to me quite different.
I see three categories:
Pure currencies (e.g. BTC): Basically the coin is just a token for either "store of value" or "medium of exchange". The value of those projects should increase the more people bought into the project. Evaluation of a fair price is often done with the network effect "N square 2" - N being number of users involved. What needs to be considered is the token distribution model - inflation etc.
Profit shares (e.g. gnosis): Basically the coin entitles you to a share of profit. Evaluation like classic shares - price-earning ratio -all in perspective of growth and the token distribution model.
Utility token (e.g. steem, ethereum): The token is used within the project to give the token holder some project specific power. E.g. bandwidth/voting power (steem), gas for processing (ETH). Very individual how to evaluate a fair price. Token model needs to be considered as well.
Let me know your thoughts on those categories. Do you see different or more categories? How are you evaluating a fair price (fundamental)? I am looking forward to your answers.
