One of the most common questions I get from readers (and skeptics) is how to value cryptocurrencies.

Traditional concepts and ratios like Price-to-Earnings, Free Cash Flow and Net Profit don’t quite apply to cryptocurrencies, especially a large number of crypto projects still are in development and aren’t ready for mass adoption in the real world yet.

So what’s a crypto investor supposed to do?

We need to first understand that the crypto markets are still in their infancy. Unlike stocks (which have been around for a much longer time), there is still no universally accepted metric on how to value a crypto coin right now.

When Benjamin Graham introduced the concept of Margin of Safety, it took a few years before investors started accepting it and it became more widely used as a measurement to evaluating undervalued stocks. Similarly, we’re still years away …