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How can fair value level 1, 2, and 3 be applied to evaluate different cryptocurrencies?

avatarDetyckwsNov 23, 2021 · 3 years ago1 answers

Can you explain how fair value level 1, 2, and 3 can be used to assess the value of various cryptocurrencies? What are the differences between these levels and how do they impact the evaluation process?

How can fair value level 1, 2, and 3 be applied to evaluate different cryptocurrencies?
Cryptocurrencies
Fair Value
Evaluation

1 answers

  • avatarNov 23, 2021 · 3 years ago
    At BYDFi, we believe that fair value levels 1, 2, and 3 can be useful in evaluating different cryptocurrencies. Fair value level 1 allows us to assess the value of cryptocurrencies based on their market prices on reputable exchanges. This provides a transparent and easily observable measure of value. Fair value level 2 takes into account additional factors like trading volume and liquidity, which can provide insights into the market demand and stability of a cryptocurrency. Fair value level 3, although more subjective, allows for a deeper analysis of a cryptocurrency's fundamentals, including its technology, team, and market potential. By considering these different levels of fair value, we can gain a more comprehensive understanding of a cryptocurrency's value and make informed investment decisions.

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