Frequently Asked Questions
Quick answers about CryptoValue, the Value Score, crypto basics, and investment strategies.
30 answers across 5 categories
About CryptoValue
What is CryptoValue?
CryptoValue is an independent crypto valuation platform that calculates a proprietary 0-100 Value Score for over 1000 cryptocurrencies. We focus on fundamental analysis — combining on-chain metrics, developer activity, tokenomics, and market dynamics — rather than just tracking prices. Our scores are updated hourly and published transparently from public data sources.
Is CryptoValue free to use?
Yes. All Value Scores, coin pages, learn articles, screeners, calculators and the Fear & Greed index are free with no registration required. We also offer an optional Pro subscription for advanced features like alerts, AI-powered analysis, and an API. Free use is funded by affiliate links and a small number of clearly labeled sponsored placements.
Where is CryptoValue based?
CryptoValue is operated from Switzerland. All legal matters are subject to Swiss law. Contact: contact@cryptovalue.com.
Who is behind CryptoValue?
CryptoValue is operated by an independent team of software engineers, data analysts and quantitative researchers based in Switzerland. We are self-funded through subscriptions and affiliate revenue. We are not owned by any cryptocurrency exchange, fund, or token issuer — this independence is essential for unbiased scoring.
How does CryptoValue make money?
Revenue comes from three sources: (1) optional Pro subscriptions for advanced features, (2) affiliate commissions when users sign up to partner exchanges or buy hardware wallets through our links (always clearly labeled and never affecting scoring), and (3) clearly marked sponsored coin listings. We never sell user data. The Value Score is generated by the same algorithm for every coin regardless of any commercial relationship.
Value Score Methodology
How is the CryptoValue Score calculated?
The Value Score is calculated from 10 weighted fundamental metrics: MVRV Ratio (15%), NVT Ratio (12%), Network Activity (12%), Developer Activity (10%), Volume/MCap (10%), Supply Dynamics (10%), Tokenomics (8%), BTC Correlation (8%), Sentiment (8%), and Momentum (7%). Each metric is normalized to 0-100, weighted, and summed to produce the final score. Full details are on our Methodology page.
What does a Value Score of 80 mean?
Scores 80-100 are 'Strong Value' (likely undervalued). 60-80 is 'Undervalued', 40-60 is 'Fair Value', 20-40 is 'Overvalued', and 0-20 is 'Strong Sell' (likely overvalued). The score reflects fundamentals only — it is not a price prediction. Even strong-value coins can drop short-term; even overvalued coins can rally. The score is a medium-to-long-term indicator, not a trading signal.
How often is the Value Score updated?
Scores are recalculated hourly from the latest CoinGecko market data. Detailed developer and community data refreshes every 6 hours. Daily snapshots are archived at 23:55 UTC for historical analysis. Major score changes (>5 points) usually only occur during significant on-chain movements or market regime shifts — not from minor price fluctuations.
Can a high Value Score guarantee profits?
Absolutely not. A high Value Score indicates fundamental strength relative to current market valuation — it is one input among many. Crypto markets are heavily driven by sentiment, macro events, regulation, and technological developments that no single metric can capture. Past performance does not predict future results. Always combine the Value Score with your own research, risk tolerance, and time horizon.
Why does my favorite coin have a low score?
The Value Score is purely data-driven from public sources. Low scores can result from: (a) market cap that has run far ahead of network usage (high NVT), (b) declining developer activity, (c) weak on-chain transaction volume relative to valuation, (d) high supply dilution from token unlocks, or (e) a price near or above all-time highs (high MVRV). Click any coin's score breakdown to see which specific components are dragging the total down.
Crypto Basics
What is cryptocurrency?
Cryptocurrency is digital money built on blockchain technology — a decentralized, distributed ledger maintained by a network of computers rather than a central authority. Bitcoin, the first cryptocurrency, was launched in 2009. Today there are over 10,000 cryptocurrencies, each with different purposes: stores of value (BTC), smart contract platforms (ETH, SOL), stablecoins (USDC, USDT), and many more.
Is Bitcoin overvalued or undervalued?
Visit our Bitcoin page or 'Is Bitcoin Undervalued?' analysis for the current Value Score. The answer changes hourly based on price action, on-chain activity, and other fundamental metrics. Generally, Bitcoin tends toward 'Strong Value' near cycle lows (high MVRV/NVT compression) and toward 'Overvalued' near cycle highs (when market cap runs far ahead of network usage).
What is the difference between Bitcoin and Ethereum?
Bitcoin is primarily a digital store of value — 'digital gold' — with a fixed 21M supply and a simple scripting language. Ethereum is a programmable smart contract platform that powers most of DeFi, NFTs, and decentralized apps. ETH supply has no hard cap but is net-deflationary post-Merge during high activity. Bitcoin uses Proof-of-Work consensus; Ethereum uses Proof-of-Stake since September 2022.
What is a stablecoin?
A stablecoin is a cryptocurrency designed to maintain a stable value, usually pegged 1:1 to the US dollar. Major fiat-backed stablecoins (USDT, USDC) are backed by reserves of cash and short-term treasuries. Crypto-backed stablecoins (DAI) are over-collateralized with other cryptocurrencies. Stablecoins are used for trading, remittances, DeFi yield, and as a 'safe' parking spot during market downturns. Always verify reserve audits.
What is DeFi?
DeFi (Decentralized Finance) refers to financial services — lending, borrowing, trading, derivatives — built on smart contract blockchains without traditional intermediaries like banks. Major protocols include Uniswap (DEX), Aave (lending), MakerDAO (stablecoin issuance), and Lido (liquid staking). DeFi is permissionless and global but carries smart contract risk, oracle risk, and regulatory uncertainty.
What is a wallet and which type should I use?
A wallet is software or hardware that stores your private keys — the secrets that control your crypto. For small amounts and active trading, hot wallets (MetaMask, Trust Wallet, exchange accounts) are convenient. For larger holdings, use a hardware wallet (Ledger, Trezor) and keep your seed phrase written down in a safe location. Never store the seed phrase digitally. As a rule: 'not your keys, not your coins'.
What is MVRV Ratio?
MVRV (Market Value to Realized Value) compares a coin's current market capitalization to its 'realized cap' — the aggregate cost basis at which each coin last moved on-chain. MVRV > 3.0 historically signals overvaluation (potential sell zone); MVRV < 1.0 signals undervaluation (potential buy zone). It's one of the most reliable on-chain valuation metrics and accounts for 15% of our Value Score.
What does HODL mean?
HODL is crypto slang for 'hold on for dear life' — a long-term investment strategy of buying and holding crypto regardless of price volatility. The term came from a 2013 Bitcoin forum typo of 'hold'. HODLers believe in the long-term value of crypto and ignore short-term price swings. It's a behavioral counter to FOMO buying and panic selling.
What is gas in crypto?
Gas is the fee paid to network validators (or miners) to process a transaction on a smart contract blockchain like Ethereum. Gas prices fluctuate based on network demand — during high activity, fees can spike to $50+. Gas is paid in the chain's native token (ETH on Ethereum). Layer 2 networks (Arbitrum, Optimism, Base) and alternative L1s (Solana, Sui) offer significantly cheaper transactions.
What is the difference between a CEX and a DEX?
A CEX (centralized exchange) like Binance, Coinbase, or Kraken is operated by a company that custodies user funds and matches trades via an order book. Pros: high liquidity, fiat ramps, customer support. Cons: counterparty risk (FTX collapse), KYC required, regulatory exposure. A DEX (decentralized exchange) like Uniswap or PancakeSwap runs entirely on smart contracts — users trade directly from their wallets without giving up custody. Pros: self-custody, no KYC. Cons: gas fees, slippage, harder UX.
Investing & Strategy
Should I invest in crypto?
This is a personal decision and not something CryptoValue can answer for you. Crypto is a volatile, high-risk asset class — prices can lose 80%+ during bear markets. Only invest what you can afford to lose entirely. Common guidance: limit crypto to 1-10% of total investable assets, diversify across multiple projects, use dollar-cost averaging, and understand each project's fundamentals before investing. Consult a licensed financial advisor for personalized advice.
What is Dollar-Cost Averaging (DCA)?
DCA is investing a fixed amount at regular intervals (e.g. $100 every week) regardless of price. This smooths out volatility — you buy more units when prices are low and fewer when prices are high. DCA reduces the emotional pressure of timing the market and historically outperforms lump-sum investing for volatile assets like crypto. Use our DCA Calculator on any coin page to simulate historical returns.
What's the safest way to store crypto?
For amounts above a few thousand dollars, use a hardware wallet (Ledger or Trezor) and store your seed phrase written on paper or stamped metal in a secure location — never digitally. For active trading, keep only what you actively need on a reputable centralized exchange. Use a unique strong password and enable 2FA (authenticator app, not SMS). Never share your seed phrase or private keys with anyone — legitimate services will never ask.
Are crypto taxes my responsibility?
Yes. In most jurisdictions, crypto gains are taxable — typically as capital gains on sales, swaps, or conversions. Switzerland: private investors pay no capital gains tax but professional traders are taxed as income. Germany: 0% tax on crypto held >1 year, full income tax otherwise. US: every disposal is a taxable event. Use crypto tax software (Koinly, CoinTracker) to import exchange and wallet history. Consult a tax advisor familiar with crypto in your jurisdiction.
How do I research a new coin before investing?
Check our Value Score first for a quick fundamental snapshot. Then dive deeper: (1) Read the whitepaper — what problem does it solve? (2) Check tokenomics — total supply, vesting, who holds tokens? (3) Review developer activity on GitHub — active commits? (4) Examine on-chain metrics — active addresses, transaction volume. (5) Look at the team — are they doxxed and credible? (6) Search for past audits and known exploits. (7) Avoid coins with anonymous teams, no audits, and aggressive marketing.
Data, Trust & Disclaimers
Is CryptoValue's data accurate?
Market and on-chain data is sourced primarily from CoinGecko, one of the largest and most reputable crypto data providers. Our Value Score logic and editorial content are produced in-house. We strive for accuracy but data feeds can experience delays or temporary inaccuracies — especially during high-volatility events. If you spot an error, email contact@cryptovalue.com — verified mistakes are corrected within 72 hours.
Is the Value Score financial advice?
No. The Value Score is an algorithmic rating from public data — not financial advice. CryptoValue does not know your financial situation, risk tolerance, or investment goals. Cryptocurrencies are highly volatile and you can lose all of your invested capital. Always do your own research and consult a licensed financial advisor before making investment decisions. See our full Risk Disclaimer for details.
Can projects pay for a higher Value Score?
Absolutely not. The Value Score is generated by the same open methodology for every coin we track — there is no way to influence it through payment, partnership, or advertising. Sponsored placements on CryptoValue (when present) are always clearly labeled with a 'Sponsored' badge, are visually distinct from organic listings, and have zero effect on score calculation. Our credibility depends on this strict separation.
Why does CryptoValue use affiliate links?
Affiliate revenue lets us keep the core platform — Value Scores, learn content, screeners, calculators — free for everyone. When you sign up for a partner exchange or buy a hardware wallet through our links, we may earn a commission at no extra cost to you. All affiliate links are clearly labeled with 'sponsored' attribution. We only partner with reputable platforms we would recommend independently of any commercial arrangement.
How can I contact CryptoValue?
Email contact@cryptovalue.com for general questions, data corrections, partnerships, press inquiries, or feedback. For data errors we aim to investigate and respond within 72 hours. Partnership and listing inquiries: include details about the project in your first email. We do not currently offer phone support.
Question not answered?
Drop us a line at contact@cryptovalue.com — we usually respond within 72 hours. Or check our deeper resources: