To establish a foothold in the crypto market, you first need to understand the logic of economics. Economics is fundamentally about studying human choices—what to give up, what to gain, and why people make those choices—leading to inferences about how they will act.

So what is the foundation of all this? Simply put, it’s one word: value.

Think about it—why do transactions happen in the market? It’s quite simple—because what each party holds is valuable to the other, and both believe that the deal is worthwhile. The tokens held by A are more useful to B, B’s funds are more important to A, and exchanges happen naturally because of this. This is the root of market liquidity.

Delving deeper, why is there specialization? Why isn’t everyone self-sufficient? It’s still about value. Some are good at market analysis, others excel at coding, some understand risk management—each doing what they are most efficient at, and then exchanging to complement each other. This boosts the overall value creation efficiency of the ecosystem.

Trading follows the same principle. If you believe in the future of a certain blockchain, while others are more interested in cash flows, your value judgments differ, and a trade occurs. It’s not a zero-sum game of who gains and who loses, but a rational choice based on each side’s value expectations.

Therefore, if you want to succeed in trading, at the most fundamental level, you need to understand how value drives human decision-making.