What determines the price of crypto?

What determines the price of crypto?

Due to the variety of trading strategies and tools, it is possible to:

  • invest a small amount (even $50) and get a lucrative return if you catch the rising market wave;
  • make money even when the market is down and crypto rates drop;
  • earn using short-term strategies or invest in long-term crypto;
  • organize passive income through loans and crypto staking;
  • borrow funds from crypto exchanges to enter the market with a more profitable position.

Trading strategies are chosen based on what is happening with crypto rates. Let’s find out what determines the price of cryptocurrency.

What makes the price of cryptocurrency go up and down?

We would like to list the factors that affect the price of crypto. The fact is that the crypto market is not regulated by any central authority. Issuing cryptoassets has nothing to do with banks or governments. Crypto rates therefore mainly depend on the relationship between demand and supply. What influences their balance? Here are some factors:

  • Technology and application of each specific crypto project. If the technology is valuable and there are many use cases, the project is adopted and many people want to buy its assets, so the demand increases and so does the price of the crypto.
  • The market trend. The crypto market indeed lives through trends – uptrends and downtrends, determining the general mood of investors about crypto investments.
  • General situation of the world economy, inflation, interest rates, etc. These factors also affect the crypto market, as they determine people’s willingness to spend money on investments.
  • Provide. If a crypto asset has a limited supply, it is more likely to have increased demand. If supply is unlimited, demand falls. Scarcity determines demand.

In the highly volatile crypto market, using reliable services for trading and investing is essential. One of these platforms is WhiteBIT – a regulated and officially registered exchange in Europe, operating in more than 150 countries and offering a comprehensive set of financial instruments as well as a high level of protection of user funds.

Image by Ish Artist from Pixabay

Related posts

‘A bit of a mixed blessing’: Disney Plus ironically takes the blame for ‘Elemental’ bombing at the box office


A behind-the-scenes look at Netflix’s Pokémon janitor | Anime Fair 2023


The Movie “Baby Ruby” Drama Directed by Bess Wohl