What Determines the Price of Cryptocurrency?


The market of digital assets is probably one of the most unstable markets to work with, but it does not stop people from investing in crypto coins and making money from it. Many ask, “Why should I buy crypto if there are more stable and less risky stocks?”. Here are some reasons to do that:

  • Along with increased risks and high volatility, the crypto market allows for making enormous profits from a small initial investment.
  • Crypto assets are delivered to any point on the globe in a matter of minutes at low fees and with no intermediaries. That is a rivaling system for SWIFT and a totally new vision of how money transfers.
  • Investment in large and mega-cap coins allows you to add several zeros to your initial amount without doing anything – just hold the coins and be patient.
  • Intensive trading makes it possible to earn daily, and shorting allows you to make money even when the market is falling.

What Makes Cryptocurrency Price Go Up?

Investing in digital projects now when the market is down is a clever vision for future enrichment because when the trend changes and prices start to climb up, your asset will increase in value and bring you multiplied profit. 

Here are factors that make live crypto price growth:

  • If demand exceeds supply
  • If the process of coin production costs a lot, it requires increasing the asset price, for miners would not agree to mine them if they do not earn on it.
  • Listing on crypto exchanges. If crypto is listed on all large crypto platforms, more investors access it, so more people can buy it. It helps to increase demand for coins, and thus, it grows in value.
  • Competition in the market. 
  • Real use cases.
  • News background and the bull market trend.

So when you pick a cryptocurrency to buy, try to analyze it and understand if the project has good future growth changes. Pay attention to the technology that underlies the project, see if there are real use cases, etc.

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