Digital currencies such as cryptocurrencies are getting more and more popular nowadays. It is worth mentioning, that cryptocurrency exchange rates are not that volatile.
Their market is less stable than other asset markets, and crypto investments are most likely based on speculations.
The listing of all cryptocurrencies is presented as a ranking. In each of them, virtual assets are presented in order from highest to lowest market capitalization.
This marker determines their actual size. It should be remembered, that the actual cryptocurrency price itself does not reflect its true value.
Market capitalization is really helpful when it comes to assessing the risk of investment. It’s worth knowing, that assessing the risk is not easy to be calculated because of dead cryptocurrencies – these are coins that cannot be accessed by users – they were lost.
The cryptocurrency market differs from every other market because trading happens all the time – 7 days a week, 24 hours a day.
You may ask: how do cryptocurrency markets work all the time? Well, virtual assets like cryptocurrencies work on a decentralized network, based on blockchain technology. It means they can run continuously 365 days a year.
Numerous observations have proved, that cryptocurrency prices fluctuate the most during weekends, when traditional markets are closed.
Some people explain this phenomenon by the fact, that many players have a lot of time to analyze the market and do investment actions slowly.
Most websites that monitor and analyze rates of cryptocurrencies show their prices in US dollars. There are some features that allow players to filter cryptocurrency rankings within their expectations and personal preferences.
It is very important to mention, that cryptocurrency exchange rates differ between a few markets. It happens due to turnover on a given platform. It means, that there is no strict, and predetermined price for each of the cryptocurrencies.
The way that cryptocurrency prices differ can cause players buy them cheaper on one market, and sell on another one for a higher price.
There are many websites like: cryptocurrency merchant account, that analyze data from many markets, and allow players to compare actual cryptocurrency rates on different trading platforms, and choose the best one for them.
What drives the price of cryptocurrencies?
Cryptocurrency rates cannot be clearly determined. Inexperienced players often buy cryptocurrencies just because of their price.
It is a very unreasonable strategy. It often leads to the purchase of cryptocurrencies at their peaks, which may cause big losses.
It is worth diversifying your investments, and not going all in. You should do proper research before you actually make an investment. Both the cryptocurrency project history and the market of our choice should be chosen carefully.
Cryptocurrency rates often go along with reaching some of the project’s crucial moments. In fear, some players buy virtual assets from the market.
These situations can be observed in the example of TRON (TRX). Justin Sun, the CEO of TRON, has great skills in controlling the market. His marketing appearances and moves often reflect TRX’s price.
Following such situations will surely help to predict some future cryptocurrency rate changes. Very often, the Heads of projects share their thoughts on cryptocurrency projects, which have an impact on some coin’s prices.
People blindly follow these moves, which are most likely just fake information. Mass media often influence cryptocurrency ratings through the information they release, in an exaggerated way.
Cryptocurrency rates also depend on movements called Smart Money. It is well known, that more than half of turnover on the market is generated by institutional investors.
The group is not big, but they enter the market with very large capital. Such situations can influence the price movements of coins, regardless of information coming out from the market.
Anyway, it is difficult to tell who really is part of the big player’s group.
Smart Money can be observed by the volume, which is placed on the bottom part of the cryptocurrency chart. This tells the details of where the Smart Money capital is located.
