💰❔What can affect the price of a coin?❔💰

cryptobakers (48)in #crypto • 8 years ago (edited)

Cryptocurrency is a new revolutionary type of currency. Like any other currency or unit of account, they only have value because people think it has value.

💰❔What can affect the price of a coin?❔💰

🔻Here is what you need to be aware of when you trade cryptocurrencies. 🔻

✅Exchange Listing

When Coinbase added Litecoin to their list of cryptocurrencies, they made it easily accessible to the average person. Soon after the Coinbase launch the price of Litecoin started to skyrocket and it has never looked back. So, when a large exchange announces that they will start listing a cryptocurrency that you are trading, take notice.

Wondering how this works ?

Adding coin to more and more exchanges means increasing demand for your coin (especially if exchanges are big).
More demand > more buy power.
More buy power > prices increase.

✅Software Upgrades

For example, upgrading the speed of btc transaction has been hotly debated and finally led to the creation of Bitcoin Cash. After the split of Bitcoin Cash, Bitcoin has taken off to new highs.

✅Public Hype

Before you dismiss something as just hype, remember that hype moves markets too. But if you do trade hype, be sure to close your trade out long before the hype has a chance to cool off!
In simple language it is like Demand and Supply .Supply/Demand is a simple economic factor that affects the price of many things. If demand is more and supply is less then the price will be higher and vice versa.
So if some coin gets sudden public hype with limited amount of coin then price will also be higher.

✅Wallet Improvements

If a cryptocurrency doesn't have a good wallet yet, that will prevent less technical investors from buying the currency. But as soon as one is available, then it makes the currency much more accessible to the masses. And thus, more valuable.

✅Platform Applications

Some cryptocurrency platforms, like Ethereum, host other applications. These applications, in turn, can have their own currencies or tokens. If one of these DApps (or Decentralized Apps) does very well, this can have a positive effect on the underlying platform currency.

✅Government Regulation

Be aware of current trends in government regulation and steer clear of currencies that could get red flagged by government agencies. If any country's goverment will regulate or ban any crypto it deeply effect the price of currency .

✅Rumors

Yes , rumors also effect the price .
Recently one rumor got hype in market that korea is going to ban crypto currency and crypto market suddenly went down and drop about 200B cap. Mostly curencies were red . Thankfully korea confirmed they're not going to ban crypto and Same goes with any perticular currency /