Crypto assets are digital currencies that have no physical form but can be used for buying services and goods, investing in projects, trading, etc. Since cryptocurrencies are not issued by central banks and the decision in additional emission does not depend on the government, their prices are much more volatile compared with traditional currencies we all got used to.
The high volatility and instability of crypto rates make them attractive options for investment. On the other hand, it also makes them the riskiest option for investment.
How to pick a crypto asset, and what figures to pay attention to? Here are some crucial indicators:
- Crypto market cap. It is the total value of all the crypto assets that have been issued. To calculate the market cap, multiply the number of tokens issued by the cryptocurrency current rate.
- Trade volume. It indicates the amount of all the trades made with the coin in a certain period of time, usually 24 hours, in dollar equivalent.
- Current cryptocurrency current rate.
What Affects Crypto Rates and Where to Check Them?
There are some factors that determine the price of crypto assets. First of all, it is supply and demand. It works the same as in the traditional market – if supply exceeds demand, price drops, and vice versa – if supply is lower than demand, the value rises. Digital assets with limited supply (emission) have better chances of maintaining value.
The global economy, inflation, crisis also affect the crypto market. When people don’t have extra money for investments, the crypto field drops. And on the contrary, when the influx of fiat happens, more people strive to become investors.
You can keep track of all cryptocurrency prices live on the WhiteBIT crypto exchange. The platform offers a variety of trading pairs, low fees, a convenient interface, and robust security for clients. It is a reputable and trusted exchange appreciated by over 2 million users worldwide.
To learn more about the basic things of crypto investment, welcome to the WhiteBIT blog.
Comments are closed.