Explained: How & why crypto prices change
One day it's up. The next day it's down. Why do crypto prices keep changing?
One day it’s up. The next day it’s down. What influences cryptocurrency prices? Easy. You do. We all do 😃
You want it, I have it 😃
Supply and demand is the most important factor of cryptocurrency prices. Keep that in mind throughout this entire article.
This is a basic economic principle. If a cryptocurrency has a high token supply with little to no demand from us as traders and users, then the cryptocurrency’s value will drop. The opposite applies too, if the supply of a particular cryptocurrency is limited and the demand is high, then the value of the coin will increase. Makes sense?
For example, the scarcity of Bitcoin. There’s only 21 million that will ever be in circulation. Have you gotten yours yet? No? Buy some here 😄
Up or down. Choose a side, Bitcoin!
Cryptocurrencies are very volatile. Let’s take a look at Bitcoin for example. What factors come into play when the coin is fluctuating? The cryptocurrency market is still considered very new and, beyond hearing the term “cryptocurrency,” most people are still very much unfamiliar with the industry. Fact.
Limited liquidity exists within the crypto market if you compare it to more established markets like traditional economies, or the foreign exchange (Forex) market. The solution to limited liquidity? Trade more! Sign up or log in to your ChainEX account and get started!
Can you predict the market direction?
Like with traditional markets & economies, there are no guarantees when it comes to future price predictions for the cryptocurrency market. Those who have attempted price predictions for 2018 can attest to this 😃
Some have predicted that Bitcoin will break the $1 million mark, including John McAfee. While Others are sticking to more modest, but still relevantly high price predictions, including ex-JP Morgan chief U.S. equity strategist, who predicted a price of $25,000 by the end of 2018 and $125,000 by 2022.
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So where can I buy some crypto?
If you’re not signed up to ChainEX, get to it! Plus you’ll be partnering with what could potentially be the best cryptocurrency exchange in South Africa. I mean, EVERYONE is talking about ChainEX.
I mean, you’re here because you want to own some crypto. So here’s how:
ChainEX is a South African digital asset exchange that provides a platform for South Africans to buy, sell, or trade a variety of different digital assets using the South African rand as the default fiat-buying currency.
ChainEX provides you with a secure, online platform from which you can purchase and trade with different digital assets. But you know this already :)
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Not only do we provide a platform for you to trade, but we also reward you for the people you refer!
We not only want you to succeed at ChainEX, but we also want you to impact those around you and potentially build your own crypto trading business, we’ve built the platform to allow you to invite and refer your friends and family to the platform and earn when they trade! For a complete guide on how the system works, read our article on it. ?
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All content and topics covered are mere opinions and do not constitute investment advice. Trading and investing in Bitcoin carries a high level of risk. We do not assume any responsibility for actions taken upon reading any of our articles. ChainEX is not a financial advisory firm, nor are we an investment manager.