What Makes Cryptocurrency Price?

The market of digital projects is evolving, bringing many new crypto assets to invest in. Since the market is incredibly volatile, it is possible to generate income during the day, or weeks or invest in the long term, depending on a trading strategy one picks. Here are a couple of examples:

• Day trading means entering the market and leaving it within 24 hours, making a profit from daily crypto rates fluctuations.
• Position trading implies entering the market and holding crypto assets for many weeks or months, as a result, receiving income in the long run.

There are also such strategies as scalping, swing trading, etc.

Now let’s see how current prices for cryptocurrencies are formed. 

Factors Affecting Crypto Rates 

Let’s list some aspects impacting crypto rates. First of all, it is a market trend. It can be bullish (increasing) and bearish (downward trend). These periods are characterized by purchasing or selling coins in masses. Massive selling across the market causes a panic mood, pushing other crypto holders to sell their assets. Thus, supply increases demand and crypto rates drop.

Other factors affecting the cryptocurrency exchange rate are competition in the market, the emergence if new advanced and technologically rich crypto projects, and the overall situation in the world’s economy. For example, central banks started issuing more fiat currencies during the Coronavirus crisis, adding more money to circulation. It created an influx of money, and people started to spend them on crypto investments. 

Where Can I Buy Crypto at Current Crypto Rates?

If you are a beginner investor, we recommend using a convenient and secure crypto platform WhiteBIT. Beginner traders appreciate this exchange for its user-friendly interface, variety of trading tools, wide range of digital assets, quality customer support, and the ability to practice trading on a demo account. That option is suitable not only for novice investors but also for experienced traders who want to polish trading strategies making their ideal before applying them in the real market.

Look for more information about the WhiteBIT platform on its official website and WhiteBIT blog.