Crypto assets are funds that exist in the digital space and are used mainly for trading, investment, and money transfers. Still, many real-life companies and firms have gradually started to add crypto payments. It will take time until digital assets are accepted everywhere. Today, the main purpose why people buy digital coins is to make money.
The fact is that this market is still incredibly unstable and sensitive to different external and internal factors affecting it. It allows capitalizing from just a small initial amount but at the same time to lose everything if the market moves in the wrong direction.
To succeed in crypto investment, you should understand how crypto price live formed and what affects it.
What Influences crypto rates?
Looking at crypto charts, you may notice that prices never stand still. They change under the following factors:
- The market trend. When the bull tendency starts, crypto rates go up.
- Demand and supply. When an asset is valuable, and people want to have it, they buy and hold it, limiting its supply and increasing demand. Therefore, the asset is gaining value.
- Hype and news background. When the asset is on everyone’s lips, demand for it grows, and the price increases.
- Community. When a crypto project has a large and engaged community of people who use coins and interact, it is a sound basis for the further project’s development and adoption.
- Listing. If an asset is listed on prominent and popular crypto exchanges, it is available for more investors so more people can buy it.
- Complexity of production. The harder it is to produce one coin, the higher its price is.
What cryptocurrency exchange to Choose?
When you become a crypto investor, besides choosing an asset to buy, you should also select a platform to work with, for it is essential to be confident about where you put your money. That is why it is better to consider regulated and registered platforms that have official certificates and undergo security audits regularly. An example of such an exchange is WhiteBIT – registered in Europe and operating in over 150 countries. WhiteBIT offers an intuitive interface and a high level of safety for your trades.
