Cryptocurrencies have created uproar in the media over the last couple of years. More specifically, after Bitcoin’s bull cycle and its value increase by over 170%, and the cryptocurrencies on the market grew not just by number but also in value. Today there are over 4,000 cryptocurrencies available, and new ones are being developed every day.
It’s safe to say that the crypto market is attracting a lot of attention these days and if you’re new to the crypto world, here we offer an overview of the crypto market and everything you need to know about crypto trading.
What is the Crypto Market?
Crypto marketplaces are online trading sites where users are able to sell virtual currencies, exchange currencies for traditional currencies and other altcoins, or buy crypto. Since the cryptocurrencies are decentralized, there isn’t a designated marketplace, so the trading takes place on multiple crypto trading exchanges where you can engage in crypto trading.
For this purpose, you will also need to invest in the crypto wallet and sign up on a trustworthy exchange platform.
Factors That Impact the Price
However, before you start trading, it’s important to familiarise yourself with the factors that impact the price of the cryptocurrencies and also impact the positions of certain cryptocurrencies in the market. When it comes to the value of the cryptocurrency, it is based on the demand and supply of the virtual currency.
For example, when there is high user demand for that cryptocurrency, and it is associated with digital scarcity, then its value tends to grow, especially if the demand is supported by great investors like businesses and institutional investors.
But, users also need to keep in mind that certain brands that are associated with specific cryptocurrencies can also impact the value of the cryptocurrency. For example, cryptocurrencies like the Civic Coin and Shiba Inu coin run on Ethereum’s blockchain and are associated with the brand.
So, the status of the cryptocurrency is also based on the perceived image of the brand and the company that has created the currency.
In addition, there are also automated trading systems like Bitcoin Digital, which is based on artificial intelligence-powered software. This system helps you utilize the BTC volatility to your advantage as it’s able to adjust to dynamic market conditions quickly. In fact, you can even make a profit of up to $800 in just 8 hours of trading here.
The system is also compatible with mobile devices, so trading on the go is never an issue.
Furthermore, automated trading sites, in general, popularize crypto trading because it isn’t required for the users to be experienced in online trading in order to create an account on a trading site.
So, this is another reason why there is a greater demand for cryptocurrencies on the crypto market. In the future, we expect automated trading sites to make up a greater portion of the crypto market.
Adoption in the Business Sector
Support from the business sector is one of the main factors that can move the position of a cryptocurrency in the crypto markets. Generally, businesses can impact the crypto market whether they are based on blockchain technology and are looking to promote crypto trading or they are businesses that just want to accept crypto payments in order to communicate with another demographic of users.
So, whenever there is significant support from a certain business, we can expect the crypto market to experience a significant change.
This happens because the digital market is still in development, and even small events can have a big impact on the value of specific cryptocurrencies. One of the most recent examples is the investment of Tesla by Elon Musk of over $1.5 billion in BTC, which promoted the higher price of Bitcoin.