1 / 2

Valforex — What Makes Cryptocurrency Go Up or Down?

Cryptocurrencies are notoriously volatile, so you may wonder if theyu2019re valuable since they fluctuate so much, say the experts at Valforex.

val_forex
Download Presentation

Valforex — What Makes Cryptocurrency Go Up or Down?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Valforex - What Makes Cryptocurrency Go Up or Down? Cryptocurrencies are notoriously volatile, so you may wonder if they're valuable since they fluctuate so much, say the experts at Valforex. For example, Bitcoin's (CRYPTO: BTC) price can fluctuate up to 10% on any given day, and smaller cryptocurrencies can have even greater price swings. The information in this post should help you understand why cryptocurrencies are valuable and why their prices can fluctuate violently daily. Understanding the value of a cryptocurrency In contrast to fiat currencies or another type of government-sanctioned medium of exchange, cryptocurrencies are usually not backed by any central authority. Government endorsement can boost faith in the value of a currency, and it can create a big spender and collector. (Say you pay your taxes in Bitcoin.) But since cryptocurrencies are generally decentralized, they derive their value from other sources, such as these: Supply and demand Cost of production Availability on exchanges Competition Governance Regulations Cryptocurrency exchanges The most popular tokens are listed on nearly every cryptocurrency exchange. Mainstream cryptocurrencies like Bitcoin and Ether are traded on multiple exchanges. Some smaller tokens are only available on select exchanges, which limits access for some investors. Some wallet providers' exchange rates can be aggregated across several exchanges, but they will charge fees for doing so, making investing more expensive. Additionally, if a token is thinly traded on a small exchange, the spread may be too high. More exchanges listing a cryptocurrency can boost the number of investors willing to buy it, which increases demand, and as demand rises, so does the price.

  2. Valforex - What Makes Cryptocurrency Go Up or Down? Finding value in cryptocurrency According to experts at Valforex, Understanding supply and demand, as well as the different factors influencing them, will help you make better cryptocurrency investment decisions. If you believe demand will rise due to X, Y, and Z, but do not expect supply to keep up, cryptocurrency could be a good investment. It is important to note, however, that governments still do not have rules and regulations that regulate cryptocurrency, making it a particularly risky and volatile investment.

More Related