What are Cryptocurrencies, and what Affects Cryptocurrency Prices Today?

Crypto assets are digital currencies with no paper form or other physical shape. They circulate online and can be used the same way as real money. However, crypto is not as widespread as traditional currencies yet.

Here are some cases of using crypto assets:

  1. More and more shops accept digital funds as settlements for goods and services.
  2. Some real-estate companies accept crypto as means of payment.
  3. Many financial institutions implement blockchain in their products and facilitate money transfers in such a way.
  4. Many companies use blockchain and smart contracts to improve logistics and quality control.
  5. Crypto enables fast and secure money transfers worldwide.
  6. Digital assets are used in trading and investment.

There are many more muse cases for crypto. We listed only the main ones.

Since crypto prices are highly volatile and change daily, cryptocurrency prices today are never the same as they were yesterday. It opens many earning opportunities for traders, who can buy and then resell found at a higher price or go short and buy assets at a much later rate when the market shows a downtrend.

What Makes the Cryptocurrency Exchange Rate?

Unlike traditional money we all got used to, crypto asset rates do not depend on the government and central banks’ emission. Digital coins are not subject to banks or states. So there are other factors affecting crypto prices:

  1. The balance between supply and demand. When demand decreases, the cryptocurrency rate drops.
  2. News background and hype.
  3. The difficulty of receiving one coin.
  4. The limited unlimited emission of coins
  5. The overall situation in the crypto market.

What is a Cryptocurrency Exchange?

A crypto exchange is a platform where operations with digital assets take place. Traders and investors sell, purchase, and convert crypto, making income from crypto prices changes. In their practice, they follow trading strategies. For example, it can be day trading or scalping, arbitrage, position trading or other methods.

One of the most popular and trusted crypto platforms is WhiteBIT. It ensures user funds’ safety and allows using many different tools for efficient trading and investing. Visit its official website to learn more about how it works.

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