Crypto prices gain and lose value based on the relations between demand and supply. The supply of crypto assets does not depend on the government or banks. The developers who create this or that crypto project decide on the supply of coins. Since the cryptocurrency market is still very young, it is very sensitive to outer factors, such as media and news, that greatly impact demand and supply.
Supply depends on how many coins every specific crypto project issue. It can be limited or unlimited. Usually, coins with an unlimited supply cannot gain value. And on the contrary, assets with limited supply support their prices. Also, supply depends on how many crypto owners want to sell their assets.
Demand is another crucial factor affecting crypto currency prices. Demand depends on how valuable the asset is for users. Here the central role belongs to technology, which lies at the core of the asset.
How Does Crypto Price Grow?
Crypto currency prices fluctuate depending on how the market participants perceive them. Price changes follow the balance of demand and supply we have mentioned before. Users also affect the price of assets:
- When people use the buy-and-hold investment strategy, they stimulate the growth of the demand for crypto assets.
- Crypto coins that are mined depend on those users who mine them because mining provides the supply of crypto assets.
- Companies that integrate crypto in their work processes (for instant payments, for example) also increase the demand for coins by expanding their utility.
- Media coverage also impacts crypto currency prices (social networks, communities, etc.).
- Large crypto investors boost crypto rates artificially by purchasing coins massively, increasing the demand and reducing supply.
To see the list of cryptocurrencies prices, you may use one of the reputable resources, such as Coinmarketcap. If you want to see crypto prices in real time and trade assets, use one of the more credible crypto exchanges, for example, WhiteBIT.