What Influences Cryptocurrency Prices Live?

The government or central banks do not issue cryptocurrencies, and regulators do not establish their prices. At the same time, digital assets perform the same functions as conventional money we are all used to:

  • They can be used for buying goods and services. More and more businesses add this option to expand the user base.

  • They are actively used for investments and trading.

  • Booking accommodation, travel tours, etc. 

  • Money transfers worldwide at a low fee.

  • Providing transparency of logistics for companies.

  • Quality control.

  • Blockchain games, metaverses.

  • Education.

Cryptocurrency exchange rates are incredibly volatile, which allows for numerous earning opportunities for traders. In this article, we will talk about factors affecting price crypto.

What Determines Crypto Price?

Here are some aspects to consider when analysing a crypto project:

  1. How the asset is received. Many crypto coins, such as BTC, are received via mining. It is an expensive way to produce digital assets that require costly advanced and powerful equipment and electricity costs. The more complex the process of receiving one coin, the bigger rewards for miners. It also maintains the asset price level and does not let it drop.

  • Cryptocurrency price also depends on the balance between supply and demand. Those digital assets with a limited emission maintain the level of demand. Tokens issued with no limit lose demand, and to help in this situation, some tokens are burned. It creates a shortage of tokens and raises the demand for them, not allowing the price to drop.

  • The market trend, which may be bullish or bearish. A bull market is a positive price change, and a bear market means a drop. For example, in spring 2022, the BTC rate dropped, which caused a chain reaction when all other digital assets lost value, following the overall market panic mood.

Cryptocurrency prices live can vary from platform to platform. On large and centralised crypto exchanges such as WhiteBIT, Coinbase, Kraken, etc., crypto rates are established on the basis of previous trades conducted with a particular asset. So the most accurate prices you will find on centralised crypto platforms. 

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