Cryptocurrency is a very popular topic in today’s date. And why not, it gives such a good return in such a short time. If seen, cryptocurrency is one of the best investments, giving more returns than even gold (GOLD) and land (LAND). Cryptocurrency price has sometimes increased so much that it has given returns up to 10 times, 100 times, even 1000 times.
But how does this cryptocurrency price increase so fast?
To know this, we must not first understand that what is crypto? Cryptocurrency is built on the basis of a technology called blockchain . Blockchain is a very big concept in itself. If we start understanding blockchain here, then this article will become very big. So instead of discussing that, we come directly to those, which affects the cryptocurrency price.
What is the most important metric that determines the value of a crypto network?
To buy any cryptocurrency, we have to go to any exchange. But a coin, also a win-win exchange around the world, is not listed everywhere. That is why not everyone knows to buy that cryptocurrency or coin. The crypto-exchange on which the coin is listed, only those using that exchange have the address to buy or sell that coin.
But when the same coin is further listed in some other exchange, then all the people using that exchange are able to buy it. Similarly, the number of people who buy that coin increases significantly and the price of that cryptocurrency increases.
When a very famous person says some good things (positive comment) or writes something on any platform like TWITTER, in the ware of any coin, then there is a sudden jump in that cryptocurrency price. Is.
For example, some time back, Elon Musk (the richest man in the world) was seen making good comments and talking in the ware of DOGE COIN. As a result, the price of DOGE COIN started touching the sky. So the cryptocurrency price often goes far above even the statement of a big personality.
Whenever one buys any coin (BITCOIN or any other coin) in full quantity, even then a positive (positivity) fails in the market and there is a huge jump in the same cryptocurrency price. Such bulk purchases are often made by large financial institutions or companies. They buy cryptocurrencies in billions (BILLIONS) at once.
Be it the share market or the crypto market, neither of the two markets run on the sentiments of the people. People’s feelings are affected by doing many things, such as the launch of a new coin, shares of a big influencer, some big nakaratmak (negative) news etc. If something good happens then everyone starts moving in the same direction and if some bad news comes then everyone does not start selling in the same way. After all, the cryptocurrency price is completely affected.
If there is any profit from any government right now, it can be good as well as bad, then cryptocurrency price is very much prabhavit. News such as, some new rules of the government are being adopted for crypto, or some restrictions are unknown, or permissions are available in some things, etc. All these news sometimes make the cryptocurrency price up or down.
So all these are big reasons for the cryptocurrency price going up or down. Because of doing all these crypto currency ka rate kabhi prabhavit hota hai. But if crypto is seen as a long-term investment, then cryptocurrency becomes a very good option. For some temporary time, small and big ups and downs are definitely seen and will continue to meet, but do not be afraid of all this. Buying should be done when the market is down so that it can get a good or very good return in the future.
Remember: This article is for education and awareness only. Do your research before investing.
NOTE: This article is only for education and awareness purposes. Please do your research before any investment.