Factors affecting the price of cryptocurrencies!
?Supply and demand: Supply and demand play a very important role in determining the price of cryptocurrencies. This means that the higher the demand, the higher the price and vice versa.
?Network costs: The main cost of generating a cryptocurrency is the miners’ bonus, which is paid by the network and through the local cryptocurrency.
?Halving phenomenon: It happens once every four years and based on that, the miners’ reward is halved.
?Limitation: The limited amount of cryptocurrencies in each blockchain causes the value of the asset to increase due to limited resources.
?Transaction verification fee: The higher the transaction verification fee, the higher the value of the cryptocurrency. This fee is paid to the miner in case the trader rushes to confirm the transaction.
?cryptocurrency Rules and Regulations: In recent years, governments have been trying to regulate the cryptocurrency market. The stricter these rules are, The price of cryptocurrencies will also fall.
?Comments from important people: We often see that the price of cryptocurrencies changes by interviewing and tweeting influential people. If the comment is positive, the price of cryptocurrencies will rise and vice versa.
?Media: The more time the media spends introducing and teaching crpytocurrency, the more people will know about this market and the desire to invest in it also increases. As demand increases, so does the price.
?Activities of major investors (whales): The main investors or so-called whales are individuals or institutions with a lot of capital in the market. Investors can influence prices by investing large sums or selling their entire asset. Whale, for example, sells all of its crpytocurrency assets, bringing a large amount of cryptocurrency into the market and causing prices to fall.
?Market News: Due to the great power of the media and the high speed of news transmission, any news and reports about this market will affect its price. Market news is the first thing that you should pay attention to before entering a trade.
?Availability: If a cryptocurrency can be easily traded, its price will also increase. For this reason, by placing a cryptocurrency in the list of valid exchanges, its value increases.
?Cryptocurrencies compete with each other: With the advent of the new cryptocurrency, the price will increase if the new cryptocurrency uses the same technology that already exists among other cryptocurrencies. Ethereum and EOS, for example, are both competing for smart contracts and dominating dApps.
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