by Audrey Samson

Due to the variety of trading strategies and tools, it is possible to:

  • invest a small amount (even $50) and gain a lucrative return if you catch the wave of the uprising market;
  • make money even when the market is falling, and crypto rates are dropping;
  • earn using short-term strategies or invest in crypto for a long term;
  • organise passive income through crypto lending and staking;
  • borrow funds from crypto exchanges to enter the market with a more profitable position.

Strategies for trading are picked depending on what is happening with crypto rates. Let’s find out what determines the price of cryptocurrency.

What Makes Cryptocurrency Price Go Up and Down?

We would like to list the factors that affect crypto price. The fact is that the crypto market is not regulated by any central authority. The emission of crypto assets has nothing to do with banks or governments. So crypto rates mainly depend on the relationship between demand and supply. What influences their balance? Here are some factors:

  • Technology and application of every specific crypto project. If the technology is valuable and there are many use cases, the project receives adoption, and many people want to buy its assets, so demand grows and thus, crypto price too.
  • The market trend. The crypto market indeed lives through tendencies – up and down trends, determining the general investors’ mood about crypto investments.
  • General situation in the global economy, inflation, interest rates, etc. These factors also affect the crypto market, for they determine people’s willingness to spend money for investments.
  • Supply. If a crypto asset has a limited supply, it has a bigger chance of having increased demand. If supply is unlimited, demand drops. Scarcity determines demand.

In the highly volatile crypto market, it is vital to use reliable services for trading and investments. One such platform is WhiteBIT – a regulated and officially registered exchange in Europe, operating in over 150 countries and offering a complete set of financial instruments along with a high level of protection of users’ funds.

Image by Ish Artist from Pixabay