An arguably universal and independent monetary unit, crypto currency gains its value across the world. It has all the characteristics that distinguish money from other resources:
At the same time, it is based on pure mathematics. This type of currency is not based on trust in the issuer (as opposed to paper money) but is based on trust in itself. It was high popularity and generally provided a stable growth. Every day, the number of people dealing with crypto currencies is growing, which provides the crypto currency even greater stability and reliability. While this money will be actively used in purchases/sales, it will be popular and prestigious.
The mechanism of the crypto currency system consists of obtaining (creating) it using algorithms. These algorithms can be either calculated or created and the amount of the crypto currency pouring into the market is always set in advance. All participants who have provided their capacities for the computing calculations of the algorithm will receive a fee in the form of an emission.
This type of system excludes an unauthorized inflow of currency; in other words, the possibility of creating a currency is completely eliminated. Another feature of such a system is that it is not possible to write a program to replenish crypto wallets from the outside. The program itself keeps track of all transactions and keeps records of them. Crypto currency is not dependent on external factors; therefore it is not apprehensive about the fall of the economy as a whole.
All previous transactions of crypto owners are registered and stored in the blockchain system. Ownership verification of any unit of virtual currency should take place at any time. All copies of the blockcahin are stored in all nodes of the crypto software network, which are managed by the miners. Transactions are fixed and are locked; until the transaction is added to the desired blockchain, it is considered technically incomplete. After the transaction is completed, the operation is irreversible. Duplicating identical currency units and sending them to multiple recipients is completely prevented by a blockchain during the initiation and completion of a crypto currency transaction.
The prices for crypto currency as well for the money are determined by various factors. Among the main points are:
Bitcoin prices and other crypto currency prices are completely eliminated from inflation in comparison with the traditional money. Crypto currency is valuable because of its protection from natural or artificial inflation and complete absence of fraud. Limited supply and demand, easy to use, complete anonymity, and, of course, confidence of millions of users - all these components and regulate its value. Constant growth in demand and limited supply affect the deflation of the digital currency.
How big the demand in crypto currency will be is influenced by such factors:
The fact that the largest traders saw the huge investment potential in Bitcoin in 2017 resulted in the demand for it, and, correspondingly, the rate, jumping promptly.
Since the main way to issue crypto currency is mining, it determines the level of supply. Crypti mining depends on such factors:
With that in mind, mining will be carried out as long as it pays off so crypto currency process should allow the miner to receive return om the funds invested in equipment and electricity in a relatively short time.
The change in a crypto price can occur in different ways, as a result of which the following concepts are used in the crypto currency community to reflect the current situation:
In practice, experienced traders easily distinguish a correction from a sink, and moreover, anticipate these processes in advance. Correction is often followed by a slight increase in the crypto price. But if in such a situation large volumes of trading persist on an individual crypto exchange without signs of correction, it is very likely there will be a sink.
A short-term change in price, correction or rebound on the crypto currency exchange markets occur all the time and it is possible to take advantage of a decrease in the rate by purchasing the asset in time; this can only be done at the "bottom", the minimum to which the price of the crypto currency can drop. A gradual decrease in the coins price occurs with a downward long-term trend in trades that do not differ in special volumes. Decline in the value of crypto coins has a strong dependence on bad news as well as the influence of experienced players on the crypto currency market, especially with large assets.
Sink is a planned, well-thought-out action of the major members of the industry. And although it is impossible to foresee these processes, it is always worth remembering that a sink is necessarily preceded by negative news provoking panic among market participants. The main signs of the upcoming rise in the price are increasing demand for and popularity of the virtual currency as well as high-quality mass advertising. The more people learn about this opportunity, the more they will want to invest their savings.
It is impossible to accurately determine the possible fluctuations in the price but they can be anticipated with a high degree of certainty if you:
It is quite clear how important it is to qualitatively analyze the information obtained during such observations. But you still should not be afraid to make quick decisions because the right moment for profitable operations can last very shortly and if you miss it, you will at best have to wait for the next such situation and at worst you will experience a loss. The speculative component of the digital currency market will always be a part of it and if you manage to "catch the wave", you will have a good profit.
I have been trading Forex for more than 5 years, mostly with manual and automatic trading. I set up advisors for round-the-clock automated trading. I'm sure I can help to establish your trading skills....