The world has witnessed a real digital currency revolution in the last decade. In 2009, an unidentified person under the pseudonym Satoshi Nakamoto introduced the first cryptocurrency – Bitcoin. Netizens promptly picked up the initiative and started to use virtual cash to purchase and retail things online.
Virtual money is firmly entrenched in daily routine. In 2022, people can use e-money practically for almost everything online. If you’re passionate about gambling games, you can visit the best crypto casinos in Canada and tempt your fortune here. If you’re enthusiastic about online shopping, you can add everything you want to your cart and pay with cryptocurrencies.
Read this article to figure out more about digital cash. Then, we’ll share some basic details about cryptocurrencies and explain to you what affects e-money to rise and fall.
The Most Popular Cryptocurrencies
Before anything else, we want to write about popular cryptocurrencies that users can invest in. It may sound wild, but there are more than 12,000 cryptocurrencies to pick from.
If you’re not a financial expert or trendsetter, it might be hard to determine which digital currency you can convert to your dollar bill. However, we know you can’t go wrong with well-known and trustworthy virtual currencies with established value and great renown. We’re referring to the following:
- Bitcoin (BTC)
- Ethereum (ETC)
- Tether (USDT)
- Binance USD (BUSD)
- Dogecoin (DOGE)
Why Cryptocurrency Prices Rise and Fall
The only reason why virtual currencies haven’t been approved in government-owned banks yet lies in the fact that digital money prices rise and fall almost unpredictably. To not be wordy, let’s look at the chart illustrating changes in Bitcoin’s price within 2022:
|Month||BTC price in U.S. Dollars|
As you can see, Bitcoin’s value needs to be fixed and stable. It’s not uncommon for BTC to increase or decrease prices by 5-10% on any given day. Since state-owned banks don’t back electronic currencies, their everyday value builds on external factors.
The more BITcoins are mined, the more current owners want to sell their coins and the lower their cost. In a highly competitive environment, merchants can bring down prices to sell their Bitcoin coins more quicker. Sometimes, stakeholders try to control this process, but it doesn’t work with unknown currencies that emerged into the market not so long ago. At this point, we’re not surprised that most startups in this area crash and burn.
External Factors that Influence Cryptocurrency Value
Aside from personal causes, it’s important to mention external determinants that can increase or decrease Bitcoin’s value in the global market. Below, we’ll shed light on factors that make cryptocurrency volatile:
- External Competitiveness. At this point, users have more than 12,000 virtual currencies to pick from. Newly established e-currencies have to quickly build a network to increase their market competitiveness and coin value.
- Social Media. Hype in social media or influential bloggers can raise or lower a cryptocurrency’s price. Here’s an example: DOGE became famous only due to the activity on social networks. A trendy meme inspired these coins, and now Dogecoin is on the Top-3 cyber currencies list.
- Node Count. The more active wallets exist in the same network, the stronger the community’s reputation. As a result, well-liked electronic currencies have a higher chance of a potential crisis.
- Production Cost. Virtual coins are produced through a «mining» process. To mine tokens, users need special equipment – a powerful computer with a good graphics card and processor. As mining expenses increase, the coin price also increases in value.
How Users Increase Crypto Value
Hopefully, we managed to arouse your interest in the cryptocurrency field. If you’re willing to take a risk at Casino Classic Canada and get rich quickly, you should know how to increase cryptocurrency value through your own efforts. Here are some tricks and tips for you:
- Buy Low, Sell High. It’s a classic investment strategy that’ll help you to make a profit from your cyber coins. Try to analyze statistics or listen to the experts in the field to find out when you can sell your coins at the best price.
- Mining. You can not only purchase but produce virtual tokens on your own. By doing that, you will invest in your financial stability and increase the selected cryptocurrency’s overall popularity.
- Increasing Utility. The more reputable companies invest in e-currencies, the better their reputation and coin value. If you have a chance to attract attention to a particular cryptocurrency wallet, do it.
- Media Coverage. You can share details about cryptocurrencies and invite your buddies to learn more about this domain through your social networks. The more people are interested in a particular e-coin, the higher its price and value.
End this paragraph; we encourage you to figure out more about virtual currencies and their specificities. Nowadays, electronic currencies are a reliable tool that can make people rich within minutes. So be in trend!