In the history of the development of cryptocurrencies, they have experienced countless ups and downs, experienced thrilling times, experienced ups and downs, experienced the eruption of tokens on various platforms overnight, Altcoins is hotter than waves, and various cryptocurrencies emerge one after another. Let's take a look at the reasons that affect the price fluctuations of Altcoins.
1.Heat
The popularity of the Altcoins project can be said to be one of the most important factors affecting the price of cryptocurrencies, because it directly determines how many people are willing to pay for the digital currency. The more people buy, the higher the price of Altcoins, then, we How do you see the heat of a project?
First look at how many people in the currency circle openly support the project, and then see how many top investment institutions have invested in the project, such as Zhenge Fund, Danhua Capital, and coin capital. The number and activity of the community can be viewed on the project's telegraph group, Twitter, blog and other social platforms. Second, look at its liquidity, mainly depending on the number of exchanges on this digital currency, can also observe from the BTC Trading Platform US, especially the mainstream exchanges of Altcoins. The more exchanges you have on the line, the better its liquidity and the easier it is to buy and sell.
2. Regulations
Like any new investment, Altcoins is limiting the development and use of cryptocurrencies. It differs from the national jurisdiction in the identification of digital currency positioning, through strict controls to develop new policies and decisions. China has cracked down on cryptocurrencies many times, and most markets have collapsed after the announcement. For example, in February of this year, China blocked all websites related to currency transactions, according to the BTC Trading Platform US: Bitcoin to fall immediately by 15%, while Ethereum fell by 20%. The country's initial coin issuance ban ICO has a similar negative impact on its value.
Of course, cryptocurrency is not the only investment that is easily regulated. Stocks in companies often fall due to political decisions that affect their business or regulatory activities.
3. Hacker
From bitcoin to today's new currency, hacking is still a problem for cryptocurrency investors. Every major event that invaded the system's cryptocurrency exchange or wallet caused a price collapse. Recently, the attack on cryptocurrency Binance caused a 10.8% crash in a matter of minutes. Due to the hacker's invasion, this also seriously affected the price fluctuations of Altcoins.
As a veteran cryptocurrency analyst, I think that when investing in cryptocurrency, we must figure out the influencing factors of the price of cryptocurrency and the judgment of its market trend. Only by knowing what is going on, can we be bold when investing Make your own correct judgment.