The value of cryptocurrencies may fluctuate at a much faster rate than those of traditional currencies. If this market attracts your attention, keep an eye on their up-to-date listings.
Cryptocurrencies are often paired with the dollar, but can also be paired with the traditional currencies of the world or paired directly with each other. Market value and capitalization are usually given on a specific day because the value of cryptocurrencies changes at an unprecedented pace in comparison with the traditional currencies market.
What determines cryptocurrency listings?
The price of any commodity is significantly influenced by supply and demand. Regular exposure of cryptocurrencies in the media may increase demand, leading to rapid price increases. Considering that decentralization and much lower sensitivity to the macroeconomic factors affecting traditional currencies, cryptocurrencies can also be seen as an alternative investment. When there is an increase in uncertainty and capital outflow in the global market, investors may place some of their capital, stocks or bonds on the cryptocurrency market, raising valuation.
How do cryptocurrencies operate?
All digital cryptocurrencies operate in specific systems and changes in the standards of these systems may affect cryptocurrency valuation. For instance, a country or a large institution that recognizes and uses a given cryptocurrency or the technology on which it is based has a similar effect on market value. This type of information may appear unexpectedly, resulting in large fluctuations and high risk investment. A currency cross occurs when a holder wants to use cryptocurrencies by exchanging it into other currencies. Macroeconomic factors could then play a part. For example, a global dollar depreciation may translate into bitcoin's growth to USD.