Copyright © 2017-2018 LHCrypto
All rights reserved.

Articles

What do the cryptocurrency rates depend on

12/06/2018
|
  • cryptocurrency_rates
Articles list

The dynamics of digital coin quotes for a novice investor seem chaotic. However, in fact, cryptocurrency current rates are subject to very strict rules. The basis of which is the buyer’s desire to purchase, and the seller’s disposal of the asset. Moreover, both parties want to do it on the most favourable terms.

Trends and quotes of digital assets

The price of any asset can rise, fall or be in a sideways movement. Since cryptocurrency rates also obey this rule, they should be analyzed taking into account the history of the movement in the previous period.

First of all, the mood of the market influences graphics. As practice has shown, local events rarely lead to serious shifts in quotations. More precisely, they can show a large volatility in a short time interval, but then again return to the initial value. That is why the schedule is up to 80% of the time in the lateral movement. Experienced investors do not recommend opening positions in such situations.

The fact is that it is impossible to predict local news. Hardfork coins can be successful or unsuccessful, the statements of famous personalities can cause a short-term decline or growth. A wonderful example happened with the cryptocurrency Monero. After the company Satis Group predicted a growth of 38,000 percent over the next few years, the cryptocurrency live rate rose by 14%. However, after a few days, the price returned to its original value.

Uptrend

The most pleasant for the investor is the situation of the rising cost of cryptocurrency. In this case, it is enough to open a purchase order, and get almost passive income. Usually assets are expensive for a long time, but with little dynamics. This allows, without haste, to make a decision and conduct an analysis of the market situation. Among the factors that lead to an increase in value, experts note:

  • successful hard forks;
  • general investor risk appetite;
  • plans for updates in the work of the blockchain;
  • positive comments from famous personalities;
  • involvement of highly qualified specialists in the team.

However, the most important factor for increasing interest in an asset is the global market situation. When a positive reigns here, even minor troubles are ignored by the community. This is immediately reflected in the chart.

Technical analysis also helps to correctly determine the development of such a situation. Usually, its signals are executed quite clearly. But if the indicators are talking about a reversal, and the price still moves up, we can talk about increased investor optimism.

Downtrend

When investors become frustrated with the real value of an asset, the situation evolves in a completely different scenario. In this case, there is a sharp decline in quotations, which is not delayed for a very long time.

To check this statement, just look at the Bitcoin chart. Since this is the first coin cryptocurrency rate was significantly affected by single factors. Now the picture on the market has changed dramatically, this asset was able to gain more liquidity. And it is not so easy to roll it down with messages about hacker attacks on the exchanges.

But when negative news of a global nature comes, investors observe strong volatility. Many of them associate the fall of the 2018 quotes with the policy of the US Federal Reserve. Raising interest rates created a significant gap with this indicator in Japan and the European Union. Therefore, it turned out to be more profitable to buy dollars for the yen or euro, using leverage.

In any case, no one doubts in the cryptocurrency future. Their schedules may fluctuate in one direction or another, but talks about a bubble in the market of digital coins have almost disappeared.

Are you ready to start?
Open Account Be a Partner

LH-CRYPTO is an online service for crypto-traders

LH-CRYPTO is an online service for crypto-traders. The service is available to everyone, except for the citizens of particular countries and several categories of people listed in the License Agreement. LH-CRYPTO is a free software for making conversion operations with CFDs on various financial assets nominated in cryptocurrencies.

The project does not manage funds and does not guarantee profits. The project only offers a service that allows to make conversion operations with cryptocurrencies on a specially configured software.

This website is maintained and supported by the following legal body:

LARSON AND HOLZ IT LTD

All the settlements in this project are processed solely in cryptocurrencies. Conversion operations are processed on the terms of margin trading without a direct supply of underlying assets. According to the generally accepted term, these operations are called operations with OTC (over the counter) CFDs (contracts for difference).

Trading with OTC CFDs involves considerable risks. We recommend you pay the utmost attention to both theory and practice of margin trading before making any of such operations.

The services provided by this project are not available for: residents of USA, North Korea, Sudan and Syria.