The price of cryptocurrencies in real time can be seen on numerous specialized platforms through the internet. It can also be consulted from any cryptocurrency exchange. We can generally see the value of cryptocurrencies in euros or dollars within the platforms. Keep in mind that the real-time price of cryptocurrencies is not necessarily the purchase price of the same on an exchange platform. This is due to the application of commissions.
Bitcoin is the main cryptocurrency in the market along with Ethereum. To the point that the price of this value also marks those of the rest of the cryptocurrencies, such as Litecoin, in most cases.
What is the cryptocurrency market?
The set of all existing digital assets is known as the cryptocurrency market. In 2021 there were more than 4,000 cryptocurrencies and the prediction is that their number will still increase significantly, this year and in the following years.
However, most of the cryptocurrency market capitalization is held by a few digital assets:
On the one hand, Bitcoin: whose market capitalization is higher, by itself, than the sum of all other cryptocurrencies. BTC price has a larger capitalization value than the XLM price, for example.
On the other hand, the main altcoins: these are the main cryptocurrencies that are not Bitcoin, among which Ethereum, XRP or Litecoin stand out, among others.
How the price of cryptocurrencies is determined
The value of a cryptocurrency is fundamentally determined by the supply and demand for the asset. A good example is found in the movements of the price of Bitcoin that eventually increases and decreases due to market movements of purchase or sale. There are also other factors that can change the price of cryptocurrencies:
Cryptocurrency mining: The emergence of large mining stocks in cryptocurrencies has generated price reversal movements. Let us remember that mining is the process in which computers solve complex mathematical problems that are used for cryptocurrency operations to occur. These actions are rewarded with Bitcoins or the cryptocurrency for which it is being mined.
The failure (or success) of the projects: many digital assets have implicit development projects that do not always reach a port. The technological evolution of a digital asset can modify its price.
The trust of the community: the trust or distrust of the cryptocurrency user community is also a reason for changing the price of digital assets.
Why is there talk of volatility in the price of cryptocurrencies?
Cryptocurrencies are a type of volatile asset. The volatility in the price of cryptocurrencies is represented by the speed at which prices can change even in minutes. This means that for investment they are assets that can provide a lot of returns, but, due to volatility, they also cause many losses.
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