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What determines an Altcoin price?
Cryptocurrencies are a tradable asset, much like stocks, commodities, securities and so on. Their price is determined by how much interest there is on the market in buying them – that’s called demand – and how much is available to buy – that’s supply. The relationship between the two determines the price.
Which Altcoin platform is best for trading?
Best Crypto Exchanges of 2021
- Best Overall: Coinbase and Coinbase Pro.
- Best for Beginners: Cash App.
- Best Decentralized Exchange: Bisq.
- Best for Altcoins: Binance.US.
What happens to altcoins when Bitcoin goes down?
As a result, an altcoin’s value is often measured against the price of Bitcoin, so the price of altcoins could go down if Bitcoin goes down, and conversely, the price of altcoins could go up if Bitcoin goes up.
What are altcoins and how do they work?
Altcoin prices typically follow that of Bitcoin. Image: Shutterstock There are now more than 3,000 altcoins, or cryptocurrencies that are not Bitcoin. Generally, altcoin prices follow that of Bitcoin. This tends to be because altcoin buyers generally purchase Bitcoin with fiat currency, to exchange for their chosen altcoin.
Why do altcoins surge in value?
However, sometimes Bitcoin drops in value while altcoins experience a surge in value. A fundamental reason for this is that investors with a watchful eye will pull money out of their Bitcoin investments, and instead pivot to altcoins that are showing promise.
Why can’t altcoins get out of their slump?
The long-awaited altcoin season doesn’t seem to be anywhere nearby, as Bitcoin’s price movements continue to dictate the entire market. Regardless of what direction the cryptocurrency takes, it appears that altcoins just can’t get out of their slump. It’s safe to say that 2019 has been great for Bitcoin so far.