Infographic on What Affects the Value of Cryptocurrencies?
I want you to understand fully the risks associated with using cryptocurrencies and also understand the benefits of doing so too. This infographic will give you an insight into what affects the value of cryptocurrencies on a day to day or long term business.
Supply and Demand
The very first thing that does affect the value of all digital coins and tokens is supply and demand and the top three cryptocurrencies are some of the most volatile ones.
Low Cost High Risk Cryptocurrencies
If you are looking to buy some extremely low cost cryptocurrencies but ones which can be very risky ones to buy into regarding their ongoing values, then look out for the following.
Initial Coin Offerings
Token Generation Events
There are a plethora of international events that can suddenly occur that will see people either rushing to buy or sell cryptocurrencies, and they can and often do happen very quickly.
Wars and Threats of War
Interest Rate Rises
The value of some coins and tokens that are purchased to help a company start up or expand can increase if the company performs well, but the opposition is also very true.
Target Market Interest
If you are interested in buying any individual cryptocurrency then always be aware not all of them are legit and some of them are scams so look out for any signs of the following.
Non Existent Company
No Way of Selling Coins
Fees and Charges
Another very important aspect of using cryptocurrencies that you need to fact into the equation are fees and charges imposed on you when performing various tasks such as any of the following fees.
Tips for Buying and Selling Cryptocurrencies
Whilst there are always going to be risks associated with buying and selling cryptocurrencies there are a few tips I can pass onto you about doing so.
Avoid Excessive Fees
Research the Coins You Buy
Do Your Research