There are many articles on cryptocurrency trading on the Internet as well as numerous platforms where traders work. What is crypto, and why are investments in digital assets so popular? Let’s figure it out in this article.
What is cryptocurrency?
Cryptocurrencies are digital money that has no physical form. You can’t touch them, you can’t put them in your pocket, but you can use them in the real world for settlements in business, buying goods and paying for services, etc. Another popular way to use crypto assets is investments and trading. The cryptocurrency market is highly volatile, and crypto rates change daily, giving crypto holders many earning opportunities. Speculation on cryptocurrency values allows multiplying initial investments many times and in a short period.
What are the main characteristics of crypto assets? Here are the indicators you will find in all crypto rankings:
- Cryptocurrency price. It depends on supply and demand, the overall market situation, investors’ sentiments, the global economy, etc.
- Daily trade volume. Every crypto exchange indicates the number of coins bought and sold during the last 24 hours.
- Market capitalization. It is the total price of all existing (mined) coins in circulation. Market cap is calculated by multiplying up-to-date cryptocurrency price in the cryptocurrency market by the number of coins in circulation.
Thus, market capitalisation shows the value of an asset. The higher the market cap, the bigger the asset’s value. Investors pay attention to this crucial aspect when deciding on buying an asset.
To check out the crypto ranking by market cap, trade volume and rate, you can go to the Coinmarketcap service. All popular crypto assets are listed on credible crypto exchanges such as Binance, Kraken or WhiteBIT. These platforms offer average market cryptocurrency values and provide convenient trading and investment tools.