The first cryptocurrency is often cited as the ‘hottest’ asset that one can be in possession of. The current Bitcoin price USD was estimated as being exactly $7,554 at the time that this article was compiled. Making it more valuable than several ounces of gold or diamonds! Having a single unit of the crypto-coin is regarded as being the owner of a small fortune.
Most traders purchase only a fraction of the crypto token in order to invest in the cryptocurrency markets. There are lots of authentic and legit cryptocurrency exchange platforms and websites that can convert fiat currencies into Altcoins and vice versa, like Bitcoin to Rand, very easily and quickly.
Bitcoin Value Estimation
The price of Bitcoin is driven by a variety of factors. Some of them include the supply-and-demand levels, scarcity of the number of remaining crypto-coins, cryptocurrency market trends, and volatility rates. As everybody knows pretty well by now, finance always involves some degree of value speculation.
Two more important factors that drive the Bitcoin price live are all of the breaking Bitcoin news and something called ‘trading buzz’. The latter is the hype generated by the public demand. Let us take, for example, the cryptopocalypse event of late January 2018 when all of the Altcoin prices were halved.
Even people who wondered how much is Bitcoin worth started selling all the crypto tokens that they had kept up until that exact moment. This was mainly because they feared that the value would continue going down until it hit zero. The scenario did not play out in such a negative light and the price normalized after two to three weeks.
Good to Know:
All financial assets and derivatives are subject to sometimes rapid price shifts. Investing involves following the trends and users should keep in mind that the average value of a given currency or stock will not stay the same forever. No market movements mean that nobody will achieve any good results. Fluctuations are a good thing and traders should know that they can also achieve favorable earnings if the invest in a negative trend using CFD trading techniques.
Factors That Influence The Cryptocurrency Market
Users should know that the Bitcoin price USD can change in the blink of an eye. Especially, when emotions replace rational thought and lots of investors begin to follow one and the same supposed market trend. This is called ‘buying the rumor – selling the news’.
The Bitcoin price is determined much in the same manner as that of gold. The two assets share more than a number of similar characteristics. This is mainly due to the fact that the alleged creator of the first cryptocurrency modeled his work after the precious metal.
One of the biggest mistakes that people make when proceeding to counter a negative trend in crypto trading is to start selling the crypto-coins that they have right after noticing that its average value is dropping. Nobody knows right from the start whether this pattern is going to be a long-term or short-term one.
But let us take a more detailed look at what drives the price of Bitcoin:
- – Supply-and-Demand Ratios: Bitcoins are generated via a process called crypto mining. The said involves the purchase of specific hardware and software, as well as the payment of hefty monthly utility bills as the machinery needs lots of electricity in order to constantly solve complex mathematical puzzles. This makes the average value of a single unit of the crypto token go up in the sky. Public interest, demand, and trust in it also have a serious influence, not to mention the number of potential and actual crypto holders.
- – Hard Fork Releases: A hard fork is basically a split in Bitcoin after which a brand new blockchain emerges. Most of the times, the digital currency has managed to recover pretty fast from such events.
- – Official Regulatory Impositions: Every time an actual legal tender which is related to Altcoins is passed in a given country or there is a discussion about such an imposition, the Bitcoin value begins shifting in a positive or negative direction. This is why many experts consider that its price will reach new heights in 2018 as more countries are willing to finally regulate it.
- – Important Bitcoin News: Rumors and cryptocurrency news can also have a profound effect on the price pattern. Negative information about the crypto token may shatter its value. The key is finding a reliable crypto trading reviews website that provides genuine and authentic data and is updated on a daily basis. Users must visit such news platforms if they wish to learn all the crucial facts before everyone else and be able to react to the given event in a timely manner.
The Bitcoin Price Is Expected To Remain Stable
Bitcoins will only become more valuable with time. Their financial worth will continue to increase, even if it is simply because of historical value as its number of units grows scarcer with each passing day. It is truly the most lucrative asset that one can invest in!
Keeping a cool head is crucial in trading. Emotions never helped any user achieve good daily results. Investors should know that sometimes the best thing that they can do is to turn the computer off and take a deep breath. They should not even think about anything connected to Altcoins.
Being able to trade crypto the smart way will pay off in the end!
Hello, I am Collin Tyusm. I am a Forex blogger. I have created my blog, because I want to help people learn more about Forex & CFD Trading Software and Bots.