While cryptocurrencies are created with a specific use case in mind, such as being a decentralized form of money, the vast majority of their use to date is driven by trading and speculation. Cryptocurrencies are known to have extremely volatile valuations, which creates an opportunity for investors to profit through the buying and selling of these assets.
Trading is typically done on a cryptocurrency exchange where users can buy and sell different crypto-assets using either fiat currencies (fiat-to-crypto) or other cryptocurrencies (crypto-to-crypto). [blokt] reports on the latest developments occurring at major crypto exchanges such as Binance or BitMEX and publishes it all here in the Trading News section.
The cryptocurrency market shares many similarities with traditional financial markets such as stocks, forex, and commodities, but it also has some unique features. The crypto market trades 24/7, crypto-assets can be exchanged directly for other crypto-assets, and they can be transferred easily to any wallet. In comparison, the stock market only trades 5 days a week during specific hours, and shares cannot be directly exchanged for other shares. Likewise, transferring shares between people or brokers is a more complicated process.
Cryptocurrency traders often use fundamental analysis, technical analysis, or a combination of both to determine trading opportunities. The crypto market is driven by supply and demand, and both news events or price movements can lead to a change in the balance. If the US government announced that it would start accepting Bitcoin as payment for taxes, this would likely lead to an increase in demand for Bitcoin, and therefore a higher valuation. As Bitcoin’s price rises, it creates a FOMO (Fear Of Missing Out) effect, leading others to acquire it in the hope of making a profit. This further increases its demand, and therefore, its valuation.
Our Trading News section brings you the most price-sensitive information as soon as it goes public, helping you stay well informed as a trader. We bring you daily news updates relating to the digital asset market, cryptocurrency & altcoin exchanges, Bitcoin futures, crypto trading products, and more.