Cryptocurrency prices are notoriously volatile. Anyone who has invested in this space for more than a few months has seen the potential for sudden crashes as well as for investment success. This goes for coins at the top of the market, like Bitcoin and Ethereum, all the way down to the unknown projects thousands of places down the rankings.
Among unpopular cryptocurrencies, prices change for fairly simple reasons. Most of these projects lack significant marketing and are traded by very small international communities. Coins sell for what people think they are worth. If the blockchain behind the coin develops in impressive ways, the price goes up. If development lags, the price falls.
When we get higher up the crypto charts, prices change according to much more complex factors. Let’s take a look at each of these factors individually so that you can make better trading decisions.
1. Product/Software/Technology Updates