Do you use digital currencies, such as Bitcoin? Do you not know where to find reliable information on the latest exchange rates? We will tell you which websites are trustworthy and which should better be avoided.
Cryptocurrency exchange rates – what should you know?
Cryptocurrencies keep growing in popularity – being used not only by young people but also those middle-aged and even older. It is no wonder: digital currencies, such as Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) or EOS have plenty of benefits to offer. They make Instant money transfers possible, they are widely available, they provide higher level of security. They also allow to avoid the costs related to keeping a bank account or currency conversions. They can be used to pay for goods and services, without any institution as the middleman. These and other advantages contribute to the appeal of cryptocurrencies, which might one day replace – as predicted by experts – traditional money. How realistic such scenario is, that’s something we have pondered about in other articles. Below we will focus on the cryptocurrency rates: what impacts them, where to look them up and what to pay attention to when choosing a particular currency?
Where to look up the cryptocurrency exchange rates?
The most reliable source of information on exchange rates are cryptocurrency exchanges. If you want to stay up to date with the exchange rates, have Internet access and don’t need to be too accurate, an online exchange will certainly be up to your expectations. It’s the fastest and easiest way to look up the exchange rate, be it Bitcoin (BTC), Cardano (ADA), Ethereum (ETH), Ripple (XRP), Bitcoin SV (BSV), Bitcoin Cash (BCH), Crypto.com (CRO), OmiseGo (OMG), Monero (XMR), Binance Coin (BNB), Neocoin (NEO), Basic Attention Token (BAT), Stellar (XLM), Tezos (XTZ), Dash (DSH), Qtum or any other digital currency.
The Price of a cryptocurrency is a resultant of numerous factors that we will discuss in a little more detail in a moment. Depending on their influence, it might go up and down in a more or less predictable manner. The mechanisms reigning here are similar to those in the traditional money circulation. Except that, compared to regular money, a cryptocurrency is more prone to sudden changes (which is the exact reason why many businesspeople have a skeptical view of digital currencies). What is important, the price doesn’t have to be the same on all exchanges. It is influenced by such things, among others, as the individual preferences of consumers. And, as we know, they can respond differently depending on the exchange. That’s why it is better to compare the prices on at least a few different exchanges. That way you can get a better insight into the current situation.
Why should one check the exchange rates of cryptocurrencies?
Looking up the latest exchange rates is an absolute necessity before conducting binding financial operations. All you have to do is visit the exchange, Check the current exchange rate and now you know how much money you need for the transaction. The most stable cryptocurrency is (and it doesn’t really look like the situation is about to change anytime soon) Bitcoin (BTC) – the most famous digital currency in the world. The BTC exchange rate can be looked up at any exchange. In order to check the rate more accurately, though, it’s a good idea to get the information from different sources. For the purposes of local transactions with counterparties from the same country exchanges will be enough, but when it comes to transfers between International entities, things actually get a little complicated…
How to look up an exchange rate as accurately as possible?
Exchanges make it possible to check exchange rates of cryptocurrencies for the purposes of local operations, when there is no need to know the exact rate. In certain cases, however, it is necessary to be more precise in the measures. For example, transactions between entities that operate in two different countries require clarifying the price. In such case, it is the best to look up the price on a so-called marketcap (which is a portmanteau for Market Capitalization, which means the value of a company or of stocks from a particular issuer, calculated based on the latest exchange price). As we have mentioned – it is The most accurate way to check the exchange rate. The measure here is the American dollar (USD), which allows to convert Cryptocurrencies into the so-called fiat currencies (also known as inflationary currencies).
The prices of cryptocurrencies – why are they so volatile?
The digital currency market is less stable than the traditional monetary system. That’s why the investments made on it rely to a large degree on speculating. Different types of listings featuring current cryptocurrency exchange rates order them based on the market capitalization, as it is The most important and direct factor influencing their size. One has to keep in mind, though, that the Price of a cryptocurrency doesn’t indicate its actual value. It can be calculated, however, by multiplying the number of coins in circulation by the current price.
The market capitalization of digital currencies comes in handy for evaluating the Investment risk. It cannot be emphasized enough, however, that it can’t be calculated precisely, as there might be “coins” in circulation that the user no longer has access to. Another way the cryptocurrency market differs from the traditional money circulation is that currency trading goes without any breaks here, 24 hours a day, 7 days a week. Regular exchanges only operate on weekdays, in a strictly defined time frame. It is no wonder: they need institutional oversight in order to function. The cryptocurrency system can operate without a break thanks to the blockchain technology that we have described in detail in other articles. We’ll just remind that it is based on a decentralized network where every user has a full insight into all the transactions performed so far using a particular cryptocurrency. Test results show that exchange rates are prone to biggest fluctuations on weekends – which is exactly when the markets of traditional currencies are “frozen”. One explanation for such state of things is that it is only on weekends when plenty of people can find time to Comfortably analyze the market, develop an investment strategy and take adequate actions.
The cryptocurrency exchange rates are mostly published in American dollars (USD). This can be observed using possibly all services that monitor the current prices. One reason why such websites are worth using is that they are equipped with filters that allow to Order the ranking based on the user’s personal preferences. What is important, the exchange rates might differ from one another across different exchanges. That’s because to a large degree they depend on the revenue generated by a particular trading platform. Therefore, a cryptocurrency cannot have just one price.
What is more, the difference in exchange rates might be significant enough for investors on one exchange to buy the currency at a lower price and then sell it at a different one with a profit. That’s another reason why it’s worth it to check out different rankings. Websites that allow to follow aggregated data from different exchanges give a chance to compare the current exchange rates on different platforms. It allows the user to Choose the offer most convenient to them.
What influences cryptocurrency exchange rates?
There is no clear answer to that question. The factors that influence the current Price of a cryptocurrency are manifold and complex. The less experienced investors base their choices only on the prices of cryptocurrencies, which comes with a huge risk, because – as we have mentioned before – exchange rates might be subject to far-reaching changes in a short time. In order to lower the risk of losses, one shouldn’t put all their eggs in one basket. An investment should be preceded by Solid research that covers both the available trading platforms and the exchange rates of a particular cryptocurrency.
The prices of cryptocurrencies rise in times when the execution of some major business project is coming to an end. That’s when we’re talking about panic buying. This phenomenon is best illustrated by the cryptocurrency TRON (TRX) – Justin Sun influences the changes to the exchange rate of TRX through different marketing activities. Observing such relations allows to learn a lot. The opinions of Famous, respected public figures have a noticeable influence on price fluctuations of cryptocurrencies. People put their trust in authorities, following what they say. It doesn’t apply just to major investment matters, but also simple consumer choices – a product endorsed by a famous idol will sell better.
Another considerable influence on changes in prices are the media. It is worth knowing that the information served by the most recognizable websites does not have to be one hundred percent true. Media exaggerates certain processes, while refusing to acknowledge others – and thus they impact the decisions of investors, especially the beginning ones, who haven’t developed criticism towards media reports yet. The key to success here is keeping it cool and being able to Select the right data.
Another factor influencing the exchange rates of digital currencies are the so-called Smart Money movements. This term refers to capital that is accompanied by a specific strategy on the investor’s part, operational activities, connections with influential people and other forms of supporting a startup. The opposite of Smart Money is Dumb Money, which is capital coming from an unqualified investor.
It is no secret that half of the revenue on the currency exchange market is generated by institutional investors. It isn’t a very large group, but one has to admit that they hold a huge capital. Their activities – which are sometimes, one could assume, contrary to the forecasts in media – have an undeniable impact on the changes in cryptocurrency prices. Of course it’s not quite so simple: to bet on a major player who has a professional strategic support. A helpful thing here might be the information featured on the bottom of a cryptocurrency chart (referred to as the volume). That’s exactly where The most important data is contained, which is on the activity in a specified time frame and the capital’s location. A thorough observation of changes visible in the volume allows to notice potential price manipulations. It’s a good idea to remember not to trust increases that are not backed by the volume. A “Healthy” price increase assumes increased revenue during the period directly preceding the rise.
Where to follow cryptocurrency charts?
One of the most famous platforms, where one can follow cryptocurrency exchange rates, is CoinMarketCap. It operates similarly to other services of this type. The left side contains the name of a cryptocurrency next to its acronym, i.e. BTC (Bitcoin), ETH (Ethereum), ETC (Ethereum Classic), XRP (Ripple), LTC (Litecoin), XLM (Stellar), CRO (Crypto.com), ZEC (Zcash), XTZ (Tezos), BAT (Basic Attention Token), OMG (OmiseGo), XMR (Monero), BSV (Bitcoin SV), BNB (Binance Coin), NEO (Neocoin), DSH (Dash), ZRX (0x), BCH (Bitcoin Cash), EOS or Qtum. The right side allows to check the value of all coins in circulation (capitalization), as well as the current price of the cryptocurrency. The prices are averaged based on the aggregated prices from other exchanges.
Another important element on the website is the volume (representing the revenue from the last 24 hours). The column next to it allows to check the percentage change to the exchange rate that took place within the last 24 hours, and last but not least is the information on the number of coins in circulation. The whole thing is wrapped up with a Linear chart.
The cryptocurrency market: charts, forecasts, differences
The exchange rates of digital currencies can be followed in real time. As we have mentioned before, it is not possible to accurately predict whether the price will rise or drop (and by how much). On the other side, changes to prices are not a result of random chance, but a resultant of different economical and financial events. Knowledge on the mechanisms that rule the financial markets makes it much easier. In order to minimize the Investment risk, one should keep their finger on the pulse the entire time. Charts that display rises and drops in exchange rates constitute an Invaluable help for an investor hesitating between different possible options. They allow to make a choice based on solid data. Reliable information services make it possible to be up to date with everything going on on the cryptocurrency market.
Pump and dump, or how can charts lie?
There are plenty of pitfalls waiting for beginning investors. One of them is the phenomenon referred to as pump and dump, which consists of the prices being artificially “pumped” by the so-called solicitors, only to return to the base value soon after. New users often tend to fall for that. They will invest a lot of money into projects pretty much doomed to fail, as the quick rise is followed by an equally quick drop.
What if the market collapses?
The digital currency market isn’t quite as stable as the traditional financial markets. It is still a pretty pristine area, although a growing number of people is using cryptocurrency based payment systems. For a comparison: Forex is fortified with numerous regulations to prevent destabilization, and Licensed brokers hold guarantee funds. Then there’s also oversight by relevant institutions. The cryptocurrency market has no such things.
Beware of pyramid schemes!
Pyramid schemes are a real plague on the cryptocurrency markets. That’s why traders are recommended to exercise particular caution when investing in projects that lure in with promises of exorbitant returns on the investment. A vast majority of such projects are made for a quick buck and operate on the principle of a pyramid scheme: the new investors pay for the ones before them and as long as there are new ones coming in, the business stays afloat.
Exchange rate monitoring apps – 24h a day, 7 days a week!
The exchange rates of digital currencies can also be followed using Mobile apps, such as CoinStats or Blockfolio. They make life much easier. They allow to stay up to date with the latest cryptocurrency exchange rates, they monitor the price changes in real time. They constitute an Invaluable help for all the users of Bitcoin (BTC), EOS or other digital currencies. They allow you to evaluate how much your portfolio is worth at a particular moment.
The CoinStats app is available for both Android and iOS smartphones. It has a wide range of features. Upon opening it, we’ll see a cryptocurrency ranking ordered by the market capitalization criterion. Each cryptocurrency also has a percentage value of the changes within the last 24 hours next to it, as well as the current price. If, for example, you don’t use Bitcoin (BTC), Neocoin (NEO), Cardano (ADA) or other currencies that are at the very top, you can set the app to only display the exchange rates of the cryptocurrencies selected by you (the Favorites tab). The adjacent tab contains market statistics, as well as information on the market changes that have taken place within the last 24 hours (you can also easily check on what has happened during the last 7 days). The prices are displayed by default in American dollars (USD). If you want to find the price of a particular cryptocurrency, click the magnifying glass (upper left corner) and enter its name or acronym in the search field.
In the CoinStats Portfolio tab you can manually add a cryptocurrency you’re using, the amount of units owned and the price you bought it at. Based on this data, the app calculates the percentage value of profit or loss for your investment, as well as the equivalent in dollars (USD) and Bitcoins (BTC). For people who invest a lot, however, a better solution will be the feature of automatically connecting the CoinStats portfolio with a trading account or an external portfolio. That way you don’t have to manually update the portfolio. All you have to do to use this convenience is create an API key on the trading account and scan the QR code with your smartphone. The app will gain Access to the account and to your data. Every subsequent purchase or every subsequent sale will be registered in the app (using the API data feed).
As you can see, you have a lot of tools at your disposal that allow you to be up to date with the latest exchange rates for Bitcoin, Litecoin or other cryptocurrencies that utilize the blockchain technology. Online exchanges, information services and Mobile apps make it possible to follow price fluctuations in real time, with all the changes occurring within the last 24h taken into account. These are valuable sources of information not only for investors but regular cryptocurrency users as well.