projects: Why is crypto going down? When crypto will go up? Factors influencing the price of digital assets

General Manager @ Excoincial Exchange

What drives up or down the price of digital assets?

First of all it's very cardinal to understand that cryptocurrencies or digital assets are very volatile in nature excluding stable coins. However, there are many factors that drive these digital assets up or down, Firstly is the issue of mass adoption by global institutions like Central bank digital currencies CBDC, this move makes the global market increase its trust and more interests to the investors. Secondly, Bitcoin EFT approval by SEC becames a dream come true for investors which they have been waiting for a long time. Thirdly, legalizing of these digital assets by countries like El Salvador etal, in short prices of these digital assets rise because of positive speculations or fundamentals. Digital assets also go down because of negative news and speculation from global leaders for example China cracking down on Bitcoin by banning it and closing down of mining operations, Nigeria's refusal to allow banks in trading Bitcoin and other currencies, Elon musk crack down on purchasing Tesla cars with Bitcoin. In conclusion, digital assets go up and down because of negative and positive speculations based on fundamental calls by adoption and crackdown that give investor confidence or distrust.

What’s your most important priority when choosing the right project/token/coin?

There are many projects with spectacular missions that have mushroomed on crypto sphere. However, there are several priority or construction that are make before choosing a project; - how powerful and dedicated is the team behind the project, - Has the team undergone any auditing certification, KYC/AML verifications, - How good is the community support for the project, - How's their roadmap and their whitepaper, - do they have enough liquidity for their currency and is it locked for a minimum number of 3years if it's a DeFi project, - Have this project partnered with several media houses and exchanges. Al these question and other analysis helps me consider effectively over what project I should invest in.

Mor-Wey Logistics Limited

What drives up or down the price of digital assets?

Crypto trading is like the stock market trading. The direction of the prices is usually guided by the influx or withdrawal of invested market capital. A project with a surge in its market capital indicates more funds from investors and people pay attention to such details. The scarcity of the assets. The simple basic principle of economics applies here as well. When the quantity of an asset in circulation is high above 50% of its total supply, it indicates that its investors are holding and not selling. Such indication points towards prospect and everyone would want to have some in their bag. Information, sometimes rumours can cause an accumulation of assets by investors or its panic sell. Positive information most times yields good results if it's feasible and negative information has its own effect as well.

What’s your most important priority when choosing the right project/token/coin?

Before investing in any project, it is important to pay attention to its use case and road map. What are their plans, their vision? How does it ameliorate societal problems? How does it empower sustainable development of our economic, social and financial problems? Does it advance any particular sector in technology in respect to the future? The objective and goal of a project is imperative when making investments. This in a way gives confidence of its longevity and perhaps, its success as a business. Then comes the money. How much is invested, and in what duration? Who are they partnering with? What is expected in return? These questions helps steer one in making a decision on whether or not to invest. Of course, there are projects with good white paper but they never seemed to make it. Yet, the right questions and good research helps limit the risks of fake investments and guides one on the direction with prospects.

Self employed and motivated crypto trader and defi analyst

What drives up or down the price of digital assets?

A digital asset is an asset in which the buying and selling of it takes place online through complex processes on a blockchain under seconds. The price of these assets fluctuate as is the normal behavior of commodities in the market. The price of any commodity whether digital or fiat or goods or stock is primarily affected by demand and supply. Other factors may include: 1 News: this is the most good and bad factor that affects the price of crypto currencies because most people love to bug or sell news about any crypto in order not to get caught up in the wrong side of things. 2 listing and delisting on exchange: as the name goes, once a digital asset is listed on any exchange (cex or dex) the price tends to increase and vicer versa for delisting. 3. Politics: many countries do not support the use of crypto currencies and some who have already begun may later get banned by the government. This affects the price due to the fact that so many people will want to take their coins down in order to prevent shutdown. 4. BTC halving 5. Geopolitical events 6. Release of new Blockchain upgrades like eth2.0 7. Crypto innovation like the nfts, metaverse and other innovations The list continues

What’s your most important priority when choosing the right project/token/coin?

When choosing the right crypto I look out for a list of things 1. Tokenomics: the tokenomics tells us how the token actually originates and now the team would allocate funds for various projects. Like the initial supply, the listing price, the initial market cap, if it is deflationary, information about burning, and so on. 2. I look at the road map: the plans they have like plans to prevent dumping after presalers take profit, plans for each quarter of the year and so on. 3. Team: the advertising, their coordination and manner of replying questions on discord, telegram or twitter. 4. Staking apy if there is any 5. Usecase

Crypto researcher and writer- Copywriter

What drives up or down the price of digital assets?

There are several factors that influence the prices of cryptocurrencies. And here I will discuss a few of them. Breaking news: Some breaking news, especially involving cryptocurrencies or legislation influence their prices. For example, if the action of a government is positive towards cryptocurrencies, their prices rise and vice versa. For example, the decision by the Chinese government to ban bitcoin mining negatively affected the prices of BTC. The news that El Salvador has adopted BTC as a legal tender helped to increase the price of BTC. The recent bull run of BTC could have been necessitated by the news that United States has approved some BTC Exchange Traded Funds (ETF). And we have seen the number of countries approving ETF increasing. Market Sentiment: Market sentiment is about how buyers and sellers of a certain cryptocurrency think about it. For instance, recently market sentiment led to the rise of the price of Shiba Inu. If the market expectation is high on the possible rise of the price of a cryptocurrency, that has positive pressure on the price. Demand and supply of the cryptocurrencies: When there are more buyers of a cryptocurrency than sellers, the price of the coin increases. When the number of sellers of a cryptocurrency is higher than that of the buyers, the price increases. Fud: fear, uncertainty and doubt (FUD) negatively affects the prices of certain coins. On the other hand shilling has a short term impact on the price of a certain coin. Recently, we noted that once Elon Musk talked about a certain cryptocurrency in a positive way, its price would rise. Change in token supply: The change in the volume of the circulating supply of a coin may affect its prices. When the supply of a token decreases, all other things being constant, the price of the token increases. That is the reason why come projects burn their tokens at an established rate. A burnt event decreases the supply of the token, hence positively influencing its price.

What’s your most important priority when choosing the right project/token/coin?

Personally I look at several fundamentals of the coin. One of the things I look for is the network it exists on. I normally favour projects on Tron blockchain and Binance blockchain. This is because of the cost of transactions. The exchanges where the coin exists: I like a coin that is on several exchanges that include decentralized exchanges and centralized ones. This gives people much flexibility when trading the coin. Liquidity of the coin: I prefer a coin which has high liquidity. This means that orders are easily fulfilled in short time. The team: I study the team behind the project and its history. A good team should have balance in terms of expertise and experience. A team made of people of different age and sex is appealing to me. The country in which it is registered is also very important to me. Ranking: For an already existing coin I look at the trading volume both in the short term and in the distant past. The market capitalization is also important to me. Therefore, I normally choose coins which are within the top 20 rank according to market cap at CoinMarketcap or CoinGecko.

Crypto and Forex Trader

What drives up or down the price of digital assets?

As a rule, bitcoin pulls on itself the entire cryptocurrency market as a whole, positive news about the main cryptocurrency is growing, and all the rest. The factors affecting cryptocurrencies are very different from those affecting traditional financial instruments. The exchange rate is strongly influenced by the assumption that, perhaps, the government of some country will allow the circulation of cryptocurrencies. There are two main differences between cryptocurrencies and traditional assets - a large number of OTC / hidden transactions and a large amount of news related to the regulation of the entire industry. The news background is a strong price engine, but OTC market transactions in fact determine the target values of Bitcoin in the short term. The news background has a general effect on the entire cryptocurrency industry, this is a statement or reports of regulators regarding cryptocurrencies. The leader is the US Securities and Exchange Commission (SEC), which has a severely negative stance towards any type of cryptocurrency.

What’s your most important priority when choosing the right project/token/coin?

Development team. White Paper. It is important to study the past of the project team and who is behind it. Determine how interesting and promising the underlying idea is. Check for MVP availability Check the execution of the roadmap. Get to know the project community. Determine the market value of the project. Assess the market segment to which the project belongs. Therefore, it is extremely important to choose projects that develop a real product and have a fundamental basis for growth.

Professional Author and Crypto Trader

What drives up or down the price of digital assets?

Digital assets, unlike Fiats, has a fixed supply. For this reason, their value is solely dependent on how many people know about it, and have invested in it What I'm trying to say in essence here is that the value of digital assets is determined by adoption, hence the need for advertisement of digital assets, unlike Fiats which doesn't require that

What’s your most important priority when choosing the right project/token/coin?

When it comes to making a choice in relation to a project, coin or token, I have learnt to be very careful. This is because no one is responsible for your financial decisions, hence the need for careful consideration before putting in you hard earned income into a project. I would be listing some important features to me below: 1. Use cases: I make use case the top priority because there would be no massive adoption for a project without a use case. The value of a project increases only when there is massive adoption, which happens only when there's a good use case. 2. Adoption, or steps the company take to achieve massive adoption: I would never put in funds in a project that is not taking any step to tell the world what they do. To achieve massive adoption, one must take some steps, some of which includes Advertisements and some other things. Whenever I find a project that tries all its best to get that done, I usually hop in the train. 3. Transparency of the people in charge: Before I get my funds into any project or coin, I would ensure I have checked the people behind it, checked out their past records and some other things. Doing this would make me less disturbed. You don't expect me to invest in a project owned by a one-time prisoner, the fear would always be there 4. The last thing on my list would be the company behind that project. I would ensure I check the company behind any project I would like to invest in. I would check the company's success rate and other how successful some of the projects they found or supported is. The end point to all this is Research, I guess that's why DYOR (Do Your Own Research) is a possible phrase in crypto. As a crypto trader, you shouldn't just invest in a project because others are doing so, you should ensure you make a whole lot of research on the project

Operator

What drives up or down the price of digital assets?

We all already know ... The supply and the demand ... But why do people invest in crypto? Well, it is a technology that in my opinion is going to change the world as we know it, it is the new money that everyone should have, better money ... And also when it goes up so much and everyone thinks they can make money with it, it is a ball that it does not stop, of course it also falls a lot sometimes because there is a lot of money that comes out of the market when taking profit because there are still few places where they accept crypto and then it is sold to continue using the euro ...

What’s your most important priority when choosing the right project/token/coin?

Well, very simple, I choose a project that I see that solves things in the ecosystem and that has upward potential, that of course ... Nor do I usually pay much attention to other projects, I choose 3 or 4 of the best known and greater capitalization ....

trader

What drives up or down the price of digital assets?

crypto will rise when the interest of buyers is getting bigger, many people are very confident in the project and the project is growing to form a community, this is one of the fundamental things of the development of the price of crypto coins

What’s your most important priority when choosing the right project/token/coin?

clear projects are usually written in white paper that makes sense, clear permits, concrete evidence nowadays there are many fraudulent projects and we have to be careful, we have to read a lot of news related to these projects

trader

What drives up or down the price of digital assets?

a good project will definitely attract investors, here we must know the concept of the project, we must be good at choosing which projects are clear and which are fraudulent projects

What’s your most important priority when choosing the right project/token/coin?

a good project will definitely attract investors, here we must know the concept of the project, we must be good at choosing which projects are clear and which are fraudulent projects, when the project is believed to be able to do a good system without the need for much fanfare the project will develop by itself

Trader

What drives up or down the price of digital assets?

Why crypto prices going up? The simple answer is because more people interested in crypto, so more demands for it. As the supply of cryptocurrencies remain the same, even in some currencies can be less more time, so the price will automatically goes up. And why the price can going down? There are many factors that can affects the price drop, and the main one is the negative news addressed to cryptocurrencies, also known as FUD (Fear, Uncertainty, Doubt), which causes investors to immediately sell some or even all of the crypto assets they have.

What’s your most important priority when choosing the right project/token/coin?

I have 3 consideration before decide to invest in a crypto projects: 1. The business proposition. What need does the project fill? Is it disrupting an industry or solving a problem. 2. Developer profile and activity. 3. Community activity. Does the project have a passionate and active community or not.

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.