What effects cryptocurrency prices?
Like all tradeable assets and money, cryptocurrency prices are subject to the laws of supply and demand. There are a ton of factors involved in determining cryptocurrency prices, including:
- The overall perception of its intrinsic worth by the public
- The cost of mining or staking and the subsequent rewards
- The adoption level of the parent platform
- Liquidity on exchanges (how much is available in reserve)
- The value and popularity of competing cryptocurrencies
- Government regulations
- Global economics, and the health of the overall consumer market
Simple version: If people buy lots of Bitcoin, there’s less available for everyone else to buy. Therefore, the cryptocurrency prices goes up because it’s scarce.
Think of Pokemon cards. There’s only a limited supply, and if there’s a card with only 10 physical versions of that card available (e.g. a limited edition print), those cards will be worth a LOT more than a standard Pokemon card with millions of prints. Some of the rarer cards can sell for $50,000 or more.
Most cryptocurrencies work in the same way. There are millions of individual Bitcoins on the market, but only 21 million will ever exist. So as people buy them up, there’s less available on the market.
That’s one of the reasons Bitcoin cryptocurrency prices are so high at the moment – it’s hard to mine new Bitcoins, therefore there’s less supply, therefore it’s more desirable.
What’s the biggest cryptocurrency?
The simple answer is Bitcoin.
There are a few ways of measuring the “size” of a cryptocurrency:
- Market Capitilization (Cap): The combined USD value of all the cryptocurrency’s tokens/coins currently in circulation.
- Price Per Token: The current cryptocurrency price.
- Trading Volumes: The USD value of cryptocurrency traded in a certain time period (usually 24 hours)
- Supply: The total number of tokens/coins available
Bitcoin currently sits at #1 for Market Cap and Price Per Token, USDT has the highest Trading Volumes top for Trading Volumes, and BitTorrent Token (BTT) has the largest overall Supply.
Where to buy crypto
There are a number of platforms online today that you can register with and buy your preferred cryptocurrency.
If you’re just looking to buy and store your cryptocurrency, we recommend a platform like Coinmama.
You can purchase BTC, LTC, ETH and more with a credit/debit card, in USD, CAD, AUD, EUR, GBP and YEN, at the most up-to-date cryptocurrency prices.
Alternatively, you can use a more mainstream exchange like Coinbase (get up to $10 in BTC free by using our link!).
You’ll be able to take advantage of the latest cryptocurrency prices, and buy/sell/exchange your cryptocurrency for fiat or other supported cryptos.
How to get free cryptocurrency
There are hundreds of cryptocurrency faucets that you can claim free crypto from. Here’s our list of our favourite free faucets:
- Free Bitcoin faucets
- Free Dogecoin faucets
- Free Litecoin faucets
- Free Dash faucets
- Free Ethereum faucets
- Free Bitcoin Cash faucets
In exchange for solving a Captcha, you’ll be rewarded with a small amount of your desired cryptocurrency. These are usually sent to a microwallet like FaucetPay.io, which enables free transactions.
The amount per claim is usually dependent on current cryptocurrency prices.
So for example, a faucet may always give you $0.01 USD per claim, regardless of the current crypto price.
How to store your crypto
In wallets, of course!
Like their real world counterpart, cryptocurrencies can be kept in wallets. There are numerous ones you can get, with many wallet providers developing multi-currency ones, meaning you can use a single wallet to store different cryptocurrencies.
Wallets have two basic pieces of information: a private and a public key.
Public keys are analogous to your bank account numbers, identifying your wallet to yourself and others.
Private keys are the password to access the funds. You can get any wallet you like and start using it. To transfer the funds into it, simply share the public key with the sender and they will be able to deposit cryptos.
To send over cryptos, you will need to use your private keys to access the wallet and enter the receipt address, along with the amount to be sent.
Depending on the crypto and the wallet, you will need to enter a small fee for the miner or node operator as an incentive to confirm the transaction on the blockchain.
For ease-of-use, we recommend Trust Wallet. It has the widest range of supported cryptocurrencies, and also supports NFT collectables.