The trading world always has many options in store for cryptocurrency traders and investors. There are markets available for those who want to invest short term and long term, and markets that are less or more risky than others. Even platforms like MintMe can allow people to somehow experiment with trading without risking anything by creating their own tokens.
The cryptocurrency market operates differently compared to other financial markets, which makes it essential to know how it works and even many times learn to use the same terms used by other traders to be able to communicate better. More so because this market can suffer many negative impacts or other causes, this is what we call high volatility. For example, the coronavirus has had a global and significant impact and has affected different market niches and ways of investing or trading. Multiple factors can cause market movements, from initial coin offerings or blockchain forks to the latest news or government regulations.
The cryptocurrency market is a decentralized virtual currency network, which means that it operates through a peer-to-peer transaction system or "network" rather than employing a central server. When cryptocurrencies are bought and sold, the transactions are added to the blockchain, which is a technology that records shared data, through a process known as "mining".
It works digitally, however, the biggest difference with fiat currencies is that it can be exchanged and traded like any other traditional currency while remaining outside the control of governments and financial institutions. Through the Blockchain, people can exchange and commercialize securely and directly.
There are a large number of cryptocurrencies available, all with their own characteristics and applications. Those with the largest market capitalization are, at least for now, a minority that includes Bitcoin, Bitcoin cash, Ether, and coins with multiple functionalities such as MintMe.
Cryptocurrencies can be considered an alternative to traditional currencies, but in reality, they were conceived as a completely conventional payment solution. At present, a good number of stores accept cryptocurrencies as a form of payment.
While it is true that their validity as a payment method is fundamental to their value, cryptocurrencies are usually more akin to commodities such as gold. This ultimately means that the value of a cryptocurrency is not tied exclusively to the performance of a particular economy.
We can say that changes in interest rates and increases in currency reserves only have an indirect effect on its value. Because the value of cryptocurrencies depends on the commitment of users to maintain their price when converting them to traditional currencies and when they use it to sustain environments like online games, NFTs, or crowdfunding and token creation platforms.
This means, that cryptocurrencies act primarily as a commodity, i.e., an investment whose return comes from speculation around the ups and downs in their value. In other words, the community is behind the valorization of coins within the crypto-world.
What drives the cryptocurrency market?
When you get into crypto trading you aren't only just an investor but an active part of the system and your actions in conjunction with others can determine the fluctuations of the market for good and bad.
Cryptocurrency markets move according to supply and demand. However, as stated before, because they are decentralized, they are not usually affected by economic and political events that influence traditional currencies. Although there is still a great deal of uncertainty surrounding cryptocurrencies, the factors that influence can be different: For example, supply, which is the total number of coins and the rate at which they are being issued, destroyed, or lost. Another factor can be Market capitalization, this is basically the first thing someone sees when entering an exchange, it is the value of all existing coins and how users perceive their performance.
Another factor that we might not take into account most of the time is the publicity or media coverage, the image of cryptocurrencies portrayed in the media, and how much coverage they receive can greatly affect their value. A good example of this is how Reddit users changed the future of GameStop.
Market expansion in MintMe v2.0
The most difficult thing for investors and traders is to interpret the best time to start a trade: buying or selling the asset or deciding in which industry to invest. Thus, it is essential to be aware of different market movements, triggered by various factors, and how to contribute in each way. However, one of the best ways to allow a trader to feel safer is diversification, and not only reading candles.
MintMe will include the integration of additional market pairs for tokens with the aim of diversification.
The growth trend means that shareholders continue to grow and it is a good time for investors to take advantage of buying new shares and holding in different currencies available, and MintMe takes this to a different level by allowing token makers to add BTC, ETH, USDC, and BNB pairs as options for the trade of their tokens, while investors can select the project they want to support, holding tokens and selling them for powerful cryptocurrencies in the market.
MintMe 2.0 will include new trading markets to expand the trading possibilities and encourage new buyers.