How do you value cryptocurrency?

Cryptocurrency supply and demand The value of anything is determined by supply and demand. If demand increases faster than supply, the price goes up. For example, if there’s a drought, the price of grain and produce increases if demand doesn’t change. The same supply and demand principle applies to cryptocurrencies.

How does Cryptocurrency create value?

So what is behind the crypto value? Like any currency, cryptocurrencies gain their value based on the scale of community involvement (like the user demand, scarcity or coin’s utility).

Is investing in cryptocurrency a good idea in 2021?

Anyone can make big profits from investing in cryptocurrency in 2021. You just have to invest at the right time — like in December 2017, when no one could lose. But investing at the right time requires luck.

Can you lose money in cryptocurrency market?

Just like any other market, the cryptocurrency market can suddenly move in the opposite direction from what you expected. If you are not prepared for the market volatility, you can lose the money you invested in the market. The volatility in the cryptocurrency market has been a result of many factors.

What is the future of cryptocurrency regulation?

The regulation event risk, and the regulation’s nature itself. While the future of cryptocurrency regulations seems to be bright at the moment, it could impact the markets in the future. As the market grows stronger though, these impacts could turn into isolated events.

Are You running away with big profits from your cryptocurrency investments?

Only the most skilled and disciplined investors are running away with big profits over time, while dreamers and noobs end up hodling useless coins. This is why I have curated the ultimate cryptocurrency investment strategy: a list of common mistakes to avoid when investing in the crazy crypto world.