The market of digital assets is different from other markets with its increased volatility. Like any other market, it lives through cycles, demonstrating upward and downward trends time after time. In 2022, we all faced the crypto market collapse caused by several reasons:
- First of all, negative news background and reduction of the money influx – people started to invest less.
- FED decided to increase interest rates.
- Binance’s blocking of BTC withdrawals for a while.
- And other factors.
Three the main indicators characterizing any crypto asset:
- Cryptocurrency price
- Market capitalisation
- Trade volume.
Market cap is a cumulative value of all the coins in circulation, calculated by multiplying the number of coins that are in circulation by the price.
Trade volume is the amount of all the trades conducted with a particular crypto coin throughout exchanges during some period, often indicated 24 hours.
In spring 2022, together with the market drop, crypto prices moved down, as well as the market cap of cryptocurrency. Taking Bitcoin as an example, we can see that the cryptocurrency exchange rate has dropped from $46.311 at the beginning of the year to $20 as of November 2022. Regarding the market cap, it was $902.10 billion at the beginning of the year, and now it is $391,55 billion.
However, it is proved that the market is cyclical, and after every crypto winter, a crypto boom starts. So it would be wise to start buying digital assets now as crypto rates are low. Make sure you use a reliable platform for it.
What is the Best Place to Buy and Trade Crypto?
We offer a convenient and reliable crypto exchange – WhiteBIT. It offers a wide range of trading tools and over 400 pairs for trading. You will find crypto charts and up-to-date crypto rates and will be surprised by low fees for operations.
Welcome to the WhiteBIT blog for more information about how the platform works and helpful guides on trading.Read Full Article