How Does Crypto Gain Value?

[Suba]

As crypto investors, we should learn how crypto values can rise and fall. Without this understanding, investors won't be able to determine whether a cryptocurrency is worth buying.

Every day, millions of cryptocurrencies are traded on crypto exchanges. These buying and selling transactions are what ultimately drive the value of a cryptocurrency. In economics, prices are determined by the forces of supply and demand.

Essentially, for investors, valuing crypto is no different than any other investment instrument traded on the market, which is determined by the attraction between buyers and sellers. Therefore, a cryptocurrency gains value based on investor opinion and market sentiment. From these indicators, investors can determine whether a cryptocurrency is worth holding or selling immediately for profit.

 

[gwolf666]

The value of a cryptocurrency rises or falls according to the basic law of supply and demand: if more people want to buy it than sell it, its price rises, and if there are more sellers than buyers, the price falls. Essentially, value depends on investor interest and sentiment, which is why it's important to understand these factors when deciding when to buy or sell and thus make a profit.

 

[Fidelia]

Nothing than supply and demand that influences how much a crypto token is valued at a time.