It’s been a long time since Bitcoin burst onto the scene in 2008 to revolutionize currency, and in the meantime, many other digital assets have been created. With the list of all cryptocurrencies now spanning thousands of different coins – all with different prices, market caps, circulating supplies, and purposes – it’s easy to feel confused or overwhelmed. Why are there so many different cryptocurrencies? Why do they all have different prices? What makes one cryptocurrency more valuable than another?
If you’ve ever wondered about any of these questions then you’ve come to the right place. We’ve compiled everything you need to know in order to understand cryptocurrency prices and the factors which influence them.
Price History of Cryptocurrencies
Crypto price histories tell you all about the historical value of a digital currency and may be displayed in the form of a chart or a list of past prices. Every cryptocurrency has a different price history and analyzing it can inform you about the coin’s past and help you make predictions about its future.
Bitcoin was the first cryptocurrency and so has the longest price history – stretching all the way back to 2009 when it was worth much less than $0.01. Many of the cryptocurrencies that have launched since have been based on Bitcoin’s model and some were even created through hard forks of Bitcoin’s code. However, their price histories quickly diverge due to other differences between the coins.
The first major surge for Bitcoin came at the end of 2013, and most other cryptocurrencies that were around then experienced similar rallies at the same time or slightly later. Crypto prices then fell again in 2014.
Four years later, at the end of 2017, the global crypto market cap – which represents the total market capitalization of the list of all cryptocurrencies – rose by about 360% from $180 billion at the start of November 2017 to a peak of over $830 billion in January 2018. This was once more followed by a crash with most coins shedding a significant proportion of their value over the subsequent weeks and months.
The most significant rally yet for the cryptocurrency market came in 2021. Crypto prices began rising towards the end of 2020, and in January 2021, the global crypto market cap surpassed $1 trillion for the first time. It continued mostly climbing for the rest of the first quarter and by May was worth over $2 trillion.
Factors Influencing Cryptocurrency Prices
A wide range of different things can have an effect on the price of a cryptocurrency, with varying levels of significance. Some factors are unique to a specific coin while others impact the entire crypto sector.
The strength and events of the broader global economy can affect the crypto market as a whole. For example, nearly every cryptocurrency experienced a significant price drop on 12 March 2020. This was when economies and borders around the world were closing down in response to the COVID-19 pandemic, and the huge amount of uncertainty at that time led to the biggest single-day stock market crash since 1987.
On the other hand, crypto prices tend to do well when fiat currencies are struggling. If economic crashes or poor monetary policies lead to the debasement of fiat currencies, many people begin to look for alternative stores of value to protect their funds, and so the stock and crypto markets often receive a boost.
Most cryptocurrencies tend to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement and adoption leads to a surge in price before doubt and disillusionment set in and result in a crash.
The amount of investment from both retail and institutional investors is an important factor in determining crypto price. Retail investors can be motivated to buy or sell a certain coin by a range of different things, from technical signals to rewards to the hype generated by social media. Institutions have also started investing in major cryptocurrencies in recent times. As they have much larger amounts to invest, they have greater potential to move the markets, while also increasing crypto awareness and confidence among retail investors.
As Bitcoin was the first cryptocurrency and is still the most popular with huge market dominance, significant price movements for Bitcoin often have an effect on the value of other cryptocurrencies. Bitcoin’s major bull runs have so far formed a pattern in relation to the coin’s halving events. These are when the block reward paid to Bitcoin miners is cut in half. It happens approximately every four years and most other cryptocurrencies have roughly followed the same pattern.
On top of these more general factors, there are plenty of other influences on crypto price which is more specific to each coin. These include a cryptocurrency’s max supply (or lack thereof), emission schedule, public sentiment, the flow of assets on exchanges, the team behind it, rights or rewards for holders, upgrades, integrations, competition, use cases, mainstream adoption, community engagement, and project news and developments.
Live Cryptocurrency Value and Real-Time Market Cap
The live value of a digital currency is decided by the balance of buyers and sellers on exchanges. When more people are buying a coin than selling it, its price goes up, and when more are selling than buying, its price goes down.
Stablecoins are digital currencies whose value closely tracks that of a stable asset, and so their price should remain stable with their live value hardly moving. However, other cryptocurrencies tend to be highly volatile, which means their live price can change by a large amount in a short space of time.
The market capitalization of a cryptocurrency is equal to the price of one coin multiplied by the number of coins in circulation. As changes in circulating supply are usually fairly gradual for most cryptocurrencies, the movement of a coin’s market cap tends to be very closely correlated with the movement of its price. The market cap is used to rank cryptocurrencies and determine their market dominance. Bitcoin is at the top of the rankings as it has the largest market cap of all cryptocurrencies and therefore the strongest market dominance.
Today’s Crypto Prices and Charts
You can find out the price of a particular cryptocurrency today by seeing what price it is being bought and sold at on an exchange or checking out its live crypto chart. Many coins will change the price on a moment-by-moment basis so some people like to use crypto charts to find a good time to buy or sell.
Crypto charts can come in the form of line graphs or charts which display OHLC (open-high-low-close) bars or candles. Charts are sometimes customizable so you can choose the style of the chart and the time intervals displayed.
All Your Crypto Market Data Needs in One Place
Here at Kriptomat we have everything you need to stay up to date on the latest market action and make strong, informed trading decisions. Every coin has a price page which you can check out to see its live crypto chart. Our charts are customizable and include drawing and measuring tools to help with your technical analysis. We also have a wide range of indicators available which can assist you in making price predictions.
On top of this, we have historical price data and detailed information explaining everything you need to know about the cryptocurrency’s price and the factors which influence it. Furthermore, Kriptomat gives you the option to set up an alert so that you’ll be notified when the coin reaches a certain price. This means that you can make sure you never miss your perfect buying or selling opportunity.
Cryptocurrency Prices FAQ
How much does cryptocurrency cost?
Every cryptocurrency has a different price, ranging from a fraction of a cent to tens of thousands of dollars. You can find out the live prices of all the most popular coins on Kriptomat, as well as how to buy cryptocurrency. The cool thing about cryptocurrencies is that, unlike stocks, they are fractional. This means that you don’t have to buy a whole number of coins. For example, many people wouldn’t be able to afford a whole Bitcoin, but if they want to invest in Bitcoin, they could still buy 0.1 BTC, or 0.0025 BTC, or any other fraction they like.
What is the cheapest cryptocurrency to buy?
There are many cryptocurrencies that still cost less than $1, or even less than $0.01 per coin. However, calling these cryptocurrencies “cheap” represents a flawed way of thinking. As explained above, you don’t have to buy a whole number of coins and just because a cryptocurrency has a low price, it doesn’t necessarily mean that it has more potential for growth. Market cap is a better indication of a project’s current value as it represents the total amount invested in it. A project with a strong team and innovative ideas but a small market cap may be undervalued – or “cheap” – regardless of what the price per coin is.
Is cryptocurrency a good investment?
Crypto has turned plenty of people into millionaires in short time frames and many believe that crypto prices will continue to rise in the future as blockchain technology revolutionizes a wide range of industries. However, cryptocurrencies are highly volatile and it is possible to make huge losses as well as huge gains, making them a risk-on investment. It’s a good idea not to invest anything in crypto that you couldn’t afford to lose, and you might want to consult a qualified financial advisor if you’re unsure.
That being said, there are plenty of promising crypto projects on the market with the potential to give great returns. It’s always important to do your own research before making any kind of investment and crypto is certainly no exception. Some of the things to consider when evaluating the potential of a crypto project include the reputation of its team and backers, the quality of its whitepaper, whether the technology has a valuable use case, its roadmap, and whether its on schedule, it is level of developer activity and community engagement and the economics of its coin.
Kriptomat is a great place to look for a promising cryptocurrency and start your research. You can use our crypto charts and indicators to do technical analysis and our extensive coin guides will tell you everything you need to know about the project behind the cryptocurrency.
How many cryptocurrencies are there?
There are currently thousands of different cryptocurrencies in existence as anyone can launch a new coin. Not all of them are worth your investment, however, and plenty of cryptocurrencies have already failed or turned out to be scams. Here at Kriptomat, you can trade a wide and ever-expanding range of the most popular coins. We’re constantly adding new listings based on the demand from our users and we provide a fast, simple, and secure way to buy and sell cryptocurrencies.
Since Bitcoin launched in 2009, thousands of other cryptocurrencies have come into existence, all with different prices, market caps, and goals. The price history of a coin can inform you about its past, as well as help you make predictions about its future.
A myriad of different factors has influenced the prices of cryptocurrencies, including retail and institutional investment, project specifics, and events and trends in the rest of the crypto market and global economy.
Live cryptocurrency prices are in constant flux as they are decided by the balance of buyers and sellers on exchanges. As cryptocurrencies are highly volatile, their prices can change by a large amount in a short space of time.
If you want to get started with the most user-friendly trading experience on the market, register for a free account with Kriptomat today to begin your journey into the exciting world of cryptocurrencies!