As a cryptocurrency investor, it's important to stay up-to-date with the latest prices of the tokens in your portfolio. The volatile nature of the cryptocurrency market makes it crucial to know the latest prices as they can fluctuate rapidly.
In this ultimate guide, we'll cover everything you need to know about checking cryptocurrency prices, including commonly used websites and apps, how to interpret the price data, and the factors that affect cryptocurrency prices.
Introduction to Cryptocurrency Prices
Cryptocurrency prices refer to the value of a particular cryptocurrency token in a given traditional currency, such as price of Bitcoin, Ethereum, in USD. These prices are determined by the supply and demand of the token, just like any other asset. However, the cryptocurrency market is unique in its volatility, which can cause prices to fluctuate rapidly and significantly.
Cryptocurrency prices are typically displayed on various websites and apps that are specifically designed for tracking crypto prices. These platforms allow you to monitor the prices of your favorite tokens in real-time, enabling you to make informed decisions about buying, selling, or holding your digital assets.
Commonly Used Websites and Apps for Checking Crypto Prices
Cryptocurrency price tracking websites gather data from all exchanges that trade a specific token, which allows them to display an average price. However, it's important to keep in mind that the price you see may differ slightly from the actual price on your selected exchange.
CoinMarketCap and Coingecko are the most trustworthy sources for tracking cryptocurrency prices.
This website is one of the most widely used platforms for tracking cryptocurrency prices. You can also download their Android and iOS app.
It provides real-time price data for thousands of tokens, as well as market capitalization, trading volume, trading venue and other metrics for each token.
On the platform, you can filter the cryptocurrency tokens using very useful filters.
CoinGecko provides you with real-time data on a wide range of crypto tokens. They have listed 10k plus crypto coins on their platform. Coingeck is also available as Android and iOS apps.
Coingecko also provides live prices for NFTs, along with information on their market capitalization, number of owners, trading markets, and trading volume.
On Coingecko, you can also find useful insights about decentralized exchanges, including market share and other metrics.
The Importance of Checking Cryptocurrency Prices
Checking cryptocurrency prices can help you identify potential trading opportunities. For example, when you notice that the price of a particular token is experiencing a significant dip, you may decide to buy in at a lower price and then sell once the price increases. This strategy, known as buying the dip, can be a profitable way to trade cryptocurrencies.
Understanding the Crypto Price Chart
When monitoring cryptocurrency prices, it's important to understand the price chart and the metrics that are displayed.
The price chart displays the token's value over time, with the X-axis representing time and the Y-axis representing price. The chart may also include other metrics, such as trading volume or market capitalization, which can provide additional insights into the token's performance.
Factors that Affect Cryptocurrency Prices
There are several factors that can affect the price of a particular cryptocurrency token. Some of the most significant include:
- Supply and demand: Like any asset, the price of a cryptocurrency is ultimately determined by supply and demand. When there is high demand for a particular token and limited supply, the price will increase. Conversely, when there is low demand and an oversupply of tokens, the price will decrease.
- News and events: Major news and events, such as regulatory changes or partnerships with large companies, can have a significant impact on cryptocurrency prices. For example, when Elon Musk announced that Tesla would no longer accept Bitcoin as payment, the price of Bitcoin dropped significantly.
- Market sentiment: The overall sentiment of the cryptocurrency market can also affect prices. When investors are optimistic about the future of the market, prices may increase. Conversely, When there is a lot of FUD, prices may decrease.
Monitoring cryptocurrency prices is a crucial aspect of investing in the cryptocurrency market. By using the right websites and apps, and understanding how to interpret the price data, you can make informed decisions about when to buy, sell, or hold your assets. Remember to consider multiple metrics and keep up with current events to stay ahead of the game.
Frequently Asked Questions
1. Who is behind CoinMarketCap?
Brandon Chez is the founder of CoinMarketCap, a website that he started in 2013 as a side project to keep track of cryptocurrency prices and market capitalizations. CoinMarketCap was later acquired by Binance, in 2020 for a reported $400 million. Despite the acquisition, Chez is still an advisor for the platform.
2. Who are founders of Coingecko?
In 2014, Bobby Ong and TM Lee founded Coingecko. Ong currently serves as the CEO, while Lee is the CTO. With their backgrounds in software engineering and involvement in the cryptocurrency industry from the beginning, they created Coingecko as a comprehensive platform for tracking cryptocurrency prices, market capitalizations, and other relevant data.
3. What is mean by widgets on CoinMarketCap and Coingecko?
Widgets on CoinMarketCap and Coingecko are small applications that can be embedded on external websites or applications to display real-time cryptocurrency prices, market capitalizations, trading volumes, and other relevant data.