What Influences the Cryptocurrency Market
In short, literally everything. However, we will provide more detailed information. This will help you make correct predictions when evaluating certain cryptocurrency assets.
The most important role in the market is played by coins such as Bitcoin and Ethereum. They are the pillars on which all other quotes depend. At the same time, experts have recently noted that the relationship of prices between them is becoming weaker.
Recent months have shown that Ethereum is no longer so much dependent on the value of Bitcoin. Therefore, it is necessary to track these two coins separately. If earlier, it was safe to say that with the fall of bitcoin, Ethereum will also fall, now there is no such trend.
In general, the value of digital assets is influenced by 5 main groups of factors:
- Financial. It is necessary to track quotes, volumes of transactions or transactions in general, whether there is an influx or outflow of both fiat into the crypt and individual cryptocurrencies.
- Updates, hard forks, modifications and other changes in the operation of blockchain protocols. You can check this information on Github. All major projects publish data on updates and plans on this forum.
- Distribution on social networks. The more people talk about cryptocurrencies, the higher the interest in them. As a result, new market participants appear, demand grows, and with it the price.
The influence of Bitcoin on other cryptocurrencies also plays a significant role. Experts have determined that the average cost of the first cryptocurrency in some sense depends on the stock and the flow of operations. This indicator is indicative, but it is also worth tracking.
With regard to Ethereum, the cost is affected by how many smart contracts have been verified. According to one of the largest German newspapers — Frankfurter Allgemeine Zeitung — the point is not the shortage of smart contracts, but how open the network is. In fact, we are talking about activity in the Ethereum blockchain. Interestingly, competing coins, such as Polkadot or EOS, depend more on the value of ETH than on their activity in blockchains.
Ripple also has different pricing factors. Since the network was created for large market players, its price depends on how actively the blockchain is used by companies. If you see that some large organization has connected to the network, expect that the coin will rise in price.
A trading terminal that allows you to track quotes
Constantly monitoring news on changes in cryptocurrencies is quite time—consuming and requires a lot of time. However, there is an easier option. The market reacts quickly to changes, and therefore analytical tools instantly track these fluctuations.
To analyze these adjustments, the GRIN4 terminal was created. It contains about 20 different tools for technical analysis of the market. It has:
- TypPrice. Displays the price dynamics. Use it in conjunction with moving averages or a stochastic oscillator.
- RSI. Displays changes in speed and price movements. Gives an estimate of overbought or oversold cryptocurrencies. Therefore, it is possible to determine the pivot point of the market in one direction or another, which makes it possible to assess the entry and exit from the market.
- MFI. Shows measurements of the flow of funds within the market of a certain asset. It also displays the oversold or overbought market.
- MACD. Shows convergence divergence of moving averages. Thanks to this, it is possible to determine the strength and direction of the trend, therefore, the points of entry and exit from the market. There is also a signal line in this indicator that allows you to determine when to buy or sell cryptocurrency.
- SMA. A simple moving average that displays price dynamics and determines the general direction of the trend in the crypto market. This way you can evaluate price fluctuations and determine the overall trend.
- ADX. It shows not just trends in the market, but also their strength. The higher the indicator values, the stronger the trend in the market.
This is just a small list of indicators that you can use when trading cryptocurrencies. However, in addition to the terminal, the GRIN4 ecosystem makes it possible to automate cryptocurrency trading. To do this, it is enough to launch the bot by connecting the wallet and the exchange.
GRIN4 Trading Bot
The unique bot was developed by an active trader. He created it more for himself, and after proven effectiveness, he has already brought it into general use. The bot is free or by subscription.
At the same time, in both cases, the functionality is absolutely the same. It's just that with the free version, you will need to pay a commission of 25% from the profit. You can also subscribe for a month or longer (up to a year). The longer the period, the lower the cost of the bot. When subscribing, there will be no commission anymore.
The bot has a huge variety of settings. Therefore, the trader will be able to adjust it to his strategy. Thanks to the safety settings, you don't have to worry about a lost deposit. The bot will follow a well-structured algorithm, depending on the settings made.
To launch the bot, it is enough to register on the website, connect a wallet and an exchange. Full security and confidentiality measures are provided here: registration only by mail, purchase of a subscription in USDT, and withdrawal can be made directly to cryptocurrency wallets. Exchanges are connected only by API keys and the administration does not have access to them, as well as to users' wallets.
