Understanding cryptocurrency exchange rates: where to start?
Whether you’re a crypto newbie or an experienced trader it is crucial to understand cryptocurrency exchange rates in general. Usually these rates show the prices of cryptocurrencies converted to fiat currencies (for example, BTC to USD, BTC to EUR, BTC to GBP etc). Let’s see how exchange rates work in the crypto market.
Why do exchange rates matter in the crypto market?
Cryptocurrency exchange rates are the prices of digital coins converted to USD, EUR, GBP or any other fiat currency. They enable the buyers to know exactly how much is needed to purchase a specific amount of chosen cryptocurrency. Exchange rates are also important when it comes to determining whether an asset should be sold. If current exchange rates of a coin are peaking, it’s a great time to sell it.
What determines the exchange rates in crypto?
Unlike investing in traditional currencies, cryptocurrencies are not issued by a bank or backed by a government. Therefore, the monetary policy, inflation rates, and economic growth measurements do not apply to cryptocurrencies. Crypto prices change for various reasons including media coverage, speculation, and supply of a coin. Here are the factors that influence the exchange rates of cryptocurrencies:
- The supply of a coin and the market demand for it
- The cost of the mining process
- The rewards issued to the coin miners for verifying transactions to the blockchain
- The number of competing cryptocurrencies
- The exchanges it trades on
- Regulations governing its sale
- Its internal governance
How to predict crypto exchange rates?
According to market analysts, there are some techniques that can allow one to predict the time frame and price range for the exchange rate fluctuations. These mostly rely on an analysis of the exchange rate chart related to the cryptocurrency in question. Those who are not familiar with these techniques can rely on the price predictions made by market analysts. Just keep in mind that comprehensive research that combines data from various sources is still the best way to plan your investments.
Where to see current crypto exchange rates?
Generally, numerous online price trackers and converters for crypto display exchange rates for user’s convenience. Nevertheless, it’s important to check if they use reliable data and consistently update it.
CoinSocialStory has recently launched a handy crypto converter that allows you to check crypto to fiat exchange rates. You can use it as BTC to USD, BTC to EUR or BTC to GBP converter. There are also other popular pairs such as ADA to USD, ETH to EUR and BNB to GBP. Conversion rates are collected from multiple sources (such as Bitmex, Binance, OKEX, Huobi Global and other digital assets) and checked for reliability and integrity through CoinSocialStory algorithms. The data is updated approximately every 10 seconds. “We made it so simple and fast to use that you’ll be able to convert crypto to fiat and vice versa in a matter of an eye blink” — says the team of CoinSocialStory.
Keep an eye on exchange rates, stay alert and invest wisely in cryptocurrencies analysing stats with CoinSocialStory tools.