If you’re looking to enter the crypto industry, you should know what exactly impacts the movements of cryptocurrencies in this space. This will help you better understand which cryptos to invest in and which to avoid. Here are 5 undeniable factors that impact the crypto markets:
NODE COUNT
One of the biggest factors that impact the value of a cryptocurrency and its movement in the crypto markets is the node count. Node count is basically the number of wallets under a single network. The greater number of wallets under a single network signifies that there are a lot of people who are trading with that specific network.
This means that the community for that specific network is strong. The benefit of a strong community is the fact that if a crypto is suddenly struggling, its values won’t become unstable due to the strong support it has from its supporters. Now if you’re wondering how to find the node count, it’s quite simple. You could do a quick Google search and it’ll pop right up!
Radeon RX 580 Cryptocurrency mining node. 8 Video cards so far can handle up to 13 or 14 on this board.
COMPETITION
Back in the day, crypto wasn’t really popular. In fact, it was the last place people would think to invest their money. When Bitcoin came along, it was probably the one crypto people would actually want to invest in.
Even though Bitcoin still dominates the crypto markets, it is becoming consistently hard for it to do so every day. We’re constantly seeing new and improved coins enter the market that have a lot more to offer us than Bitcoin. This competition is the reason why Bitcoin has been quite unstable lately. Therefore, competition plays a huge role in impacting the crypto markets.
REGULATIONS
Let’s be real. No one would want to invest in a crypto market that isn’t regulated well. The last thing you would want is to let your hard-earned money go to waste by being scammed. This is why regulations play an important role in impacting the crypto markets.
If a crypto is not regulated, no one would really want to invest in it. This would cause the value of that crypto to fall significantly. Similarly, a crypto that is well regulated will often be popular among investors because they know their capital is safe with them.
MINING COSTS
One of the biggest factors that prevent someone from mining crypto is the huge mining costs that are associated with it. The hardware and software that is needed to mine in a way that would make you profitable are super expensive and the average person would realistically not be able to afford it. If certain crypto requires a more expensive setup for mining, chances are they won’t be a popular choice. This would cause its market value to drop significantly.
MEDIA POPULARITY
Marketing is everything these days. If you know how to market your product properly, you can be the leading brand in the industry even if you don’t have much to offer. Cryptos that are regularly in the media are popular among the public. This would make the public more likely to invest in those certain cryptos. A media-popular crypto would likely have a much higher market value than one that isn’t so popular in the media.
