Cryptocurrency trading is very similar to forex trading. There are similar to many lines. But there are many differences as well. One of these differences is the fact that forex trading is influenced by political issues. There are many institutions that determine the value of the currencies. But with cryptocurrencies, this doesn’t happen. There are other factors that affect cryptocurrencies:
Media plays a crucial role in cryptocurrencies. Social media, in particular, has acted as a major influencer that has increased the awareness about cryptocurrencies. There is a strongly knit community of cryptocurrency traders. These media channels act as excellent ways for people to learn about cryptocurrencies. They have also paved the way for the increase in the popularity of few currencies which in turn affects the demand and thus the value as well.
- Governments of the world:
Some countries still have prohibited the transactions with cryptocurrencies. But there are many countries now opening their market to accept crypto trading. These governments have a strong influence on the value of the cryptocurrencies. There are even some governments that have started laying down regulations governing the trading with cryptocurrencies.
- Word of mouth:
Word of mouth passing of information is something that is very common and very powerful. In fact, word of mouth marketing is quite popular these days. People find it easier to trust things that they hear about from other people than from the online resources. Now that people have started talking a lot about cryptocurrencies through their social media pages and even in person, there is a steady rise in the popularity of this concept. After all, the fear of missing out is gripping the millennials and they are more than eager to try every trend that is ruling the market so that they do not miss out on what is in trend.
With the advent of bots number of people are now able to analyze the market with ease. The prediction of values is also becoming simpler. This, in turn, is affecting the prices of the cryptocurrencies. This would be the trend till a stability is achieved.
That being said are you still skeptical about trying cryptocurrencies because you lack the experience? Then tools like Ethereum Code would help you exercise what you learn and to sharpen your cryptocurrency trading skills. See this if you are looking for more information about this crypto trading tool.