The Process of CoinMarket
Coinmarket is one of the first marketplaces on the internet where you can trade the many different currencies that are known as Cryptocurrency. This includes the most popular, bitcoins, which has risen in value to well over six hundred dollars at the time of writing this article. Others worth considering include litecoins, doges, and pennies. Although these may be a fallible form of payment, they do provide an avenue for buying and selling these highly volatile currencies. Many people see this as a valuable opportunity as well as a lucrative market to invest in.
In order to be able to buy or sell these currencies in Coinmarket, you must have access to the market which is an online website. This will allow you to place your orders from anywhere in the world and will normally be done through a credit card. There is also a wide range of special services that some of the exchanges offer including allowing multiple parties to place orders at the same time, if desired. Some of the special features which are offered by some of the better known exchanges include fee-less transactions and instant confirmation of orders placed.
It is generally accepted that the word Cryptocurrency pertains to any digital currency that is not issued by a government, but instead by a private company. These include PayPal, Mastercard, Discover, Advanta, JCB, and others. The distinguishing characteristic of these currencies is that they are “decentralized” and free from the traditional governmental organizations who dictate interest rates, issuing money, and setting up monetary policy. This is why they are commonly referred to as “Crypto currencies”.
The supply and demand dynamic of these currencies are what determines their market depth. What this means essentially is that they are only ever driven by supply and demand which drive the overall value. Supply is dictated by the number of individuals or businesses that desire the particular currency while demand is determined by the overall economy. As you may know, when there is a surplus of some kind, such as oil and gold, the supply goes down while the demand goes up, and vice versa. This is what is referred to as “demand vs. supply” in the Forex market.
The last thing we will discuss in this article is the market cap or how much of the total supply is in circulation. Naturally, higher the market cap, the greater the demand for each coin. This is what affects the price of these cryptosurfs as well as the overall value. A high market cap produces a high price for each coin, while a low market cap, on the flipside, creates a low price for each coin.
We have looked at three different indicators as criteria for determining the market cap of a given currency. The most important one was that the current price is greater than the supply. The second one was that the current price is less than the supply. The third was that the supply is in surplus. In addition, we also looked at whether the price of coins is increasing or decreasing, which influences the current supply and current price