How Does Cryptocurrency Work?

Crypto is digital money that functions online and has no physical form. Digital assets do not depend on governmental decisions or ventral banks - the amount of their emissions and mechanism of working is encrypted into their algorithms, which cannot be changed. It is easy to track transactions in crypto assets but impossible to undo or change them. Indeed, many real-sector companies have started to integrate blockchain into their work for they want to make it transparent and reliable. Smart contacts, in this case, come in handy - they provide robust execution of agreements only when all the requirements are met 100%. In such a way, people do business in logistics, data and funds transfers and storage, etc.

Another use case for crypto is cross-border money transactions, with no middlemen and no enormous commissions.

Let's see how does cryptocurrency work. Due to the high volatility, cryptos are used for investment and trading. People buy and sell assets at different prices and generate income from them using trading strategies and tools.

What Determines Crypto Price

Here are some factors that influence crypto coin prices:

• supply and demand;
• investors sentiment;
• market trends;
• news background;
• and, of course, the overall situation with the world’s economy.

How to generate income from price fluctuations? Use the following strategies:

• Daily trade - open and close positions within 24 hours.
• Scalping - make trades within a few minutes and take a profit many times a day.
• Swing - take a couple of weeks to think and sell coins at a better price.
• Position trading - long-term investment.

Where to Get Crypto Price Live?

You may use any reliable resource such as Coinmarketcap to check crypto rates here and now, but if you want to trade or invest, you may use the WhiteBIT exchange. It offers up-to-date prices and all the necessary tools for trading and investment, as well as crypto charts and the educational sector for learning and practicing.