A crypto market is the space where buyers and sellers meet to exchange coins. The forces of supply and demand determine prices, just like in any other kind of market.
Investors buy crypto for a variety of reasons. Some see it as a store of value, with the potential to rise in price over time. Others trade it for short-term profits, similar to how you might buy and sell stocks. Finally, some investors take a long-term view, investing for months or even years.
To participate in the crypto market, you need to find a platform that allows you to buy, sell or swap digital currencies. This can be a crypto exchange, a traditional investment broker like Robinhood or Interactive Brokers that allows you to trade Bitcoin, or a financial app that lets you buy and sell crypto.
The crypto market is volatile, with prices moving quickly according to the latest news and investor sentiment. Positive news, like regulatory approval or new technology developments, can drive prices up. Negative news, like security breaches or regulatory crackdowns, can lead to price declines. Additionally, large traders (also known as whales) can make a difference by trading in significant volumes to influence prices.
To buy crypto, you need to find a platform that accepts your preferred fiat currency and allows you to set an order size. You can place an instant order, which matches you with a seller or buyer instantly, or you can place a limit order to set the maximum amount you are willing to pay or accept for a given cryptocurrency. Once you’ve completed your transaction, the coins remain in a digital wallet that you control, with records of your trades becoming part of the blockchain.