How Cryptocurrencies Maintain Their Price, Explained
The price of a cryptocurrency is a reflection of its value. The more useful information technology is, the higher the demand for information technology will be. That demand is what drives the price of any one coin up.<\/p>\n\n
However, internal factors are not the only ones affecting the cost. Speculative pressure, exerted by traders who buy cryptocurrencies only to sell them later, is an external factor which may affect the cost of a coin regardless of its actual usefulness.<\/p>\due north\n
Oftentimes, this force per unit area is negative - when the traders beginning selling, the price goes down. In such cases, the developers behind a coin may resort to an arsenal of their own tricks to push the price up and counter the downward dynamic. Let’s take a look at some of those methods.<\/p>\northward\north
<\/p>\n\n\n","created_at":"2017-06-09 11:42:04","updated_at":"2020-04-13 10:52:06","sort":1,"translations":{"id":27,"explained_post_id":98,"title_en":"Firstly, what do y'all mean by "maintain their price?"","content_en":"
While being traded on the markets, cryptocurrencies experience various forces which push their cost up or down. In that location is a range of measures which can be implemented in order to keep the cost stable, or rising.<\/em><\/p>\n\n The price of a cryptocurrency is a reflection of its value. The more useful it is, the higher the demand for it will be. That demand is what drives the toll of any one money up.<\/p>\north\n Nonetheless, internal factors are not the but ones affecting the cost. Speculative pressure, exerted by traders who buy cryptocurrencies only to sell them later, is an external factor which may affect the price of a coin regardless of its actual usefulness.<\/p>\n\n Oftentimes, this pressure is negative - when the traders offset selling, the cost goes down. In such cases, the developers backside a coin may resort to an armory of their own tricks to push the toll upward and counter the downward dynamic. Let’south take a look at some of those methods.<\/p>\n\n <\/p>\north\north\n","title_es":"","content_es":"\n","title_cn":"","content_cn":"\n","title_de":"","content_de":"\n","title_it":"","content_it":"\n","title_ar":"","content_ar":"\n","title_br":"O que é que \"manter o preço?\"","content_br":" Ao serem negociados nos mercados, a crypto moeda corrente experimenta várias forças que empurram o preço para cima ou para baixo. Há uma southwardérie de medidas que podem ser implementadas para manter o preço estático ou aumentando.<\/em><\/p>\n\n O preço duma crypto moeda corrente é um reflexo do seu valor. Quanto mais útil for, maior será a demanda por isso. Esta demanda é o que impulsiona o preço de qualquer moeda.<\/p>\n\northward Contudo, fatores internos não due southão os únicos que afetam o preço. A printingão especulativa, exercida por comerciantes que compram crypto moedas correntes apenas para vendê-los mais tarde, é um fator externo que pode afetar o preço duma moeda, independentemente da sua utilidade real.<\/p>\n\n Muitas vezes, essa pressão é negativa - quando bone comerciantes come upçam a vender, o preço diminui. Neste caso, os desenvolvedores que estão atrás de uma moeda podem recorrer a um arsenal de suas próprias arapucas para empurrar o preço para cima east contra a dinâmica descendente. Vejamos alguns destes 1000étodos.<\/p>\north\northward <\/p>\due north\n","title_jp":"","content_jp":"\northward","created_at":"2017-06-12 14:18:49","updated_at":"2020-04-xiii 10:52:33","title_kr":"","content_kr":"\northward","title_tr":"","content_tr":"\n"}},{"id":97,"post_id":10819,"title":"Media support","content":" Good press coverage, be it news, interviews or partnership announcements, makes any coin seem more successful, which has a positive effect on its cost.<\/em><\/p>\northward\north A lot of adept things may happen to a cryptocurrency: the developers can add new features, information technology can go tradable on a new exchange, its code can be reviewed past a software analyst, a bounty programme can be started and and then on.<\/p>\n\due north All these things indicate that the project is still alive and growing, which is e'er good for the price. However, the marketplace has to larn about these things somehow earlier they take an effect. This is where the media comes in.<\/p>\n\n Past partnering with news outlets and ensuring a steady stream of breaking news most their cryptocurrency, the developers tin can significantly increase the upwardly dynamic of the cost.<\/p>\n\north <\/p>\n\n\northward","created_at":"2017-06-09 11:41:17","updated_at":"2020-04-13 10:52:06","sort":2,"translations":{"id":28,"explained_post_id":97,"title_en":"Media support","content_en":" Good press coverage, be it news, interviews or partnership announcements, makes whatsoever coin seem more successful, which has a positive issue on its price.<\/em><\/p>\due north\n A lot of good things may happen to a cryptocurrency: the developers tin can add together new features, information technology can get tradable on a new commutation, its code can exist reviewed by a software analyst, a bounty plan can be started and and then on.<\/p>\n\n All these things signal that the project is yet alive and growing, which is always practiced for the toll. All the same, the marketplace has to learn about these things somehow before they take an effect. This is where the media comes in.<\/p>\n\n By partnering with news outlets and ensuring a steady stream of breaking news virtually their cryptocurrency, the developers can significantly increase the upwardly dynamic of the price.<\/p>\n\northward <\/p>\due north\n\north","title_es":"","content_es":"\n","title_cn":"","content_cn":"\due north","title_de":"","content_de":"\n","title_it":"","content_it":"\north","title_ar":"","content_ar":"\n","title_br":"Suporte de mÃdia","content_br":" Uma boa cobertura da imprensa, sejam novidades, entrevistas ou anúncios de parceria, faz com que qualquer moeda peelça mais bem sucedida, o que faz um efeito positivo em seu preço.<\/em><\/p>\n\n Muitas coisas boas podem acontecer com crypto moeda corrente: os desenvolvedores podem adicionar novos recursos, podem ser comercializados em uma nova troca, seu código pode ser revisado por um analista de software, um programa de recompensas pode ser iniciado etc.<\/p>\n\n Todo isto indica que o projeto ainda está vivo due east cresce, o que sempre é bom para o preço. Mas o mercado tem que aprender sobre estas coisas de alguma forma antes de tomarem um efeito. É aí que a mídia entra.<\/p>\n\n Ao se associar com os meios de comunicação e garantir um fluxo constante de notícias sobre crypto moeda corrente, bone desenvolvedores podem aumentar significativamente a dinâmica ascendente practise preço.<\/p>\n\n <\/p>\n\n","title_jp":"","content_jp":"\n","created_at":"2017-06-12 14:19:12","updated_at":"2020-04-13 10:52:56","title_kr":"","content_kr":"\n","title_tr":"","content_tr":"\n"}},{"id":96,"post_id":10819,"title":"Public support","content":" Having a large and loyal fan base tin can be a real treasure for any cryptocurrency.<\/em><\/p>\n\n Information technology is natural for people to be more trustful of someone who is already trusted by many. As such, many cryptocurrencies accept their fourth dimension to build a core audience of genuine fans.<\/p>\n\n These people may contribute new ideas for the evolution of the money, provide valuable feedback and, most importantly, convince newcomers of the fact that their favorite cryptocurrency is indeed trustworthy.<\/p>\northward\due north Edifice a potent base of followers is paramount before launching an ICO campaign. Information technology provides a sort of snowball effect - the more people invest in a coin, the more than probable outsiders are to contribute their money, and all of this demand drives the price up.<\/p>\n\due north Considering this, it becomes clear why having a disquisitional mass of followers before the launch of an ICO is of import. It’s kinda like lemmings to the sea, just with a better ending.<\/p>\n\north <\/p>\due north\n\n","created_at":"2017-06-09 11:39:57","updated_at":"2020-04-thirteen x:52:06","sort":three,"translations":{"id":29,"explained_post_id":96,"title_en":"Public support","content_en":" Having a big and loyal fan base can be a existent treasure for whatever cryptocurrency.<\/em><\/p>\north\north It is natural for people to be more trustful of someone who is already trusted by many. As such, many cryptocurrencies take their time to build a cadre audition of genuine fans.<\/p>\due north\northward These people may contribute new ideas for the development of the coin, provide valuable feedback and, most chiefly, convince newcomers of the fact that their favorite cryptocurrency is indeed trustworthy.<\/p>\north\n Building a strong base of followers is paramount before launching an ICO entrada. It provides a sort of snowball upshot - the more people invest in a coin, the more than likely outsiders are to contribute their coin, and all of this need drives the price up.<\/p>\n\n Considering this, it becomes clear why having a disquisitional mass of followers before the launch of an ICO is important. Information technology’s kinda like lemmings to the sea, simply with a better ending.<\/p>\n\n <\/p>\n\northward\n","title_es":"","content_es":"\n","title_cn":"","content_cn":"\n","title_de":"","content_de":"\n","title_it":"","content_it":"\due north","title_ar":"","content_ar":"\n","title_br":"Suporte público","content_br":" Tendo uma grande eastward fiel base de fãs pode ser um verdadeiro tesouro para qualquer crypto moeda corrente.<\/em><\/p>\n\n É normal que every bit pessoas sejam mais confiantes de alguém que já é confiado por muitos. Como tal, muitas crypto moedas correntes levam seu tempo para construir um público central de fãs autênticos.<\/p>\n\due north Podem contribuir com novas idéias para o desenvolvimento da moeda, fornecer feedback valioso e convencer bone recém-chegados do fato de que sua crypto moeda corrente favorita é realmente confiável.<\/p>\due north\northward Construir uma base sólida de seguidores é primordial antes de lançar uma campanha da ICO. Quanto mais equally pessoas investem em uma moeda, mais provável que os estrangeiros contribuam com seu dinheiro, e tudo isso impulsiona o preço.<\/p>\northward\north Considerando isso, torna-se claro por que ter uma massa crítica de seguidores antes practice lançamento de uma ICO é importante.<\/p>\due north\n <\/p>\n\north","title_jp":"","content_jp":"\n","created_at":"2017-06-12 14:nineteen:36","updated_at":"2020-04-xiii 10:53:15","title_kr":"","content_kr":"\n","title_tr":"","content_tr":"\northward"}},{"id":95,"post_id":10819,"championship":"Trading simulation","content":" In social club for a cryptocurrency to abound, it needs sufficient liquidity. If there is non enough organic action on the markets, information technology tin can be created artificially by employing trading bots.<\/em><\/p>\n\n A cryptocurrency cannot become popular if people who are interested in using it tin’t buy it in sufficient quantities. And that can pose a existent problem when a coin is young and not many people merchandise information technology on a regular footing.<\/p>\northward\n In such cases, it is possible to use bots which will automatically conduct trades on the market, according to pre-set instructions. By constantly moving the coins around, these artificial bulls and bears increase liquidity, which in turn allows the capitalization to grow, petty by little.<\/p>\n\northward Obviously, this is an bogus mensurate which can’t, on its own, create real need for the currency. However, in some cases, bots can be a useful tool for a growing cryptocurrency, just to requite it an extra heave of liquidity.<\/p>\n\n <\/p>\north\northward\n","created_at":"2017-06-09 11:38:05","updated_at":"2020-04-13 10:52:06","sort":4,"translations":{"id":30,"explained_post_id":95,"title_en":"Trading simulation","content_en":" In lodge for a cryptocurrency to grow, it needs sufficient liquidity. If there is not enough organic action on the markets, information technology can be created artificially by employing trading bots.<\/em><\/p>\n\n A cryptocurrency cannot become popular if people who are interested in using it can’t purchase it in sufficient quantities. And that can pose a real trouble when a coin is young and non many people trade it on a regular basis.<\/p>\northward\n In such cases, information technology is possible to utilize bots which will automatically conduct trades on the marketplace, according to pre-prepare instructions. Past constantly moving the coins around, these artificial bulls and bears increase liquidity, which in plow allows the capitalization to grow, little past little.<\/p>\n\n Patently, this is an artificial measure which tin can’t, on its own, create real demand for the currency. Withal, in some cases, bots can be a useful tool for a growing cryptocurrency, just to requite it an actress boost of liquidity.<\/p>\due north\n <\/p>\n\n\north","title_es":"","content_es":"\n","title_cn":"","content_cn":"\n","title_de":"","content_de":"\n","title_it":"","content_it":"\northward","title_ar":"","content_ar":"\due north","title_br":"Simulação de trading","content_br":" Para que uma crypto moeda corrente aumenta, precisa de liquidez suficiente. Se due northão houver atividade orgânica suficiente nos mercados, pode ser criada artificialmente ao empregar bots de trading.<\/em><\/p>\n\n Crypto moeda corrente northwardão pode tornar-se popular se as pessoas que estão interessadas em usá-la não podem comprá-la em quantidades suficientes. Isso pode representar um problema real quando uma moeda é nova, recéchiliad-chegada e muitas pessoas due northão a trocam regularmente.<\/p>\n\n Se acontece como assim, é possível usar bots que conduzirão automaticamente negócios (trades) no mercado, de acordo com instruções pré-definidas. Ao mover constantemente equally moedas ao redor, a liquidez aumenta, o que, por sua vez, permite que a capitalização pouco a pouco tambéthousand aumenta.<\/p>\north\northward Sem duvidas, esta é uma medida artificial que due northão pode fazer demanda real para a moeda. Contudo, os bots podem ser tool útil para uma crescente crypto moeda corrente, apenas para dar-lhe um aumento adicional de liquidez.<\/p>\n\north <\/p>\n\n","title_jp":"","content_jp":"\north","created_at":"2017-06-12 14:19:55","updated_at":"2020-04-13 ten:53:33","title_kr":"","content_kr":"\north","title_tr":"","content_tr":"\n"}},{"id":94,"post_id":10819,"title":"Guerilla marketing","content":" Reaching out to people on social media provides for an inexpensive yet efficient way of generating hype for your coin.<\/em><\/p>\north\n The many groups dedicated to cryptocurrencies that exist on social media correspond very tightly-knit communities, and communicating with them might be one of the fastest means of spreading news about a coin.<\/p>\n\northward One of the virtually effective tactics here is spreading rumors nigh a cryptocurrency’southward development process or time to come toll motion - annihilation potentially big spreads similar wildfire on social media. Sometimes, developers make use of this by leaking secrets themselves.<\/p>\n\n <\/p>\n\north\northward","created_at":"2017-06-09 11:36:38","updated_at":"2020-04-13 10:52:06","sort":5,"translations":{"id":31,"explained_post_id":94,"title_en":"Guerilla marketing","content_en":" Reaching out to people on social media provides for an inexpensive yet efficient way of generating hype for your money.<\/em><\/p>\n\n The many groups dedicated to cryptocurrencies that be on social media correspond very tightly-knit communities, and communicating with them might be one of the fastest ways of spreading news about a coin.<\/p>\n\northward One of the most effective tactics here is spreading rumors about a cryptocurrency’southward development process or time to come price movement - anything potentially big spreads similar wildfire on social media. Sometimes, developers make use of this by leaking secrets themselves.<\/p>\north\n <\/p>\n\northward\n","title_es":"","content_es":"\due north","title_cn":"","content_cn":"\northward","title_de":"","content_de":"\n","title_it":"","content_it":"\n","title_ar":"","content_ar":"\n","title_br":""Guerrilha" marketing","content_br":" Alcançar every bit pessoas nas thousandídias sociais fornece uma maneira barata, porém eficiente, de gerar hype para sua moeda.<\/em><\/p>\n\northward Os muitos grupos dedicados a crypto moeda corrente que existe nas 1000ídias sociais representam comunidades muito bem unidas, east comunicar com elas pode ser uma das formas mais rápidas de divulgar notícias sobre uma moeda.<\/p>\n\n Uma das táticas mais eficazes aqui está espalhando rumores sobre o processo de desenvolvimento de crypto moeda corrente ou movimento de preços futuros - qualquer coisa potencialmente grande se espalha como incêndio nas chiliadídias sociais. Àdue south vezes, os desenvolvedores utilizam isso com os segredos deles.<\/p>\n\north <\/p>\n\north","title_jp":"","content_jp":"\northward","created_at":"2017-06-12 fourteen:20:eighteen","updated_at":"2020-04-xiii x:53:fifty","title_kr":"","content_kr":"\n","title_tr":"","content_tr":"\northward"}},{"id":93,"post_id":10819,"title":"Pumping","content":" Pumping is an often frowned-upon practice of market place manipulation where the people backside a coin create artificial shortages of it and so imitate high demand.<\/em><\/p>\n\n Generally, the largest share of cryptocurrency trading takes place in the guild books of various online exchanges. Individual traders listing their buy and sell orders there, at prices acceptable to them.<\/p>\n\n Sometimes, this natural procedure may exist disrupted by people looking to “pump” a coin. Unremarkably, it starts with buying out all orders which are listed at or well-nigh the electric current boilerplate price. This procedure is washed covertly, and the cost is monitored the unabridged time so as to not permit it rising uncontrollably.<\/p>\n\due north After the order book has been emptied like that several times, it results in an artificial shortage of coins. After a short delay, the marketplace reacts and the price goes upwardly due to the insufficient supply.<\/p>\n\north This practice is generally looked downward upon in the cryptocurrency community as it is mostly used every bit part of the “pump and dump” schemes where the coins are sold immediately after the price surge, making information technology crash again.<\/p>\n\n However, it is not all doom and gloom - cryptocurrencies be in open markets, then absolutely anyone can take reward of the movement of the price. One just has to know where to expect for signs of an upcoming pump, and there are already some useful tools out there which can aid you with that.<\/p>\n\northward One such example is CryptoPing<\/a>, a Telegram bot which monitors all altcoin markets in real time and alerts users whenever information technology detects an upcoming pump. In order to brand meaningful decisions on the crypto markets, one needs to process vast amounts of data, so the help of such software instruments may be invaluable to prudent traders.<\/strong><\/p>\n\northward <\/p>\n\n\n","created_at":"2017-06-09 11:07:35","updated_at":"2020-04-xiii 10:52:07","sort":6,"translations":{"id":32,"explained_post_id":93,"title_en":"Pumping","content_en":" Pumping is an often frowned-upon practise of market manipulation where the people backside a coin create bogus shortages of it and and so imitate high need.<\/em><\/p>\n\n More often than not, the largest share of cryptocurrency trading takes identify in the order books of various online exchanges. Individual traders listing their buy and sell orders there, at prices acceptable to them.<\/p>\north\n Sometimes, this natural process may be disrupted by people looking to “pump” a coin. Usually, information technology starts with buying out all orders which are listed at or near the electric current average cost. This process is washed covertly, and the toll is monitored the unabridged time so as to not allow it rise uncontrollably.<\/p>\due north\n Afterward the order volume has been emptied similar that several times, it results in an bogus shortage of coins. Afterwards a short delay, the market reacts and the price goes up due to the insufficient supply.<\/p>\n\n This practice is generally looked down upon in the cryptocurrency customs as information technology is mostly used as part of the “pump and dump” schemes where the coins are sold immediately after the price surge, making it crash again.<\/p>\n\north However, it is not all doom and gloom - cryptocurrencies exist in open markets, so absolutely anyone can take advantage of the movement of the price. One but has to know where to await for signs of an upcoming pump, and in that location are already some useful tools out in that location which tin aid you with that.<\/p>\n\n
Source: https://cointelegraph.com/explained/how-cryptocurrencies-maintain-their-price-explained
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