The volatility of the cryptocurrency market means that being up-to-date with the news of the sector and monitoring the exchange value of cryptocurrencies is essential if we want to put our investments to good use, which is why from Crypto-economy we want to give you some advice and show the necessary tools to make this happen.
What is the cryptocurrency exchange rate?
The exchange rate of cryptocurrencies is the proportional relationship between a cryptocurrency and another, or simplified, the amount you need from a cryptocurrency to obtain one unit from another.
For example:
To get 1 Bitcoin (BTC), 12.5 Ether (ETH) is currently needed.
Or conversely, to get 1 Ether (ETH), 0.08 Bitcoin (BTC) is needed.
What does the cryptocurrency exchange rate depend on?
Cryptocurrencies are a very young and volatile market, so the cryptocurrency exchange rate can vary from one instant to another for many different reasons.
By a Hacking, like for example those that we have recently experienced in Bithumb or Coinrail, an error in the blockchain of the project, a wrong decision by the CEO, false advertising, limitations of governments, prohibitions or speculation ….
These are some of the reasons that can make the cryptocurrency exchange rate vary and we must keep abreast of all market news to not make an exchange at the wrong time.
Is the exchange rate of cryptocurrencies regulated?
This type of exchange is not regulated nor will it be in the future, due to the decentralized nature of cryptocurrencies.
Is it the same in all parts of the world?
Although it seems strange, the cryptocurrency exchange rate is not the same in the whole world, since on the same day and even the same moment, we can acquire the same cryptocurrency at a different price.
This has several explanations:
1st. Each Exchange has some cryptocurrency values, this is because if a person makes a exchange of a cryptocurrency in an exchange house for a determined value and at the same moment another person makes another exchange of the same cryptocurrency in another Exchange, it is very easy for there to be a price variation between both of them. So although the exchange rates of cryptocurrencies are similar between one exchange house and another, they may have slight differences.
2nd. In addition to exchanging cryptocurrencies in exchange houses, we can also exchange cryptocurrencies for fiat in other platforms, such as Coinbase, where we will find different prices from those in the market.
3rd. Or we can make the cryptocurrency exchange in person, where the two parties can agree on the final price.
Where can you track the cryptocurrency exchange rates?
In each Exchange house and purchase sale platform, you can follow the exchange rate of the cryptocurrencies in which we are interested, since at any given time we can see it, but there are also other platforms that help us with this task and it is very useful to have them at hand.
Coinmarketcap, Cryptocompare, Coincap or CoinLib tells us the market price, its variation in the last 24 hours, a historical with the evolution of its price since its creation, etc., which is essential when it comes to tracking the market.
A portfolio of cryptocurrencies for mobile or desktop, can be very useful when tracking a particular currency or to see the status of our investment and thus be able to know at what time it is interesting to make some type of cryptocurrency exchange. For this task there are different options such as blockfolio or cointraking.
From Wealth Growth Insights we also put at your disposal an application to see the status of the value of cryptocurrencies from which you can follow the evolution of the Top 100 virtual currencies with the highest market capitalization.
What is the right way to manage the cryptocurrency exchange rate?
The main way to correctly manage a cryptocurrencies exchange is to study the market. Currently for example we have a market with a downward trend, where we have had several hacking news, regulations, governments that one day carry out prohibitions and later cancel them …
All this makes the cryptocurrency exchange rate, that in itself is volatile, more delicate. Therefore sometimes the best way to manage change is by being patient and waiting for the market to calm down.
Study the projects, know if there are any scheduled events, collaboration announcements or future Airdrops can be great indicators to know if it is good time to make a cryptocurrency exchange.
