Cryptocurrency markets operate 24/7 – unlike traditional stock markets – making them more accessible to traders around the world and allowing continuous trading. The total market cap of cryptocurrencies is the combined value of all of the tokens in circulation, allowing investors to buy and sell assets at any time.
Price changes are a critical indicator of market sentiment and can suggest trends or opportunities for traders. Understanding these metrics is essential to making smart investment decisions in the cryptocurrency space.
The supply of a cryptocurrency can influence its price. If demand for a cryptocurrency increases but the supply remains limited, its price will rise. The reverse is also true. Crypto prices are often influenced by news events and speculation.
A key aspect of any crypto marketplace is the security of user deposits. Many of these exchanges offer a range of features like multi-signature wallets that allow users to control their own private keys. These can be custodial or non-custodial and are available for both software and hardware.
Another important consideration is the reliability of the exchange’s infrastructure. Ideally, a platform should commit to 95%+ uptime to ensure that their algorithms can reliably adapt to market conditions and optimise asset pricing. Additionally, it is a good idea to check whether an exchange has an anti-money laundering program and adheres to KYC/AML regulations in the countries in which they operate. This is essential to avoid potential legal risk and promote a safe and secure crypto ecosystem.