Cryptocurrency Prices

Prices in crypto go up or down due to market forces, changes in investor confidence, or due to changes in the liquidity. When investors buy and hold crypto, the market cap goes up and those prices go up. When investors sell their crypto, the market cap goes down, and the prices go down.

The liquidity also affects the price of cryptos. The liquidity pool supports the market cap of a cryptocurrency and is what allows trades to happen. Most scams in crypto involve unlocked liquidity pools.

Every crypto carries different risks associated with them. The best crypto will depend on your level of experience, your risk tolerance, and the amount of research you’ve done. If you are starting off, it is best to start off with a cryptocurrency such as Bitcoin and Ethereum and then experiment with other blockchains.

Both cryptocurrencies and crypto tokens are digital assets with similar features. Biggest difference is cryptocurrencies have their own blockchain such as Ethereum, Avalanche, or Cardano. Whereas crypto tokens are built on an existing blockchain such as Shiba Inu which is an Ethereum based token.