Cryptocurrencies provided by TradingView

Cryptocurrency dynamics

Active traders and investors need to be informed about the dynamics of cryptocurrencies. These data allow you to assess the degree of success of an investment from the standpoint of profitability. And also based on them, market research becomes available, which simplifies the search for promising assets.


A competent approach to analyzing the situation contributes to the correct entry into the market with subsequent justified exit from it. It is possible to choose the right moment and take profits. This is available to everyone, including novice traders. The long-term investor is free to buy the coin. Even high price levels do not stop it, as more growth is expected. This pattern of behavior is not suitable for a trader. Here it is more reasonable to buy when there is a drawdown (correction). It is the reduced cost that ensures profitability.

Analysis of the dynamics of cryptocurrencies is carried out based on two parameters. The level of capitalization and such things as value movements are taken into account. Parameters of this type are typical not only for Bitcoin, but also for other digital coins. Let's look at this in more detail.

cryptocurrency table


Capitalization refers to funds used to purchase cryptocurrency. Such finance is not considered from the perspective of industry capitalization when forming infrastructure on its basis in the form of exchanges or exchangers.

Only the amount of money that was spent on the purchase of cryptocurrency is taken into account. This is usually a dollar amount. Although in relation to altcoins, payment in BTC is possible. This approach is very convenient, since the formation of initial capital for an ICO comes mainly from Bitcoin and Ether. These coins are more reliable.

Data regarding the level of capitalization informs about the size of the money supply and how high investment confidence is. The growth of investments in digital currency contributes to its stability. With increasing capitalization, one should expect an increase in value. In this case, the scheme works when an increase in investments serves as confirmation of growing demand, which leads to a natural upward change in price. This state of affairs is typical for altcoins, which have limited emission.

The peculiarity of large coins is their high positions in various review lists. This attracts novice investors who buy them. As a result, there is a further expansion of capital.

Total capitalization

The cryptocurrency market as of January 2018 is $762.5 billion. The total amount of these funds is dominated by bitcoins – $259 billion. But not everything is so simple here. We must take into account the high dynamism of such indicators. There were losses of up to 3 billion coins within a minute. Such drawdowns occur when traders begin to dump their coins en masse due to unfulfilled expectations.

Such a clear reduction in price occurs up to a certain level. Then the lost positions are restored. Experienced traders save the situation. They start buying up undervalued coins.

Consider this situation with a certain degree of convention:

  1. The cost of the coin is reduced to 90 dollars from 100.
  2. The trader gets rid of it.
  3. The coin continues to sink.
  4. An experienced investor understands that such a reduction is unjustified. As a result, he begins to buy assets at low prices.

The tactic described above, where investors invest in undervalued assets, is known as bearish.

At the end of 2017, Ripple took second place in terms of capitalization. It overtook Ethereum and caught up with Bitcoin. This year everything has changed. Ethereum showed growth dynamics. The coin began to cost $1,100, which allowed it to reach its previous level of capitalization.

cryptocurrency prices

Market price

The quotation and cost of one coin determine the price dynamics. The maximum growth in value in 2017 was demonstrated by the cryptocurrencies NEM and Ripple. The profit of the first approached the 30 thousand percent mark, and the second showed even greater growth dynamics.

Bitcoin was ahead of everyone. At the threshold of 2018, the price of BTC reached $15 thousand.

The formation of value is influenced by economic law, which takes into account supply and demand. The prospects for digital currencies are as follows: the cost of coins with a limited issue will increase. Although there is one more point - the intrinsic value of cryptocurrencies, which is underestimated by traders. Meanwhile, this concept guarantees a confident advantage over a long distance.


Intrinsic value

Over time, trading becomes saturated with speculative cryptocurrencies. This is a trend. Digital coins are appearing on the market, issued by exchanges in order to achieve capital growth. You can make quick money on this, but it is not worth making long-term investments in such coins. They are just an element of market speculation and nothing more.

Digital money must have intrinsic value. If Bitcoin managed to become a kind of symbol of a new industry, which ensured its value, then with other coins everything looks more complicated. The success of long-term investments cannot be ensured solely by market products. Something else is required. We need technologies and ideas that one or another cryptocurrency can help implement.

Evaluation of coins other than Bitcoin makes it possible to see that Ethereum is smart contracts, and Ripple is transactions between banks. This suggests the conclusion that only those altcoins that can offer something more than capital and emissions can ensure the realization of long-term prospects.

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