The crypto trading market has been volatile from the start, but the last few years have been a particularly wild ride for millions of investors around the world. Many have made millions from the big raises, and yet many have lost investments large and small in bursting bubbles and sudden market crashes.
However, marketers need to know how to promote brands of cryptocurrencies during periods of high volatility and investor uncertainty. To understand how to do this, we must identify the factors that affect the price of digital currency and the ways to use it to our advantage.
The cryptocurrency gained the attention of the media very fastly, due to its fast adoption, but the market size is still minuscule compared to fiat currencies and gold. Even at its peak, the crypto market was hovering around $ 800 billion. This is a loose change compared to the total market capitalization of gold at $ 7.9 trillion and $ 28 trillion for the US stock market.
This relatively small size of the market means that smaller forces can have a greater impact on price. it would hardly cause a fluctuation in the price of gold. If a group of investors decided to sell 500 million dollars in gold, If the same were to happen with Bitcoin, it would be enough to destabilize the entire market and break the price.
However, the fact that the cryptocurrency market is still developing also means that there are plenty of opportunities to do so with an exciting new project. For example, not long ago, Telegram developers announced the launch of the blockchain platform TON and Coin Gram. Interestingly, none of these projects have been completed yet, but the media has already publicized the initiative. Therefore, entering the emerging market is a good way to talk about your product and, thus, know and recognize it. The crypto trading signals are very helpful in this regard.
Blockchain technology and other alternative encryption technologies are still in their early stages of development. Barely a decade has passed since the idea of crypto-based decentralized currencies was published in the Bitcoin whitepaper, so it will be a while before the market matures.
However, many companies have already embraced blockchain technology and are actively using it for advertising and marketing purposes. The most promising projects in the sector are AdEx, Brave, and Steem. Since many clients find the transparency and other advantages of blockchain attractive, exploring this technology can be very beneficial in brand marketing.
On the other hand, fundamental developments in technology can have a driving effect. This includes structural advancements like the Bitcoin Lightning Network or popular new applications on blockchain platforms like Ethereum. There are also many new cryptocurrencies popping up all the time looking to compete and take part in the market from established ones.
Since cryptocurrency is a highly speculative small digital asset market, the media has a huge impact on the fate of prices. Speculators and investors are constantly looking for the next big news headlines on why cryptocurrencies are so volatile that they trigger or crash the market. The media stories surrounding the cryptocurrency market have a huge impact on prices. Not much is helping the crypto industry get its news from unreliable media and social networks.
Mostly, the media strives to be the first to tell interesting news about the world of cryptocurrencies. So some marketers have learned to take advantage of the wave of hype surrounding Bitcoin’s ups and downs and profit from them. For example, if the price of the cryptocurrency rises, you can get some promotional interest for your brand by introducing the cryptocurrency as a payment method.
Most cryptocurrencies like Bitcoin are purely digital assets and are not backed by anything physical like a currency or a commodity. That means that its price is set entirely by the laws of supply and demand. Since the supply of many cryptocurrencies like Bitcoin is fixed or predictable, the price depends on how many people want to buy Bitcoin at the moment.
There is no physical asset to back the value of major cryptocurrencies or governments to enforce their use as a currency. That means its value is fully backed by faith. If people no longer believe that the value of Bitcoin will hold or continue to rise, they are likely to sell. This can lower the price and convince others to sell too, so a cycle forms and quickly drives the price down. The opposite can also happen to skyrocket prices and form over-inflated price bubbles.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
Evan Ciniello’s work on the short film "Diaspora" showcases his exceptional ability to blend technical…
It’s my first time attending the BOM Awards, and it won’t be the last. The…
Leather lounges are a renowned choice for their durability and versatility. In the range of…
Charter jets are gaining in popularity, as they allow clients to skip the overcrowded planes…
Cloud computing has transformed how businesses operate, offering flexibility and efficiency at an unprecedented scale.…
Live betting is the in thing in the online betting industry. The ability to place…
