Ninjastic
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Board Trading Discussion
Re: How can all (or most) cryptocurrencies rise and fall at the same time?
by
Silberman
on 16/10/2022, 19:40:32 UTC
Quote from: Viscore on September 24, 2022, 09:46:19 PM
Quote from: GreatArkansas on July 21, 2022, 01:15:42 AM
Quote from: Mark301 on July 14, 2022, 06:24:50 AM
The price and, ultimately, the charts on any given exchange are determined by the price of the most recent transaction. How can the prices of 100s of cryptos all move in the same direction at the same time?
As Bitcoin is the highest market capitalization among all the cryptocurrencies we have right now than most of them I believe are just following Bitcoin.
So for me, especially when I am doing trading I rather trade Bitcoin than trading other altcoins especially other high market capitalization altcoins which just correlate with the price of Bitcoin most of the time, so for me, it's just the same, volume on Bitcoin is higher.
It is because bitcoin’s price influences the whole crypto market. So if ever you trade with altcoins, there are high chances that you will fail in trading as bitcoin suddenly dump its price and affects most of the altcoins. That is why most of us would want to prioritize bitcoin trading not only because of its higher volume, but the amount of returns is obviously bigger than trading with altcoins.
Correct, bitcoin is so influential because of two factors, one of them is its huge volume compared to the rest of the coins we have in the market and the second is that bitcoin is actually used to make transactions and is not only a vehicle of speculation, if we really take a look we will see that most people are not really using their altcoins for anything other than speculation, so this amplifies the influence bitcoin has on them and makes their movements even more abrupt than what they should be.