When it comes to making sure you’re using a cryptocurrency exchange to the fullest, it is important to choose an exchange with low exchange fees, low deposit rates and attractive withdrawal fees – not to mention that you need one that is easy and accessible for you to use. If a cryptocurrency exchange is full of different graphs, charts and jargon, it’s not as appealing as a website where you can invest simply and easily. You need to ensure that the exchange provides you with a website or app that gives you high functionality and offers markets on the biggest cryptocurrencies by market cap.
Market cap is a shortened term for market capitalization, which in cryptocurrency is calculated by multiplying the current coin price of a certain crypto market by its circulating supply. Historically, Bitcoin has been the number one cryptocurrency in the market for over a decade. This doesn’t look like it’s a trend that will slow down anytime soon, as the largest sums of money that large banks and corporations invest is in Bitcoin. While some huge institutions such as BlackRock and Grayscale hold several other cryptocurrencies, their largest holdings are in Bitcoin. This will likely remain the case, as Bitcoin is the store of value in the cryptocurrency market and commands the most respect among serious investors.
It has maintained a high market cap and is the most recognizable among cryptocurrency enthusiasts and those with a more casual interest. For example, many people will have heard of Bitcoin, and if they’re asked to name one cryptocurrency, the likelihood is that they will say Bitcoin, as it is the market leader. The Bitcoin (BTC) price reached an all-time high in November 2021, as values exceeded $65,000. The highest market capitalization of $1.28tn was realized on November 9, 2021. Bitcoin spearheaded the explosive rise in general cryptocurrency prices in late 2021.
Not only did Bitcoin enjoy a record-high price in late 2021, but so did the other cryptocurrencies that make up the top 10, including Ethereum, Polkadot, BNB, Cardano and Solana. Ethereum hit $4,800 per coin in November 2021. This was an all-time high for this coin as well. This cryptocurrency list is just the tip of the iceberg, and there are now thousands of cryptocurrencies out there, with more being created daily. However, not all cryptocurrencies are as useful as others, which is reflected in the price. Bitcoin and Ethereum, for example, have huge investments from corporations and shrewd investors who are aware of their effective utility.
Other coins such as ‘memecoins’ do not have the same utility but Dogecoin saw a huge jump in its price. This was due to driving factors like the world’s richest man, Elon Musk, promoting the coin on his Twitter account. This caused multiple investors on social media to pile on and cause a price spiral. When it comes to cryptocurrencies like Bitcoin, multiple factors drive its value.
To ensure you use an exchange to the fullest, you need to pick an exchange that provides the best value. This includes attractive withdrawal and deposit rates – ideally, you’d like both to be as low as possible. In addition to this, you need to be certain that the exchange holds enough liquidity so there are no issues when withdrawing your money. You also need to check that the exchange offers prices on other top cryptocurrencies such as Ethereum, Polkadot, BNB, Solana and Cardano – a full and comprehensive cryptocurrency list is a good sign that you’ll be able to use a cryptocurrency exchange to its fullest.
Many analysts predict cryptocurrency is the future of money and investments, with some investors making staggering returns over the last decade. Some investors predict that Bitcoin will hit $100,000 a coin within the next two years. With the all-time high Bitcoin price comes a positive increase in other prices. The price action doesn’t just stop with Bitcoin. Some analysts predict that rival cryptocurrencies such as Ethereum will hit $20,000 in the next five years.
Naturally, as money piles into this market, the prices increase and the possibility of making a healthy return increases. But to give yourself the best opportunity to make a solid return, you need to use a cryptocurrency exchange to the fullest and maximize the opportunities that present themselves. This includes noting all the factors we have touched on today in this article and conducting your own research to ensure you manage your risk level and know what you’re investing in.