(read this one, I have not seen this information anywhere)

Hello everyone!

Today I will make a short overview of the key factors affecting the price of bitcoins and the rest of crypto currency. So, every trader knows why bitcoin grows or falls in price on the stock exchange. If someone buys a large amount of bitcoins, for example, for fiat money, then he has to buy out exponentially growing orders for sale. And then we are dealing with a “green” candle. On the contrary if someone sells bitcoins, we see a “red” candle on the chart. The higher the amount of sales or purchases — the longer the candles on the stock charts. It’s all clear here now. But what about altcoins?

Question 1. Why do altcoins dance along with bitcoin, and if “father” falls in price, then the same thing happens to altcoins — they also fall. And vice versa, if bitcoin grows, the main number of altcoins as well?

Question 2. Price movements of bitcoins are always less than price movements of altcoins, i.e if bitcoin increased by 0.2% (for example), then Ethereum increased by 1%, and vice versa, if bitcoin fell in price by 0.5% (for example), then Ethereum falls to 3% at once?

I’m answering question 1. The point is in bitcoin capitalization in relation to other crypto currencies. Bitcoin capitalization reaches 50% of the entire crypto market and higher. At the time of crisis, i.е. when the price of bitcoins drops (if it falls sharply, we call it Panic Sale), investors basically come out of this crypto currency in fiat, to a lesser extent in Tether, and with rare exceptions in altcoins. But mostly in fiat, the rest of ways can be neglected. The main hint for a trader is always market capitalization as a whole. The market falls, you need to get out of the crypto currency in fiat, wait for the bottom, and then buy again. And what mainly affects the numerical values of capitalization? The answer is bitcoin capitalization, after all it is half of all market capitalization. If someone comes out of some kind of secondary coin, the total capitalization may not change at all. Another thing is bitcoin! And then we get a chain reaction — bitcoin is falling, general capitalization is falling, investors seeing this drop are coming out of all the crypto currencies, including altcoins, to fiat. And looking at it from the side, we see that with the fall of bitcoin, all other altcoins fall. When bitcoin grows, everything happens exactly the opposite way.

I’m answering question 2. Why are altcoins “jumping” in price greater than bitcoins? For example, if bitcoin fell by 1%, and Ripple falls immediately by 4%, and vice versa, bitcoin grows, but slowly, and altcoins overtake it. When the total market capitalization falls, traders mostly go from bitcoin to fiat, and from altcoin mostly to bitcoin. After all, you can earn on these differences in price of bitcoin in relation to particular crypto currency. All this, of course, provided that the market in general does not fall rapidly in relation to a dollar, then investors will go out of altcoins directly to fiat. But basically, this is the earnings of traders — branding altcoin in relation to bitcoin. Time is needed to get out to fiat, it will not be possible to withdraw large volumes and commissions will devour all the profits. Exit to fiat is an emergency exit for a trader.

So, we get a chain reaction — bitcoin falls, but it falls slowly, traders get out of alcoins to bitcoin, thereby stopping its fall, and altcoins start to fall rapidly. As a result, we see that the market is completely “green” or completely “red.” But if bitcoin, for example, reduces a little in price, then atcoins fall as if from “ the waterfall” and vice versa, bitcoin went up a little, then all traders immediately run into altcoin knowing that they will grow faster in price, and as a result a higher increase in the price of altcoin.

Can this situation change? Yes ! If exchange to fiat does not devour your profit and part of your deposit, as it is now, i.e when crypto currency is fully legalized. However, right now we have the situation of “Siege” in relation to crypto currency from banks, legislations and states. Everything is based only on our enthusiasm.

Friends! Crypto currency is us, its users

The resport was made by Daniel Stojkov and the ICO CustomCoin Platform team

Homepage: https://ccnowpro.com/ Whitepaper:https://drive.google.com/file/d/1RbdmFfFUfjB_Dw-JlUTXPrY0MqredttU/view

Facebook:www.facebook.com/ICOCustomCoin

Youtube:www.youtube.com/watch?v=JL0iM-Hs0tc

Instagram:www.instagram.com/ico_analysis_customcoin/

Telegram:t.me/ICO_Analysis_CustomCoin

Github:github.com/CustomCoinToken/Custom-Coin-Token

medium https://medium.com/@customcoinplatform