chain
dYdX Chain Markets
Listed below are the markets available to trade on dYdX Chain.
About Crypto Pages
Cryptocurrencies are virtual assets built on decentralized, peer-to-peer (P2P) networks known as blockchains. These digital currencies operate without central intermediaries like businesses, banks, or governments, allowing traders to store and exchange cryptocurrencies in digital wallets independently and without counterparties. The current market price for a cryptocurrency refers to its most recent exchange rate, typically denominated in fiat currencies like the U.S. dollar, British pound, or euro. Similar to the forex market, crypto traders exchange cryptocurrencies and fiat currencies using these market prices as a reference. But how are crypto prices determined? The basic principle is the law of supply and demand. Prices rise when buyers outnumber sellers and fall when sellers outnumber buyers. This buying and selling pressure varies due to factors specific to each crypto asset or the broader digital assets market, such as software upgrades, security breaches, or high-profile endorsements. Macroeconomic factors like global GDP, monetary policy changes, and inflation also influence prices. The newness and decentralized, intangible nature of cryptocurrencies often result in volatile daily price activity as well.
FAQs
Numerous economic factors influence cryptocurrency prices, but ultimately, it comes down to supply and demand. Increased demand leads to higher prices due to more substantial buying pressure, while an oversupply with few buyers results in downward price action for a crypto token. Crypto traders often combine fundamental news and data with technical chart patterns to make informed predictions about cryptocurrency values.
In the crypto market, 'cap' is short for 'market capitalization,' which refers to the total money currently invested in a particular digital asset. Market participants closely monitor the market cap of different currencies to gauge the network's size, predict realistic price targets, and analyze current and historical interest in a token.
Bitcoin is a digital currency operating on an open-source, P2P blockchain, with no central entity controlling it or profiting from the system. Instead, traders holding or swapping Bitcoin profit when its market price rises. Additionally, individuals using their computers to verify transactions on the Bitcoin blockchain, known as miners, can earn BTC rewards by successfully posting new transaction batches to the blockchain's payment ledger.
There’s no secret formula to predict when a cryptocurrency will increase in value, but traders use various methods to make informed crypto price predictions. First, they conduct 'fundamental analysis' by studying metrics to determine a cryptocurrency's intrinsic value, such as news, software updates, or changes to a token's supply. Traders also consider market sentiment and the overall economic environment to assess whether conditions are favorable for a cryptocurrency. For short-term trades, they often use technical analysis tools to identify patterns or significant anomalies on a cryptocurrency's candlestick price chart and key price levels to define their risk-to-reward ratio.
The total cryptocurrency market cap measures the overall value of the digital assets sector. Crypto exchanges and price aggregator websites track and display this data in real time. To determine the market cap of a specific cryptocurrency, traders multiply the current price per coin by its circulating supply. For example, if Bitcoin's current price is $70,000 and there are 19.7 million BTC in circulation, the market cap would be $1.38 trillion ($70,000 x 19.7 million = $1.38 trillion).