Market basics • Risk
What makes crypto prices move?
Crypto prices move because of supply and demand, but many factors influence that demand.
Supply and demand
When more people want to buy than sell, prices usually rise. When more people want to sell, prices usually fall.
Key factors
- Market sentiment
- News and regulation
- Adoption and real-world use
- Large investors buying or selling
Volatility
Crypto prices can move quickly, which makes crypto high risk compared with many traditional assets.
Beginner takeaway
Prices are driven by behaviour and demand, not guarantees.
Important risk
Prices can fall quickly. Never assume they will keep going up.