Dynamics of the Cryptocurrency market

The crypto market is dynamic not just in terms of prices but also in its market capitalisation, share of digital currencies and their regulatory guidelines. The total market capitalisation of cryptocurrecies is increasing rapidly; it increased almost three-folds in a year to $25 Billion in 2017. The cryptocurrency users are increasing every day. As per the Coinbase and ARK study, around 10 million people worldwide owned Bitcoin in 2016. The state agencies and financial institutions are also vigilant of the crypto activities; while some of the markets have accepted the digital currencies, the others have laid down norms to curb their flow. Investors across the board need to be aware of the dynamics of the cryptocurrency market to invest risk-free and gain from the crypto trading.

Investors should track the radical changes in the share of digital currencies. Bitcoin is however the most dominant crypto currency but other currencies are increasingly gaining their market share, Ether being on top of the list. In 2015, Bitcoin had 86% of the market share while Ether was on 1% but in 2017, it is 72% for Bitcoin and a significant 16% for the Ether. Other Crypto currencies like Ripple, Litecoin and privacy-focussed Monero and Dash also have a fair share in market.

The regulatory bodies in countries like US, China, India have warned investors against the potential risks of crypto while countries like Japan, Russia, and South Africa have a liberal approach for it. Crypto investors should watch out for any regulatory guidelines from the governments to make smart investments.