Did the title catch you off-guard? I hope it did!

If it stimulated an instant defensive stand within you, I am glad. If it brought out a sense of agreement, I am happier. In this post we will go through a few things that might help understanding some of the many things that influence the price of your favorite coin, but in a general view, all of crypto. 

Ever since my return, I have noticed many changes to the community. However, one thing that remains firm is the ignorance as to why the price hasn't "mooned".

In the recent days, I have personally come across questions and statements such as "Shitcoin" and what not on discord and telegram, usually by either newbies or the ignorant.

🧙

We need to solidify one thing in our heads: CRYPTO IS NOT MAGIC!

Any cryptocurrency doesn't magically, without external influence, just quadruple in price nor does it dive head-first down into the bed rock. There are a lot of things that go into play that raise or drop the candles on a trading chart. You are responsible, too!

Think of crypto just like any other fiat currency in the world. A specific currency's value depends on many factors such as investments, foreign and local, import/export, remittance, foreign reserves, sanctions, inflation, interest, growth, trade deficit, performance of equity markets, macroeconomic policies etc etc. Crypto, being a currency, also creates value through as many or as little factors. 

But hey, I do not even understand sanctions and taxes fully. So, how do you expect me to understand all the factors that influence the price of steem?

🤷

Good question! Shoulders of giants, my friend. We will, hopefully, start understanding the tokenomics of steem and its constant evolution as time passes. But, we need to be steadfast and keen to learn.

Lets focus on what we know, already. 

• Supply and demand.

When the supply climbs over the demand, price falls. We need to make sure we do not oversaturate the markets with so much steemthat there aren't enough buyers- hence, dropping the price. 

• Hodl. 

Aka, hold. Learn to hold your coins. It is a well-known secret of the cryptoverse.  You do not have to impulse sell everything the moment you have something. Instead, buying or earning and holding your coins reduce the supply and creates a pressure in the market that lets you find the desired position to sell or buy in. Usually, increasing the prices.

• Staking or investing. 

Staking is probably, if not, the easiest way to increase the value of your assets. Stake your steem. This not only benefits you by giving more power, but also reduces the liquid in the market as well allows you to have a bigger impact on what happens in the chain. Call it a win-win-win. 

You can reinvest your steem into your own account to take advantage of the steem-engine tokens. For example, buy some SE tokens and power it up. Now, you have branched out your options and become a bigger player in more than one community.

Turn your idea of steem from a daily trading option to a long term investment option. As steem grows, there will be more investment opportunities.

• Quality. 

Since posting is a major way of earning steem, you need to make sure that the posts work in the favor of the price. You need to make sure you are playing your part in upholding the quality of steem so as to impress and invite outsiders to be a part of steem.

This brings in outsiders with ideas and investing options that could result in collaborations, projects and even buying up cheap steem to make the market more expensive. 

• Curation and creation. 

Put Quality and Staking together and now you have a perfect concoction to balance curation and creation.

• Responsibility. 

It is your responsibility as part of the ecosystem to learn how your actions determine the price you get off of selling your assets. You need to learn and apply them, daily!

Do you expect a supra to beat a lambo in a drag race? Yes! If the supra is decked out! 

So, deck out your platform. And beat all the lambos straight to the moon!

Start asking 

WHAT CAN I DO TO HELP THE PRICE?

and not

WHY IS THE PRICE SO SHIT?

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GIF Via GIPHY

_{Original post by Blind. Edited for relevance.}

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