Hello My Steemain Friends ,

Dear friends, I am @aviral123 from India. How are you all, I hope you all are well. I am fine too . Today I am sharing my post with you in this community. Earlier I shared information about "Layer 2 Blockchain Systems: Features and Examples" with you in my post . Hope you all will like my post. Today I will share with you " The Major Factors That Affect Cryptocurrency Price". I want to share my thoughts about this with you all. let's start

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Nowadays, digital cryptocurrency is very popular and the inclination of consumers is also seen towards cryptocurrency. There are continuous fluctuations in the value of cryptocurrency. What elements affect the value of cryptocurrency? Today I am going to express my views on this topic.

Following are the elements that affect the value of cryptocurrency:

Node count

Note counting is this type of network, where we have knowledge about an active wallet, how much demand any company has in the market and how strong it is. A company whose node count is high indicates the strength of that company and if a company's node count is low then it indicates its shortcomings and there is a need for further improvement.

Market size

To know about the market size, the market size of any coin can be calculated by multiplying the demand for that coin with the demand supply of that coin. Market registration can easily lead to knowledge about the market price of any coin.

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Shortage

If the supply of crypto in the market is less then its value will increase, and if the supply of crypto in the market is more then its value will decrease.

Government regulation

There are some governments across the country that do not appreciate the unregulated nature of this digital cryptocurrency and take some measures to control it and enforce rules. The easiest way to control crypto currency is for the government to tax it. Such rules also affect the value of cryptocurrency.

Cost of making

Miners use special types of hardware to authenticate daily network transactions and mint tokens. Virtual tokens and various types of network fees are also provided to those people for these tasks. Sometimes if the cost of mining increases then the value of the currency will also increase, but this rule does not apply to every currency.

Cryptocurrency exchange

When investors have to swap their cryptos on two or more exchanges in the market they have to pay some fee for each swap. Along with this, if a token is available in the market on many exchanges, then it shows that its demand is high in the market.

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Conclusion

In this way we learned that there are many elements that affect the value of cryptocurrency, depending on which the value of cryptocurrency gets affected. But everyone has some errors or shortcomings. Therefore, before investing in this market, digital currency investors should have complete information about the ups and downs of its market and should also fully consider their risks, so that they have the least possibility of risk.

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Thankyou 🙏