How much does cryptocurrency cost today or what is the use of the exchange rate?
Investing in digital currency has been a hot trend lately. How to save and increase your savings, what to invest in and how not to go bankrupt on cryptocurrency? These questions are asked by traders, investors, and holders of digital assets. Every day they monitor the market changes, liquidity and volatility of certain coins. To find out the current value ofcryptocurrency, use the exchange rate of electronic money.
Important indicators of the exchange rate
Cryptocurrency exchange rate at currencies page shows the cost of digital money to fiat currency. Most often, quotes of electronic coins are estimated in comparison with US dollar. The following data are presented here:
digital currency name;
letter code of the electronic coin;
percentage of quote growth or decline.
Using the analysis of these indicators, you can calculate the profitability of a certain project, make a digital money liquidity forecast, and find out its current value.
Everything you should know about the exchange rate
Why are the name and the letter code different?
Letter code may be consonant with the name or opposite to it. According to the international standard ISO 4217, the first two letters of the abbreviation should indicate the code of the country to which the money belongs. Since tokens and coins of the blockchain system are decentralized monetary units, their letter code can either coincide with their names or differ from them. The exchange rate contains the icon, full name, and abbreviation of the digital currency, so that the user knows what kind of cryptocurrency is in question.
Why do we need a capitalization indicator?
Cryptocurrency capitalization is the market value of all digital assets. It is inseparable from the exchange rate: the higher the quotes the higher the electronic stocks price. This indicator is calculated based on the total amount of coins and the value of 1 monetary unit.
Important note! Cryptocurrency capitalization is the relative total value of its market value. Since electronic money is constantly generated, it is difficult to track the actual amount at particular moment.
It is much easier to assess the capitalization of any company than that of the electronic coins. For example, the organization has issued 100 shares, each of which is worth $ 1000. Accordingly, the market value of the company is: 100x100 = 100 000 $. Unlike limited liability companies that issue shares only once, the cryptocurrency is created and mined daily by millions of users.
Capitalization enables you to choose the currency for increasing your capital and the currency for storing your savings. Despite the limited issue, experts suggest constant economic development of the electronic money.
The obvious leader of digital currencies in terms of capitalization is Bitcoin. It is followed by coins with a lower market value. The rating is formed in descending order.
What can the transaction volume tell?
"Volume" indicates the amount of digital money traded within 24 hours. Calculation is based on the cost of 1 monetary unit and N-number of coins used during the day The final result is displayed as the total value of all transactions in dollars. The volume indicator helps assessing the currency liquidity, demand, and supply in the market.
This indicator shows growth and decline of the price for 1 electronic coin. The calculation takes into account data of the past 24 hours and the current time. Volatility indicates exchange rate fluctuations. While the value of fiat money changes by 3-4 % per year, the price of cryptocurrency may vary from 20 to 100 %.