What gives cryptocurrency value?

Question

We know that cryptocurrencies, require huge investments and the currencies differ from each other in the cryptocurrency market. I just wish to know as to what gives cryptocurrencies the values that they hold for investments?

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Delta 4 months 1 Answer 104 views 0

Answer ( 1 )

  1. Alex

    There are many factors to consider making cryptocurrency valuable. It is important to always do your due diligence before investing in any coin. A cryptocurrency’s value is derived from the following:

    • It’s utility. If users gain benefit from using a token, it increases the demand for the token. If the token has utility, people would want make use of the utility.
    • Use case. A cryptocurrency’s value comes from it’s perceived use case.
    • Partnership with well known and big companies add value and legitimacy to a cryptocurrency.
    • Incentives are the factors similar to utility. These give people, the reason to hold coins.
    • Market cap. The future growth of a cryptocurrency depends on the market cap.
    • Liquidity. A token’s accessibility and ease at buying makes more people to invest in it.

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