Why prices move
Crypto prices can move 10% in a day. Nobody can reliably predict them.
What moves prices
- Supply and demand. More buyers than sellers push the price up.
- News: regulation, hacks, listings, big holders selling.
- Leverage. Traders borrow to make bigger bets; forced selling can cause sharp drops.
- Liquidity. Small coins with few buyers can jump or crash on a single trade.
Market cap is not money in the coin
Market cap is price × supply. It does not mean that much money could be taken out.
A healthy attitude
Treat any crypto as risky. Never put in money you cannot afford to lose, and be careful with anyone who promises a price.