CoinHarbor

Learn · Crypto basics

Why prices move

Lesson 3 of 3 · 5 min

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.

For education only. Not financial advice.