Bitcoin has taken the world by storm — changing how we think about money, investing, and maybe even technology. And, that’s all fine and good, but it doesn’t make tracking the price of Bitcoin easier — especially for newbies. Why does it go up? Down? What are the best tools to track it with? And what do you do with that information?
But, that’s okay. If you don’t know much about Bitcoin price or cryptocurrency, you’re in good company. So, let’s get into it. Here’s how to stay on top of Bitcoin and this new asset class.
Why Bitcoin price tracking matters
The price of Bitcoin is volatile. In one day, the value of Bitcoin can change by thousands of dollars, due to news, exchange hacks, regulation changes, global events — and more. With whole investments and fortunes on the line, it’s no wonder that investors and fans, in general, would want to keep a close watch on some magical internet money.
Who wouldn’t want to know why the price had shot up by $10,000? And, of course, whether you’re interested in building, investing, or just want to learn more about it, tracking the price of Bitcoin can help you understand a market that’s growing faster than anything else this century.
Bitcoin price tracker: The basics of Bitcoin price movements
Never before seen in human history, Bitcoin has no physical value behind it, like Gold, nor is it issued by any government or any other entity. Instead, its value comes from the market — you and me. For starters, there is a finite amount of Bitcoin ever produced capped at 21 million coins. Many people buy Bitcoin because, like gold, it is limited in quantity and has a degree of scarcity.
But, as more people want to own Bitcoin, the demand can outstrip the supply, causing prices to go up. However, that much isn’t as easy as that: negative external forces can also drive the price down. Announcements from governments, giant institutional investments, or a couple of silly tweets from an influencer can easily move the market one way or the other.
Tools to track Bitcoin price like a pro
1. Cryptocurrency Market Aggregators
A simple search should yield websites that display the price of Bitcoin across different exchanges (in real-time). They can also provide information regarding market depth, price (volatility) trends, circulating supply, and more.
2. Exchange Dashboards
If you use trading platforms like Binance, the trading portal will display the real-time price of Bitcoin and other digital assets, including price action tools like candlestick charts.
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3. Mobile Apps
A quick search in your preferred app store should offer Bitcoin-tracking apps that were developed for your iPhone and/or Android. Most of them come with a price-tracking alert system that can tell you when the price of Bitcoin hits a particular level.
4. News Websites
Lastly, when you track the Bitcoin price, you can’t only go by numbers. World events are one of the most important drivers of the price. So read the news.
Bitcoin price tracker: The role of Bitcoin price indexes
You may have realized that Bitcoin pricing doesn’t quite match up with each platform; that’s because each exchange is separate and has its own supply & demand. A Bitcoin Price Index such as the Binance Index is able to average multiple exchanges for you.
Since Bitcoin is not centralized in a specific country, you can view the price in real-time, rather than only with the price that an exchange provided for you, so it’s beginner-friendly
Key strategies for beginners
- Start small: If you are interested in investing, please only put what you are able to lose. The market is unpredictable, and most likely, you will not profit by putting in a lot of capital to begin your investing career when you are just a newbie. Start with a small, manageable amount to familiarize yourself with market dynamics without risking significant losses. As you gain confidence and experience, you can gradually increase your investment.
- Set alerts: Price alerts help keep you up to date without needing to sit in front of a screen for the whole day. You can set them up using the Binance app on your phone. These alerts not only save time but also ensure you never miss crucial market movements, giving you the opportunity to make timely decisions. Experiment with different thresholds to understand how the market reacts to certain price levels.
- Understand market trends: Learn what the concept of a market bull or bear market is. A Bull market is when the economy is growing, and a bear market is when the economy is declining. Familiarize yourself with how Bitcoin reacts in both scenarios, as well as how external factors like regulation, institutional investments, and macroeconomic trends influence these cycles. This knowledge can help you anticipate potential price movements.
- Stay informed: Research and read news articles, professional analyses, and global matters relating to Bitcoin. Staying informed is key to understanding why the market moves the way it does and avoiding being swayed by misinformation or hype. Make a habit of following reputable sources and subscribing to updates from analysts or platforms that provide market insights.
Authority resources for deep dives
For a more in-depth analysis of how Bitcoin and Cryptocurrency will affect the global matter of money, you can read the Bitcoin news and reviews from sources such as the World Economic Forum. I think having knowledge about Bitcoin and how it can potentially affect the future of money is awesome!
Bitcoin price tracker: Take charge of your Bitcoin journey
In the future, you can receive an even better result and up-to-date analysis of the market you plan on investing in. This can apply to help future investors or people have a solid game plan for what they are in for, and how to deal with the market. Start charting some Bitcoin prices and see what measurements you can see in the market!