Bitcoin's appreciation is directly proportional to alt coins. However many people hold altcoins for two reasons; In fact, people use cryptocurrencies for two specific reasons:
1. To hodl as a store of value for long term gains.
2. As a tradable asset, to increase one's investment portfolio.
More so, we have seen in many cases where Bitcoin does a bullrun and leaves altcoins behind. Usually, in this instance, the alt coins begin to show a red indicator - reduction in value, this is because of the gap between them. In the mean time the altcoins will play catch-up.
So generally, BTC is like the base pair for all altcoins. But as the market continues to mature we would see many more pairs like in the traditional capital/Forex market. But for now depending on what exchange you are trading on, you could have ***/BTC, ***/ETH, ***/USDT, ***/USD, and ***/BNB.
Topic: How the cryptomarket works? - page 2. (Read 223 times)
In crypto mist of the times it's either bitcoin and altcoins bleed, of only altcoins bleed. But hey, in the long term we will probably all be up on out investments 
Don't invest what you can't lose!
Don't invest what you can't lose!
Can anyone here explain me how the cryptomarket works? I have been following the coinmarketcap for months and one thing I observe is when one coin move up almost all coins moves up. Is that a normal thing in crypto? Are coins are dependent to all coins unlike in stock market where one stock is totally independent to others.
Depends.
ALL coins are currently pegged on BTC price. Normally when BTC goes up or down the alts follow.
However, when BTC does a drastic jump, it can have the negative effect on the alts and they plummet down. This is because everyone is selling their alts to get more BTC.
The market performs best when BTC is "stable" or growing "organically". That is when other coins go on their own way and you'll see different gain/loss trends.
As for me, I am waiting for the time when all crypto coins/tokens become independent of BTC.
It is mainly due to Bitcoin and that is why we call them ALT COIN (other than bitcoin).
Can anyone here explain me how the cryptomarket works? I have been following the coinmarketcap for months and one thing I observe is when one coin move up almost all coins moves up. Is that a normal thing in crypto? Are coins are dependent to all coins unlike in stock market where one stock is totally independent to others.
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