How does the market work?

The crypto market works through supply and demand, just like traditional markets. When more people want to buy a coin than sell it, the price goes up — and when more people sell than buy, the price drops. But in crypto, emotions, news, and social media have a massive impact on price movements. For example, when Elon Musk tweeted about Dogecoin, it caused a huge spike in price — not because the project changed, but because of hype. On the other hand, when bad news hits, like regulations or security breaches, coins can crash fast. We also have bull markets, where prices keep going up over time, and bear markets, where prices fall for months. A good example of this was in 2021, when Bitcoin (BTC) reached an all-time high around $69,000 during a bull run, but dropped below $20,000 in the following bear cycle. Meanwhile, some coins like Solana (SOL) or XRP often move depending on network upgrades, partnerships, or legal updates. That’s why it’s important not just to follow the hype, but to understand what’s driving each move — whether it’s technical (charts), fundamental (news, partnerships), or just pure emotion (FOMO and panic selling). The more you learn how the market reacts, the better decisions you can make with your money.
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