Hello! Day 10 of my diary on Binance. Several days have passed since I started with 0.06 USDT and I've learned a lot. But something keeps bothering me: why does a crypto sometimes surge suddenly... and then plummet? And why do some hardly move even though everyone talks about them?
Today I started researching why a crypto rises or falls. Here's a simple explanation.
🔼 What makes a crypto rise?
Demand increases: The more people want to buy, the more the price rises. Sometimes due to hype, other times for something real.
Positive news: If a company accepts BTC, or a country approves crypto → many buy. Example: BTC rose with BlackRock's ETF.
Token burning (Burn): Reducing tokens can raise the price if people trust. Example: BONK burned 1 trillion → it could give a boost.
Low supply: If there are few tokens and many want them, the price skyrockets.
🔽 And why do they drop?
Massive selling: When many sell (out of fear or profit), the price drops.
Negative news: Hacks, regulations → people sell. Example: FTX went bankrupt and everything dropped.
End of the hype: If a coin rises due to fashion and is forgotten, it drops. Example: some meme coins.
High inflation: If many new tokens are created, the price drops. Example: BONK has 19.23% annual, but burns help.
📉 But... why does one rise sometimes and others do not?
Each token has its story. BTC rises due to adoption, PEPE does not if there are no memes. Liquidity also influences: if few are trading, a large order moves it. And be careful: some rises are traps to get you in late.
🧪 Example of today (July 10)
BONK was strong in the early morning: it rose 5% in a 'V' shape from $0.000021 to nearly $0.000023 between 2 AM and 5 AM, with a notable increase in volume.
Throughout the day, the price averaged around $0.0000226, with daily volume hovering around one billion USD.
BTC remains stable: trading close to USD 113,139, with movements between 109,448 and 113,805 during the day.
👉 What does all this tell us?
BONK had a strong spike early on, probably due to institutional buying or community movement.
Massive volume indicates it wasn't an isolated movement.
BTC remains stable, which highlights BONK's movement in volume and volatility.
I learned that you have to look beyond: what pushes or hinders it?
🧠 How do I know if a rise is real?
✅ Look:
- Volume: Are there many purchases or just one?
- News: was there anything real?
- Liquidity: can you buy/sell easily?
- Market capitalization: how much would it be at $1? (BONK would need $800 billion, but it would be difficult without more demand).
📌 Conclusion of Day 10
Today I understood that a crypto doesn't rise 'just because'. Sometimes there are real reasons, other times it's just illusion. Knowing this helps me decide when to enter... or not touch anything.
I keep learning with BONK and my 0.06 USDT, training myself not to fall into 'FOMO'. At 4:05 PM today, the market is calm; will it continue tomorrow?
💬 Question of the day:
Did you enter a crypto today because of hype? Or should I check one that interests you?
