What is the crypto market and why should you care? The crypto market, also known as the digital currency market or virtual currency market, is an online network where traders can buy and sell different types of digital tokens. These tokens are commonly referred to as "coins" as they act as a representation of value similar to how a dollar bill represents value.

The value of these tokens fluctuates frequently and many different factors can cause their price to rise or fall. There are now over 1600 different types of tokens in circulation. Many of them are based on the Ethereum network, which makes it one of the most common virtual currencies among investors at this time.

However, there are other lesser-known cryptocurrencies that may be worth your attention if you’re thinking about investing in virtual markets. Here’s what you need to know about the current state of the crypto market…

What’s Causing the Crypto Market to Drop?

There are several different factors that may be causing the crypto market to drop, but investors have been closely monitoring China’s stance on digital currency as perhaps the most significant. In September 2017, China declared Initial Coin Offerings (ICO’s) illegal and demanded that all Chinese crypto exchanges cease their operations immediately.

This was a significant blow to the crypto market as many investors were in China, and this move forced many to purchase their coins in other countries. The Chinese government also placed a ban on all websites related to cryptocurrency, so even if a Chinese investor wanted to purchase or sell their coins, they were unable to do so. This ban was lifted in February 2018, but the damage has already been done.

Ethereum is Shrugging Off Bad Press

Ethereum, which is the second most valuable digital currency after Bitcoin, has received a lot of negative attention recently. Ethereum’s co-founder, Joseph Lubin, has been closely tied to a nonprofit organization that some have referred to as a cult.

Ethereum’s other co-founder, Vitalik Buterin, has been accused of plagiarism by a scientist who claims that he copied and pasted his work without crediting him. However, none of this bad press seems to have negatively impacted Ethereum’s price yet.

While the crypto market as a whole has been dropping since the start of the year, Ethereum has actually been increasing in value since the end of December.

Bitcoin Continues to Fall

Bitcoin’s value has been falling since the end of 2017, but it has recently been plummeting. At one point, Bitcoin’s value fell so rapidly that it dropped below $6000 per coin. Many experts believe that this is due to the fact that many people purchased Bitcoin as they expected it to be the future of online buying and selling.

However, since the rise of other blockchain networks like Ethereum, investors have begun to diversify their investments into other types of digital currencies.

While many people continue to hold onto their Bitcoin, others have been cashing out their profits in hopes of buying more valuable coins during the recent crash.

Ripple is Surging Despite Bad Press

XRP, which is a Ripple-backed cryptocurrency, has been making headlines recently for all the wrong reasons. Ripple’s CEO, Brad Garlinghouse, has been accused of insider trading after suspiciously purchasing millions of dollars worth of XRP just before the announcement of a new partnership.

While many believe that Ripple’s partnership with SWIFT will be beneficial to both sides, others believe that the centralized nature of Ripple’s technology will only serve to give banks more control over the global economy.

The majority of Ripple’s trading volume comes from a single exchange in South Korea, which has added to the speculation that the entire thing could be a massive scam. Nevertheless, investors have been purchasing XRP like crazy, and it has been rising in value even as the rest of the crypto market continues to plummet.

Litecoin and Ethereum Classic Surge Together

Litecoin and Ethereum Classic are two cryptocurrencies that seem to share a lot in common. Both were created by former Google employees, and both have been commonly referred to as “the silver to Bitcoin’s gold.” Both of these coins have been increasing in value for the last couple of months, but recently, the two have been rising together.

Some have suggested that this is due to the fact that both coins have strong communities that have been actively fighting against ASIC mining hardware. However, others have suggested that this rise is due to the fact that both coins are now supported by the same wallet that supports Bitcoin, Bitcoin Cash, and Ethereum.

Conclusion

There’s a lot of speculation as to what’s happening with the crypto market right now, and many people are anxiously awaiting the next big drop in value. Unfortunately, nobody can predict what will happen in the future, and it’s difficult to know when the next crash will happen.

However, many investors have been holding on to their coins for the long haul, so even if the market does suffer another drop in value, it may not last long. You can keep track of the crypto market by using an online trading platform like Invest In Crypto.