In this post, I mentioned the coins that move together.
Usually, we describe the nature of the crypto market based on the price of bitcoin.
If the price is high, we say the market is bullish.
And where the reverse is the case, we term it a bearish market. (LOL)
We do that because the prices of coins move in the same direction as Bitcoin’s.
But Bitcoin is not the only coin that influences the prices of others.
Keep reading to see the full list of coins that move together.
Post Summary
- Coins That Move Together Explained
- List Of Coins That Move Together
- Why Coins Move Together
- How Coins That Move Together Affect Your Trading
- Conclusion
Click on any item above to read its details immediately.
1. Coins That Move Together Explained
Coins that move together are simply coins that move in the same direction.
That is to say when the price of a coin goes up or down, the other follows suit.
Though Bitcoin is the most popular crypto with this behavior, others move together too.
Check them out below 👇
2. List Of Coins That Move Together
Interesting, huh?
Let’s see why these coins move together in the next section.
Tag along!
3. Why Coins Move Together
a. Bitcoin
Being the first cryptocurrency, Bitcoin is a huge game player in the crypto market.
Altcoins were created to outperform Bitcoin.
So, it only makes sense that they move along with Bitcoin to show that they’re up to the task.
Especially the coins that forked from BTC like LTC and DASH.
As well as major altcoins like ETH and BNB because they are closer to Bitcoin in coin ranking.
Furthermore, the hype that follows the increase in the price of BTC attracts investors to other projects with the hope that they will skyrocket too.
Thus, generating more demand, and pushing up the prices of those coins.
Nevertheless, when an altcoin records a new development, its price may diverge from the price of Bitcoin e.g a second exchange listing or an updated wallet.
b. Base currencies
For any trading pair, there is a base currency.
Some coins are used as base currencies more than others in cryptocurrency exchanges.
Since the other coins are valued against the base currencies, they usually move in the same direction.
BTC, ETH, USDT, and exchange tokens are the most common base currencies.
c. Similar features
Another reason why coins move together is when they have similar features.
For example, DOGE is the leading meme coin.
Other meme coins like SHIB and MONA will move in tandem with DOGE.
d. Blockchain
Cryptocurrencies that are hosted on the same blockchain also tend to move together.
ERC20 tokens, for example, move in the same direction with ETH.
The same goes for BNB and BEP-20 tokens.
Also, ETH moves together with several other blockchain-based tokens.
Assets like DOT, SOL, etc usually move in line with ETH.
Next, I talked bout how this coin behavior affects your trading.
Keep reading!
4. How Coins That Move Together Affect Your Trading
It’s quite simple really.
They help you decide the coins to trade or invest in.
You can buy a more affordable coin that moves with a major altcoin or Bitcoin.
That way, you will make a huge profit when the bigger coin goes up and your asset follows suit.
Also, when the movement is a downtrend, you’ll not have much to lose.
For example, you can choose to buy LTC, WAVES, or LINK because they move together with BTC and ETH but they are more affordable.
And the profit you’d make from them will be substantial. 😉
Secondly, coins that move together can help you select a profitable pair when trading.
For instance, you can choose to trade coin pairs with BNB as the base currency since the coin is doing pretty well and hope that your asset will move in the same direction.
Note, however, coins that move together is not the only point to consider when choosing a coin to invest in.
Factors like a proactive team, a consistent improvement on the project, promotions, realistic roadmap, adoption rate, etc. are also vital.
Hey!!!
5. Conclusion
This is where we’ll draw the drapes in our discussion on coins that move together.
We discussed the reasons why coins have this behavior and how they affect your trading.
I hope you enjoyed the read. Please share this post with your friends if you did.
Also, drop any questions you may have or suggestions on the topic in the comments section.
Thank you!
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