Cryptocurrency prices can move significantly throughout the day. Unlike the US dollar, there's no central authority setting the price. Instead, the price of any cryptocurrency is determined by how many people want to buy it versus how many want to sell it, across thousands of exchanges worldwide.
When more people want to buy than sell, the price goes up. When more people want to sell than buy, the price goes down.
What causes prices to move?
News and events. Announcements from governments, companies, or regulators can cause rapid price changes.
Market sentiment. If people feel optimistic about crypto, more buyers enter the market and prices tend to rise. Fear or uncertainty can push prices down.
Overall economic conditions. Interest rates, inflation, and stock market performance can all influence how people feel about investing in crypto.
Supply changes. Some cryptocurrencies, like Bitcoin, have a fixed supply. Events that affect supply, like Bitcoin's "halving," which reduces the rate of new Bitcoin creation, can impact price.
What this means for your Coinme transactions
Prices update in real time. The price shown in the Coinme app reflects the current market price at that moment.
Your quote is an estimate. When you start a purchase, Coinme shows you an estimated amount of crypto you'll receive. The final amount is based on the market price at the time your transaction is processed, which may differ slightly from the quote.
Price changes aren't fees. If you buy $100 of Bitcoin and check your wallet a few minutes later, the dollar value might be slightly higher or lower. That's the market moving, not a hidden fee.
Tips for managing price changes
Don't panic over short-term swings. Cryptocurrency prices are volatile by nature. Day-to-day changes are normal.
Only invest what you can afford to lose. This is standard guidance for any investment, and it's especially important with crypto.
Understand that timing matters. If you buy when the price is high and sell when it's low, you'll lose money. Nobody can predict prices reliably, buying low and selling high is the goal, but not a guarantee.