Like any currency, many factors ranging from government regulations to supply and demand can effect cryptocurrency. The basics of Economics dictate that increase in demand will shorten supply thereby the value of the goods will increase. Similarly, too much supply will tank the value or at least negatively impact it.
Some cryptocurrencies like Bitcoin are global in their reach. This means the factors effecting Bitcoin will be more than a cryptocurrency that hasn’t gained enough momentum. Bitcoin is the first and is almost synonymous with Cryptocurrency. As a result, even global events will impact the value of Bitcoin.
What does this mean for you?
It is common for cryptocurrencies to see immense ups and downs. They can and often come without warning. It is in your best interest to keep a close eye on the currency you have invested or the one you are mining in your bedroom. You can make very profitable decisions if you just simply spend a few seconds daily looking at the market trends. It will help you decide which coins you should be mining or investing in.
Best of luck!