Forecasting, simply explained First, it’s vital to understand what trading cryptocurrencies entails, as there are many parts to it, with Forecasting price trends being just one of them. Forecasting the price trends of cryptos stems from a process known as valuing, something which is carried out by traders to work out the fair market value of a stock or cryptocurrency. The values settled on during this process are all theoretical, but it’s these values which are used to go on to make predictions about potential market price variations which may arise in the future. This results in a trader being able to invest more accurately. Supply and demand have a huge effect on the prices of cryptos. When the demand increases, so does the price, before the demand tails off and the price begins to correct itself.