The crypto token Flow serves as the native currency for the Flow network. The entire network  runs on the token, as it is used to validate transactions and provide rewards.

The Flow network tries to be different from other cryptocurrency networks by operating much faster than its competitors and requiring so little internet power that anyone with a half decent internet connection can use their connection to validate transactions on the Flow network. This decentralized blockchain manages to do that by splitting the network operator jobs into four separate functions. By breaking the process down like this, more people can be involved and less power is required for each participant. 

Decentralized cryptocurrency like Flow is not backed by real world fiat currency. Its value can change dramatically from day-to-day and even moment-to-moment. The Flow token operates on a network that is designed to be user-friendly and developer friendly. The network and token were both designed with game and app development in mind. Already, the brand has partnerships with the NBA, UFC, Ubisoft, Samsung, Warner Music Group, and the NFL, to name a few. 

Flow Breakdown

As of this writing, the Flow token is ranked #53 among cryptocurrency tokens. It has a market cap of $2,663,801,790.70. The FLOW token is used as a medium of exchange on the Flow platform and can be used for staking as well. When staking, investors give up some of their tokens for the network. This is only a temporary lending action that contributes to the security of the network and is necessary for a blockchain like Flow that runs on a proof-of-stake system. A week after staking, rewards are then issued to those who lent their tokens. The rewards change based on how long tokens are staked to the network, with the first five weeks returning 20% interest per year and any staking that lasts longer than 5 weeks yielding 5% per year. 

The staking process helps the network to eject malicious or modified nodes that could damage the network. It also keeps the token holders invested in the security of the Flow network. 

The Flow blockchain is designed to help app and game developers power their creations easily. The blockchain ensures that digital assets can be made durable and unique and then tagged back to the owners so there is no issue about who created the asset. 

The Flow token acts as a go-between for the digital assets that have been created and the wider market that might be interested in purchasing or utilizing them. 

Flow History

Flow has only been around since last year but has already made a big impact on the industry, shooting up the ranks of cryptocurrency tokens. This crypto and the network behind it were developed out of a need to create a new network after the video game CryptoKitties took off. The game became so popular that it made it difficult to use the Ethereum blockchain it launched on. Blockchain activity was so congested because of the game that the developers behind CryptoKitties, Dapper Labs, decided to start up their own network called Flow. 

Opening the Playground

They started the Flow Playground in 2020, which was used to create NFTs, or non-fungible tokens. These digital items are unique in that no one else can have the same one that you have. Their rarity makes them highly sought-after, particularly in today's crypto market. 

As the NFT market started to take off, the Flow network began working with major brands to create highly coveted, one-of-a-kind digital assets that would drive bidding wars online. 

All-Time High

In the first few months of 2021, the Flow rate shot up to $39.04 (FLOW/USD), moving from almost $10 a month before. The Flow price stayed high for a couple of months before the market crash in April caused the price to plummet. It hit a low of $6.811 and then steadily began climbing back up and spending much of the remaining year around the $20 level. 

Flow Price Factors

Many different factors affect how the Flow price moves. Let's break down some of those factors so that you know what to look for when planning to invest in Flow and determining if it may be the right time or not.

Buying and Selling

As the Flow token is bought or sold, its price will change. The more Flow tokens are sold, the lower the Flow price will go. As more people buy the token, the price increases. So, if there is a lot of interest in Flow, the price can skyrocket, and then as people start to sell off their Flow tokens when they realize how high the rate is, that can drive the price back down. When the price goes on an upward trend for a period of time, that is known as a bullish trend, whereas a downward trend is a bearish one.

Economic Factors

One of the big reasons why any cryptocurrency price may change is because of what is going on in the larger economy. Major economies like the United States, China, and England will have a larger impact on the cryptocurrency industry.  If the economy is doing poorly, then the market expects a sell-off of cryptocurrency assets to happen. The FLOW price will likely decrease when the economy worsens or there is news of something happening within the economy that could cause major financial problems. When there is a financial crisis, huge sell-offs tend to happen, driving down the price of digital assets like the FLOW token.

Major Cryptos

The top 10 or so cryptos help determine the price of the other cryptocurrency tokens. In particular, any action for Bitcoin and Ethereum will have a ripple effect down to other cryptocurrencies. If the price of Bitcoin is plummeting, that's going to pull the Flow price down as well. The larger cryptos have such a massive market share that this is simply how the market operates for now. If you want an idea of which direction the Flow rate is headed, watch what's happening with the higher-ranked cryptos.

Token and Network Utility

The Flow token has use beyond just trading with other cryptocurrencies. As mentioned already, it can be used in conjunction with the flow network in developing apps and games. As new features are released for the Flow network, the token can gain value. When the token can be traded on more platforms or used more ways, that improves its utility and will drive up the rate as well. 

Trading Flow

Flow can be traded with other cryptocurrencies, and platforms that allow trade between digital assets and fiat currencies may permit Flow token holders to cash out their assets for real world money. FLOW can be bought and sold on platforms like Binance, Uphold, and a few others.Trading may be subject to regional restrictions. For instance, no cryptocurrency can be purchased in China at this time due to new legislation from the Chinese government. 

Purchasing Flow on any digital currency exchange outside the Flow network will come with fees that vary from one exchange to another. You will only be able to transfer Flow between other currencies on the same exchange that are also offered by that exchange.

Keep in mind that the price of Flow and other cryptocurrencies varies wildly. It can be risky to invest in or trade any digital asset because of how volatile the prices are. Due to the risk involved, it is a good idea to use expert analysis and trading predictions from industry professionals like FX Leaders. This will help you mitigate some of the risk and keep you from making a poor investment decision that could cost you a lot of money.

Once you purchase Flow tokens, the value of those tokens can change without any warning, and the change can be quite drastic. There have been multiple instances in 2021 where the cryptocurrency industry has lost billions of dollars in value in a matter of hours. Some of that money could be yours to lose if you're not careful.