How do Cryptocurrencies get its value ?

Investing or buying cryptos are somewhat of

a rollercoaster ride, it's extremely volatile so

it's value changes within seconds, a glimpse

of this was shown when cryptos like Bitcoin

and other altcoins touched their all time highs just this year and then soon after came down crashing when China took hard steps on cryptocurrencies. 

Crypto being such a volatile asset, how are they valued?

Utility

A currency can't really be called as a currency if you can't exchange goods or services with it, hence a lot of a currencies derive its value from it's utility, thewider it is accepted the greater value it would have, for eg: the American currency US Dollar is valued high as it is used as a reserve in many nations and there are nations which accept US Dollar (parts of South America and Africa) as legal tender as well. 

Scarcity

A currency can't really be called as a currency if you can't exchange goods or services with it, hence a lot of a currencies derive its value from it's utility, the wider it is accepted the greater value it would have, for eg: the American currency US Dollar is valued high as it is used as a reserve in many nations and there are nations which accept US Dollar (parts of South America and Africa) as legal tender as well. 

Market Cap

Market Cap is a really good indicator how well has the crypto seeped into the ecosystem and how big has it become, afterall it gives is the direct value of the coin, Market Cap is the product of Price of each coin and Number of coins circulating in the market. 

(Market Cap Price of Coin x Number of Coins)

Trust

The most important factor of all, trust, the crypto gains in value if more and more people start to trust in it, crypto grows to be more and more stable if more people trust in it and its utility. The recent rise of prices in crypto simply tells more and more people are investing into it and it's a sign of trust from them. Trust will play a huge role in crypto's rise in future, for reference if Bitcoin is used by a mere 15% of the population then its value is set to shoot up till 500,000 USD(3.9 Crore).