If you are familiar with the economics supply and demand theories, then that explains the changes in the price of the cryptocurrency.
Each coin (including bitcoin) has a specific total number of tokens. If there is more demand in the market (meaning there are more buyers interested in the token), the price will go high. On the other hand, if the demand is lower (people want to sell their coins), the price will go low because only few people are interested of it.
Topic: how is the value of cryptocurrency determined (Read 75 times)
You can hear, that cryptocurrency market is a free market and crypo`s price is only determined by supply and demand. But unfortunately, it`s not 100% precise. Thing is, crypto market is a young one, so there is a number of distinctive features, few of which you allways want to keep in mind.
First of all, there are no fundamental market indexes. Second, there are no regulatory institutions. Third, most of market`s participants are not professional traders. Next one: inequality of market`s perticipants. Few features, that are caused not by makret`s youth but by it`s nature: there is no material outcome of it`s activity; there are no common experts.
So, what you can expect, considering all that, in terms of coins prices? THIS:
- pump&dump strategies by big players;
- huge news influence. Or maybe no news influence at all;
- no guarantees of not losing all your investments in half an hour;
- huge prices volatility;
- price falling/rising with no obvious (for you) reason;
and so on.
It`s not the whole list, not even half of it. I just don`t have enough energy to make a mini-article instead of post. But you can continue by yourself
Other than that, it`s strictly fun
First of all, there are no fundamental market indexes. Second, there are no regulatory institutions. Third, most of market`s participants are not professional traders. Next one: inequality of market`s perticipants. Few features, that are caused not by makret`s youth but by it`s nature: there is no material outcome of it`s activity; there are no common experts.
So, what you can expect, considering all that, in terms of coins prices? THIS:
- pump&dump strategies by big players;
- huge news influence. Or maybe no news influence at all;
- no guarantees of not losing all your investments in half an hour;
- huge prices volatility;
- price falling/rising with no obvious (for you) reason;
and so on.
It`s not the whole list, not even half of it. I just don`t have enough energy to make a mini-article instead of post. But you can continue by yourself
Other than that, it`s strictly fun
hi, ihave some doubts about how the value of cryptocurrency will raise or fall?
and where we can see it
In reality, the value should have been determined by the progress of the project for which purpose that currency was created, but that is not always the situation. The market rather determines the value of the currency and the project as well. The volume, demand and supply and other factors all contribute to the overall value of a cryptocurrency. and where we can see it
hi, ihave some doubts about how the value of cryptocurrency will raise or fall?
and where we can see it
and where we can see it
Most of the Crypto Currencies are scam and they have very little volume trading. Purchasing even for $1000 of these crypto currencies can sky rocket the price. There is also Pump and Dump operators are always active in the market that actually manipulate.
Now I will come to Bitcoin ,price also volatile and I guess their price is governed by demand and supply + Whale traders (they are in accusation of manipulating the price). Actually Nobody purchase bitcoin in same price , somebody selling it in for $5k still making a lot of profit as he/she purchase it $2 and somebody will incur loss because he/she purchases at $7000.
Well, crypto-currencies value are determined according to supply & demand.
It just depends on how much buyers are willing to buy it, and at which price sellers are ready to sell them.
Supply & demand can easily be artificially manipulated, expecially on the smallest markets.
Last but not least, market feeling is particularly important within crypto world.
It just depends on how much buyers are willing to buy it, and at which price sellers are ready to sell them.
Supply & demand can easily be artificially manipulated, expecially on the smallest markets.
Last but not least, market feeling is particularly important within crypto world.
The value of every coin and token is based on how much money, trust and effort has the crypto proyect behind . A lot of currencies has their value in the tecnology that backups them, and has team in develop and improve of systems in their proyects in order to have a better token price. In other cases the price is based in the electricity cost .
Free market, so as everyone is saying based on the laws of supply and demand. If there is more demand than supply for bitcoin price will rise, and vice versa. Same goes for alt coins.
hi, ihave some doubts about how the value of cryptocurrency will raise or fall?
and where we can see it
and where we can see it
Its largely speculative but there are metrics to justify price to a coin or token but I suspect we won't see much of that untill later down the road.
The law of demand and supply determine the price of cryptocurrency in the market. If there is high demand in the market then price increases if the supply is constant, similarly if there is high supply in the market but no adequate demand then the price falls. That's the only law applies when it comes to the determination of cryptocurrency pricing. You will see not two exchanges even from the same country will have the same price at a certain point of time because the demand and supply will differ on both the exchanges.
I agree with you, theoretically, the price will depend on the demand in the market, that is, demand creates supply, I'm ready to buy for the price of X you are ready to sell for the price of X, so the price for the product appears. But in practice, all the bots have curbed the market, people probably do not understand that you can earn more.
It totally works upon the rule of demand and supply.It is only buyer and seller who decide the rate of crypto.
If only that were true.
It seems to go through periods of just skimming along at a fairly level price, with small variations either side, and a surprising high volume of transactions. I think this is caused by the trading bots looking for almost instant small profits. These bots can distort price movements.
It totally works upon the rule of demand and supply.It is only buyer and seller who decide the rate of crypto.
Its value depends on supply and demand. look at last year when bitcoin was gaining popularity, the value blew up.
hi, ihave some doubts about how the value of cryptocurrency will raise or fall?
and where we can see it
and where we can see it
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