Caterina
Thu Jul 04 2024
|
5 answers
1129
How do exchanges determine the price of cryptocurrencies?
Could you elaborate on the process that cryptocurrency exchanges utilize to establish the pricing of digital currencies? I'm curious about the underlying mechanisms and factors that influence these valuations. Is it purely based on supply and demand? Or are there other metrics and algorithms involved? Understanding the dynamics behind these price determinations is crucial for investors seeking to navigate the volatile cryptocurrency market. Could you please explain the key factors and mechanisms at play?
