Bitcoin Forum

May I ask you ! What determines the price of an active coin on the trading floor? when it rises and when it drops? I do not understand! I very thank you for letting me know!

Its supply limit has something to do with its price including the volume of that coin elsewhere.

When it rise? when there are good news for that coin, it is one main reason that triggers investors and traders to buy that coin which makes the volume and demand higher.

When it drops? usually after the rise.

Supply and demand. Everything beyond that is mere speculation or retrospective rationalization ("oh, the price must have fallen because x") which is neither all that helpful for future predictions nor necessarily accurate in their retrospective interpretation of events (ie. who knows if x really was the reason for recent market movements).

The major price determinant is the traffic in either the demand or the supply, probably when numerous users are all trying to purchase a particular coin at a particular time, it's bound to increase in price, as the traffic it's getting at that particular moment is much and it could attract more and more investors to invest in that particular coin..

But when the supply is low, and patronizer begin to dump,leading invariably to what is called FUD, the prices drop drastically as the coin is sold off sporadically(fastest fingers first)
In less than 24hrs the price/value could be as little as zero

I suggest reading this: https://www.quora.com/What-determines-the-price-of-a-crypto-currency

It is purely Supply and Demand for most exchanges. On one side you have the Sell orders of people wanting to sell at a predetermined price and on the other end you have Buy orders of people who want to buy at a predetermined price.

Some people are saying that some exchanges are faking trading volumes and that some are even faking actual Supply of coins. <Fractional reserve type tactics>

No matter how this is done, most legitimate exchanges purely work on Supply and demand mechanisms.  :P

Trading volume also plays a vital role in the market price. A coin with very little volume and trades would be easily affected by a single trade.
A large holder could manipulate the market price by setting up an order, and that would be aggregated as the value

Fake volumes is one of the reasons DEXes is a good option for purchasing. It may not be very efficient for active trading.

One more thing to note is that altcoins usually follow BTC movements. If BTC falls, the whole market drops even harder and vice versa.

The cost of the token depends on the capitalization and the level of demand for the token. Here work the usual laws of the economy as well as with banknotes. And the price is regulated by the level of supply and demand at the current time.

Do not forget that major market players can manipulate the price of the token.

Usually, the selling price should be determined by supply and demand. But this supply and demand can sometimes be artificially controlled. So, to put it simply, a large part of the price is controlled by a small number of people.