How is the price of the securities determined on the exchange? Be it cryptocurrency, stocks or any other financial instrument.
They say it is simply supply and demand. If the demand is higher than supply than the price rises.
But what I dont understand is if for every transaction there are two sides than how do you determine which will pull the price?
Is it the order book and nonprocessed orders? Than fake orders may effect the price...
Can somebody explain it to me like I'm a dog.
Totally simple but big question . In this world all things are available in small and big amount and that specifying the price of that thing .
Here in the beginning the price of the Bitcoin was 1$ in the starting but as the people involved in this continuously , the price is also increases because the Bitcoin is limited in the market to 21 millions and I think about 60% are only mined .
So this is making the price increasing according to small up and down in the demand in the internet market .
Since the price in the world remain about at average to the price at every place also remain maintain ( can fluctuate small from country to country ) .
So here you should not think about this problem and make use of it without any risk and fake price thinking , because everything is good and trusted among the people , that is why the people are using it .