If I visit these websites, each one offers so much valuable information surrounding cryptocurrency world. These platforms include Binance, Luno, Cointelegraph, Coinbase, CEX.IO, crypto.com, and coinmarketcap. The first thing that catches my attention when once the web pages open is the prominently displayed real-time (live) charts depicting the price of Bitcoin in USD. I enjoy looking at the charts because they provide a detailed visual representation of Bitcoin's value fluctuations over time. It allows a bitcoin enthusiast like me to keep track the market movements without stress. however, what consistently boggles my mind is the question of how is the exchange rate of Bitcoin to USD and other currencies determined?
You got your question answered multiple times i believe, supply and demand is how the price of bitcoin and other crypto currencies are determined in usd and in real time, i have usd and you have bitcoin, you are interested in my usd and I am interested in your bitcoin, negotiation for how much usd you want for your bitcoin, and also how much usd i am willing to pay you for your bitcoin, if at the end of the negotiation stage, we arrive at a conclusion and the trade is carried out, the final price in usd at which you sold your bitcoin to me is how the price of bitcoin is determined, I believe this is very simple and easy to understand, the analogy I used here does not happen between just two traders, but between millions of buyer and sellers alike, the exchange act as a middle men providing the platform for the buyers and sellers to meet and trade.