dYdX Chain Markets

About Crypto Pages

Cryptocurrencies are virtual assets built on decentralized, peer-to-peer (P2P) networks known as blockchains. These digital currencies operate without central intermediaries like businesses, banks, or governments, allowing traders to store and exchange cryptocurrencies in digital wallets independently and without counterparties. The current market price for a cryptocurrency refers to its most recent exchange rate, typically denominated in fiat currencies like the U.S. dollar, British pound, or euro. Similar to the forex market, crypto traders exchange cryptocurrencies and fiat currencies using these market prices as a reference. But how are crypto prices determined? The basic principle is the law of supply and demand. Prices rise when buyers outnumber sellers and fall when sellers outnumber buyers. This buying and selling pressure varies due to factors specific to each crypto asset or the broader digital assets market, such as software upgrades, security breaches, or high-profile endorsements. Macroeconomic factors like global GDP, monetary policy changes, and inflation also influence prices. The newness and decentralized, intangible nature of cryptocurrencies often result in volatile daily price activity as well.