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What do the prices rely on?

How is the price of cryptocurrencies determined?

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Written by belo
Updated over a week ago

As in any free market, with no restrictions on entry and exit, the value of a cryptocurrency will reflect the variations in supply and demand.

Judgments and valuations that people make about a good, service or financial asset can be highly variable. These perceptions are the ones that shape its price, so the existence of volatility in the price of any cryptocurrency is natural.

The price at a given moment is nothing more than the amount at which it is traded between bidders and offerers at that moment.

The use cases that a cryptocurrency may have, as well as the relative scarcity of its supply versus the demand that exists in the market, make it an asset of greater or lesser value for people.

Bitcoin, for example, bases its strength on a pre-established supply: there will never be more than 21 million bitcoins in circulation, which makes it extremely scarce.

If we add to this restricted supply a growing demand due to the variety of use cases people assign to it, we obtain a rising price.

The prices of the cryptocurrencies you buy in belo are based on the supply and demand of the market at the time of the transaction. We want you to have access to the best prices for bitcoin and ether as well as for the main stablecoins, so you can choose the cryptocurrency you like the most without overpaying.

If you prefer to avoid volatility, you can always buy stablecoins. A dollar-linked currency may be a good option for you if you want to have price predictability.

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