kuCoin|what are crypto exchanges different?
KuCoin is a cryptocurrency exchange that allows you to buy, sell, and store a variety of cryptocurrencies. It has a popular mobile cryptocurrency app as well as an online interface. You can purchase KuCoin’s native coin (kcs) to reduce fees and gain incentives.
Bitcoin exchange isn’t for the faint of heart. As you can see, the underlying issue is quite different. You don’t have the backing of a company’s performance like you do with a stock. There’s nothing more to it than demand and supply. You can’t even anticipate the price of a stock, never alone the price of bitcoin!
So, you’re probably aware that bitcoins are extremely volatile. But did you know that the price of bitcoin varies depending on which exchange you use? NO? You’d better know it now, don’t you? Even if you did, you probably have no idea why this is the case. Anyway, don’t be concerned. We’ll walk you through the process. Let’s start with a hypothesis about how bitcoins are priced.
The cost of bitcoins
To continue our topic, bitcoin prices are essentially a function of demand and supply variables. The supply of bitcoins is finite at any given time. The total number of bitcoins that can be mined is 21 million. It would be depleted once all of them had been extracted. So, in essence, demand is the determining element in price. When there is a limited supply, the higher the demand, the higher the price, and vice versa.
Take notice of how this differs from the price of a stock. Demand and supply, without a doubt, decide share prices in the end. But the truth is that when you buy a stock, you’re essentially buying a piece of a company’s pizza. This company’s position, performance, quarterly results, management, industry, and economy are all factors to consider.
Size of market:
Markets are not the same size all across the world. Some markets are large, while others are modest. As a result, there would be a supply discrepancy as well. And it’s a no-brainer that with steady demand, reduced supply equals higher prices and vice versa. That is why Bitcoin prices in India are higher than their international counterparts. Because there are very few bitcoin sellers in this market, everyone wants to get their hands on some bitcoins. And you can’t put a price rise at bay when demand outweighs supply.
The volume of trades also influences Bitcoin prices. And these volumes vary depending on the size of the market, the presence of restrictions, and other factors. Bitcoin prices are, in essence, calculated as an average estimate of recent transactions. As a result, prices differ among exchanges due to volume differences. Furthermore, certain large traders (dubbed “whales”) prefer a certain crypto exchange due to vested interests, which can influence volume and price.
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No common way to price bitcoins:
It reiterates the reality that bitcoin prices are determined solely by supply and demand. And because these variables vary between cryptocurrency exchange, so do the prices. Nobody knows how much bitcoin is supposed to be worth. There is no global pricing standard for cryptocurrencies. It is not pegged to any other currency (e.g., USD, INR, etc.) because it is decentralised digital money. It just calculates its price based on the current market emotions.
kuCoin is a Seychelles-based cryptocurrency that was created in May 2017. Its founders have a financial services background, and their first goal was to establish a safe and simple platform for consumers worldwide to exchange cryptocurrency. KuCoin is now the world’s fifth-largest cryptocurrency exchange with over 10 million members. KuCoin is a cryptocurrency exchange platform that is using in over 200 countries.
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