#Learn dear trader, you are not here to lose 💯💪
(Follow the page, you will learn, and you will find secrets in trading that they did not tell you about).
Let me explain with an example and equations.
Example:
Let's say there is a cryptocurrency called "XCoin" and it has a fixed supply of 1,000,000 coins.
Supply and demand:
Supply: The number of currencies available for trading.
Demand: The number of people who want to buy the currency.
If the demand for XCoin is high and the supply is constant, the price tends to rise because more people want to buy a limited number of coins. Conversely, if the demand is low and the supply remains constant, the price tends to fall.
Simple equation:
We can use the following equation to illustrate the relationship between supply, demand, and price:
Price = Demand / Supply
Of course, this is a gross simplification of reality because there are other factors that affect the price such as news, expectations, and government interventions.
Practical application:
If the demand for XCoin is 500,000 coins, and the supply is 1,000,000 coins, the price could be approximately:
Price=500000/1000000=0.5$
But if demand rises to 1,500,000 coins while supply remains constant, the price could be:
Price=1500000/1000000=1.5$
In this way, we see how a change in demand, while supply remains constant, can greatly affect the price of a cryptocurrency.
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