Fundamentals in crypto: Upgrade your view of the market đ đ€
Crypto is the same financial market as the stock market. The basic principles are the same: supply and demand determine the value. Cryptocurrencies are simply tokens that represent company shares. As companies develop, so does the ratio of supply and demand for their tokens. đ
Example:
1. You bought a coin on the exchange - there is demand.
2. You bought rice in the store - also demand.
3. The store covered your demand with its supply.
4. The exchange covered your demand by offering a coin.
That's the whole point. The value of a product is determined by the difference between demand and supply. Be it crypto, rice, or even services like tarot cards. đ
The process is the same:
- High demand + lack of supply = GROWTH.
- Huge supply + no demand = FALL.
- Demand that is immediately satisfied by supply = SIDEWAY.
The reasons for the changes are also the same: advertising campaigns, political situation, etc. The difference between the stock market and crypto? Simply in the lack of full regulation and greater volatility. Crypto is riskier due to the possibility of scamming individual projects. đ§ #Green_lamp $SOL
