In the cryptocurrency universe, the price of an asset is determined by supply and demand. Let's simplify this with an orange! 🍊
What is Offer? 🤲
It is the quantity available of something on the market.
If there are a lot of oranges 🍊, the price tends to fall.
If there are few oranges, the price goes up. 📈
What is Demand? 🙋♂️
It is the interest in buying something.
If 20 people want your one orange, the price goes up. 🤑
If nobody wants it, the price drops. 📉
In Cryptos 💻
Lots of supply and little demand: the price falls.
Low supply and high demand: the price goes up. 🚀
💡 Think about oranges: when there are few fruits and many people want them, the price skyrockets! 🍊💰
Before investing, understand how supply and demand are influencing the market.
