A market is a place where buyers and sellers meet to exchange goods and services. Buyers and sellers interact in the market to determine price through the forces of supply and demand. For example, the amount of bitcoin available for sale at any given moment determines its value relative to its rivals. The higher the supply, the lower the demand, and vice versa.
Cryptocurrency prices fluctuate rapidly, providing exciting trading opportunities for experienced traders. Traders use leveraged derivatives (such as futures and options) to profit from these price movements. However, high volatility can also increase your risk of loss.
The crypto market includes hundreds of cryptocurrency exchanges that let users buy and sell digital assets. Most of these are centralized exchanges where you deposit your cryptos and trade them for fiat currencies like EUR or USD. Some are decentralized exchanges where you can exchange cryptocurrencies directly between users.
Many people are fascinated with cryptocurrencies, whether as a store of value or as a new system for making payments. Some invest in cryptocurrencies to make a profit, while others buy them because they believe that these new technologies will change the world for the better. For example, cryptocurrencies eliminate the need for banks and other intermediaries that enforce trust and police transactions between two parties. That can be a powerful tool for expanding economic freedom around the world, especially in countries where government control of citizens’ finances limits their ability to save or make purchases.