Cryptocurrency is not as simple as it seems to be at first glance. It is a recently evolved sphere, which means that if we explore the net, or read some magazines about it, everything appears to be very creamy and alluring, and quite easy and clean to operate. However, in reality, it is quite a complex and complicated genre, especially because of the price variations that exist due to the several exchanges and the exchange markets that have come into existence recently.
What is Cryptocurrency Exchange Market
Cryptocurrency is a digital currency that can materialize over a peer-to-peer decentralized computer network, primarily using blockchain and cryptography. Although the computer power required to weave such currency is pretty high, and normally people do not like to do it on their own, however, many such exchanges have developed as full-fledged businesses around this niche. As a result, we have two things, an oligopoly when it comes to cryptocurrency exchanges all around the globe, and a huge number of stand-alone buyers and sellers, including large company buyers and sellers for various cryptocurrencies. Both these legs are dependent upon each other, and which leg of this pair dominates the market, depends upon the scenario of demand and supply at a given point of time.
Effects of a Cryptocurrency Exchange Market
As more exchanges are coming up day-by-day, the cryptocurrency exchange market can now be termed as something that is fully mature and evolved. As expected, this now affects various aspects of crypto economics as follows:
Price Regulation: Although different exchanges have different prices, yet still, this works in a synchronized manner holistically, as the prices try to come to an equilibrium in the end. Therefore, the exchanges are able to manipulate and control the prices of some crypto in question up to some extent at least.
Demand & Supply: Sometimes the exchanges tend to consciously create a false shortage or a false excess of the crypto tokens in the market that is available for sale and purchase. They do so with different agendas backing it at different times, but this is another way in which they tend to control the crypto markets.
Different Legislations: Globalization and digitalization have made the cryptocurrency tokens, especially Bitcoin, penetrate different parts of our geography that fall under different legislations. As such, the exchanges are bound to follow the rules depending upon the legislation they fall in. This also causes various differences between them, and large crypto investors tend to tap for the best available opportunities, as they never bind themselves to specific regions.
Arbitrage Fundamentals: All of us are aware that the primary usage of cryptocurrency is arbitrage, which is buying at a lower price, and selling at a higher price, and reaping the profit in between. And this has been possible only because of the cryptocurrency exchange market, which has developed so extensively, so rapidly!
Get the Best Out of Your Cryptocurrency Exchange Market
In order to get the best out of one or multiple cryptocurrency exchange markets, it is best to use an expert consultant like executium.com in this field. The company not only keeps on scanning various markets to offer you the best ones to trade with their own pros and cons, but it also tips you on how to trade your crypto more profitably.