Market

An area or arena, online or offline, in which commercial dealings are conducted.

What Is the Market?

A market is a place where buyers and sellers get together.

In the case of cryptocurrencies, this would involve buyers and sellers of digital assets.

Markets determine the price of a cryptocurrency or asset in question.

Typically, the more buyers and sellers, the more liquid a market is.

The same holds for a perfectly competitive market. One of the key characteristics of perfect competition is high levels of liquidity and transactions.

The price is set by supply and demand. Sellers determine the supply, meanwhile buyers determine demand.

A perfectly competitive market has diminished ability to charge prices at a discount or a premium.

The balance and supply and demand can be disrupted by other variables. These include technological innovation, regulation among other factors.

The most liquid market in the world is the forex market.

The cryptocurrency market is considered to be highly volatile.Bitcoin, the crypto market’s first and bellwether currency has witnessed many bouts of volatility.