How cryptocurrency prices are formed

On an exchange, buyers place bids (the price they are willing to pay) and sellers place asks (the price they want). When a bid and an ask meet, a trade happens. The price of that most recent trade is the last price you see on a market page.

If more people want to buy than to sell at the current price, buyers have to offer more and the price rises. If more people want to sell, the price falls. News, general market mood, liquidity and large orders all influence this balance.

• 24h change — how much the last price differs from the price 24 hours ago, in percent.
• 24h high / low — the highest and lowest trade prices in the last 24 hours.
• 24h volume — how much was traded in 24 hours, counted in the coin itself and in the quote asset (for example, USDT).
• Pair — two assets traded against each other. In BTC/USDT, the price shows how many USDT one BTC costs.

Each exchange has its own buyers and sellers, so prices can differ slightly. Traders who notice a difference buy where it is cheaper and sell where it is more expensive, which usually keeps prices close. XFasil shows prices from one of the largest exchanges.

A market is liquid when there are many orders close to the current price. In a liquid market, even a large order changes the price only a little. In a thin market, a single order can move the price a lot — one reason why small coins are often more volatile.