Price Discovery
The process by which markets determine an asset’s price through supply, demand, and information flow.
Price discovery emerges from continuous interaction of buyers and sellers across venues. Depth, transparency, and information speed influence quality.
"Spot exchanges, OTC desks, and derivatives markets all contribute to BCH price discovery, with order books and funding rates providing signals."
Related Terms
Order Book
→A real-time list of buy and sell orders organized by price level on an exchange.
Liquidity
→The ease with which a crypto asset can be bought or sold without affecting the market price.
Cryptocurrency Exchange
→A platform that facilitates the buying, selling, and trading of cryptocurrencies. Exchanges can support crypto-to-crypto or crypto-to-fiat transactions and serve as crucial infrastructure in the digital asset ecosystem.
Over-the-counter (OTC)
→Trades conducted directly between parties rather than through a public order-book exchange.
All terms and definitions may update as the Cryptionary improves.
