*Basics of crypto*

DEMAND AND SUPPLY

Whether you're a consumer, producer, or investor, understanding supply and demand can help you make better decisions. 👍

By understanding this fundamental concept, you can gain a better appreciation for how markets work and how prices are determined. 📈

Understanding Supply and Demand Helps Us:

Predict price changes: Knowing the factors affecting supply and demand can help us anticipate price movements.

Analyze market trends: By analyzing supply and demand trends, we can identify potential opportunities and risks.

Demand

Definition: The quantity of a good or service that consumers are willing and able to purchase at a specific price.*

Supply

Definition: The quantity of a good or service that producers are willing and able to offer for sale at a specific price.*

Factors Affecting Supply and Demand:

Demand Factors:

-> Consumer income

-> Consumer preferences

-> Consumer expectations

-> Population size and demographics etc

Supply Factors:

-> Cost of production

-> Technology

-> Number of suppliers

-> Government policies (taxes, subsidies)

-> Natural disasters etc

NOTE: whenever Demand of a Coin increases (everyone wants to buy it) and Supply is limited. Price will increase.

Vice versa to this

when Supply is More than demand than everyone wants to sell but no one wants to buy so prices will decrease.

For example: Bitcoin Demand is high in the market as compare to Supply Thats why bitcoin Price is more than other coins.

Hope You understand the concept Of Supply and demand.

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