CryptoMarket is a top Fintech company that's been growing a lot in Latin America (LATAM). They've got around 650,000 clients spread out in different countries in the area, like Argentina, Chile, Brazil, Colombia, and Peru. That's helped them become one of the main places for dealing with cryptocurrencies in this part of the world.
So, what's CryptoMarket?
It's basically the first website where you can buy and sell Ethereum cryptocurrencies in South America. Right now, it's a way for lots of regular people and businesses to use blockchain technology and trade about 50 different cryptocurrencies.
CryptoMarket's become trusted because they've got a bunch of different cryptocurrencies, an easy-to-use and safe website, and really good customer service.
The idea for CryptoMarket came about when people needed a way to move digital money between countries without it being too expensive or taking too long.
How does it work?
CryptoMarket works like a digital money exchange for Latin America. It's set up so that people and businesses can trade different cryptocurrencies and use blockchain technology.
On their website, you can find people who want to buy and sell cryptocurrencies. They decide on prices using buy orders (shown in green) and sell orders (shown in red). This helps make sure things can be bought and sold easily.
For example, check out the table below. It shows someone who's ready to sell 0.2022 ETH at a price of 208.320 for each ETH. If they make the sale, they'll get 42,122 Chilean pesos.
If someone wanted to buy 1.9721 ETH at $203.780, for instance, they would need to wait for the two buy orders at $204.360 and $204.340 to go through. This means that someone else has to show up, wanting to sell their ETH at that price.
Examples of Exchanges or Stock Markets:
The global average price is defined by transactions happening worldwide every second. There are various websites that automatically gather this information using APIs from different exchanges. They calculate an average price for each digital asset. For example:
Why is the price on CryptoMarket sometimes higher or lower than the global average price?
As mentioned earlier, users themselves determine the price based on their willingness to buy or sell. There are various situations or events that impact the global price, causing people to either buy or sell digital assets, thus causing the price to change.
Usually, if an asset has a feature that adds value for people, they want to buy it right away. This increases their willingness to pay for it.
Once a market gains the necessary liquidity, the speed at which the local price adjusts compared to the global average price increases. This allows users to acquire the asset at a more fair price without having to pay excessively high amounts.
The liquidity of a market is reflected in the number of transactions taking place: the more buying or selling that happens within a period of time, the more "liquid" a market becomes.
For more information, you can visit any of the following articles:
- Cryptomarket and its security
- Buy cryptocurrencies