Everyone has witnessed the highs and lows of various cryptocurrencies, where Bitcoin reached a new high of $19,783.21 and as low as 5,000 bitcoins for $27 in 2009. This makes many of us wonder how we determine the value of a cryptocurrency and what factors affect its prices.It is the public and market that defines the value of any cryptocurrency. When a new cryptocurrency is introduced in the market, it is provided with a price per unit. With the listing of this currency onto the exchange, the project owners define a listing price to the exchange and is listed with the decided prices.
Now it is the market that determines its value, where the demand of the said currency defines its prices. Here the demand of the cryptocurrency is directly proportional to its prices and vice versa.