Articles on: Investing with Finst

How are cryptocurrency prices determined?

Similar to traditional financial instruments, the prices of cryptocurrencies are determined based on the supply and demand between market participants. The “ask” price refers to the price you would obtain if you were to buy a digital asset. Oppositely, the “bid” price is the price you would receive when selling a digital asset. The difference between the best bid price and the lowest ask price of a specific cryptocurrency is called the spread. The more liquidity there is on a specific asset, the lower the spread will tend to be.

At Finst, we compute our own prices which are displayed on our platform for indicative purposes. Besides the applicable trading fees, these prices include all potential costs for you as an investor, such as third-party costs and any mark-up added by Finst. The final execution price may vary depending on market circumstances and can be viewed in your activity dashboard once an order has been executed.

Updated on: 16/08/2022

Was this article helpful?

Share your feedback


Thank you!