Understanding Crypto Price Calculations
In the world of cryptocurrency, understanding how prices are calculated is crucial for making informed investment decisions. This article will guide you through the process of how prices are determined and the best practices for tracking them accurately.
Covered in this guide
- How prices are calculated
- Differences in price across exchanges
- Best practices for tracking crypto prices
How Prices Are Calculated
Real-time Information: Coinmarketcap collates real-time information from a variety of sources to provide price information on verified crypto-assets.
Data Scraping: It scrapes details like price, trading volume, market capitalization, and circulating supplies from trusted global exchanges.
Average Trading Price: If a token is traded on several exchanges, the price you see on these price tracking sites will be the average trading price.
When you search for a cryptocurrency on Coinmarketcap, you will immediately see an overview and the average price. This information is presented in a timely, unbiased, and easy-to-interpret way.
Screenshot taken for educational purposes only; prices may not be current
Differences in Price Across Exchanges
Market Tab: To see a more accurate price, you need to see the list of exchanges where the asset is being traded. Scroll down to see the Market tab.
Price Variations: If you look closely, you will notice that there is a big difference in the price of the token across different exchanges.
For a point of comparison, this is what Trust Wallet shows for the price of the token and its total value:
But when you access PancakeSwap, the total amount of the token is completely different.
Best Practices
As explained above, the prices will differ depending on the exchanges where the asset is being traded. Trust Wallet app will only give you an estimated value which is based on these price tracking sites. It is highly recommended to check pricing directly from exchanges.
By following these best practices, you can ensure that you are getting the most accurate and up-to-date information on your cryptocurrency investments.
To ensure you have the latest features, be sure to get the most updated version of Trust Wallet: [trustwallet.com/download]
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article