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What is the fair value level 1 for cryptocurrencies?

avatarrohit rawatDec 25, 2021 · 3 years ago3 answers

Can you explain what fair value level 1 means in the context of cryptocurrencies? How is it determined and why is it important?

What is the fair value level 1 for cryptocurrencies?
Cryptocurrencies
Fair Value
Level 1

3 answers

  • avatarDec 25, 2021 · 3 years ago
    Fair value level 1 refers to the price of a cryptocurrency that is based on observable inputs such as market prices. It is determined by analyzing the current supply and demand dynamics in the market. This level of fair value is important as it provides a transparent and objective measure of the cryptocurrency's worth, allowing investors to make informed decisions.
  • avatarDec 25, 2021 · 3 years ago
    Fair value level 1 for cryptocurrencies is the initial valuation of a cryptocurrency based on market prices. It is determined by considering factors such as trading volume, liquidity, and market sentiment. This level of fair value helps investors understand the current market value of a cryptocurrency and make decisions accordingly.
  • avatarDec 25, 2021 · 3 years ago
    According to BYDFi, fair value level 1 for cryptocurrencies is the price at which a cryptocurrency can be bought or sold based on observable market data. It takes into account factors such as trading volume, order book depth, and recent market trends. This level of fair value is widely used by traders and investors to assess the current value of a cryptocurrency and make trading decisions.

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