Exchange rate

A value of one currency in terms of another currency. It represents the amount of one currency that can be exchanged for a given amount of another currency. Exchange rates can fluctuate based on various factors, including economic conditions, interest rates, inflation, political stability, and market speculation. In the context of cryptocurrencies, exchange rates indicate how much one cryptocurrency is worth relative to another cryptocurrency or fiat currency (such as USD, EUR, or JPY). These rates are determined by supply and demand dynamics on cryptocurrency exchanges, where users trade different currencies. Exchange rates are crucial for international trade, investments, and travel, as they impact the relative value of goods, services, and financial assets across different currencies.