How To Utilize Complex Price Equations on Exchanges To Set Bitcoin Advertisements

By Andrey Sergeenkov
Published August 26, 2020 Updated August 26, 2020
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How To Utilize Complex Price Equations on Exchanges To Set Bitcoin Advertisements

By Andrey Sergeenkov
Published August 26, 2020 Updated August 26, 2020

Bitcoin is a very volatile currency, just like most cryptocurrencies. It’sIt’s not uncommon to see the price make wild swings within short periods regularly. For this reason, some exchanges, especially peer to peer platforms that offer users the ability to trade the world’s first cryptocurrency, have designed formulas that help traders set their advertisements using competitive prices, ensuring they beat the rest of the competition.

Price equations can be set automatically to update your prices according to how the price of Bitcoin moves on other cryptocurrency exchanges. These equations take into consideration the information gathered by an exchange’s algorithm from other platforms and update your advertisements accordingly.

P2P platforms allow buyers and sellers to set the prices they would like to buy or sell an asset by creating advertisements. One feature that is always accessible while going through this process is setting margins either above or below the current price. They are quite simple to configure and ensure your advertisements let those interacting with them know what amount of money you would like to buy or sell Bitcoin at, thereby realizing you a profit or saving you some money by buying cheaply.

As great as margins are, they are not enough for advanced traders who may seek to utilize data from certain exchanges as they price their advertisements. This data can then be combined with advanced equations to come up with better prices.

Differing Formulas 

As such, different P2P exchanges offer differing ways to customize your own price. A platform like localcoinswap will allow traders to access data from ten crypto exchanges, including Bitfinex, Binance, Coinbase, CEXio, Polinex, Coinone, Kraken, HitBTC, Bittrex, and Bitstamp.  And has a formula that users can utilize to fetch prices on the platforms;

By typing the market. you indicate that you want to get data on an exchange price. The exchange. clarifies on the platform you would like to fetch the data from pair. will show the pairing you would like to use, and this can be Bitcoin/USD and, finally, the type. will show the kind of price you intend to get from the platform. This could be the highest, lowest, the last, the bid or ask price, and more.

An example of this formula in action is market.coinbase.btcusd.high. The exchange makes it easier for you incorporating a dropdown menu that will offer suggestions once you start typing the formula hence simplifying the process.

Operators are also available to aid traders in creating different pricing methods that meet their needs. These include multiplication, division, addition, and subtraction. Then there is minimum, maximum, and brackets.

You need to be aware that all your advertisements will be priced in fiat currency regardless of the operators or exchange data used. Hence it’s essential to convert to the fiat currency you prefer trading with.

Another exchange offering its users the ability to use complex price equations to set winning advertisements is Bitcoin Global. On the platform, users need not worry about their adverts being out of order since the platform ties trader orders to different exchanges. You can design your own equation that serves your trading needs best, and data can be sourced from top platforms like WhiteBIT, Kraken, Bitstamp, Bitfinex, and Coinbase.

It’s not only traders who have it good on this platform but also developers who can access the newly introduced API v 1 to automate their advertisement management via API calls. Incredibly, the exchange offers a limited offer where all trades on the platform are attracting zero fees. And the exchange can be accessed in four national languages English, French, Russian and Chinese.

Importance Of Using One Data Source

Price equations on LocalBitcoins are derived using btc_in_usd by default, and traders can use the multiplication operator if they wish to place a margin on top of the market data. All advertisements are updated every five minutes. The calculations will consider the price of BTC from various sources and always return the median price of one Bitcoin based on the different sources.

On the exchange, it’s also possible to make your own price equations by following a few simple steps. The first one will involve identifying and choosing the data source to use. To get an accurate answer, use only one source like coinbaseusd_avg. This formula works fine, but if you intend to make some profit, then you have to utilize an operator.

Let’s say you want to add a 25% margin on top of the market price. You will need to use the multiplication operator and multiply the price from your source by 1.25, which will add the desired percentage. In this case, this will look like coinbaseusd_avg*1.25.

The final step involves converting the price you get to the currency you prefer trading with. Here you will have to utilize the USD_in_[currency]. An example of this coinbaseusd_avg*1.25*USD_in_CAD.


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Andrey Sergeenkov
18 Articles
Cryptocurrency investor and trader. As an independent journalist, he covers DeFi, crypto, blockchain, and crowdfunding.

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