HotBTC has been involved in Bitcoin trading for several years from now and there are three terms that hold its own importance when it comes to Bitcoin trading, and all the three are needed to be completed all at once. However, in simple terms, a bid price refers to the highest price allotted for a buyer of the token to pay for security. The ASK price is the lowest price offered by the seller at which they would be selling the tokens. The BUY price is the bid price that matches the offer price and is the price at which the trade will be completed.
However, buying bitcoin from the best cryptocurrency exchange across the world can be a daunting task if you are that much experienced. The technology is totally new and there are unfamiliar avenues for new investors or traders who might assume that buying the token would require a deep knowledge of the crypto industry.
Now, let’s get deeper into this interesting topic and learn more about all the three and how it can affect the Bitcoin trades performed on the exchanges –
- ASK price
As discussed earlier, ASK is the lowest price offered for which a seller would accept the price for selling the Bitcoin. However, it is important to remember that sellers are always free to sell their bitcoins for whatever price they like to at the best crypto trading platform. But due to the high liquidity of the Bitcoin trade market, sellers will only be able to buy bitcoins at the current lowest price. Here is what you should always keep in your mind –
As with different exchanges, the lowest ASK price for Bitcoins are
only offered at the exchange’s sell price.
- The ASK price usually tends to decrease with the decrease in demand for the token.
- The ASK price is totally dependent on the daily trade volume of the exchange.
- The ASK price is matched with the preceding ASK price of the last sale on the exchange.
- Bitcoins can only be successfully sold above the ASK price and not lower than it.
- Sellers do have the option to set their ASK price outside the standards of the existing market, but if in case the ASK price not in line with the market, then the ASK price may not be able to attract any immediate response.
- BID price
It is the price that you as a buyer would like to pay in order to buy Bitcoins from a crypto exchange like HotBTC. However, being an experienced buyer you have researched well about the latest market trends regarding the local prices of the tokens and would have come up with a BID price number that may seem reasonable to you. Same as the ask prices, in case of BID price the buyers are free to name their own bid prices. Here is what needed to be remembered in terms of BID price –
- Same as the ASK price the maximum BID price is being offered at the exchange’s buying price.
- With the increase in demand, the BID price also increases and is also linked to the daily trade volume of the exchange.
- The BID price should be matched to the last or preceding exchange sale price.
- Bitcoins are usually bought only below the BID price and never above it.
However, in terms of BID price buyers of the best cryptocurrency exchange are always free to set their bidding prices only at their preferences. However, if in case the BID price hovers above th market standards then it becomes necessary to adjust the price accordingly.
- BUY price
It is a very simple concept like buying or purchasing price of any product which is particularly set by according to the buyer’s bid price by matching the offer price of the best crypto trading platform. In other words, it can be said that a BUY price is like a BID price which is matched according to the offer price and is the price at which the trade will be completed.
According to HotBTC, understanding these three basic terms will help you trade with Bitcoins and will further make it easier to understand pricing as specified in the market as well. If you have understood all the three trading elements then the risk involved in investing or trading lessens negligibly and you are able to learn how to efficiently buy and sell Bitcoins.