What tool do you use to make sure you’re buying bitcoin at the correct price??
Every tutorial tells me that the exchange automatically fills in the price. But shouldn’t we check and confirm the numbers ourselves??
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Discussion
Good question, I've never really questioned exchanges, how can you even trust google? I believe there was a price estimator that used on chain data to estimate the price, but I can't find it
Again price is a very dynamic discovery type of thing the only way price can be actuated is through the aggregation of the data of buy and sell orders on open markets but there is a way that they have created to try to find out they're quite priced using on chain metrics it is called UTXOracle.py
That's not necessarily how it works because if you go to timechainstats.com You can look at all the different buy and sell orders that are happening on each individual platform the only way price discovery is actually manifested this is due toThe buy and sell Orders happening on that platform so for every buyer there must be a seller So depending on the platform where you are purchasing your Bitcoin there may be a price discrepancy because there might not be sellers at that price
So the price of bitcoin at a certain date doesn’t matter? Then why are people trying to buy it at 53k ??
Because who wouldn't want cheaper sets. Price is a very dynamic thing the only way that we can know that something is worth something is because we know the last price that it traded at so therefore the only way we can tell what the price or current valuation of Bitcoin is is by judging it based upon the last trade that actually happened and it's only through the last trade that occurred that we can know what the price is
The price of bitcoin is just whatever price people are willing to exchange it for.
If you are on a large exchange with plenty of volume you can look at the market orders and see what trades are going through. If people are trading bitcoin for that price then that is the price of bitcoin.
Some exchanges have differing prices but the ability to arbitrage the trade keeps that to a minimum as long as there is plenty of liquidity on the exchange you are using.
Then how they’re saying the price is 53k if that’s not correct
I am not sure I understand the question.
What leads you to assume the p4ice they are shoeing is incorrect?
Perhaps what you are doing is an instant buy where some exchanges have a mark-up on price. Usually if you take an order from an actual market offer then exchanges charge less than 1% fee.
I’m not assuming the price they’re showing is incorrect. But I also don’t wanna take for granted the price they’re showing is the correct one.
I don’t know what an instant buy is yet. But this takes me back to my question. What if I’m doing an instant buy and the price is higher?
Don’t anybody double check the price they’re paying?
Most changes have an "Instant buy" or some such button where you enter in an amount of fiat and it will buy you bitcoin.
This is very easy but usually not the most bitcoin you can get per dollar.
If you use an exchange with a trading interface then you can pick the exact price that you are willing to pay. That way you can look at what the current buy and sell orders are and choose exactly what you are willing to spend.
Good information. But what I needed to know is where do you guys check the correct price?
Apparently today is 53k, it’s also on the knews on tv. Where do you go to confirm that number?
You can pick an exchange and look at trade history.
For example this link takes you to the trading page on Coinbase
https://www.coinbase.com/en-ca/advanced-trade/spot/BTC-USD
On the side there is a column called trade history and you can see all of the bitcoin trades as they happen. Since this is the price people really are exchanging fiat for bitcoin at then you can know this is the price of bitcoin at the current moment (at least the price on Coinbase, as I said in a previous message there can be slight differences between exchanges)
Prices are set at the margin, where the quantity demanded by buyers and the quantity supplied by sellers meet.
At this equilibrium, the price is not necessarily what buyers ideally want to pay or what sellers ideally want to receive, but it reflects the balance between supply and demand at that moment. It’s the price where the last willing buyer and the last willing seller agree to a transaction, which sets the "market-clearing" price.
The only tool for this is "buy stop order"
Only you know the correct price you are willing to buy Bitcoin
Then the people who say is at 53k and it’s a dip are lying??
#Sintra might help... https://www.sintra.fi/#pricing
It was presented at the last nostr:nprofile1qqsyv47lazt9h6ycp2fsw270khje5egjgsrdkrupjg27u796g7f5k0spzemhxue69uhhyetvv9ujuurjd9kkzmpwdejhgqgjwaehxw309ac82unsd3jhqct89ejhxqgnwaehxw309aex2mrp09skymr99ehhyecusqvd6 #ComunityCall
I’ll check it out
How do you confirm the correct price for an item at an auction?
What does that have to do with the question?
The price for an item at an auction is whatever the highest price offered is.
When you buy Bitcoin it's exactly the same situation. The Bitcoin you're buying is Bitcoin another user is selling. The exchange is essentially running tons of tiny auctions constantly to get seller's the highest price possible and buyers the lowest possible price. When those prices overlap, the sale happens.
The same way that you can't "confirm" the correct price at an auction - because the price is set by whomever buys/wins the object - you can't "confirm" the correct price for Bitcoin.
The price of Bitcoin is whatever price most recently had a buyer and seller agree to transact. That price changes constantly and is organic.
I think you’re misunderstanding my question or I didn’t formulate it right.
I’m not asking the process by which it is determined by the exchange.
You’re probably thinking of someone who’s more into this. I’m not. I know the price is determined by several factors, I don’t care about that now. I just want to know how much is it today?
Let me put it this way, I wake up and hear in the news on the tv that bitcoin is 80k. Where do I go to check if it’s really trading for 80k?
Each exchange will have their own spot price based on the process I described. They will generally be very similar because of market forces. Which basically means you can check the spot on any large exchange and that is the "true" price