Bitcoin buy and sell price difference
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The price of Bitcoin is a balance between what price someone is willing to trade with to part from the Bitcoin and what someone is ready to pay to acquire it. Of Course, this transaction cannot happen if both of us stand our ground and refuse to come to an agreement. This is an example of how a transaction takes place between two people that come together to trade a bitcoin buy and sell price difference in bitcoin buy and sell price difference for a certain sum of money.
Now, Imagine a scenario with Millions bidding for the same house and then a Billion and bitcoin buy and sell price difference some more. When we have so many people bidding for a commodity through a platform, the company in question prices the value of the commodity between what one is ready to pay to acquire it and the price at which the person in possession of the commodity is willing to sell it for.
In a transaction involving a house, there normally is a broker that acts accordingly to bring about this balance within which people bitcoin buy and sell price difference willing to trade. A company acts as a price regulator to bring about a transaction between two people with commodities that they are willing to trade with a common interest to profit by taking a percentage of the transaction usually from the receiver, but in this scenario that involves Bitcoin, the sender usually pays a fee to the third party company.
Bitcoin exchanges and companies that transact using bitcoins determine a lower and a upper limit around what a person in possession of Bitcoin is willing to sell it for and what a person is willing to pay in order to acquire it. A price is finally determined after setting upper and lower limits between a seller and a buyer. A price is determined between the limits based on a pricing strategy that the company exchange employs. A price that is deduced post analysis and coherently agrees with traders on the network is still subject to additional increase or decrease based on the country in which they operate, taxes and margin.
Albeit there are numerous factors that impact the difference in price of a distributed commodity such as bitcoin, most of the companies try to predict and justify an appropriate balance for their market as their reputation of being a reliable exchange depends solely on the nature of their trustworthiness.
There are numerous bitcoin buy and sell price difference party companies that analyse Bitcoin, stocks and other distributed commodities in general and conjure predictions based on algorithms and machine learning likely.
Additional difference in prices might be seen if there are grave imbalances between groups leading to microeconomic differences where the companies might decide to offer Bitcoin at a higher price to profit off the difference between one microeconomy to another. This is mainly because the demand in India is a lot higher than what can be perceived on a global scale or another microeconomy say, Venezuela where electricity is nearly free and it is a lot easier to acquire Bitcoin leading to bitcoin buy and sell price difference demand imbalance between different micro-economies.
What might appear to be a simple number to price a distributed commodity such as bitcoin is a lot of work and research that ought to be done previously. It is always well recommended to check the prices on different reliable public exchanges for an accurate value of Bitcoin or Ethereum.
I send out a monthly newsletter on Bitcoin, Blockchain and Ethereum as a personal initiative. This pricing strategy differs from company to company and could also manipulated if desired. Example of Microeconomy Surcharge: All the very best!