There are many ways of buying bitcoins, and P2P trading is one of the major parts of it. The P2P crypto market is seeing tremendous growth today with Latin American and African P2P markets setting record trading volumes. The growth and popularity of P2P platforms is also observed in the CIS countries. With growing P2P crypto trading volume, the need for price equation features is increasing. Recently, Bitcoin Global came out with an announcement that they are adding the price equation feature on their P2P trading platform.
The current global P2P bitcoin trading volume has equaled the highs last seen in January 2018. The Bitcoin P2P markets in Honduras, Paraguay, Chile, Mexico, The Bahamas, Bolivia, and Argentina have seen new highs since July. At the same time, the African P2P market is posting new highs. Nigeria holds almost 50% market volume of the African P2P crypto trading market volume.
Importance of Bitcoin Global’s Price Equation Feature for its Users
Currently, Bitcoin traders are dependent upon setting a margin. It has been working well enough so far for them. Yet, the high volume Bitcoin traders may not be impressed by this feature alone. The price equation feature is just what high volume Bitcoin traders need. It will allow the high volume of Bitcoin trades to have more control over the pricing.
The price equation is the need of the hour. It automatically adjusts the price of Bitcoin in an advertisement regardless of it being an ad for selling or buying a Bitcoin. It will also save a user from manually adjusting the prices on their buy or sell advertisements.
Bitcoin Global recently introduced the price equation feature on their platform. The price equation feature of Bitcoin Global will tie the price of your order to multiple exchanges.
A Bitcoin Global user would be able to make their equation through the price equation feature. The users can leverage operators to convert the equation into their national currency. It will be more convenient for the user’s trades. Currently, Bitcoin Global’s price equation feature supports five exchanges. These are Bitstamp, Kraken, WhiteBit, Bitfinex, and Coinbase.
How Does Bitcoin Global’s Price Equation Works?
The price of a Bitcoin keeps fluctuating. Hence, the bitcoin traders selling their bitcoins on Bitcoin Global will benefit a lot from the price equation feature. This new Bitcoin Global’s feature will update the prices set by a Bitcoin trader on the P2P platform.
The price updating process is powered by the information that Bitcoin Global’s price equation feature fetches. It fetches data from some of the leading crypto exchanges. As soon as the pricing information is fetched, the algorithm updates the pricing. Bitcoin Global also allows its users to create a custom price equation. First, they need to select the source of market data. Then, they must use operators to create a custom price equation.
Bitcoin Global powers its default price equation using a powerful market data source known as btc_in_usd. The special market rate source in combination with a straightforward multiplication operator helps them set a margin at the top part of the market data price. Btc_in_usd, the market data source, fetches median prices from multiple leading crypto exchanges.
There is a very big advantage of fetching median price data from multiple leading exchanges. In case, one of the exchanges starts sending wrong information about the pricing, the median price data will still be accurate. The reason behind it is that the price equation feature fetches the information about the median price from multiple leading exchanges. If there is a wide disparity in the prices reported by one of the exchanges, then its price will not be taken into consideration.
Important Points About the Bitcoin Global’s Price Equation Feature
The automatic average update time for advertisement prices is five minutes. But it may take a bit longer than that if there is an extra load or if the API is responding slowly. The price equation always shows the final price of 1 BTC. It is because the data reported by the market sources always return with the price for one Bitcoin.
The equation won’t work if the price equation feature returns with multiple pricing values. It is because when there are multiple pricing values, the equation becomes null and void. Hence, it stops working. It is also to be noted that when there is low to almost no recent trading volume on a particular crypto exchange, the price equation feature won’t give a price from that market data source. The advertisement will automatically be turned off if the problematic equation does not resolve.
Bitcoin Global has also introduced an API for developers, known as API v1. It automates advertising management through API calls.
The rising P2P bitcoin trading volume around the world is proof of the trust that the peer-to-peer bitcoin trading platforms have garnered worldwide. Their success has got the attention of many high-profile bitcoin traders. To benefit both small and high volume Bitcoin traders, Bitcoin Global came out with the price equation feature. Other P2P platforms may also soon follow the suite seeing the benefits of the price equation feature for the P2P Bitcoin traders.