A quote is a cryptocurrency price, which is exposed by the seller or buyer to complete a purchase or sale transaction. Simply put, the rate of cryptocurrencies is the value of the selected specific coin, which is expressed in units of another fiat currency. The user only needs to determine for himself the optimal ratio of specific currencies in order to carry out the procedure of buying or selling.
Pricing and differences from fiat
Many exchange users may notice that online cryptocurrency quotes on each service are different. The price of an asset on the resource is determined by the last transaction made, when the cost of buying and selling is the same, and the order is instantly closed on mutually beneficial terms.
A distinctive feature of the value of a coin is its dynamism. This is due to the lack of a regulator that would support liquidity with constant influences. In the fiat money market, this is done by financial regulators and central banks. Their impact involves an artificial reduction in the volatility of the foreign exchange market.
Cryptocurrency and quotes: where is the best price?
When choosing the optimal cost, the question arises of how to determine the most profitable option for your own investments. Experts recommend paying attention to the following:
- The price of a digital asset is lower on exchanges that have low AML requirements (money laundering policy or low level of reliability).
On completely legal and secure platforms, the cost may differ by several points. To make the best choice, traders recommend evaluating several large services at once, for example, Binance and WhiteBIT. To determine the best cost in all respects, it is recommended to take into account the reputation of the site and the availability of registration.
- In addition to the factors presented, it is worth paying attention to the liquidity and turnover of the exchange.
Low liquidity indicates the difficulty of executing transactions at a price that is close to market indicators. High liquidity, on the contrary, confirms the fairness of the current exchange rate.
What else should be considered when estimating the cost?
It is important to understand that crypto exchanges are not completely global, so the value of a coin will also be affected by geographic location. This is due to the fact that supply and demand may vary depending on the specific region.
Large crypto exchanges have a direct impact as they will be targeted by smaller platforms due to arbitrage. This trend makes it possible to predict changes and respond to them in time.
