[Insight] How to Use BTC Market, Let’s Trade with BTC!
Greetings,
Bithumb has opened a new BTC Market! (Please give us some applause!) Now, we would like to inform you everything about what is BTC market, what kind of merits it has, and how to use it. Everyone, those who are new to the digital asset market and having hard times understanding the concept of the market, and those who know what is BTC market but only using the KRW market because of its intricate nature, please pay attention! We, Bithumb will explain to you everything, one by one. :-)
Q. What is the BTC Market?
In South Korea, most of the digital asset exchanges are running KRW markets that are using Korean currency. If the KRW market’s key currency is KRW, the BTC market’s key currency is Bitcoin. In short, it means trading digital assets with Bitcoin, not with KRW. In other words, members in foreign countries who cannot use the KRW market can also trade freely at a Korean digital asset exchange, Bithumb, through the BTC market.
Since the BTC market is using Bitcoin as its key currency, every information, including real-time price, change, and volume, etc., is all written in Satoshi, to the eighth digit after the decimal point. However, it doesn’t matter if you don’t know how to read Satoshi. Bithumb’s BTC market will also show the value in KRW/USD right under the Satoshi value. So, there will be no inconvenience!
*What is Satoshi? Satoshi is the smallest monetary unit of Bitcoin. The unit means the eighth digit after the decimal point of Bitcoin (1 Satoshi = 0.00000001 BTC).
Then, can we say the KRW market and the BTC market are markets using different key currencies that are trading the same digital assets? The answer would be both yes and no. Since the digital assets enlisted in the markets are different, you need to consider the KRW market and the BTC market as separate markets. Therefore, it is important to check the digital asset you wish to trade is enlisted in the market first.
What do you think? It’s not so hard, right? J Next, we would like to introduce the merits of using the BTC market!
Q. Why Using the BTC Market?
If there are two individuals called A and B who have Altcoin from BTC market of the same market price and their earnings are different, what could be the reason? The reason will be they have bought Bitcoin for a different price. Since the BTC market’s key currency is Bitcoin, which is variable in market price, you must check the Bitcoin’s market price when you trade in the BTC market. Also, you can sell the Altcoin you purchased from the BTC market to the KRW market. If you can use both markets timely, you can make wiser investments compared to using only one of the markets.
Let us show you an example of how to calculate gains and losses in the BTC market. First, let’s say you purchased Altcoin A in 500 Satoshi (KRW 50) when Bitcoin’s price was KRW 10 million. If the Bitcoin’s price has been doubled in the next day and became 20 million, how much will be the total asset?
If the Altcoin A’s price has also risen and became 1000 Satoshi,
you will receive KRW 20 million X 0.00001000 Satoshi = KRW 200 of earnings. That is to say, you will receive 4 times of profit.
If the Altcoin A’s price remained still as 500 Satoshi,
that is to say, you will receive KRW 20 million X 0.00000500 Satoshi = KRW 100, which is 2 times of profit.
If Altcoin A’s price has dropped to 250 Satoshi,
that means KRW 20 million X 0.00000250 Satoshi = KRW 50, which means that the profit will remain as the principal was.
If you wish to learn more▼
If the Bitcoin’s price increases, the earnings per change in Altcoin’s price in the BTC market will be 4 times when increased, 2 times when remained still, and the same as the principal when decreased.
If the Bitcoin’s price remains still, the earnings per change in Altcoin’s price in the BTC market will be 2 times when increased, the same as the principal when remained still, -2 times when decreased.
If the Bitcoin’s price decreases, the earnings per change in Altcoin’s price in the BTC market will be remains as the principal when increased, -2 times when remained still, -4 times when decreased.
What do you think? The calculation of gains and losses in the BTC market is not so difficult than you expected, right?
Q. How Can I Use Bithumb’s BTC Market?
Finally, time to introduce you to the BTC market of Bithumb exchange! You can see the newly launched BTC market from the main page of our Bithumb exchange website. From there, you can see the digital assets enlisted in the Bithumb’s BTC market in the same way as the KRW market. (Can you see the Satoshi notation we’ve mentioned above? :-))
Now, if you already have Bitcoin and there are digital assets you wish to trade in the BTC market, let’s move on to the Trade page. Since it is a separated market, you may be concerned if the trading system is different from the other. But don’t worry! Everything is the same as the KRW market, including the trading page, trading methods, and even fees are the same rate of 0.25%. (*Only, the value will be subtracted in BTC unit) Also, you can use Bithumb’s fee coupon in the BTC market, just like you did in the KRW market. So, it is possible to use the coupon you used in the KRW market before in the BTC market.
Since everything is the same for both Buy and Sell, let’s take a look at the Selling page as an example.
The first way of selling is the Limit order. You can set the order price in Satoshi-level, and the amount of order you want. The second way is the Market price order. The available amount will be exposed automatically. You can type in the number you want or set it in 25%, 50%, 75%, or 100%, respectively before you sell. Finally, the Stop-Limit order that was introduced last October. This is a method that carries out the reserved order when the market price reached the monitoring-price setting. It will help you to do strategic trades in the volatile BTC market.
After a trade is completed, you may be wondering about the current state of your asset. Click on the ‘My Asset’ at the upper right of the exchange’s main page. It will reveal to you all the digital assets you’ve traded in each market.
*For API, you need to set the entry value of {payment_currency} in either KRW or BTC.
*Currently, only viewing trade history in the BTC market is available in Bithumb Trader App. Actual trade service will be provided afterward.
We have introduced you to Bithumb’s BTC market so far. Have you gained some confidence enough to venture into the new market? We, Bithumb, will continue to put our maximum efforts for the sake of the wise investment of our customers. :-)
