Understanding Crypto Prices in the app

Understanding Asset Prices in Our App

In our app, we display three types of asset prices:

1. Mid-market price;
2. Buy price;
3. Sell price;

Mid-market Price

The mid-market price is the midpoint between the lowest ask (sell price) and highest bid (buy price) on the order book. It reflects the average between the current buy and sell prices in the broader market, providing a benchmark for investors. This is the price you see when you navigate to the price screen of any crypto asset in the app.

Buy Price

The buy price is set when you want to purchase an asset. It is typically higher than the mid-market rate. As you enter the buy flow in the app, you’ll be able to see the buy price. The buy price is also known as the bid price.

Sell Price

Conversely, when you're selling an asset, the sell price applies. It is typically lower than the mid-market rate. When you start to sell an asset and go into the sell flow, you’ll be able to see the sell price. The sell price is also known as the ask price.

Why Do We Show the Mid-market Rate on the Price Screen Instead of Showing Several Prices?

We aim to keep the user experience clean, simple, and straightforward. By focusing on a streamlined interface, we avoid overcomplicating the experience, similar to the difference between a Tesla Model 3 cockpit and a Boeing 747 cockpit. While advanced traders may seek more detailed information, many pro traders prefer a simple interface and continue to use Change.

What is the Spread?

In finance, the "spread" refers to the difference between two prices or rates. In trading, it usually means the difference between the buy (ask) price and the sell (bid) price of an asset. The buy price is typically higher than the sell price, and the spread is this difference in value. The size of the spread can be influenced by factors such as market liquidity, volatility, and the asset's trading volume.

Asset’s Trading Volume and Popularity

The more an asset is traded, the more liquid the market is for that asset. For popular and liquid markets like Bitcoin and Ethereum, the spreads tend to be narrower. For smaller alt-coins, the spreads can be wider due to lower trading volumes and trickier price discovery.

Market Volatility

Market volatility refers to the extent of price fluctuations in financial markets, indicating how much and how rapidly prices change over a given period. Trading volumes can vary significantly from day to day, and less popular coins tend to exhibit higher volatility.

Operational Buffer

The spread also helps enable the trading business by providing a buffer against unexpected market fluctuations, ensuring brokerages can sustainably offer trading services and manage the risks associated with executing trades.

If you have any further questions, please do not hesitate to contact our Customer Care team through the app or email us at support@changeinvest.com.