Using the correct bitcoin to USD calculator
by Alex Kerya | Jul 9, 2014 | Crypto News
When attempting to convert a certain amount of Bitcoins to dollars or any other currency, it’s important to make sure that you have the correct tools at your disposal. While some people feel like any calculator will be able to get the job done, it is important to remember that there is more than one price for a single Bitcoin at any point in time. Sometimes different exchanges and Bitcoin businesses quote you different prices based on their own trading histories, which is why it makes sense to take a look at the source of the price in your Bitcoin to USD calculator before entering a new calculation.
Sources for Bitcoin Prices
Many different online Bitcoin exchanges have taken large shares of the global Bitcoin market over the past few years, and the largest exchanges in the world are usually the ones that are quoted when it’s time to convert Bitcoins to dollars. Bitstamp is currently the largest Bitcoin exchange in the world, but plenty of people out there still like to quote the price on a number of other exchanges, such as Kraken or Coinbase, when it’s time to figure out how much their Bitcoins are worth in terms of fiat currency. It’s also interesting to note that there are separate indexes out there that combine a few different price sources into one number for the whole world to see. The WINKDEX and the CoinDesk BPI are two the most prominent examples of this kind of price feed.
Bitcoin Calculator: USD Amounts Will Vary
One would assume that arbitrage opportunities would keep the prices on various Bitcoin exchanges around the same general area, but that hasn’t always been the case. In the days of MtGox, there were large disparities between the prices on that exchange compared to all of the other exchanges on the market. The reasons for this discrepancy are still up for debate, but the point is that the Bitcoin market is still at a rather immature stage. There are a variety of different factors that go into the price on each Bitcoin exchange, and the available methods of deposit and withdrawal are usually at the center of attention in these kinds of situations.
Calculate and Buy on CEX.IO
One rule of thumb that should be followed when purchasing Bitcoins for a specific purpose is to make sure that you’re using the right calculator at all times. For example, you don’t want to use the Bitcoin exchange rate calculator from an exchange that is different from where you’re actually purchasing your Bitcoins. CEX.IO gives you the opportunity to calculate the specific amount of Bitcoins that you need for your purchase, which is especially useful when you’re purchasing Bitcoins with dollars to be immediately sent to someone else.
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