UNDERSTANDING BUY/ASK and SELL/BID for TRADERS.

almost 3 years ago

buy hive sell hive.png
In the crypto space, alot of terms are associated and the terms are necessary for effective trading and for beginner knowledge incase if that person tries to buy and sell.
The first and sophisticated term in the crypto space is the BUY/ASK and the SELL/BID and am going to simplify it in this post . The reason why i am writing this post is that when i started involving myself with crypto i found it just too confusing and it hindered me from making any trades; i tried searching online but to no avail so i decided to experiment with my money and trust me when i say it went sideways🤣🤣 but anyway i got the knowledge i wanted.
Getting straight to the point;

SELL/BID
sell h.png
If you are trying to buy a crypto, lets say Doge but you dont want to use fiat currencies to buy directly but want to sell a particular crypto in order to buy doge, what you have to do is to Buy a currency that can be paired with both doge and hive (lets use Hive/Btc).
In this case, What this actually means is that there is no such pair as hive/doge and you would like to buy BTC then use BTC to buy doge .
The first thing you should do is to sell your hive and to do this you have to open the currency pair and choose the BID price ( price at which a particular person has determined to buy a crypto) -- dont get confused ---- choose the amount you which to sell and hit the sell button(what we did is that we basically sold our hive for BTC ).

BUY/ASK
buy doge.png
When this is done, is now time to buy doge with the BTC . Now open the currency pair doge/btc and go to the BUY side. You have sold your hive and received btc, now you want to sell your BTC and receive doge. All you have to do is to input ASK price( price at which a person is determined to sell a crypto)
And input the amount you want; after that click on sale and congratulation you have successfully purchased doge coin.

If you want me to make a detailed youtube video about this please indicate in the comment section and also wait for the next Article
--What to do with your hive reward
(I will teach you how to make passive income with your rewards)

POINTS TO BE NOTED
To make a profit...
---buy from the highest bidder and sell to the lowest asker(seller).