For most bitcoin traders, adjusting the price of an ad is very effective by setting a premium. This guide introduces some basic knowledge.
What is the price formula?
Using the price formula, you can let the price automatically change as the bitcoin price floats. The price is automatically d by acquiring the price information we automatically extract from the market data source (other bitcoin exchanges) and updating the price of the advertisement immediately after the new price information is extracted.
Our default price formula for advertising uses a special market data source called btc_in_usd and a simple multiplication operator to increase the appropriate premium over the market data price.
The market data source will return the middle price of the multi trusted exchanges. This means that even if one or more exchanges provide incorrect information, the price source can still give an accurate middle price.
Advertising prices are d every five minutes on average. If the service load increases or the API response slows down, the process may take longer to complete. The final price calculated according to the price formula is the price of 1 BTC. The market data source also always returns the price of 1 BTC.
If the formula returns multiple values or no return values, the formula is invalid and cannot work. If a market has very low trading volumes recently, or there is no trading volume, then the market data source does not always return the price. If the formula is invalid or cannot be fully resolved, the advertisement will be automatically closed.
Know your own formula
The first step: know your pricing source
The most important part of the formula is the choice of the market price source. You should know which exchange is based on your price, and you can find a list of all available market sources at the end of this guide. The default price formula uses multiple market data sources, and the market source uses an average price of 24 hours per bitcoin exchange.
It has its own formula, but you need to use the operator to modify the formula by selling bitcoins.
The second step: use premium to modify your price
Premium is a simple mathematical function that you can use to adjust and change your price to meet your own needs.
You can adjust the price by adding a percentage to the market price (profit). For example, to make the premium exceed 12% of the market price, you need to multiply the market price source by 1.12 to make the price increase by 12%. The formula obtained is:
The third step: convert the price into your own currency
If you use a price source different from your own currency, the last step is to convert it into the correct currency. As a result, we use USD_in_[currency] data sources to convert prices from dollars to currencies. For example, if I use RMB for trading, then I need to multiply the whole equation by USD_in_CNY, and convert the sample formula in the second step from the dollar to rmb. The formula obtained is:
Exchange data sources
• Bitstamp
• Coinbase
• Kraken
• Bitcoin Charts
• Bitpay
• BitcoinAverage