Buying/selling cryptocurrencies on the Bitso app and orders placed on Bitso Alpha are two different ways of conducting operations on Bitso. Let's go over the difference between the two.
What is it like buying/selling cryptos on the Bitso app?
Buying/selling is a quick and simple process that is executed from the Bitso app. To execute the operation, a "spread" is charged, which is a percentage of the total amount of the transaction. When you make a conversion, Bitso immediately displays a summary of the purchase or sale made on the confirmation screen, including the amount paid, the amount to be received, and the corresponding "spread" (the embedded conversion cost).
Charging a "spread" for the operation is a mechanism that allows us to ensure that you receive the exact amount you want to buy or sell, instead of that same amount minus the fee, or a different price resulting from market volatility. This is why the guaranteed conversion rate will be respected for 20 seconds, and a new rate will be calculated after that time to make adjustments for price volatility.
Before the conversion is executed, we inform you about the commission.
It's important to mention that there are 3 different ways to buy/sell cryptocurrencies on the Bitso app:
- Quick purchase/sale: the simplest way to buy or sell your cryptos in exchange for fiat currencies, or even cryptos for cryptos. The operation is carried out instantly.
- Recurring Purchase/Sale: allows you to schedule a purchase or sale on a regular basis, executing an operation with a daily, weekly or monthly frequency according to your needs (remember you must have balance available in your account to carry out the operation).
- Programmed purchase/sale: it is the ideal tool to define a target price at which you want to make a purchase or sale, allowing you to buy automatically at a lower price, or make a sale if the price rises.
When it comes to scheduled buying/selling, the price is subject to actual market conditions and there are no guarantees that the target price will be reached. This means that, when you make a purchase or sale, this conversion price is used as a reference to execute the operation if market conditions occur in the future.
Therefore, the price of any purchase or sale of crypto in Bitso is calculated considering the market price, the spread, the market volatility and the liquidity available in the order book, based on the volume of your operation.
It is also worth mentioning that spread percentages may vary depending on the region you are in or the currencies involved in the transaction. Therefore, it is important to review the spread applied to your trade on the summary screen before accepting it.
How do orders work in Bitso Alpha?
In Bitso Alpha, an order is placed in the order book and the applicable commission percentage will depend on the volume that each user has transacted in the last 30 days. Additionally, the commissions applicable to Bitso Alpha orders depend on which side of the order book the operation is on, that is, whether it contributes liquidity to the order book (Maker Side) or if it takes liquidity from the book (Taker Side). Likewise, commissions vary depending on the markets and books in which you are operating. You can always check the commissions that apply to Bitso Alpha orders here. (Bitso Fees link).
Orders allow you to have greater control over the price at which you want to buy or sell and the level of complexity of your strategies, since there are multiple types with different characteristics, but the process can take longer than a purchase/sale.
Commissions depend on the volume transacted by each user.
Trading orders can be placed on Bitso Alpha, available on the web and as a mobile app. Note that the Bitso Alpha mobile app is different from the regular Bitso app.
Within Bitso Alpha you will have access to 4 different types of orders:
- Market order
- Limit order
- Stop-Loss Order
- Stop-Limit Order
Each order has its own characteristics that allow different types of strategies to be designed and executed.