Bid vs Ask price when purchasing Crypto

[otis_b]

Hello Guys,

Im using the Bitconnect platform to purchase BCC (Bitconnect Coin) and im currently looking at the Ask and Bid prices and need choose one.

Ask is currenty: 0.03871509 btc

Bid is currently: 0.03871747 btc

Can someone please give me a simple explaination of the Ask, Bid prices?

As im purchasing I guess im looking to purchase at the Ask price as this is cheaper - why would I ever need to select the Bid price as this is more expensive?

Thanks in advance

Otis

[crptotrader007]

You could have just googled it and the answer would have been right there in front of you. The ask price is what called as buying price and the bid is the selling price. If you place an order in the ask price then you are placing a buy order and you have to wait until someone sells you at the buy price. If you click on bid then you will be buying coins at selling price which means you will get the coins immediately at selling price.

[otis_b]

You could have just googled it and the answer would have been right there in front of you. The ask price is what called as buying price and the bid is the selling price. If you place an order in the ask price then you are placing a buy order and you have to wait until someone sells you at the buy price. If you click on bid then you will be buying coins at selling price which means you will get the coins immediately at selling price.

Thanks for your reply, Apart from your first sentence, I found this response very helpful.

[lx001]

Hello Guys,

Im using the Bitconnect platform to purchase BCC (Bitconnect Coin) and im currently looking at the Ask and Bid prices and need choose one.

Ask is currenty: 0.03871509 btc

Bid is currently: 0.03871747 btc

Can someone please give me a simple explaination of the Ask, Bid prices?

As im purchasing I guess im looking to purchase at the Ask price as this is cheaper - why would I ever need to select the Bid price as this is more expensive?

Thanks in advance

Otis

Ask is cheapest price at which you can instantly buy, Bid is the highest price you can instantly sell. Just like in the currency exchange.

[otis_b]

Thank you, how do they calculate what the Ask price is when purchasing? Is that the lowest amount that coin has sold for recently?

[lx001]

"Buying orders" on the left is a list of those, who are willing to buy Bitconnect.
"Selling orders" on the right is a list of those, who are willing to sell Bitconnect.
Sellers are always asking more than those who are willing to buy.

On the exchange you can buy coins in 2 ways - buy from somebody by yourself (you can do that instantly by choosing the lowest price in the "ask" column), or wait for someone to sell to you (you list your buy order in the "bid" column and wait for somebody to sell to you at that price).
Logically, you will always get a cheaper price if someone is selling to you (he is an initiator), but you will have to wait for your order to be executed.
If we are talking about small amounts of money and there is a tiny difference between asking/selling prices - simply sell for the highest offered price and buy for the lowest offered price - they are always at the top.
I dont know if there are any "practice-money" exchanges but you need to try out them first before playing with real money

[dhka]

Bid price, people willing to buy at that price
Ask price, people willing to sell at that price

But I suggest you to hold your intention to buy BCC, I heard that it will be closed soon, it is known as ponzi scheme

[niknik1966]

The truth is, as they say, on the bottom of the glass, or rather of two glasses. Not always the buyer's price suits the seller, but there is always some bastard that will drop the price and sellers often have to throw off the "product" at an unbeatable price.

[Turkiwi]

Bid and Ask are working a bit different than you think. Bid is the amount that a buyer is willing to pay for the token, and Ask is the amount that a seller is willing to sell his token. So for a trade to happen, the Bidder has to accept the Sellers offer and vice versa. So you don't really have an option whether to choose Bid or Ask, because you will always be charged Bid when you Buy, and Ask when you Sell. The difference between the Ask and Bid is called the spread, the higher the spread usually the worst the liquidity.

[Catmony]

Thank you, how do they calculate what the Ask price is when purchasing? Is that the lowest amount that coin has sold for recently?

No ask and bid price was set by buyers and sellers like you;

Buyer fill up buy order form with amount he/she want to buy and price per unit they want to buy at. If there is no any sell order with that amount and at that price than that order will remain as bid price.

Seller fill up the sell order form with amount he/she wants to sell at price he want, if there is no any buy order at that price than his order will be placed as ask price.

[Red-Apple]

Hi guys, what happens if I want to buy and I put a price higher that the smallest ask price ?

For example :
ASK prices
10
9
8
7

And I place a buy order at 9. Will I get it to 7 or to 9 ?

It's not a smart thing to do, but I want to understand the behaviour.

Thanks

start a new topic when you want to ask a question instead of bumping a couple of months old topic!

to answer your question it depends on the platform you are using. bitconnect which is the topic here is a scam which was closed down.
other exchanges should work like this:
if you place an order at a lower price than the highest ASK then first the highest ASK is filled and if it is filled completely then it moves on to the next.

in this example ASK order book will look like this (reverse of what you posted):
7
8
9
10

and BIDS will be:
6
5
4
3

if you execute an order at 7 it will be filled at 7. if you execute an order at 9 it will be filled at 7 then 8 and then 9 and if there is any leftover you will also have an open ASK (sell order).

[shirackjs]

Thank you, how do they calculate what the Ask price is when purchasing? Is that the lowest amount that coin has sold for recently?

The bid and ask prices are set by buyers and sellers in the exchanges. It merely means that one or more sellers are willing to sell at the ask price. Since the ask price is lower than bid price, it makes sense for you to buy at the ask price.