You might be wondering why your friends could be able to trade on bitcoin and how they know much in bitcoin pricing even in their local currency. It is just that they took time to go through the below calculation on their own and ask questions. Wow! Why can't i learn mine today. just get Pen, calculator and paper so that Wakabia Tech support will teach you to the simplest. Lets do this.
NAIRA AND DOLLAR WILL BE USED IN THE BELOW LECTURE. But you can use the below steps and incorporate with your currency with ease by interchanging Naira(N) to your currency and also check what your currency will give you in dollar equivalent.
NOTE1: Rate: A fixed price paid or charged for something.
We have 0.005 BTC and the exchange rate is 200 USD/BTC.
exchange rate * amount of bitcoins = 200 USD/BTC * 0.005 BTC = 200 USD * 0.005 = 1 USD
You can also turn the equation around to calculate any of the other terms:
To calculate the exchange rate, you take the amount of USD you paid, and divide by the amount of bitcoins you received.
exchange rate = 'value in USD' / 'number of bitcoins'
To calculate the number of bitcoins you might buy with a given amount of USD at a specific exchange rate, you divide the amount of USD by the exchange rate:
number of bitcoins = 'value in USD' / 'exchange rate'
To calculate the amount you will pay: numbers of bitcoin * exchange rate
EXAMPLES: We will use Dollar, Naira for the example.
NOTE2: Rate of Bitcoin is the current Amount of 1 Bitcoin in USD(check google for that) i.e 1 Bitcoin equal $4269.99 US Dollar
1: I want to sell N7846.04 Worth of Bitcoin: To get the numbers of Bitcoin:Convert the naira into dollar first; 1dollar=N360 i.e N7846.04/N360 = $21.79(Value in USD)
Numbers of Bitcoin = $21.79/$4269.99(Rate) = 0.005 BTC
2: If someone wants to buy 0.005BTC, To know the price or value he will pay you; i.e 0.005*rate($4269.99) = 21.34$(i.e total of N7682.4(N360 * $21.34) if 1dollar is
equal N360)
3: What if i want to buy $30 worth of Bitcoin, How many coins will i receive: $30(Value)/$4269.99(Rate)=0.007BTC. In Naira you will pay N10875.00(i.e N360*$30)
NAIRA AND DOLLAR WILL BE USED IN THE BELOW LECTURE. But you can use the below steps and incorporate with your currency with ease by interchanging Naira(N) to your currency and also check what your currency will give you in dollar equivalent.
NOTE1: Rate: A fixed price paid or charged for something.
We have 0.005 BTC and the exchange rate is 200 USD/BTC.
exchange rate * amount of bitcoins = 200 USD/BTC * 0.005 BTC = 200 USD * 0.005 = 1 USD
You can also turn the equation around to calculate any of the other terms:
To calculate the exchange rate, you take the amount of USD you paid, and divide by the amount of bitcoins you received.
exchange rate = 'value in USD' / 'number of bitcoins'
To calculate the number of bitcoins you might buy with a given amount of USD at a specific exchange rate, you divide the amount of USD by the exchange rate:
number of bitcoins = 'value in USD' / 'exchange rate'
To calculate the amount you will pay: numbers of bitcoin * exchange rate
EXAMPLES: We will use Dollar, Naira for the example.
NOTE2: Rate of Bitcoin is the current Amount of 1 Bitcoin in USD(check google for that) i.e 1 Bitcoin equal $4269.99 US Dollar
1: I want to sell N7846.04 Worth of Bitcoin: To get the numbers of Bitcoin:Convert the naira into dollar first; 1dollar=N360 i.e N7846.04/N360 = $21.79(Value in USD)
Numbers of Bitcoin = $21.79/$4269.99(Rate) = 0.005 BTC
2: If someone wants to buy 0.005BTC, To know the price or value he will pay you; i.e 0.005*rate($4269.99) = 21.34$(i.e total of N7682.4(N360 * $21.34) if 1dollar is
equal N360)
3: What if i want to buy $30 worth of Bitcoin, How many coins will i receive: $30(Value)/$4269.99(Rate)=0.007BTC. In Naira you will pay N10875.00(i.e N360*$30)
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