How Does CoinMarket Work?
Coinmarket is a new way of buying and selling Cryptocurrencies, also known as digital currencies. It is like the NYSE and NASDAQ but for Cryptocurrencies. Coinmarket works the same as any stock market you go to for trading in stocks. You want to buy when it’s low and sell when it’s high. Here I will explain how this works.
There are several ways of buying and selling Cryptocurrencies like Litecoin, Featherstone, and Reddcoin. One thing you should be aware of, though, is that not all exchanges will offer you all currencies. For example, if you go to Gemini and they do not have your currency pair, they will not accept it either. In order to get these currencies, you will need to go through some companies or brokers. Go to your favorite search engine and do a search on “Gemini” and “exchanges”.
Coinmarket is basically an online marketplace where you can search for any listed and active currencies. Each currency has an API endpoint that is a string of numbers and letters. These numbers and letters are calling the circulating supply. If the supply is low and you want to buy, you search for a low circulating supply, if the supply is high and you want to sell, you search for a high circulating supply. This is basically the way that you can price your Cryptocurrency.
You will notice that each currency has its own name and logo on the homepage. So lets say that the homepage is named “Gemini”. When you search for “Gemini” you will see a list of all of the available coins. Each of the coins has an API end point that is a string of numbers and letters. The number represents the block number for that particular currency. The letters stand for the alphabetical character that represents that character.
The API end point will give you information about the market depth for that exchange. The market depth is the number of pairs that are being traded in that exchange. The higher the market depth, the more leveraged the coins being traded are. As a result, when you enter a trade with a higher market depth, you are able to make trades with much larger profits because of the leverage.
The final piece of information that we are going to cover today is price action. Price action is what takes place during the period before, during, and after a trade. All of the major Cryptocurrency exchanges have built in mechanisms that allow you to view live price activity for all of the currencies that they track. So you can see in real time how the prices for those various currencies are fluctuating. When you combine this with the circulating supply and market depth that are available on the various exchanges, it is no wonder why the average investor is jumping into the exciting world of Cryptocurrency trading.