Okay...I have a bitcoin question:
You can search "bitcoin price live stream" and watch the price changing every second.
Suppose I want to buy (1) one bitcoin.
Explain in simple terms how this works...in other words where and how do I buy? Assume the second I decide it's $84,024.33 for (1) one bitcoin...but price changes every second. When I "press the buy button"(?) do I get it for $84,024.33?
There must be a sales commission (?) so if I debit that coin from my bank account, how much will the debit be???
Now assume I keep it a month. I'm watching the price and it's about $90,000. How does that work? Again when I "press the sell button" it's $89,999.45. When I get my bank statement what would the credit be?
Last question is assume a car dealership accepts bitcoin. The "out there door" car I want price is $90,000. Could I give the dealer my one bitcoin and 55 cents cash?
Please explain in simple terms!
Thanks!
First, before doing anything, take some time, as much time as you need to take and learn until you have reached a level of familiarity that you're comfortable with. Don't do anything until you have learned.
That said, If you go onto an exchange where you can buy Bitcoin (example: Fidelity in some states, Coinbase, Robinhood, Binance, et el) set up or have an account with funds and say I want to buy $1.00 of Bitcoin. You can do that because each Bitcoin is made up of 100,000,000 satoshis. So a spot price of Bitcoin being $83,800ish as I type this would get you 0.00001193 of a Bitcoin.
Since whole Bitcoins are rather expensive, people refer to buying Bitcoin as "stacking satoshis," or "stacking sats," for short.
Commission wise, (and you'll sense a bit of my frustration in the following explanation) the exchanges may charge a flat commission or not. Using Robinhood as an example, I have a limit order set at $72,500. Conditionally, if the spot price drops below $72,500, my order SHOULD be filled. But the way Robinhood works, the spot price needs to drop WELL BELOW $72,500 before executing my limit buy order somewhere just below $72,500. In this case the "zero commission fee company" just bagged a profit of the difference between whatever the actual spot price was when they purchased (or pulled the Bitcoin from their inventory) and the price my limit order executed.
Alternatively, if you already own some type of crypto, you can swap it for another type through some (but not all) exchanges and wallets (a wallet is where crypto can be stored).
Anyway, crypto generally follows market and limit buy and sell procedures just like a regular securities, options, or bond markets. Here is a page explaining the different kinds of buy and sell orders in Crypto.
Master the dynamics of crypto trades with insights into common order types – from swift market orders to strategic limit and stop orders.
tokentax.co
