Bitbns uses 'limit trading', which is buying or selling Bitcoin at the price you specify, or better.
Buying mechanism: If you buy bitcoin at higher than market prices, you can 'collect' bitcoin from multiple sellers whose rates are lower than yours.
Selling mechanism: If you sell bitcoin at lower than market prices, you can 'distribute' bitcoins to multiple buyers whose rates are higher than yours.
If buy and sell prices match, a trade happens, and that price is the new market price.
We let you buy and sell cryptocurrencies. The trade happens by a particular mechanism, which we shall explore below.
Bitbns currently offers only limit order trading. Limit order trading is the buying or selling of a specific cryptocurrency at a specified price.
You can only trade when the relevant asset is available in your wallet. i.e., when you have Bitcoin in your Crypto Wallet, or Rupees in your INR wallet
When you place a buy or sell order at a specific rate, the order can be seen and tracked under the 'open orders' section in the dashboard
The order can remain open until it is fully executed. You can cancel open orders any time before it is fully filled.
Any asset present in an open order will not be available for withdrawal until the order is cancelled. (Asset denotes Bitcoins for a sell order, and Rupees for a buy order.)
Order fulfillment is up to the market. The orders will be fulfilled based on the demand or supply of Bitcoin.
We don't have any restrictions on the open orders
Buy and Sell Orders
Buy Orders Any user who is willing to buy a specific cryptocurrency, the order is placed under buy order book. Buy order takes away the liquidity from the market. We recommend you buy when the BTC price is less, or if you think the price will rise in the future.
Sell Orders Any user who is willing to sell a specific cryptocurrency, the order is placed under sell order book. Sell order takes away the liquidity from the market. We recommend you sell when the BTC price is more, or if you think the price will drop in the future.
How are the Orders Executed?
Your order may be fulfilled by a single or multiple matching orders, based on the price. Here's how it works:
Let's consider three price points:
last trade price
This leads to three scenarios:
Case 1: Buy Price > Sell Price
If you buy Bitcoin at a price (B) higher than the Sell Price, you can to buy Bitcoins from multiple Sellers whose rates (S) are lower than yours.
Conclusion: Trade happens at S. Exchange price moves to S. Here the initiator is the Buyer
Example: Let's assume:
Your Buy price = 1 BTC at ₹4,92,200 List of sell orders placed: - 0.3 BTC at ₹4,91,000 - 0.7 BTC at ₹4,90,300
Then you will be able to buy 1 BTC to all the above sell orders at the respective price: 1 BTC = (0.3×4,91,000) + (0.7×4,90,300) =₹4,90,510
Case 2: Sell Price < Buy Price
If you sell Bitcoin at a price (S) lower than the Buy Price, you can to sell Bitcoins to multiple buyers whose rates (B) are higher than yours.
Conclusion: Trade happens at B. Exchange price moves to B. Here the initiator is Seller.
Example: Let's assume
Your sell price = 1 BTC at ₹4,90,200 List of buy orders placed: - 0.3 BTC at ₹4,91,000 - 0.7 BTC at ₹4,90,300
Then you will be able to sell 1 BTC to all the above buy orders at the respective price.
When both buyer and seller are willing to trade at same price, order will be executed.
Conclusion: Trade happens at either of those, both being equal.
Minimising the loss is very important when you are trading currencies. So Bitbns has added a feature to avoid big losses. A user can place a stop-limit during the buy order or also after the coin is in the wallet.
A user can specify the target at which he/she wants to exit with a minimum loss when the cryptocurrency is falling. We have also added buffer with a target stop-limit.
For example: If a user buys 1 BTC at 10,00,000 and sets a stop-limit at 9,90,000, then we will set a buffer of about 9,90,100. So if at any point of time the price falls between 9,90,000 to 9,90,100, the trade will be executed.
Is the stop loss guaranteed? Stop loss will be executed based on demand and supply, i.e., If you hold 10 BTC and if your set stop loss is triggered at the price you specified, then during that time, provided only 5BTC are in demand, people who have set the stop loss first will get the benefit.
Bitbns charges a fee on each order. Fee will be shown before placing an order with a confirmation message.
Please check the Bitbns fee for Deposit, Trading, and Withdrawal in our fee section