I agree , India is deciding its own rates currently and not depending on International rates, But that does not mean the spread between Buy and Sell has to be 10% or more ?
As for us , we make sure the spread is not more than 1% or at the max 2% , In fact , Customers on our exchange don't let that spread be more than 1-2%.
If customers are buying Bitcoin , they should be able to sell too at the market price. The problem here is something else , the reason why people don't want to purchase Bitcoin at market rate is , cause they then don't have a place to sell at the market rate as well.
For ex, If someone purchases coins at market rate , and he makes 2% profit out of the volatility , he cant get that profit out as most of the exchanges or buy/sell platforms are keeping a spread of 10% or more. How is that person supposed to make profit if he can't sell at the market price ?
What's happening here with most buy/sell platforms is, When prices go too down , they are not willing to sell coins at lower price , as they have purchased it at a higher price , so prices don't go down with these buy/sell platforms and people are not able to take advantage of lower prices as they are not able to get coins at that price. Similarly, when prices go too high , these buy/sell platforms are giving too bad sell rates as they don't want to buy coins at higher price.
This is why , I think customer created market is very important. Customers should decide the buy and sell prices. Its very basic math , if you are not trading with a broker/trader in between who is keeping their own margins too , Buyers and sellers will both get great prices as the middle man spread is no more there , hence making the spread limited to 1-2%.
As for LBC , people take advantage of new Bitcoin users joining in by giving them bad rates , as most of these newbies are not aware of other available exchanges in India who are giving market Buy & Sell rates.
Mohit Kalra
Coinsecure.in
You need to compare apples to apples and what you did is not the right comparision according to me.
Now you have some volumes. It was not that 1-2% spread just 3 months ago. I am not sure what exactly you mean when you say you are making sure - i thought it was always your customers who create it.
This is the screenshot i have from your website that is from 26th august where the spread was 15% in spite you were an exchange and not a trading platform.
I ofcourse know that at that point of time there were not enough buyers on your platform to bring the spread closer. Now when your volume increases, you will usually do not see such issues especially when your trade book is transparent. But for a trading platform, it always continues to exist in spite it is getting crazy volumes (just on one side).
You cannot compare your prices and spreads to unocoin or zebpay prices and spreads. You do not take risks of taking positions nor running out of liquidity but we do. when we take positions and prices runs low - we lose money but in contrary if the price goes up, then there are not enough buyers. on the other hand when liquidity issue happens, we sometimes solicit an external buyer or seller to whom we have to offer at discount so that we square-off.
If you wonder why the last traded price on your platform is significantly lower than international price, i would claim that it is because of trading platforms which are selling bitcoin for cheap as of now.
Anyway, good to see that you guys are having some volumes now a days and are joining hands in price discovery in India. For unbiased price discovery to happen, we still need a lot of volume on every trading platform and exchanges, and I am looking forward to those days
I was not hitting you or any other Buy/sell platforms directly, I was just explaining the reason of the spread, but now that you have mentioned all of this, Let me put some clarity on. I very clearly said , '' In fact our customers make sure the spread is not more than 1-2% ''. I think you should realise , that coinsecure went live on the 1st of Jan this year itself, so Ya, i agree, our volumes , rates and spreads were too bad in August as it had just been a few months for us, But I think Unocoin has been in the market for past 3 years ?
And I don't understand , If we do not take risk of keeping the liquidity ourselves, Is something wrong with that ?
I think too, there is a huge difference between traders and exchange runners. We simply survive on our brokerage fees and nothing else .
Can you explain me a bit , why is it that Unocoin has 1% fee , even after having margins on the rate itself ? Like you mentioned, you take the risk of providing the liquidity, why would you need another 1% on top of your margins ?
Will it matter , if you keep higher margins than 1% on your liquidity and give 0% fee ?
Definitely agree these overall volumes in India are not impressing me at all , and we all must get huge volumes all together
Mohit Kalra
Coinsecure.in