Price in dollars on coinmarketcap.com how in fact it is calculated?

13abyknight

sr. member

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Quote from: piloder on March 22, 2018, 07:15:40 PM

According to coinmarketcap faq https://coinmarketcap.com/faq/

Quote

How are the prices calculated for the various cryptocurrencies?

Price is calculated by taking the volume weighted average of all prices reported at each market. Sources for the prices can be found on the markets section on each cryptocurrency page. For example, Bitcoin's markets.

This mean if one exchange have 60% of trading volume and another one 40% than price will be (0.60 x First price + 0.40 x Second price)....My assumptions

This could very well be true given that their derivatives range from the smallest to the largest of exchanges as there would be severe price discrepancies among the different exchanges and this could lead to faltering average prices being reflected on the site which could lead to uncertainties. Thus, I assume they gather prices from better renowned exchanges in the exact order of your calculation.

jimbo2000

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Quote from: piloder on March 22, 2018, 07:15:40 PM

According to coinmarketcap faq https://coinmarketcap.com/faq/

Quote

How are the prices calculated for the various cryptocurrencies?

Price is calculated by taking the volume weighted average of all prices reported at each market. Sources for the prices can be found on the markets section on each cryptocurrency page. For example, Bitcoin's markets.

This mean if one exchange have 60% of trading volume and another one 40% than price will be (0.60 x First price + 0.40 x Second price)....My assumptions

Thanks for clearing that up, always suspected that was the case but never actually verified it through any official information from CMC. It makes sense, non weighted would lead to huge anomalies skewing the price.

bogacola

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Price is calculated by taking the volume weighted average of all prices reported at each market.

piloder

legendary

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According to coinmarketcap faq https://coinmarketcap.com/faq/

Quote

How are the prices calculated for the various cryptocurrencies?

Price is calculated by taking the volume weighted average of all prices reported at each market. Sources for the prices can be found on the markets section on each cryptocurrency page. For example, Bitcoin's markets.

This mean if one exchange have 60% of trading volume and another one 40% than price will be (0.60 x First price + 0.40 x Second price)....My assumptions

jimbo2000

full member

Activity: 336

Merit: 100

Quote from: kolan_f on March 20, 2018, 09:05:27 AM

Raised of very interesting question: https://coinmarketcap.com/ru/currencies/bitcoin/#markets – the price is shown for bitcoin in dollars according to exchange and type of currency pairs and how in fact it is calculated? (for example, there is the couple of LTC/BTC for any exchange - how the bitcoin price in dollars is determined for this couple?)

So it's BTC price in USD times by the BTC price of the coin. And the way that they account for the different prices on all of the exchanges is just by taking an average. The only thing I am not sure of is if it is a weighted average (as in if one exchange has 80% of the volume then they do 0.8* that price and another exchange as 20% it's 0.2* that price and then they add the two together.

kolan_f

newbie

Activity: 20

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Raised of very interesting question: https://coinmarketcap.com/ru/currencies/bitcoin/#markets – the price is shown for bitcoin in dollars according to exchange and type of currency pairs and how in fact it is calculated? (for example, there is the couple of LTC/BTC for any exchange - how the bitcoin price in dollars is determined for this couple?)

Topic: Price in dollars on coinmarketcap.com how in fact it is calculated? (Read 163 times)