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but that's a different problem. If you want to sell BTC for dollars, you depend on the order book to have enough bids in it to satisfy your request, or you have
by ifdefdebug 9y ago
but that's a different problem. If you want to sell BTC for dollars, you depend on the order book to have enough bids in it to satisfy your request, or you have to make a sell order and hope for someone to take it. Exchanges don't have to show liquidity for that, they have to show liquidity when people want to withdraw their assets (edit: complete truncated sentence).
- vasilipupkin 9y agoyes, that's the problem. the order book is already quite thin - and in a panic, it can disappear and reappear at a much lower price.
- ifdefdebug 9y agoVery true. That's why a stop loss to market is a total suicide in this market. Better do a stop loss to limit and if the limit fails, keep your coins and wait for better times...
- mrb 9y agoBitcoin's trading volume (and implicitly order book) is already bigger (impl. deeper) than stocks with comparable market capitalization, eg: BTC: $160B market cap, ~$5B traded/day INTC: $200B market cap, ~$1B traded/day So if there was panic selling of INTC, the stock would presumably dive deeper and lower than a panic sale of BTC...
- vasilipupkin 9y agosure, panic selling is possible in INTC, absolutely. Valuing INTC is easier, though, because it actually pays dividends and because it can be compared to other stocks.
- paulpauper 9y agoit is a lot lower than than that. you have to divide by the number of major bitcoin exchanges
- vasilipupkin 9y agoNot sure I follow.