Understanding Coinmerce's Pricing: Clear, Fair, and Transparent
At Coinmerce, we’re committed to providing you with a clear and fair trading experience. This document explains how we determine the price you see when you buy, sell, or swap cryptocurrencies on our platform.
Fair and accurate pricing
We strive to offer pricing that accurately reflects the current market value of the crypto assets you trade, while also accounting for the costs and risks involved in providing our services. Our pricing methodology is designed to balance these factors.
How do we calculate the price?
The price you see is determined through a two-step process:
1. Finding the Base Market Price
First, we establish a "Base Market Price" (BMP). This is our estimate of the fair market value of the cryptocurrency at any given moment. To do this, we:
Gather information from top Exchanges: We collect price data from the leading
cryptocurrency exchanges – the ones where the most trading happens. This gives us a good picture of where the market is.
Look at both Buy/Sell offers and actual trades: We consider both the prices people are willing to buy and sell at (buy/sell offers) and the prices of recent actual trades.
Prioritize the most important information: We give more weight to information from exchanges with higher trading volume and from recent, larger trades. This helps us get the most accurate and up-to-date price.
2. Adding a Risk Adjustment
To ensure fair and sustainable pricing, we add a "risk adjustment" to the Base Market Price. This adjustment helps us cover the costs and risks associated with providing our services, such as:
Market volatility: Crypto prices can change rapidly, and this adjustment helps us
manage potential price fluctuations.
Trading costs and risks: There are costs and risks involved in buying, selling, and
processing cryptocurrency trades.
To calculate this adjustment, we get price quotes from multiple trading partners (called "liquidity providers") and compare these quotes to our Base Market Price to determine a fair and reliable adjustment. We then use a smart calculation method to smooth out any short-term market noise and arrive at the appropriate risk adjustment.
3. The final price
The final price you see is the Base Market Price plus the risk adjustment. Lastly, an Exchange fee to cover our operational costs is added, this exact fee is based on your account type.
An example:
You want to buy 5 ETH.
We calculate a Base Market Price of 1,500 EUR/ETH.
We get quotes from Liquidity Providers, which are slightly different from the Base Market Price.
Our system analyzes these differences and calculates a risk premium.
We add the risk premium and an exchange fee to the Base Market Price, and offer you a final price of 1,505 EUR per ETH.
Our exchange fee
We charge a transparent exchange fee for every trade:
Normal Account: 0,25%
Custody Account: 0,50%