You put in a certain amount of crypto you want to buy but notice that the more you buy the less you get for your money. For example, the market order price is $0.005, and you want to buy $3,000 of BLKX tokens.
You figure basic math should give you 600,000 tokens ($3,000/$0.005 = 600k)
But instead, it's giving you something like 509k.
Are you being ripped off?!
In short, the answer is no... the calculator is working just fine.
What's happening is in context to Market Depth.
Keep in mind you will only experience this "discrepancy" during a Market Order.
A Market Order will always give you the best price available at that exact moment in time, where the price is dependent on what the lowest limit order price has been set by someone else.
What happens when one puts an increasing amount of tokens into the market order, the price doesn't necessarily convert at the same rate a single token would be priced at.
Ie., the price is 0.005 but you're getting "fewer tokens" the more you purchase.
This is because the calculator is considering all limit orders that are set on the market at any given time.
Let's say there are 3 limit orders currently open:
- 1000 tokens for 0.005
- 1000 tokens for 0.006
- 1000 tokens for 0.007
When you do a market order the dashboard will show you that BLKX is worth 0.005.
But when one limit order is fulfilled, the market order will then go to the next limit order at 0.006.
When that limit order is fulfilled, the market order will then go to the next one at 0.007.
So when you do a market order for 3000 tokens when the dashboard says BLKX is worth. 0.005, you are expecting to get 600,000 BLKX tokens in return.
But what you'll really get is:
- 1000 of them for 0.005
- 1000 for 0.006
- and 1000 for 0.007
So in total, you would wind up with roughly 509,523 BLKX Tokens.
It might appear you've lost tokens on the purchase, but in reality, you've simply bought tokens at 3 different prices because of the set limit orders.
This is also why within the calculator, you start flipping from BTC back to BLKX the amount, the numbers will change around with what looks like unbalanced math. It's due to the calculator considering market depth.
The calculator is balancing your purchase with all via the total volume of available tokens and pending limit orders. Thus it seems off, but in reality, it's just super smart.
In conclusion, Market Orders will always get you the best price available and the fastest.... but limit orders will always get you the price you want.
Here's an article that explains a bit more if you like: How Do I Buy, Sell, or Withdraw BLKX Tokens or Any Crypto?
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