1. What is an exchange？
Most of the digital asset transactions we are exposed to the digital assets such as USDT to price Bitcoin (BTC) and Ethereum (ETH). Then, using USDT to price BTC, it will form a pair of BTC/USDT (When an asset is used to price another asset, a transaction pair will be formed). The price of the pair of transactions represents how much USDTs are required to buy BTC, or how much dollars can be obtained by selling a BTC.
So, what about BTC to price ETH? In other words, an ETH, how many BTC are worth? Exchange refers to the use of a digital asset to exchange another digital asset, such as using BTC to price ETH, which forms the pair ETH/BTC . The price of the pair represents that how many BTCs it cost to buy one ETH and vice versa. For example: The opening price of the PIEXGO website on August 18, 1ETH = 0.0099BTC, that is one Ethereum is 0.01 Bitcoin.
At present, PIEXGO has four tokens: BTC, ETH,USDT
2. What is an OTC？
The OTC is a point-to-point transaction between users. The buyer pays and the seller confirmed the payment after receiving.
The traditional digital asset transaction is the exchange of digital assets with CNY. When using CNY to buy BTC, you can use more/less CNY to buy BTC when BTC price is rising/shrinking. Example: if you bought 1BTC at 30,000 CNY and sell it at a later date when it is worth 40,000 CNY, profiting 10,000 CNY.
In PIEXGO's OTC, digital token are priced against other tokens. For example, when 1 ETH=0.1 BTC, you can use 0.1 BTC to buy 1 ETH and you can sell it when ETH is worth 0.2BTC.
3. The superiority of OTC
1）Reduces the cost of changing currencies
2）Provides arbitrage opportunities for users
4）Most convenient for changing and circulating of digital assets
In traditional digital asset trading, digital assets are priced in CNY, it means that if you hold BTC and would like to replace it with ETH, then you need to sell the BTC first, pay a handling fee, and then buy ETH while having to pay handling fees. Essentially, you need to pay handling fees twice. With PIEXGO, you only need to pay it once.
4. Why prices change in the exchange？
With traditional exchange for digital assets, market price of transactions is determined by provisions and requirements. The market prices in the exchange changes according to the market. If the buyer's quantity is greater than the seller's quantity, the transaction prices will increase; if the seller's quantity is greater than the buyer's quantity, the transaction price will fall. For example, if more people are willing to change their BTC to ETH in the market, there will be a shortage of ETH, which will cause the pair of ETH/BTC to rise, it means that one ETH can exchange more BTC.