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I know this is more of a general trading question but how is BTC or any base currency value determined in another currency from a trading pair?
An example of what I mean is take the BTC/NEO trading pair, how do you determine the BTC value in USD from that trading pair?
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If one bitcoin is $1,000 (for the sake of easy math), and 1 Neo is worth 0.1 BTC, then you can determine the USD value of one Neo is $100.
1000 * 0.1 = 100
Look at https://coinmarketcap.com/currencies/bitcoin/#markets ...the value of BTC in USD changes per currency pair. I'm having a hard time figuring out how they determine the value of the base currency, in this case BTC, from a trading pair in USD or any currency for that matter.
@Derek You can just use the volume-weighted, outlier-excluding price shown at the top of the page. – David Schwartz – 2017-10-05T03:10:53.813
@David But why does the value of BTC in USD change per currency pair? I'm not understanding what factor determines the slight variation in USD per currency pair. – Derek – 2017-10-05T03:21:55.643
@Derek There isn't this one thing called USD that is precisely the same for everyone. USD at Bitfinex is not the same as USD at Bitstamp. They have different withdrawal and deposit policies, latencies, risks, and so on. They can be valued differently by a small fraction of a percent. – David Schwartz – 2017-10-05T03:55:43.930
Try asking on https://money.stackexchange.com/
– 4276 – 2018-01-03T18:11:42.907