One of the many questions Bitcoin newbies and traders ask is how the price of Bitcoin is determined. We thought we should share how the Naira price of Bitcoin is calculated on Bitkoin Africa .
The price of Bitcoin is largely dependent on the price traders want to sell it and the price buyers want to purchase. Like many other goods in real life, there will always be a middle ground where both parties feel the price is fair. They can then make a transaction.
On Bitkoin Africa, users set prices at whatever price they wish to sell or buy. We wanted our suggested pricing and the pricing on the dashboard to reflect global pricing as well as US Dollar to Nigerian Naira market rates. So this is our process for calculating the price of Bitcoin in Naira.
1. We poll Abokifx via their API every 30 minutes to 1 hour and save the USD to Naira rate.
2. We then poll Coindesk’s API, retrieve the USD price of Bitcoin and convert using the rate we got from AbokiFX before we store it. We do this every 15 minutes.
3. We have a couple of endpoints that retrieve the current price of Bitcoin via the Coindesk API which we then convert to display in our dashboard graph.
Abokifx is a trusted provider of foreign currency rates for Naira; taking its data from several endpoints (black market rate, CBN rate, Bank rate, etc). Coindesk’s Bitcoin price is based on its Bitcoin Price Index (XBP) which is a representation of the bitcoin price across leading global exchanges that meet specific criteria.