Investing in cryptocurrency requires not only a knowledge of the market but also trust in the platform on which you trade. This article explains how BLOX ensures the security of your coins and how the value of your Vault is determined.
Table of Contents
How Does BLOX Store My Coins and Is BLOX Safe?
The Security Measures of BLOX
Your coins are securely stored at BLOX. The majority of the crypto managed by BLOX is in cold storage. This means that access to the coins is generated and stored offline, making them movable only with the permission of multiple individuals from different locations. This multisignature process ensures a high degree of security.
How Is the Total Value of My Vault Constructed?
Composition of the Value in Your Vault
The total value of your Vault at BLOX consists of two components:
- Your BalanceYour balance is the sum of your euro credit within BLOX. This includes the money you have deposited and not yet used to buy coins, as well as the value in euros of the coins you have sold and not yet cashed out to your bank account.
- Current Value of Your Coins in EurosThe current value of your coins in euros is displayed in your Vault. This value is what you would expect to get back if you decide to sell. The price you see is based on the order book of a large international exchange, where buyers and sellers place their bids. The final selling price may vary slightly because of these bids and market depth.
Why Is the Value of a Coin at ‘Rates’ Higher Than the Value in My Vault?
The Difference Between Purchase and Sale Value
There is a difference between the value of coins at ‘Rates’ and ‘Vault’ on BLOX, which can be attributed to supply and demand:
The Difference Between Buyers and Sellers
The value in your Vault is based on the highest price buyers are willing to pay, while the value at ‘Rates’ is the lowest price at which sellers are willing to sell. The spread between these prices explains the difference.
Number of Coins in the Order Book
The market depth, or the number of coins being asked or offered at a certain price, also has an effect. In a shallow (illiquid) market, the selling price can vary if a large quantity of coins is sold.
Effect of the Spread on Large Transactions
For small transactions, the spread is often negligible. However, for large transactions, the effect can be significant, so it is important to take into account the workings of the order book.
Price per Coin
It is important to know that both the values at ‘Rates’ and in the Vault refer to the price per individual coin.
With the information in this article, you can use the services of BLOX with peace of mind, knowing that your coins are safe and that you have a clear insight into how the value of your Vault is determined.
