Bitso offers the possibility to issue invoices to its users. The invoices are generated only by the fees paid and not by the total amount of the purchases/sales made, since Bitso is an exchange and the only income that it has is the paid fee, thus it is the only amount that can be invoiced. The invoices are issued daily and sent to the user automatically as well. To know how to activate your invoices, click here.
How is the invoice amount calculated?
To explain the operation, first it is necessary to understand that the fee charged by Bitso, is charged in the currency that you are going to receive, this means for example that when buying bitcoin the fee will be charged in bitcoin, and when selling bitcoin the fee will be charged in Mexican pesos. But how does Bitso calculate the amount in pesos, when I pay my fee in bitcoin, ether, ripple etc. to add it to the invoice thereafter? To carry out this calculation, Bitso uses the VWAP (Volume-weighted average price), which basically takes the price of all the trades that took place during the day and obtains an average of the price of each of the digital currencies handled by Bitso taking the volume traded to each price. Thus obtaining a daily average price of bitcoin, ether, ripple etc. in Mexican pesos. At the time of issuing the invoice, Bitso multiplies the fee amount paid by a certain user in digital currency by the relevant VWAP, resulting in an amount in pesos, which is then added to the final invoice.
How is the VWAP of digital currencies that do not have any exchange rate with Mexican pesos calculated?
To explain this, we will take as an example BCH (Bitcoin Cash), which at the time of publishing this does not have an exchange rate with Mexican pesos and the VWAP cannot be calculated directly in order to obtain an amount in pesos. To carry out this calculation we take into account the exchange rate against which it is quoted, which in this case is Bitcoin.