Altcoins Talks - Cryptocurrency Forum

Cryptocurrency Ecosystem => Crypto Exchanges => Topic started by: Altcoin1998$ on March 13, 2021, 12:00:22 PM

Title: why are there prices differences on different exchanges?
Post by: Altcoin1998$ on March 13, 2021, 12:00:22 PM

The discrepancy between the BTC prices can be explained by the fact that as a decentralized digital currency, Bitcoin does not have standard or global Bitcoin prices. It is not guaranteed by USD or any other currency, as money is equivalent to gold. As the main driving factor of the economy is the balance between supply and demand. Due to the fact that the demand for Bitcoin is different from country to country, the price range is different from country-to-country as well.
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Title: Re: why are there prices differences on different exchanges?
Post by: MrSpasybo on March 14, 2021, 10:05:58 AM

I think of several reasons for the price difference between exchanges:
+ Different trading volume: the smaller the transaction volume, the easier it is to pump/dump in a short time;
+ Users vary in number, country, and interest;
+ Time zone: traders in the US go to bed and traders in China work. And vice versa;
+ Difference in regulations for crypto in different countries;
+ Difference in the inflation rate between countries;
+ Fluctuations in exchange rates between fiats;
+ Fees of transactions & deposit/withdrawal of exchanges.

Normally the price difference between the exchanges will always be kept to a minimum, because traders will take advantage of that to make profits and gradually narrow the difference.