Bitcoin Forum

I Have bitcoin in both, on Binance and Coinbase.  On Binance it's volatility seems to be much greater.  I saw a $100 fluctuation on Binance where coinbase was around $30. What causes this big difference?

it is absolutely true that binance is bigger than coinbase, and I think that is all because of the number of investors who enter binary, and it is very pleasant for trading places.

I think this has something to do with this hashtag #deletecoinbase.

If you will research about that on google, it's about the Neutrino team that recently coinbase acquired. In history, Neutrino team found to be involved with some shady activity which resulted the dislike of Coinbase users. And with the recent coinbase blog, they have stated that they are firing those people that has been part of the hacking team.

Coinbase users probably jumped of Binance which resulted the fluctuation.

Different time zones, different participants and most especially, different platforms. Coinbase has been having a hard time lately from a lot of people who want to get rid of their services due to poor service and being an inferior platform having a lot of problems lately. They also received a flak of comments after acquiring Neutrino. Of course, who would want to work with people who are involved in shady activities prior to this acquisition, and letting the same freaks handle other people's money?

I'm very tempted to say that it has something to do with Binance controlling Tether, but I can't think of any connection lmao. It wasn't always this way, so the most logical answer would be that more people are trading on Binance. This reflects on their trading volume:

Coinbase:
1   Bitcoin Bitcoin   BTC/USD   $36,325,442   

Binance:
1   Bitcoin Bitcoin   BTC/USDT   $133,053,911   

Source: coinmarketcap.com

As for why that is, everyone else seems to provide a good enough explanation, but everything is really just conjecture.

of course binance is far better than coinbase, binary exchanges have ranked one of the top 100 available markets, the market volume is the reason why prices are so different

What do you mean by binary exchanges seriously? This is my first time reading that binance = binary exchanges, something like IQ Option?


I think Bitfinex is the one who controls Tether though, and Binance just uses it. They even opened new stable coin markets.

You cant compare binance ways of trading with coinbase because most of short traders will have in the crypto trading scheme are usually binance user and the last time I checked binance have more user than coinbase with this the possibility of it been volatility than coinbase is high.

$30 at current price of $3800 is equal to 0.7% and $100 is equal to 2% and anything below 10% is normal fluctuations and there is not much of a difference between 0.7% and 2% (1.3% diff) they both are too small to be considered a different. now if the difference was between 1% and 10% then you could have had a point there.

additionally you are only checking the price in a small period of time. you should check it over a longer period and you will see that they are exactly the same. you may see 1% in Coinbase and 2% in Binance now and another time see 2% in Coinbase and 1% in Binance.

Binance is bigger than coinbase and the flactuation could be because of several factors - different time zones, different users. There’s also the big scandal with Neutrino. A lot of people don’t want to work with coinbase after all the acquisitions.

Yeah, you must have misunderstood me. I meant to say that I couldn't see any connection between the fact that they control Tether and the more volatile than usual market. I was mostly taking a dig at people who point to Tether anytime it could be remotely related lol.

I have positive feed back for Binance exchange market than coinbase, how ever almost altcoin after listing on Binance exchange always have higher price and could raised 100% for raised up, although than could be down.

I don't really understand such explanations, How does binance being bigger than coinbase or Coinbase users joining binance for example affect the different prices of bitcoin between the 2 exchanges?

We have exchanges with a far less trading volume than coinbase but still have their fluctuations are in the same range with binance.

This doesn't look like a perfect fluctuation, to me it is all about the traders into the buying selling process who make the difference between the two. Binance being the top contributes for a large scale circulation in comparison to the coinbase market circulation. This causes more traders to get into auctioned buying on the exchanges leading to the difference.

Binance seem to be one of the top exchanges recently. So I think the fluctuation is because it is generating much traffic from request of investors and this is the opportunity for owners to make some money.

I think it's because Binance is an exchange and Coinbase is not an exchange. In Binance, you will see thousands of traders are trading in different pair, and many people are trade Bitcoin pair USDT/USDC/TUSD/USDS, and it makes a big difference in other exchanges. Traders will like to trade in Binance because they can use the price to search for the profit and meanwhile, people who buy and send in Coinbase is not bigger than in Binance.

You can not compare Binance with Coinbase, nor you cannot compare Binance with the other exchanges like Poloniex, Bittrex, HitBTC, Yobit as each exchange will have the different amount of traders and it will affect to the price too. I think you can do arbitrage trading, from the lower price in A exchange and send it into B exchange so you can expect to make a profit. But it is too risky to do if you don't know how long the time will need to confirm the transaction.

I think it can be quite simply explained by the usual liquidity of the exchange. Imagine that on one stock exchange 100 people are buying and selling now, and on the other 1000 people. And in one of them the sellers and buyers are approximately equally divided, and on the other sellers there are more than buyers. I think that because of this, there is such a difference in price between the various exchanges. In the stock market, this is not so strongly felt because the market has very high liquidity. Now liquidity is lower in the cryptocurrency market than it was at the end of 2017 and the beginning of 2018, and it is much easier to cause a sharp market movement than before.

So you have checked only once and you instantly made a conclusion about this? It's obvious that different platforms are going to have different volatility and there are a lot of factors involved in that,that anyway don't make any sense. Each exchange has different users, some trade less some more some during day others during night. I don't see 70$ as a major difference.

Because there is far less active traders on Coinbase, I feel. It is a lot more competitive on Binance and of course, much more international, as you don't have the whole Asian market on Coinbase.

But you are only looking at one particular timeframe. Coinbase has very big swings and fluctuations too. Google the Bitcoin Cash - Coinbase scandal. That didn't happen on Binance.

Coinbase is commonly used just when users are willing to buy or sell their BTC on a single transaction while on Binance there are more people speculating on rate changes. In this case with their money, they usually perform more than one transaction. Total volume can be high without trading much coins.

Obviously, It's because of Binance's trading volume. And it has been proven, well at least there was a report than Binance wasn't able in any wash trading (  https://www.blockchaintransparency.org/). And I don't see much difference though, statistically, just a small difference and there might be days Coinbase will be the volatile one, so I wouldn't put too emphasis on the fluctuations you have discovered.

you know that when you are saying the reason for this higher fluctuation on Binance is the higher volume on Binance you are actually contradicting yourself in a way.

having a higher volume means having a bigger market and consequently a bigger order book that is filled with more orders which makes it harder to be volatile. so if anything, the exchange with lower volume must have more fluctuations. and if you compare it with small exchanges you can clearly see that this is true.

binance is more proven to have a greater market reach, many pre-traders and investors are at binary, and this places binaries in good exchanges and can beat coinbase. I think this is a natural thing

There certainly is a relationship between size and volatility, but it's not like larger markets couldn't be volatile or small markets stable. Binance could be fielding much larger transactions (could be an effect of using USDT instead of actual USD, idk, might be a reach), which could cause more volatility relative to some counterparts. And it's not like Coinbase is tiny either.

Or at least that's what I was trying to say when I said Binance had more trading volume. I'm really just guessing as to why because there doesn't seem to be an obvious reason lol.

Every crypto currency exchange have there advantage and disadvantage Binance exchange mainly used by most crypto trader. Besides, it advantage is that it one of the best exchange to buy btc and others crypto in cheap while coinbase is good for selling coins at a high price.

That was pure manipulation and this happens with Binance as well, but then with ICOs that pump and dump hard. If you have a great reach, and questionable operators/investors, these things happen.

CZ is obviously favoring certain ICOs and utility platforms, while Coinbase has to deal with DCG that dictates what coins can and can't be listed. I'm sure that there are more exchanges with similar shady activity going on to make profit.

Binance is available for more countries rather than coinbase. In my country for example, we are able to use Coinbase wallet but we can't use its exchange. Meanwhile in Binance, we are able to trade as much as we want. Another reason could be because Binance is more active in marketing their exchange.

It's very difficult for Coinbase because there are a number of problems that many people know, this is natural selection where the best will always be strong in the market and indeed Binance is very feasible to get everything because they are very good at managing, not just making decisions, it's clear that the concept both are very different from different trading systems, Binance has the largest trading volume than others, Coinbase does not have too many opportunities to improve everything because everyone has no voice to use it.

It mean binance actract more traders than coinbase.  The fluctuating in price is a sign  that binance is bigger and the platform is better than that of coinbase and other trading sites.

the reason is that binance isn't as big as people think they are. they have thinner order books than gdax. it's obvious that binance fakes their volumes.

i and other experienced traders have noticed for years now their books are too thin to justify their inflated volumes. CZ was the architect of okcoin's volumizer bots and there's no doubt in my mind he further tweaked that model and applied it to binance. there's a reason why you can't even toggle to a full order book and the desktop view only shows orders near the spread. even depth watching services like https://cryptowat.ch/markets/binance/btc/usdt only show < 200 BTC depth down to $3800 and only < 400 BTC depth to $3400. sometimes it shows much less. this is exactly how okcoin and huobi's books used to look when they were supposedly trading millions of BTC per day each. CZ is slightly more subtle now.

thin order books = big slippage. the only reason people think binance is "bigger" is because they inject fake volume and coinbase doesn't. liquidity speaks for itself.


proven by whom? oh, some anonymous group who popped up out of nowhere in the middle of the CFTC investigation of bitfinex/tether for market manipulation? and they have zero credentials or credible research? yeah.....

this site was spun up by people connected to bitfinex and tether IMO. there's nothing convincing about their reports.

Thanks for than info figmentofmyass. I had no idea they faked so much volume (I know all the big guys and small guys do that) but it makes sense especially when you think about all the competitions and giveaways they did. Their coin BNB is so pumped right now, but isn't Coinbase also guilty of some fake numbers every now and then?

Binance not doing wash trading? Come on guys;)

I think its only the overall market data that exchanges anything to bitcoin and not only is binance favored rather than coinbase in my opinion there are many websites that offer cryptocurrencies, that are also offered by traders. the proof is that market conditions change frequently and traders will not always be on one exchange website

Normal thing that you can see on both exchange when it comes to price gaps.Knowing that Binance do have much more volume than with coinbase
which we can presume normally that volatility is much more higher with Binance. Lots of activity happening there between buyers and sellers unlike on centralized
coinbase service.  ;D

I doubt Coinbase is inflating their volume numbers. They seem really focused on legal compliance, licensing, and working with regulators for stronger oversight and they're trying to push into institutional markets. The last thing they want right now is a scandal around volume manipulation. They seem pretty content staying around #50 on CMC and focusing on real (rather than perceived) market penetration.

Market volume really matters in every exchanges and so this means that there is a lot of traders using Binance than of coinbase.
That is why mostly traders considered the top leading exchanges cause they could easily move their coins out there, doing buy and sell won't take to long. Cause if there is a price movement in a certain exchanges, definitely there is a big chances that we can make gains especially when you are a day trader.

Looking at his questions, OP,  have in some way answered his question by himself.  It's simple,  Binance has more higher volume that Coinbase. And this higher volume is more like a constant market activities.
Ask any trader, Binance is easier to use than Coinbase.
Another thing again  is that because one can trader certain amount on coin in Binance before KYC is required unlike in Coinbase.

a lot of scandals are currently surrounding Coinbase and they have always been shady when it comes to user's privacy despite all their public appearance about honoring it. so i don't think they care about volume manipulation and the possible additional scandals that it may bring!

This is nothing to be concerned about. Its basically someone doing a large fat finger trade and causing a spike on one exchange which it remains more stable on another until the algo bots countertrade the move.

Its actually very common on alt coin markets, especially ETH. If you check the Coinbase charts there are many large spikes on ETH while not on other exchanges. Basically a large order and not enough liquidity to absorb it. Might be a panic market order or a fat finger trade.

They've always been terrible on privacy and quick to work with law enforcement. That fits perfectly with their obvious focus on on legal compliance and licensing. Why would that make them more likely to fake volume? If anything, just the opposite.

Coinbase is much more tightly regulated than these offshore exchanges in Malta, the Seychelles, the British Virgin Islands, etc. They've already paid millions and millions of dollars to get licenses and they are the biggest exchange brand in the US. What do they have to gain by faking volume? Very little. If their volume numbers were more impressive I'd be more open to the idea but it just seems really unlikely.

High volume reasons. First of all coinbase doesn't have foreign money going in there all the time, maybe a small part of it is non-usa but almost all the money in coinbase is basically just Americans buying and selling stuff which is why there isn't much change in coinbase, there isn't enough involvement and hype and volume to actually make a change.

Moreover, if you look at binance yeah there is btc-usdt pair there which allows you to at least hold something that is dollar based (even though not dollar exactly) and it moves more because the volume is high and there is always someone buying and selling with huge numbers there, if you have 500 million dollars (I know its a lot but it had happened before) would you prefer to do it on low volume place and destroy the market or would you trade it on high volume and hope it doesn't affect thanks to the high volume?

Technically speaking, Coinbase is still one of the top exchanges if you discard everything related to USDT.

Top volumes as we speak in actual USD;

CME; $74 million. (contracts, but still, everything is settled with actual USD)
Coinbase Pro; $30 million.
Bitstamp; $19.5 million.
Kraken; $15.5 million.

If Coinbase or any of these exchanges would inflate their volumes, it would be inflated to a level they can compete with the Asian wild west show.

it is true that there are lots of cryptocurrency exchange websites available but binance exchanges have very high trading volumes every day and the price movements there are so fast that it can make a lot of profits, and for coinbase I suggest you don't use coinbase anymore because I hear there some bad news from coinbase.

before the domination of binance , coinbase before is the best wallet and has got the highest volumes among other exchange/wallet  but eventually binance was born and it slowly attract investors due to thier good service  until it completely de throne coinbase   . your also right  ,  coinbase is becoming bad day by day and infact it also got alot of complaint from several users  . idk if coinbase can still sort these issues  or they might run out of costumers in the future .