Bitcoin Forum

for example look at BRZE/BTC on Vindax (https://vindax.com/exchange-base.html?symbol=BRZE_BTC) and SistemKoin  (https://sistemkoin.com/trade/BRZE_BTC)orderbooks:
https://imgur.com/a/wodZiLl
https://imgur.com/H9rODsI

is there a scam behind the scenes?

It's not a scam. It's the result of the difference on the trading activity of both exchange. You will notice that there is a big difference on the volume of token that being trade on both exchange. Considering that both exchange don't do wash trading.
Then it means that other user set Buy/Sell order higher/lower compared to the other one which result to the variance on the price. This happened a lot on the token/coin that has low trading volume and listed to a DEX or Exchange that don't do wash trading.

I can't see anything to direct scam. Price on all exchange won't same. It would be bit different from each other based on buyer and seller demand. But once you will found huge different between two exchange on same coin then it most likely created hyip about that coin. And it would manipulate by exchange as well. So there is high risk of loss if you buy on high rate. Because it will dump suddenly when people will start deposite from other exchange. So this is one kind of soft scam since everyone know about that risk.

Thanks guys, but I wonder way buyers don't buy at lower price when they see lower price on other exchanges?

It's not even about the fact that they are "shitcoins" as you labelled them, it also happens with Bitcoin. The trust is that prices aren't the same for all coins across different exchanges and this is where arbitration comes in. A lot of traders cash in on this if the difference in price is that much by buying from one exchange and then sell at another exchange

Because of liquidity. As you can see. If a guy bought cheaper on exchange A and sell to exchange B. Then you will notice that there is no buy order that can complete his order, only sell order is higher.
You must consider the withdrawal fee too on exchange. Sometimes the withdrawal is higher compare to the difference in price considering the volume of the token that you will trade.

Such also happens with the forex market too as different brokers have slight differences in their price quote and that fluctuates depending on the demand to buy and sell which creates volatility. So, I'm not surprised with crypto where regulation isn't the order of the day.

But in my example I can see enough buyers...but you are right, I didn't consider trade fees and withdrawal fees.

It's mostly because this certain token has very low trading volume and really bad liquidity on these exchanges. In summary, chances are that there's not much people trading them hence the price premiums. This is one of the reasons why some people do arbitrage between decently big exchanges, and the smaller and lesser known exchanges; because of the price premiums.

There's a slim chance that it's because one of the exchanges is fraudulent, but I'm leaning towards the former in this case.

This is not a scam but it is true that every trade on the exchange is different as the example you mentioned BRZE / BTC in Sistemkoin and Vindax because demand is greater in Sistemkoin then prices will increase and demand in Vindax is very low and this can be arbitrated by traders and things this is normal for me.

You can do arbitrage when you see big difference in price in every exchange but you need large amount token to buy to earn enough . Check also buy orders on different exchange if there are a large buy orders in other exchange then you are good to go.
Also check if the wallet is online or offline .
If the wallet is offline you cant sell or transfer  there.

Is not only what you called shitcoins that has different prices on a different exchange but almost all the coins has a little different in terms of value even Bitcoin itself let alone what you called shitcoins. I don't know if you are familiar with arbitral trading? If your answer is yes then you shouldn't have as this question but if your answer is no then I will say it is a normal situation which can benefit you if you are a trader.

well, I'm a novice trader and I'm afraid this be a scam, therefore I don't think doing that.

Usually such thing happens with a coin which has very less volume. You could see a huge difference in prices but such arbitrage opportunities aren't worth enough because of little or no volume. Exchange fees would make it worthless. Sometimes what happens is that exchanges close withdrawal or deposits or both due o maintenance. In such cases too price of a coin on such exchanges get manipulated and there's a huge difference between the price of 2 exchanges.

Usually this is often referred to as price manipulation, so that the price of coins among other places of exchange has a price difference with a very falling distance and like this provides a trap for fooled traders.

You also can consider bots which being used from different exchange, this type of system needs to be learned before trading in any exchange. Some see arbitrage opportunities and jump right away, only to find out that there's no real volume and once the deposit money being added price of the target coin  change up.

It is very important to everyone to know all the factors and grounds around trading business, the more you know the more safe your capital will be.

Yes every exchanges is always have different prices, because that is depend on how many people trade there and volume.
If like new coin with low volume, there is will have a big gap with seller and buyer.
That is can be opportunity to arbitrage, but you must calculate detail how much fee, time and price you target.
If wrong, not only lose your money but also your time.

There's definitely nothing scammy about this and in fact it would offer an arbitrage opportunity if a trader could execute trades quick enough and if there was enough volume to do it.

You'll only see this with thinly traded tokens or coins, I think.  The last time I saw bitcoin trading at such different prices was back when Mt. Gox was going out of business and its customers didn't know if they'd be able to withdraw their coins.  Bet this happens a lot with some of the lesser known, lesser quality coins that trade for just a few satoshis (if they even trade on more than one exchange).

These prices are different simply because bitcoin price in pair to USD is also different on each market. So altcoin rate to Bitcoin would be also different.

Usually, the difference isn't too big, if anyone find a big difference on it then it could be a manipulation or even a scan

This is not a fraud, some markets do have different prices. there may be several factors that cause one market to have more demand than others. however, as long as it can still be traded, and the project is still running I don't think there is an element of scam here. even that is clearly seen from different volumes, where one market has a smaller volume than the others. besides, we don't know whether a market with a small volume opens a deposit on that token or not.

Because of trading volume from that coin/token. If they have low liquidity, the buy wall will very thin and an small order can dump their price, and trading activities is low on the exchanges is another reason, which make the price different.

It's basically because of different volumes that both the exchanges get different volumes and different types of trading activity which is why there is a major difference in trading prices. Moreover, shitcoins generally experience such a thing because they have almost negligible volumes over various exchanges. Some group of traders collectively push the price on one exchange thus creating massive price differences on that exchange from the other exchanges. This can happen with almost any coin, even BTC. You can see price on certain exchanges is higher than the others but price deviations are lesser because of high market cap.

All right. Low capitalization - low liquidity. If you look carefully, you can often see that there are no buy orders for this kind of non-liquid coin, or there are few of them, and buy and sell orders differ very much.
When such a coin is on several exchanges, then due to its non-liquidity, the price can be very different. Volumes of such coins are often supported by bots.

It happens so often. This is mainly because of the site volume, lack of trader, and people don't like these coins more. But do you know it has an advantage? That is arbitrage trading. You can buy the coins at lower prices and sell them for higher prices when you see such price discrepancies on different exchanges. But there are some precautions should be taken. Before you trade you need to know everything about the site you want to trade, such as whether KYC will be required, how long it takes to withdraw, whether the exchange supports your country.

Sistemkoin is literally a scam, people do not realize this but last I asked you need to pay them just 8 bitcoins and they will list your coin, we are talking about just 8 bitcoins, nothing more nothing less, it could have absolutely zero volume for a while as well, just to notify your investors that you are finally listed and they could use that place, it is basically a front for fake scam ICO's to get paid hundreds of bitcoin by the community and then use 8 bitcoin to list it there to make it look like they are actually doing something, then they just vanish and sistemkoin is the only place you can see how worthless the coins you traded became. Long story short the prices are different because almost all of those scam coins are worthless anyway, if they worth anything people would have arbitraged it already.

The point is no one is interested in trading the token, and only bots do the trading. Although it is very fast to get profit "because the spread between buy and sell orders is quite far" but my advice is avoid to trading this type of token, because it is very risky to be stuck at high prices

Good that somehow you got the picture of some of the responses here and you got enlightened about arbitrage.

If you are a novice trader, I suggest refraining testing the waters on low volume coins and low volume exchanges until such time that you gained knowledge playing with those. This is to somehow minimize the risks of being sh*t on your first phase of doing trades. Stick with some of the top coins today (per volume) on top exchanges (at least).

These situations cant really be a called to be a scam one but rather its an arbitrage opportunity for those who do able to spot it out.Exchange prices arent really the same which means they do differ but most of the time only on small gaps thats why when you do see some big gaps on prices then thats the time you do took some advantage on buying and selling between them for you to make money.

Arbitrage opportunities are quite rare so if you do have the chance or able to spot some then better to hurry and trade it.No these arent scams because there are really situations that can trigger out these price differences on any exchangers.

I don't know Breezecoin (BRZE) personally but I'm gonna take your word for it that it's a shitcoin and price differences like this would most likely be a cause of pump and dump groups concentrating on one exchange. I've joined some telegram pump and dump channels just to see how this works and most of them are doing the pump in just one exchange, the price influence would be more effective if they concentrated all their money on a single exchange rather then doing the pump on several exchange. At least in this method they can have a big influence on one exchange, that is why you will see that the other exchange where the prices are higher have more traded volume compared to the other exchange where it has a lower price.

It's mainly because of the amount of users from exchange to exchange. If one exchange is more popular and has more people using it, it will have people buying the coin more than the one that doesn't. It doesn't necessarily mean that something shady is going on. However, it could also be a sign of a pump and dump as well. If some group decides that they are going to pump up some random coin no on has ever heard of and 100 people buy it, the price will go up and they will try to sell their coins at that price. If you can get the trade in quick enough, you should buy them from the lower priced exchange and sell them at the higher priced one. It's called Arbitrage and you can do pretty well on it. Just be careful it's not in the middle of some huge pump and dump and you get stuck at the top when the price dumps.

It's not tell anything about scam actually. It's a totally normal thing in crypto exchange. Even some times bitcoin also shows different price in different exchanges. Actually it's depend on exchange user activity. But sometimes people use this kinda thing as vent also. So i my guess nothing to worry about it.

That’s right, it can be a good strategies but it can also be an expensive way of trading. Different exchange, different volumes and different price. As far as I know, the highest price will be the basis of the value of the coin so I think you should choose the exchange with a highest volume to get a higher profit.

Even if they buy it from an exchange that has a slightly lower price, sending the coin to another wallet will cost you and if you add it up, its like buying the same coin from the same exchange site that has a slightly higher price than compared to the one with a slightly low price. Its the volume that causes this small difference in price.

Each exchange has a different trading activity and each exchange has a different volume. That is the reason why some shitcoins have different prices on each exchange, not just shitcoin Other altcoins also have different prices at each exchange. Even Bitcoin is the same at every price exchange it's different even though it's a little different. For example the price of bitcoin at $ 8350 binance while at bittrex $ 8300. Difference Such a price does not mean a scam, but depends on trading activities and volume in each exchange.

exactly  .

like what others said . price of the coins on every exchange do always differ , this is why traders are doing arbitrage trading no matter how  big or small the price was but as long as they know what they are doing they can always earn a profit  . they will just buy a coin on the exchange that has a low trading volume and then they will sell it at an exchange that has a high volume to be able to earn   .

if the price does not move it does not mean that there a problem on the exchange .  we can only say that no people are trading at the moment  .

I think that depends on how many traders that trade those coins and how much money they use to buy and sell the coin. It is normal to see the different price on different exchanges. If you check on the big exchanges and compare between two or three exchanges, you will also see that there is a different price too. If you don't want to feel scam or get scam, you must not trade on that exchange because many other exchanges which will not be a scam exchange.

If you can see a different big gap of the price, you can try to arbitrage trading ;D

But I won't suggest if you don't have enough skills to trade. Besides that, you should think and calculate how long the coin will be arriving in the other exchanges so you can sell the coin at the right time.

There is no scam in the ordinary way.
It's not uncommon to have 1%-5% on low volume/low popular coins.

But in this particular case, to have such a real difference, one or both of the exchanges either forbid deposits or withdraws. You can't speak of a wash trades when you actual buying orders at a higher price than the actual sell orders in the second exchange.
Register for both exchanges and check can you really deposit AND withdraw on both. Or by accident, some of the wallets are in Temporary Maintenance...

It is probably because the coin is running on a different blockchain since it forked. It happened to me and If I had my coins in the other excahnge I would have over 5btc worth. At least I still had some left in the othet exchange and made some decent profit. So it is the fork that caused the coin to be on another blockchain. Sometimes they will stop deposit as well.

If you try to buy from one exchange and sell to the other you will see you cannot since they on different blockchains.

I think that should just be arbitration problem and it usually happens to some coins alone which I don't know if the cause of the arbitration is because of the different location of each exchanges, so except this to always happen not with these coins alone, but with some of the coins that you I'll still come across in the near future but if you call them shitcoins, I don't know why you still have to be on them to the extent of following them to different exchanges.

You have to get over them and look for more important projects that you can focus all you mind and analyses on, and while even seeing this arbitration of these coins has challenge, there are actually some traders that are very good in making money still from these opportunity of having different prices across the exchanges, well that is not the discussion for now, just know that the price difference is a normal thing.

Firstly, the project in subject is not scam and it a US based project which i believe will follow SEC rules, its also backed with real assets (real estate) as the OP question is concern. But crypto scam project operate in varieties of form not only through exit the market. An example is Jinbi which didn't pay their bounty participants.

Difference price from exchange to exchange caused buy order or sell order for those coins are different but don't mean it scam because it depend on their market support itself but usually different price from exchange to other exchange will not too far and some of people usually utilize this price difference for arbitrange

Difference price action, volume and momentum from two exchange site that causs why the price are not the same just take a look at the buy and sell order from two exchange site look at the liquidity.
Some trader use a method of arbitrage when you buy coins in an exchange with a low price and sell to another exchange site with a high price.

OP needs to understand something the coins were prices based on its demand so if you choose two different platforms then there will be difference in trading volume so demand as well according to that only you can see price.

On coinmarket cap you only see the average value or reported value from the exchange it doesn't meant it have to be same while you place order.

This is where arbitrage opportunities do happen on where the price do have big difference between exchangers but as said these situations arent that common.
All movements and prices will vary or depend on exchange demand between into its traders so we might see different prices in the other side but they arent that much of the difference.So its rare to see these kind of chances though.If you do able to arbitrage then you are lucky enough.

Most probably its wash trading bot that sets the buy/sell orders and usually with a small sell or buy order you can dump the price one a exchange creating an arbitrage spread.

But beware, if you try to buy or sell on the other exchange the bot algo usually moves in an unfavour way and even if it seems there is a buy block, it will be quickly removed once you place your order.

I have experienced this behaviour many times on smaller exchanges.

EWA