Bitcoin Forum

Hi  apologies in advance as this may be a silly question but its confusing me.

I haven't used Binance until recently but I have noticed that the prices are different on each exchange for example :

On Coinbase the current 24hr price rise for XRPGBP is 7.11%, on Tradingview XRPGBP(Coinbase) is showing 5.06%

Why is the same coin in the same currency showing 2 different price rise ?

If you do know on how crypto exchanges work then you would definitely able to answer about the question that you had been asking. To think that these platforms are used on buying and selling of coins from
fiat money to crypto or crypto to crypto. Each platform do set rates of the currencies and their rates will vary on how sellers and buyers do act.

On the question on why they do have different rate or price rise percentage? It all goes into its own volume of trades. Each exchangers arent correlated. The bigger the exchange
the more price movement you would surely get.

The important thing to look wont really be on percentage rise or drop but rather go directly on the actual price and you might see some arbitrage opportunities.

Thanks for your info 👍

There is nothing wrong with the question you have asked, this is a forum and everyone is free to ask questions provided you’re asking at the right section. As for the prices being different on different cryptocurrency exchanges has to do with a few things and mostly that’s because of infrastructure issues, and the trade volume of the exchanges.

When I was a newbie I was also asking this same question, because the prices I would see on Coinbase was different from other ones I was using. Bitcoin (or the cryptocurrency market as a whole) doesn’t have an improved infrastructure, when we have an improved infrastructure, the work of this infrastructure would be to help in aligning price of cryptocurrencies among exchanges.

You can also find out that not only in Binance but to all exchanges. Prices may vary all the time as not all traders are of the same offer to the other exchanges, it is market behavior and you can't change it.

If you could take a look into exchanges that has a low market volume, you will surely surprise that the price out there is very low than the known exchanges. It is just how the exchanges work, it is actually a market competition and those who have a huge market volume platform is actually the one who offers a high price that traders would like to use.

He is a newbie so I guess he has not seen a lot of these yet in many exchanges. It is not only between Coinbase and BNB but rather across all exchanges. And yes, it is according the exchange's liquidity how this percentage changes. Sometimes the deviation is really wide particularly in small exchange with low trading volume. Anyway, I think the OP will understand it sooner.

This is how the crypto exchange will work and how they will earn and make millions of dollars from this business. Binance and Coinbase pro has a different fee and also has different features of services offered.

Each exchange has a different strategy you can able to use to lessen the fee. I think in Binance you will use BNB coin in every trading pair for the less transaction and for the Coinsbase you may watch this YouTube video tutorial (https://www.youtube.com/watch?v=lcCIjIAqM-4).

The price might be different from one crypto exchange to another due to demand and supply and user base. Most people leverage this and that is called arbitrage trading, buying low somewhere and selling high in another exchange. The price will eventually correlate at a later stage but the smart one takes advantages of such

great, now I am understanding better. 😊

Price varies between exchanges because they have different traders that has different bids on what price they want to sell or to buy a particular coin.
The latest that will display about the day change is the last order that has been completed, either it is sell or buy.

For example, at Coinbase, traders there wanted to sell or buy the coin for 1 USDT.
On the other hand, at Binance, traders there wanted to buy or to sell it for 1.4 USDT.
That is why coins' price varies between exchanges.

It's okay to ask anything you want to ask here as long as it is relevant.

This was the question I asked myself the first time I entered into the crypto industry and noticed some certain price differences, your question aren't silly at all, there's nothing wrong with it.

Now, let's take an example, a loaf of bread is selling at $5 in market A in rural area while the same loaf of bread is selling at market B in urban area at price of $5.8, having a price difference of $5.8 - $5.0=$0.8  Now what causes the differences in prices and percentage is the demand and supply in those markets respectively, so same happened in different cryptocurrency exchange where there are many traders on the trading platform like binance having high volume of btc than probit exchange as clear instance.

Most of the cases can be explained by the following 2 possibilities:

1) There was a price mismatch and it got arbitraged away

or

2) One of the exchange's wallets / deposits / withdrawals were undergoing maintenance, or had different qualifications (like same crypto but different blockchains ) causing a sustained difference in pricing...

Extremely right, because they aren't correlated to each other that is the reason they had a different price and the price varies on the trader's bid and the activity on th exchange, they don't have the same trade volume and the price will be calculated at the volume per 24 hours and that matter to the demand and supply on each exchange.

That is obvious that the same kind of business but they had different features that may effect to their own it's the trading price.

Every exchange has its own pricing but as long as they're near to each other as we like to compare it, choose the exchange that has the best price for you.

You will determine if which is the best exchange that suits your rate.

Think nobody mentioned the obvious here. Coinbase is setting the price on its own. Binance does not set the price, the traders on its platform do.

So one exchange is like a big company broker you buy from and sell to.

Binance is just a market where you go and place orders, at whatever price you want.

So obviously on Binance the price is more flexible as people trade at variety of prices.

In reality both places have their own kind of whales and even though the price is almost always the same price almost on the same moment, there are tiny bit of fractions where both of them have big changes depending on the movements of the whales. So, let's say I am using coinbase and you are using binance, the price of bitcoin is at $10k, at binance it could look like same thing has increased 10% today whereas on binance it would be 0%, it is the same price why would one show 10% increase?

Well, simply maybe a whale sold at my exchange so much that it dropped to $9k and obviously since the real price is $10k the price would go back to $10k, that would make it look like there is an 10% increase but in reality it was just 30 seconds of a whale selling and others getting the price back up.

the reset time in the price changes every 24 hours also affects their % change in price. Suppose exchange A sets the reset time at 0.00 UTC +8 time while exchange B sets at 0.00 UTC +7. Basically they still follow global price patterns with accuracy. You can confirm by checking the prices on both exchanges based on usd at the same time.

Hard that feeling I would find something different as I decided to read the replies, most were just repeated thought from previous users but yours was different and actually made sense. It's quite obvious every exchange are filled with different traders having different target which definitely resulting to different price value for the tradable coins but that's something the exchanges don't have any control over per se.

But with the different reset time for each exchange, I think sometimes has to done to addressed this issue. A specific time should be used globally.

Simple answer is they are two different exchange and different users also.Traders will dictate the price of any coin so it is really difficult to maintain the price difference in each exchange and that time arbitrager will enter the market to earn profit from price difference.

For arbitrage traders this is commonplace especially if it is between large and medium exchanges, and they do not use percentages as a benchmark of change but are based on fiat currency (USD). Medium exchanges are only mostly filled with users of the country where the exchange originates, so the reset time setting may be slightly different depending on the active trading time of its users. Medium exchanges also usually only have a few trading bots so that at that time the percentage doesn't change because no orders are filled while most exchanges have recorded global prices due to trading (for example BTC><USDT at Kucoin vs Indodax, when this post was written both have a difference of +0.93% vs -1.13%).

The main issue is all about liquidity, so there is a requirement for all crypto exchanges to solve this at the first place. GBP  pairs are the volatile exotic spot forex pairs which can move more than %8 in a day. Imagine merging the volatile crypto pairs with it and the liquidity will be at the lower levels along with the huge spread.  For example, GBP/JPY pair is the most volatile forex pair and that is why many traders avoid to risk more than 1% in single trade with exotic pairs. The similar situation is case for volatile GBP/altcoin pairs.

Do GBP currency will really have that kind of percentage volatility in a day? 8%? For fiat movement then im not really believing this much since fiat wont really he moving on a very large scale in 24 hours.
Also im not really that convinced on comparing fiat/fiat to fiat/crypto pairs because it is entirely different.In topic reply then price rise differences will really depend on liquidity on each platform
where it do involved volume and activity inside the platform.So you would definitely see different percentages but on a very minimal gaps.

In spot forex, it is unlikely to happen because the both currencies represent the strength of the country's economy. Around 150-200 pips daily movement is standard for GBP/JPY and with adding illiquid market conditions this percentage movement can jump to daily 8-10%. Depending on the platform,broker the difference can be bigger than the mentioned expectations. If the theme is about the difference then we need to look the all variations which affect the bid/sell spreads.

I'm afraid what you are asking is a fundamental question about both crypto and exchanges. For a good read on getting you up to speed with the basics I recommend this article (https://cointelegraph.com/explained/crypto-exchanges-explained).

However, to answer your question directly; the price of coins differ between different exchange platforms because the price is influenced firstly by the volume allocated to that exchange and secondly the demand/supply of the buyers/sellers. In other words, prices are determined by the movement of the people.

Im also a forex trader but i do only play with eur/usd and other major pairs thats why i havent tried this Gbp/Jpy and im bit shocked about 8-10% movement since never ever in my forex trading career or experience did
able to see a pair that move into that kind of percentage.Usually 2-3% per day would be maximum and when it comes to profitability then it will vary if you are a swing trader or a scalper.
I'd already understand and do got your point. Btw, what forex broker you've been using? I have tried on hanging out with XM for a while now.

When I first started trading cryptocurrency I also had questions like yours, and after running it for several years I started to understand.
It turns out that the difference in the coin price of each exchange is influenced by different supply and demand on each exchange. Not even
just Coinbase Pro and Binance exchanges have different prices, almost all exchanges have different prices and that is perfectly normal. Even
for some traders this difference is used to generate profit by means of arbitrage trading.