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Author Topic: Why coin exchange platforms have different values for a same coin?  (Read 133 times)
jkv_crypto (OP)
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January 19, 2018, 02:09:58 PM
 #1

I'm new to cryptocurrency and still learning what is this. I was thinking that why there is a price difference between exchanges for a same coin. Rates on cex.io is too high while coinbase has a very low. I noticed that the difference is around $1000-2000 for bitcoins. This is a huge difference.  Roll Eyes Huh

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VitKoyn
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January 19, 2018, 02:59:09 PM
 #2

I'm new to cryptocurrency and still learning what is this. I was thinking that why there is a price difference between exchanges for a same coin. Rates on cex.io is too high while coinbase has a very low. I noticed that the difference is around $1000-2000 for bitcoins. This is a huge difference.  Roll Eyes Huh
Well that is really a huge difference, but it is normal for cryptocurrency exchanges to have huge difference when it comes to price, the reason is the liquidity or trading volume, it is more likely that the price of a specific cryptocurrency is more expensive in bigger exchanges and have a lower price in exchanges that have lower liquidity. Another reason is cryptocurrencies really don't have an official price which means exchanges can price any coin as much as they like. In short different exchanges have their own market.
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January 19, 2018, 03:00:47 PM
 #3

Different exchange has different values of their coins. The reason behind it is that they have different investors. There might be high demands on coinbase compare to cex. We all know that the higher demand will lead to price increase.
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January 19, 2018, 03:05:23 PM
 #4

Try to think of this. The people trading in one exchange are not necessarily the same people trading on the other exchange. That's basically the main reason. Stock market is different from cryptomarket (in case you are trading in stock market).

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January 19, 2018, 03:09:03 PM
Last edit: January 19, 2018, 09:39:50 PM by Zocadas
 #5

As preposters already stated, the trading volumen takes an important part on differences. But you must be careful. When prices are shown, that doesn't mean, that you can sell/buy cryptocurrencies for actual prices. You must study first bids and asks, they may differ significantly from each other, the lower the trading volumen is. Also manipulations by pumping groups may cause short price differences on exchangers, especially on exotic/new coins.
But to be honest, price differences of Bitcoin between 1000$ -2000$ are not usual.
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January 19, 2018, 03:09:43 PM
 #6

because exchanger " A " and exchanger " B " is different .
different about supply and demand , and why to many people doing Arbitrase from exchanger " A " to exchanger " B " to get profit.

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January 19, 2018, 03:18:02 PM
 #7

I'm new to cryptocurrency and still learning what is this. I was thinking that why there is a price difference between exchanges for a same coin. Rates on cex.io is too high while coinbase has a very low. I noticed that the difference is around $1000-2000 for bitcoins. This is a huge difference.  Roll Eyes Huh

Depends on the trading volume of the said trading platform. Thank for example, Zimbabwe exchanges, the price of a bitcoin is at a premium, because most of them are putting a lot of their money into the market because its their mode of storing their wealth. And then we have the South Korean market which dominates the trading volume per 24 hours. They too have bitcoin price well above their Western counterpart because the trading volume is huge on that side of the planet.

So its not surprise that we will find different bitcoin price on every exchange. That's why we also have what we call "Arbitrage", wherein you will buy bitcoin on a trading platform where the price is lower and then sell them at a higher rate on another platform. Instant profit on your end.

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January 20, 2018, 01:01:31 AM
 #8

I'm new to cryptocurrency and still learning what is this. I was thinking that why there is a price difference between exchanges for a same coin. Rates on cex.io is too high while coinbase has a very low. I noticed that the difference is around $1000-2000 for bitcoins. This is a huge difference.  Roll Eyes Huh
Perhaps only btc  has such huge price difference. Most of the other coins are not much difference in price. The reason is that the amount of investment in the coin in the exchanges is not the same it leads to the need to buy and sell in different exchanges so the price will not be the same between the exchanges.

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January 20, 2018, 02:46:23 AM
 #9

Basically each exchanges has different investors/traders. Yes, maybe bitcoin can have a huge difference in some exchanges but most coins has equal value. Also you may notice that some exchanges offer more coins than others or you can see some coins that are not present qith other exchanges.

Just remeber that when you are going to trade check the price on your exchange.
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January 20, 2018, 04:37:07 AM
 #10

because the price of a coin on any exchange platform will be affected by trading volume on the exchange. Usually exchanges that have prices far above other exchanges are exchanges that have a little trading volume.

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January 20, 2018, 04:49:40 AM
 #11

I'm new to cryptocurrency and still learning what is this. I was thinking that why there is a price difference between exchanges for a same coin. Rates on cex.io is too high while coinbase has a very low. I noticed that the difference is around $1000-2000 for bitcoins. This is a huge difference.  Roll Eyes Huh
I think this is due to the difference in demand of the different exchanges.Some exchanges is available in many countries but some exchanges only available on particular countries so they have difference in demand for each coin.For example the price of bitcoin is little bit less in coinbase than other exchanges because buying and selling of bitcoin in coinbase is only available in 32 countries.
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January 20, 2018, 05:26:50 AM
 #12

Well it depends on the demand of buyer and seller in each exchanges. If the differences are huge you can transfer your fund and can gain profit out of that.

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January 20, 2018, 05:34:01 AM
 #13

Well it depends on the demand of buyer and seller in each exchanges. If the differences are huge you can transfer your fund and can gain profit out of that.

Just be cautious in doing this. Do your research about the exchanges in which you are trading because small exchanges can close down any time or it can turn out to be scam . So only trade on reputed exchanges and also consider the withdrawal time in fiat or in btc in which ever way you want to withdraw. If it takes many days or your coin is struck in withdrawal process it can even lead to loss if crash takes in between that period.

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