Why Bitcoin Rate Differ on Each Exchange?

[Thadeous]

Just found an interesting article about rate differences between cryptocurrency exchanges.
Why Does Bitcoin Rate Differ on Each Exchange?

[1714899166]

1714899166

[1714899166]

1714899166

[1714899166]

1714899166

[1714899166]

1714899166

[yanesna3]

Just found an interesting article about rate differences between cryptocurrency exchanges.
Why Does Bitcoin Rate Differ on Each Exchange?

Good afternoon!There is no single international system of quotations on the currency exchange as on the Forex currency market. Therefore, the price is formed by traders who trade on this exchange. There are several tens of large exchanges, however, on each of them - different rates for buying and selling the same crypto currency.

[Direwolve735]

The difference in the rate of the same asset on different exchanges is explained by the fact that in each market there are different sellers and buyers who pursue different goals. The price of currencies also depends on the exchange's reputation - its reliability, transaction speed, the number of coins presented. It is logical that on the best stock exchanges the price will be higher.

[cryptoroi]

Nice articles. Good points there. Actually, the basic is hidden in one question, who doesn’t want to make some profit? There are a lot of factors that affect the rate in exchange. Sometimes, the volume of exchange causes difference in rate. Sometimes, just different goal of different exchanges cause the difference in rate.

[boyjack]

Different exchanges are different volume, small exchange will be small volume of trading and it will violate a lot, better to trade high volume exchanges are good and there is not international system for cryptocurrency trading like forex, gold,etc..

[sheenshane]

Yes, each exchange site companies are having the different volume per coin and the high volume also a high rate.
The article said that "why don’t buy some at a lower price and then sell it on another exchange?". It is possible to happen but there is a transaction fee covered that's why you can't easily transfer to another exchange site.
So, the best thing is just to find exchange site that has a good high volume of coins exchange, I think just like bittrex.

[OrangeSeller]

Different exchanges are different volume, small exchange will be small volume of trading and it will violate a lot, better to trade high volume exchanges are good and there is not international system for cryptocurrency trading like forex, gold,etc..

The first thing is liquidity. Bitcoin trading volumes can be huge on large exchanges on one side and much lower on smaller exchanges on the other side. These differences in supply affect the price. Secondly no common way has so far been established to price Bitcoin, which means nobody knows what it is supposed to cost. Thus the price is based purely decided by market forces.

The third thing is that moving money across exchanges can be risky. Doing it requires a lot of information. Thus we can say it is hard for traders to simultaneously buy and sell across exchanges, which allows these price differences to persist for long.