Why does Binance seem to fluctuate more than Coinbase?

[nandro68]

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?

[Meysa_richa]

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.

[livingfree]

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.

[dothebeats]

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?

[jseverson]

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.

[geminiboy]

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?

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

[joniboini]

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'm very tempted to say that it has something to do with Binance controlling Tether, but I can't think of any connection lmao.

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

[hulla]

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?

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.

[pooya87]

$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.

[EriksonPartners]

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.

[jseverson]

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.

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

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.

[apilpirman.bisnis]

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.

[JeromeTash]

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.

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.

[n0ne]

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.

[gantez]

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.

[maydna]

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.

[aad140386]

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.

[MakeMoneyBtc]

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?

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.

[slaman29]

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.

[Beerwizzard]

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.

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.