Why does Binance seem to fluctuate more than Coinbase?

[Kemarit]

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?

Obviously, It's because of Binance's trading volume. And it has been proven, well at least there was a report than Binance wasn't able in any wash trading (  https://www.blockchaintransparency.org/). And I don't see much difference though, statistically, just a small difference and there might be days Coinbase will be the volatile one, so I wouldn't put too emphasis on the fluctuations you have discovered.

[pooya87]

you know that when you are saying the reason for this higher fluctuation on Binance is the higher volume on Binance you are actually contradicting yourself in a way.

having a higher volume means having a bigger market and consequently a bigger order book that is filled with more orders which makes it harder to be volatile. so if anything, the exchange with lower volume must have more fluctuations. and if you compare it with small exchanges you can clearly see that this is true.

[Kocret02]

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?

binance is more proven to have a greater market reach, many pre-traders and investors are at binary, and this places binaries in good exchanges and can beat coinbase. I think this is a natural thing

[jseverson]

you know that when you are saying the reason for this higher fluctuation on Binance is the higher volume on Binance you are actually contradicting yourself in a way.

having a higher volume means having a bigger market and consequently a bigger order book that is filled with more orders which makes it harder to be volatile. so if anything, the exchange with lower volume must have more fluctuations. and if you compare it with small exchanges you can clearly see that this is true.

There certainly is a relationship between size and volatility, but it's not like larger markets couldn't be volatile or small markets stable. Binance could be fielding much larger transactions (could be an effect of using USDT instead of actual USD, idk, might be a reach), which could cause more volatility relative to some counterparts. And it's not like Coinbase is tiny either.

Or at least that's what I was trying to say when I said Binance had more trading volume. I'm really just guessing as to why because there doesn't seem to be an obvious reason lol.

[posi]

Every crypto currency exchange have there advantage and disadvantage Binance exchange mainly used by most crypto trader. Besides, it advantage is that it one of the best exchange to buy btc and others crypto in cheap while coinbase is good for selling coins at a high price.

[BitHodler]

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.

That was pure manipulation and this happens with Binance as well, but then with ICOs that pump and dump hard. If you have a great reach, and questionable operators/investors, these things happen.

CZ is obviously favoring certain ICOs and utility platforms, while Coinbase has to deal with DCG that dictates what coins can and can't be listed. I'm sure that there are more exchanges with similar shady activity going on to make profit.

[Polar91]

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?

Binance is available for more countries rather than coinbase. In my country for example, we are able to use Coinbase wallet but we can't use its exchange. Meanwhile in Binance, we are able to trade as much as we want. Another reason could be because Binance is more active in marketing their exchange.

[rizkyhiw]

It's very difficult for Coinbase because there are a number of problems that many people know, this is natural selection where the best will always be strong in the market and indeed Binance is very feasible to get everything because they are very good at managing, not just making decisions, it's clear that the concept both are very different from different trading systems, Binance has the largest trading volume than others, Coinbase does not have too many opportunities to improve everything because everyone has no voice to use it.

[omonuyak]

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?

It mean binance actract more traders than coinbase.  The fluctuating in price is a sign  that binance is bigger and the platform is better than that of coinbase and other trading sites.

[figmentofmyass]

the reason is that binance isn't as big as people think they are. they have thinner order books than gdax. it's obvious that binance fakes their volumes.

i and other experienced traders have noticed for years now their books are too thin to justify their inflated volumes. CZ was the architect of okcoin's volumizer bots and there's no doubt in my mind he further tweaked that model and applied it to binance. there's a reason why you can't even toggle to a full order book and the desktop view only shows orders near the spread. even depth watching services like https://cryptowat.ch/markets/binance/btc/usdt only show < 200 BTC depth down to $3800 and only < 400 BTC depth to $3400. sometimes it shows much less. this is exactly how okcoin and huobi's books used to look when they were supposedly trading millions of BTC per day each. CZ is slightly more subtle now.

thin order books = big slippage. the only reason people think binance is "bigger" is because they inject fake volume and coinbase doesn't. liquidity speaks for itself.

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?

Obviously, It's because of Binance's trading volume. And it has been proven, well at least there was a report than Binance wasn't able in any wash trading (  https://www.blockchaintransparency.org/).

proven by whom? oh, some anonymous group who popped up out of nowhere in the middle of the CFTC investigation of bitfinex/tether for market manipulation? and they have zero credentials or credible research? yeah.....

this site was spun up by people connected to bitfinex and tether IMO. there's nothing convincing about their reports.

[slaman29]

Thanks for than info figmentofmyass. I had no idea they faked so much volume (I know all the big guys and small guys do that) but it makes sense especially when you think about all the competitions and giveaways they did. Their coin BNB is so pumped right now, but isn't Coinbase also guilty of some fake numbers every now and then?

Binance not doing wash trading? Come on guys;)

[kodtycoon]

I think its only the overall market data that exchanges anything to bitcoin and not only is binance favored rather than coinbase in my opinion there are many websites that offer cryptocurrencies, that are also offered by traders. the proof is that market conditions change frequently and traders will not always be on one exchange website

[carlfebz2]

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?

Normal thing that you can see on both exchange when it comes to price gaps.Knowing that Binance do have much more volume than with coinbase
which we can presume normally that volatility is much more higher with Binance. Lots of activity happening there between buyers and sellers unlike on centralized
coinbase service. 

[exstasie]

Their coin BNB is so pumped right now, but isn't Coinbase also guilty of some fake numbers every now and then?

I doubt Coinbase is inflating their volume numbers. They seem really focused on legal compliance, licensing, and working with regulators for stronger oversight and they're trying to push into institutional markets. The last thing they want right now is a scandal around volume manipulation. They seem pretty content staying around #50 on CMC and focusing on real (rather than perceived) market penetration.

[Yamifoud]

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?

Market volume really matters in every exchanges and so this means that there is a lot of traders using Binance than of coinbase.
That is why mostly traders considered the top leading exchanges cause they could easily move their coins out there, doing buy and sell won't take to long. Cause if there is a price movement in a certain exchanges, definitely there is a big chances that we can make gains especially when you are a day trader.

[vintages]

I think its only the overall market data that exchanges anything to bitcoin and not only is binance favored rather than coinbase in my opinion there are many websites that offer cryptocurrencies, that are also offered by traders. the proof is that market conditions change frequently and traders will not always be on one exchange website

Looking at his questions, OP,  have in some way answered his question by himself.  It's simple,  Binance has more higher volume that Coinbase. And this higher volume is more like a constant market activities.
Ask any trader, Binance is easier to use than Coinbase.
Another thing again  is that because one can trader certain amount on coin in Binance before KYC is required unlike in Coinbase.

[pooya87]

Their coin BNB is so pumped right now, but isn't Coinbase also guilty of some fake numbers every now and then?

I doubt Coinbase is inflating their volume numbers. They seem really focused on legal compliance, licensing, and working with regulators for stronger oversight and they're trying to push into institutional markets. The last thing they want right now is a scandal around volume manipulation. They seem pretty content staying around #50 on CMC and focusing on real (rather than perceived) market penetration.

a lot of scandals are currently surrounding Coinbase and they have always been shady when it comes to user's privacy despite all their public appearance about honoring it. so i don't think they care about volume manipulation and the possible additional scandals that it may bring!

[adaseb]

This is nothing to be concerned about. Its basically someone doing a large fat finger trade and causing a spike on one exchange which it remains more stable on another until the algo bots countertrade the move.

Its actually very common on alt coin markets, especially ETH. If you check the Coinbase charts there are many large spikes on ETH while not on other exchanges. Basically a large order and not enough liquidity to absorb it. Might be a panic market order or a fat finger trade.

[exstasie]

I doubt Coinbase is inflating their volume numbers. They seem really focused on legal compliance, licensing, and working with regulators for stronger oversight and they're trying to push into institutional markets. The last thing they want right now is a scandal around volume manipulation. They seem pretty content staying around #50 on CMC and focusing on real (rather than perceived) market penetration.

a lot of scandals are currently surrounding Coinbase and they have always been shady when it comes to user's privacy despite all their public appearance about honoring it. so i don't think they care about volume manipulation and the possible additional scandals that it may bring!

They've always been terrible on privacy and quick to work with law enforcement. That fits perfectly with their obvious focus on on legal compliance and licensing. Why would that make them more likely to fake volume? If anything, just the opposite.

Coinbase is much more tightly regulated than these offshore exchanges in Malta, the Seychelles, the British Virgin Islands, etc. They've already paid millions and millions of dollars to get licenses and they are the biggest exchange brand in the US. What do they have to gain by faking volume? Very little. If their volume numbers were more impressive I'd be more open to the idea but it just seems really unlikely.

[wuvdoll]

High volume reasons. First of all coinbase doesn't have foreign money going in there all the time, maybe a small part of it is non-usa but almost all the money in coinbase is basically just Americans buying and selling stuff which is why there isn't much change in coinbase, there isn't enough involvement and hype and volume to actually make a change.

Moreover, if you look at binance yeah there is btc-usdt pair there which allows you to at least hold something that is dollar based (even though not dollar exactly) and it moves more because the volume is high and there is always someone buying and selling with huge numbers there, if you have 500 million dollars (I know its a lot but it had happened before) would you prefer to do it on low volume place and destroy the market or would you trade it on high volume and hope it doesn't affect thanks to the high volume?