Surely some are still wondering, why do the prices of cryptocurrencies vary on each exchange? For example, at the time of writing, in Binance the price of Bitcoin recorded a value of RM194,761 and in Luno, RM187,999. Doesn't it look like how different the Bitcoin price is on the two exchanges?
Apparently, this is what investors need to know!
First of all, you need to know that cryptocurrency trading rates are much higher on large exchanges like Binance and Coinbase, as opposed to small exchanges seeing low cryptocurrency trading rates like Luno.
Indirectly this will cause a difference in the supply of cryptocurrencies in exchange and affect its price. For example, high ETH demand in exchange will result in limited supply of units and prices will increase. Vice versa.
Next, the price of a crypto currency can be said to be highly dependent on trading activity and there is no way to set its price.
If the concept of crypto trading is really understood, in fact the price of crypto is balanced between the price offered and the price willing to buy.
However, when the exchange is very important for confirmation and understanding between the two parties, the trading volume will be low and as a result the price movement will be slow.
Investors should also keep in mind, since cryptocurrencies are not based on fiats such as Ringgit Malaysia (RM), USD, and Euro, and are not even associated with any particular country or exchange, these assets have not been certified to have a fixed or standard value.
This shows that the price of cryptocurrency is so speculative and depends on the market and the time you make the purchase of the crypto. Not to forget that the commission charged by the exchange also affects the price of the currency.
