I use a couple of exchanges when trying to purchase BTC, however I have noticed that the price of Bitcoin differ across these exchanges can someone explain why.
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0 sats \ 0 replies \ @DeltaClimbs 27 Aug 2023
You should be more specific in your posts.
I'm gonna assume you are talking about 1% or greater discrepancies, which means you might not be using an actual exchange. Read this: https://bitcoinmagazine.com/markets/ftx-collapse-cause-huge-bitcoin-price-spike
And then read this: https://nakamotoinstitute.org/mempool/everyones-a-scammer/
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0 sats \ 0 replies \ @mallardshead 27 Aug 2023
They don't. What you're seeing is a $50 difference on a $26,000 asset.
($50 / $26,000) x 100 = 0.19%
Bots will always arbitrage any relevant price difference, and the difference in price per platform is mostly related to transaction costs.
Significant price differences are something you see on low volume p2p DEXs, where a $2500 BTC buy is considered large.
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0 sats \ 0 replies \ @WeAreAllSatoshi 26 Aug 2023
Exchanges are made up of order books, filled with orders to buy and sell certain quantities at certain prices. These orders can only be filled on the exchange with which it is placed. So each exchange has a different set of open orders. The state of the order book determines the price on each exchange, somewhere between the current ask and bid prices
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0 sats \ 0 replies \ @inverselarp 26 Aug 2023
They actually dont (in any meaningful way) because they get arbitraged. If the price is significantly different on some exchange it typically means there is an issue with that exchange. They either restrict withdrawals, use stable coin in a btc pair that depegged, …
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0 sats \ 0 replies \ @premitive1 26 Aug 2023
they are centralized exchanges
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0 sats \ 1 reply \ @nemo 26 Aug 2023
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0 sats \ 0 replies \ @carlosfandango 26 Aug 2023
Search? Never heard of it. Grrr
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