The varying prices of Bitcoin between exchanges come down to THESE FOUR THINGS:
✓First, liquidity. Bitcoin trading volume can be massive on the larger exchanges, but much lower on smaller exchanges. Those differences in supply affect the price;
✓ Second, there’s no common way to price Bitcoin, which means nobody knows what it’s “supposed” to cost, and the price is based purely on trading;
✓Third, moving money across exchanges can be messy and inefficient, and requires lots of collateral to do efficiently. That means it’s hard for traders to arbitrage differences across exchanges, which allows these price differences to persist for longer than they would in a more efficient market;
✓Lastly, there’s an “infrastructure issue” wherein buyers can’t currently quickly buy Bitcoin across multiple exchanges at once, again, making it hard to arbitrage these price differences. #TradingFacts

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*Information source: cnbc

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