When I checked the price of Ether on CEX.io I noticed that there is a difference compared to Coinbase's price. Actually, the difference is more than 20$!
Does anyone know why there is a difference between these sites?
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1 Answer
The price of cryptocurrencies (in general, not just Ether) is dependent on who's available who wants to sell them. There are several exchanges for different cryptocurrencies, and different individuals buy and sell on them, so one "whale" of a user (someone placing a large buy or sell order) can sway one exchange's rates by a bit.
Coinbase is a company that takes a profit from cryptocurrencies purchased there. There's a markup cost because you're paying for the convenience of purchasing Ether using your bank account, and without needing to learn to use an exchange/market to sell with another user (you're just buying directly from Coinbase). If you think that markup is too high, try another exchange and you'll likely find different rates there.
answered May 31, 2017 at 21:12
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That is a pretty bad answer for an interesting question. Sadly this question is closed for new answers. To anybody coming here: you should investigate about CEXIO Fill or Kill order system and the effects on the price of those.– tobltobsNov 22, 2017 at 19:48
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This question is not closed to new questions; you just need to have some reputation with the site to be able to add a new one. Many exchanges offer various options for features on limit orders, including "fill or kill", "only active for X time", "only place if price drops/raises to X", etc, so CEX.io is not unique in offering that, though it is a nice feature to have. Nov 24, 2017 at 5:10