All exchanges are not created equal - Kraken & Bittrex & ?

EugeneAS

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Quote from: AdolfinWolf on October 17, 2017, 01:07:05 PM

Quote from: EugeneAS on October 17, 2017, 12:44:01 PM

Bittrex is not accepting Fiat, that is why sometimes rates can differ, because people do not have this much BTC to buy, for example.

Also, of course, prices may be slightly differ depending on people who are trading there. The persons who usually equalise the prices are called arbitragers. They see the price difference, and quickly buy on one market and sell on another. When there are many people doing this, the two prices equalise. This happens on non-crypto markets too.

That they don't have fiat isn't the reason for the difference i think. Bittrex offers trading in USDT aswell ( USD$ in Tether.)

Has more to do with actual volume, and just the supply x/ demand and, as a result arbitrage.

Yeah, maybe you're right, but volume and demand themselves depend on the ability to 'import' fiat, I can suppose.

hownowbrowncow

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True, which is why some people engage in arbitrage, where they buy at one exchange and sell at another.

Seansky

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Quote from: beatle78 on October 17, 2017, 11:13:09 AM

I'm a newbie, but I have noticed some discrepancies in pricing between the exchanges Kraken & Bittrex. I've notice multiple times that the high price of DOGE for the day has been higher on Bittrex than it was been on Kraken. Has anyone else noticed this with this or any other coins?

It was normal since it is running on free market. The demand for doge in bittrex and on other exchanges is different when compared. It is also possible that a whale is manipulating demand itself resulting in higher or lower highs. It also happens on other coins, people set their buy orders differently on every exchanges and vice versa. Sometimes, the difference on prices in every exchanges is huge which others use as a leeway to earn more profit on trading often called as arbitrage.

lordquanta

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Quote from: beatle78 on October 17, 2017, 11:13:09 AM

I'm a newbie, but I have noticed some discrepancies in pricing between the exchanges Kraken & Bittrex. I've notice multiple times that the high price of DOGE for the day has been higher on Bittrex than it was been on Kraken. Has anyone else noticed this with this or any other coins?

Main reason for these kind of observation is that cryptocurrency world is not oragnized or regularized as other markets are. There are few restrictions on how exchange works. Next thing is amount of coins and there price depends on people who use that exchange. If kraken has more user then you will find more coins and if bittrex has more users then coins will be more there.
The flow of coins from one exchange to other happens when there is considerable amount of premium. That is what compel people to move coins from one to other exchange and make profit.

beatle78

newbie

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Thanks everyone. I've also noticed what some of you mentioned here. I see small transactions that suddenly change the value of an altcoin (up or down), an then much larger transactions follow. I was wondering if this was larger investors manipulating the market. Now I know that it is.

IIV

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Slight difference in prices are normal. But sometimes we also encounter huge difference which is a price manipulation by the large investors.

Sene90

newbie

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I did not check Kraken but beware of Bittrex. I read on Cointelegraph that a lot of users' accounts have been blocked and support is acting deaf.

A1exander

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Yes, price differences at cryptocurrency exchanges are ubiquitous. It is easy to transfer crypto between exchanges (although there ae withdrawal commissions), but moving fiat is usually difficult and expensive. So one cannot easily buy crypto at one exchange, move to another, sell higher and move fiat to the first exchange to repeat. It is called arbitrage and, when possible, it can eventually make the prices equal. When they are not, there are definitely some barriers preventing effective arbitrage.

AdolfinWolf

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Quote from: dillpicklechips on October 18, 2017, 03:55:07 AM

Quote from: AdolfinWolf on October 17, 2017, 01:07:05 PM

Quote from: EugeneAS on October 17, 2017, 12:44:01 PM

Bittrex is not accepting Fiat, that is why sometimes rates can differ, because people do not have this much BTC to buy, for example.

Also, of course, prices may be slightly differ depending on people who are trading there. The persons who usually equalise the prices are called arbitragers. They see the price difference, and quickly buy on one market and sell on another. When there are many people doing this, the two prices equalise. This happens on non-crypto markets too.

That they don't have fiat isn't the reason for the difference i think. Bittrex offers trading in USDT aswell ( USD$ in Tether.)

Has more to do with actual volume, and just the supply x/ demand and, as a result arbitrage.

We can treat these exchangers as different markets of Bitcoin (or any other cryptocurrencies) hence they have their own price and volume which opens an opportunity to arbitrage which in return will make the prices between these exchangers to come to a point and made the price somewhat similar or close to one another. Hence, arbitrage offers an interaction between exchangers to have a uniform (but not totally) market.

Yeah, i guess you could see arbitrage as some kind of balancer between the markets/exchanges.
Still wondering if anyone still does it with the current markets, it seems almost impossible to me, with the sky-high volumes on most markets.

I guess it might be possible on smaller market cap coins, but no longer possible on tokens like ethereum..

dillpicklechips

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Quote from: AdolfinWolf on October 17, 2017, 01:07:05 PM

Quote from: EugeneAS on October 17, 2017, 12:44:01 PM

Bittrex is not accepting Fiat, that is why sometimes rates can differ, because people do not have this much BTC to buy, for example.

Also, of course, prices may be slightly differ depending on people who are trading there. The persons who usually equalise the prices are called arbitragers. They see the price difference, and quickly buy on one market and sell on another. When there are many people doing this, the two prices equalise. This happens on non-crypto markets too.

That they don't have fiat isn't the reason for the difference i think. Bittrex offers trading in USDT aswell ( USD$ in Tether.)

Has more to do with actual volume, and just the supply x/ demand and, as a result arbitrage.

We can treat these exchangers as different markets of Bitcoin (or any other cryptocurrencies) hence they have their own price and volume which opens an opportunity to arbitrage which in return will make the prices between these exchangers to come to a point and made the price somewhat similar or close to one another. Hence, arbitrage offers an interaction between exchangers to have a uniform (but not totally) market.

Littledragons

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Quote from: beatle78 on October 17, 2017, 02:22:51 PM

Does this mean that is I sell DOGE on Kraken, that only buyer's on Kraken can purchase it? So someone on Bittrex cannot buy DOGE from a seller on Kraken?

Yes this is correct - in fact, what you can do is if you see doge is say 20 satoshi on Kracken and buy like 100000000 doge, then turn around and sell it for 24 on bittrex a moment later after the transfer clears .
This is called arbitrage. Not illegal, just a very unique thing in markets as it really just plays off of liquidity. Usually smaller exchanges end up with less liquidity and thus worse prices depending on the crowd/market

beatle78

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Does this mean that is I sell DOGE on Kraken, that only buyer's on Kraken can purchase it? So someone on Bittrex cannot buy DOGE from a seller on Kraken?

AdolfinWolf

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Quote from: EugeneAS on October 17, 2017, 12:44:01 PM

Bittrex is not accepting Fiat, that is why sometimes rates can differ, because people do not have this much BTC to buy, for example.

Also, of course, prices may be slightly differ depending on people who are trading there. The persons who usually equalise the prices are called arbitragers. They see the price difference, and quickly buy on one market and sell on another. When there are many people doing this, the two prices equalise. This happens on non-crypto markets too.

That they don't have fiat isn't the reason for the difference i think. Bittrex offers trading in USDT aswell ( USD$ in Tether.)

Has more to do with actual volume, and just the supply x/ demand and, as a result arbitrage.

EugeneAS

newbie

Activity: 51

Merit: 0

Bittrex is not accepting Fiat, that is why sometimes rates can differ, because people do not have this much BTC to buy, for example.

Also, of course, prices may be slightly differ depending on people who are trading there. The persons who usually equalise the prices are called arbitragers. They see the price difference, and quickly buy on one market and sell on another. When there are many people doing this, the two prices equalise. This happens on non-crypto markets too.

Littledragons

full member

Activity: 294

Merit: 102

Yeah, personally I love kracken.
Bittrex is falling into the regulation trap at the moment, its one of those where people are getting locked out of their accounts who have been on there for years. I personally used to have a legacy account and seem to have been knocked down.

Bittrex has wayyy more coins, tons of tiny caps and such. Kracken usually only focuses on bigger ones as you can see such as eth doge BTC Dash.

Bittrex has a great amount of liquidity. But hugely manipulated.
Kracken is just allaround a better platform with better apis and charting. Plus their support is great

beatle78

newbie

Activity: 10

Merit: 0

I'm a newbie, but I have noticed some discrepancies in pricing between the exchanges Kraken & Bittrex. I've notice multiple times that the high price of DOGE for the day has been higher on Bittrex than it was been on Kraken. Has anyone else noticed this with this or any other coins?

Topic: All exchanges are not created equal - Kraken & Bittrex & ? (Read 380 times)