Are all Bitcoin Exchange connected to each other?

Kevin77

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Quote from: thebenjamincode on March 14, 2015, 10:41:52 PM

Im just wondering. If the price of bitcoin increases. all of the other exchanges follow..
i'm just wondering how does it happen?

i know some of the exchange are just 10 usd lower than others but im wondering why all of them increases accordingly?

They are really that much connected aside from just people knowing how to arbitrage.
I mean if the price somewhere was wildly different don't you think someone would buy and sell on different exchanges to make up the difference ?

The only difference that ever happens is either short timed or very small to care about because of the transfer fees that keeps the profits lower.

There are hundreds of exchanges out there and I am sure there must be some exchanges that connected in a way that some exists in one country while the other exists in some other country and they are both owned by the same corporation but aside from that all the big ones are located differently and owned by different people and until the acquisitions start in crypto business it will stay that way.

ramahero01

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Quote from: thebenjamincode on March 14, 2015, 10:41:52 PM

Im just wondering. If the price of bitcoin increases. all of the other exchanges follow..
i'm just wondering how does it happen?

i know some of the exchange are just 10 usd lower than others but im wondering why all of them increases accordingly?

all of that happens because in each exchange there are of course their own investors and thus they are sure to monitor their coins on some exchanges of course if another exchange price rises the investor competes to sell their tokens to the highest price and all follow it is automatic.

manggis97

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I think crypto exchange is not connected each others and different with stocks Broker that connected each others . The price of Bitcoin can be different in each exchange so that why we can do arbitrage trading. Some exchange that has high trading volume have low spread but exchange that has low trading volume it's spread is higher.

ncn1992vn

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It is the general market demand. The prices are always trend to be the same. This is the charm of the free market.
On the other hand, the purchase and sale between the floor also makes it the same value

wayaneka

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I think all crypto exchange has software to know price of each crypto in others exchange, and they will make the same rate for crypto that tradeable on their exchange. This is for liquidity price of all crypto, even exchange that has low trading volume also has nearly the same price of each crypto with others big exchanges.

pape.rone

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Quote from: dunfida on July 06, 2018, 03:43:07 PM

Its good you are aware on necroposting thing but I don't see any problems rather than posting a new thread with a similar question.

I actually didn't know what was the best policy so I tried not to break the eggs. :-)

Quote from: dunfida on July 06, 2018, 03:43:07 PM

Going to talk about the topic, it would always be just on similar level they might differ in price but only on few dollars gap and exchange would definitely do this not only basing on demands but also to avoid arbitrage.

Thanks! What you are saying here makes sense to me. Basically having traders on different exchanges could level differences. But let's see an example:

say that in Kraken BTC is worth 100$ more than in Cex. I suppose that Cex traders would buy and withdraw their BTC and send them over to Kraken and they would try to sell them causing the price of BTC to drop on Kraken (because of the sales) and to raise on Cex (because of the purchases).
Is this what you mean?

However, starting from the considerations listed in my older post, I've written another post which gives a more specific scenario to facilitate the discussion. Maybe you want to keep an eye on it?

kofibee12

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All bitcoin exchanges are connected on a common quotes with slight changes in price among exchanges, without the prices been the same, traders might explore the arbitrage opportunities that might arise from them.

dunfida

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Quote from: pape.rone on July 06, 2018, 02:32:34 PM

I'm sorry to dig out such an old post but I find it VERY interesting.

I'm just a beginner in the crypto world but I think like OP. It sounds really fishy that different exchanges have such a similar value without being somehow connected.

Sometimes you can see how someone with a lot of money comes into the scene and buys or sells a consistent amount of bitcoin in one shot and consequently the price per btc varies a lot.

Now, if the exchanges are not talking to each other how do you explain that very soon all the other exchanges follow up? It doesn't sound possible that someone else performs a very similar operation across all the exchanges in order to "stabilize the price" across all the exchanges.

I'm obviously missing something and I'd be grateful if someone explains it to me.

Its good you are aware on necroposting thing but I don't see any problems rather than posting a new thread with a similar question.
Going to talk about the topic, it would always be just on similar level they might differ in price but only on few dollars gap and exchange would definitely do this not only basing on demands but also to avoid arbitrage.

susila_bai

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Quote from: soname12 on July 06, 2018, 03:26:15 PM

I think yes. Because the exchanges will always have to adjust Bitcoin prices and altcoin at the right price on the coinmarketcap. Because if they do not adjust prices steadily, it is likely that more people will buy the coins on the exchange with the cheap and sell on higher priced exchanges.

I don't think that exchange adjust the price it is the traders who are buying and selling And according to it the price changes. Eve you can see that lot of time their will BT lot difference in price but after sometimes it gets same as some traders!just watch this difference and buy in low and when the difference get clear they get profits by this difference

soname12

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I think yes. Because the exchanges will always have to adjust Bitcoin prices and altcoin at the right price on the coinmarketcap. Because if they do not adjust prices steadily, it is likely that more people will buy the coins on the exchange with the cheap and sell on higher priced exchanges.

stefany101

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I think it is not ! They aren't connected to each other because most of them are having their own company and team who managed their crypto exchanges in order to be successful and have a good conduct from the cryptocurrencies traders and investors.

pape.rone

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I'm sorry to dig out such an old post but I find it VERY interesting.

I'm just a beginner in the crypto world but I think like OP. It sounds really fishy that different exchanges have such a similar value without being somehow connected.

Sometimes you can see how someone with a lot of money comes into the scene and buys or sells a consistent amount of bitcoin in one shot and consequently the price per btc varies a lot.

Now, if the exchanges are not talking to each other how do you explain that very soon all the other exchanges follow up? It doesn't sound possible that someone else performs a very similar operation across all the exchanges in order to "stabilize the price" across all the exchanges.

I'm obviously missing something and I'd be grateful if someone explains it to me.

randy8777

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traders and market movers on "less important" exchanges always look towards what the big guys such as bitstamp, bitfinex, btcchina do. they will always follow to get the price nearly equal.

Gebbit

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Most of the price difference is due to the confidence in the 3rd party or because of cost differences in their banking. With MtGox their price was much higher as people were unsure if they would ever see their dollars again. Those that bought bitcoin at inflated prices and were able to get off the site actually made a good purchase whereas those who were trying to arbitrage ended up biting the bullet.

There are always arbitrage opportunities if the price divergence is high enough so markets will follow each other in relation to price. Think about it, if you could buy a bitcoin at 300$ somewhere and sell it instantly for 310$ somewhere else wouldn't you take advantage of that? Usually it's not so simple though.

innocent93

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They all are independent to each other, due to the arbitrage, the prices are always trend to be the same. This is the charm of the free market.

Miracal

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Quote from: thebenjamincode on March 15, 2015, 09:39:02 AM

Quote from: havecoch on March 15, 2015, 09:35:42 AM

Its basically the market correcting itself. If the price on one exchange goes up then the overall value goes up. And people usually have funds on both sites, so they usually trade on that, and drive the price up as a result of trading. However there are differences in the prices like Stamp and Finex always have a difference of couple of dollars.

well im just wondering because everytime i try to buy bitcoin, the price is going down
then everytime i sell bitcoin, the price goes up

i don't know if im just unlucky Sad

does anyone here has the same experience as mine?

LOL, but you can set the buy order or sell order at your targeted price! Then you just need to be paitent!

EsaEzekiel

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Quote from: SargeR33 on March 14, 2015, 11:09:03 PM

When the water in the habour rises, all boats will rise.

good will higher, bad will lower

cozytrade

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Do you suppose trading at the same price level if the market boom or crash Huh

thebenjamincode

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Quote from: havecoch on March 15, 2015, 09:35:42 AM

Its basically the market correcting itself. If the price on one exchange goes up then the overall value goes up. And people usually have funds on both sites, so they usually trade on that, and drive the price up as a result of trading. However there are differences in the prices like Stamp and Finex always have a difference of couple of dollars.

well im just wondering because everytime i try to buy bitcoin, the price is going down
then everytime i sell bitcoin, the price goes up

i don't know if im just unlucky Sad

does anyone here has the same experience as mine?

havecoch

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Its basically the market correcting itself. If the price on one exchange goes up then the overall value goes up. And people usually have funds on both sites, so they usually trade on that, and drive the price up as a result of trading. However there are differences in the prices like Stamp and Finex always have a difference of couple of dollars.

hua_hui

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I think most of the time they are separate to each other! Once the opportunity that the price in different exchange leaves a gap arises, the arbitragers would exploit it and fill in the gap. So the price in different exchanges won't have a big gap!

bensam123

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Quote from: thebenjamincode on March 14, 2015, 10:41:52 PM

Im just wondering. If the price of bitcoin increases. all of the other exchanges follow..
i'm just wondering how does it happen?

i know some of the exchange are just 10 usd lower than others but im wondering why all of them increases accordingly?

The general market demand.

Also some exchanges have rather peculiar prices compared to others, such as btc-e to create arbitrage opportunities.

SargeR33

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When the water in the habour rises, all boats will rise.

Harry Hood

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Yes, the prices adjust accordingly, all exchanges should be very close to the same rate. The prices should adjust through cross exchange transactions and/or each exchange adjusting their price based on what they see at other exchanges (most likely the former). As the transaction volume increases we should see the variance between exchanges decrease. The stock exchanges in the world don't have the same problem because one stock only trades on one exchange.

thebenjamincode

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Im just wondering. If the price of bitcoin increases. all of the other exchanges follow..
i'm just wondering how does it happen?

i know some of the exchange are just 10 usd lower than others but im wondering why all of them increases accordingly?

Topic: Are all Bitcoin Exchange connected to each other? (Read 1316 times)