Topic: Don't Look For Better Prices When Choosing an Exchange (Read 296 times)

yes, and what is more - these all fees are just a cost of your safety. Every reliable exchange has fees and that's normal. I always choose reliable exchanges, not well-priced ones. It's also good to check what every individual exchange offers you. For example CoinDeal has special initiative for their users - if you have some coindeal's tokens, they can lower your fees.

I agree, everyone should use reputable exchanges instead of using well-priced exchanges. Most of the well-priced exchanges have fake volumes and very high withdrawal fees. As soon as traders deposit their funds they will realize that it is difficult to trade at such a good price. Eventually the trader had to accept withdrawals and take a large fee.

Then there's also the fact that prices don't even vary much from exchange to exchange. Arbitrage is a good idea and all but it really aint much profitable in the current scene.
To avoid issues of fake volumes, just go to famous exchanges. I think one of them could pretty much cater to what you actually need. I still don't get why newbies try out new exchanges that could be potential scammers when they can go check out bInance or coimbase. Maxmizing profit is nice and all, but their firdt gosl should be breaking even of their trsdes.

You might be surprised to know that not only new exchanges report inflated trading volume by creating fake orders but, sadly, many reputed exchanges do the same along with other suspicious activities.
Some researches and analysis allege that up to 95% of the reported trading volume is fake!

Bots used by exchanges to generate this fake volume shouldn't be confused with legitimate bots used by day traders though.

That's the problem with newbies being too adventurous when it comes to choosing an exchange. They often pick not only the best prices but also the lowest fees and rates since they are always looking for the best bang for their buck yet they completely remove the possibility that something isn't right or not even question themselves why this exchange can offer such high/low prices compared to the trustworthy ones. Which only lead them on either being scammed or their orders not being matched. I know that you want to maximize the earnings for your hard earned money but sometimes going to the well known ones is the safest thing to do.

So can't we see the selling orders volume in these exchanges like we see at binance and bittrex ? For example if a coins selling price is showing higher but we see it is only worth for instance, 0.001 btc and the next selling order is lower, so we would not go for that trade.

The exchange itself buys and sells their coins to show up the trading volume for coins but when a real trader enters he can't actually trade for that price. I did experience on exchanges like exrates where the price mentioned will be slightly higher than reputed exchanges so we may be tempted to sell there but when we place an order to sell we may not find enough trade order volume for that high price.

What do you mean by wash trading ?
I never get tempted if i see a price of a certain coin a little higher in low volume exchanges. By the time you transfer your coins or bitcoins to that site , the price come back to original and therefore it is not possible to take advantages of difference in prices. Also as mentioned, there is always a risk of scam on these new exchanges.

It makes sense to choose an exchange based on the prices of coins that you want to sell only if you are involved in arbitration.
Otherwise, you run the risk of stumbling onto the exchange by spinning up volumes using bots, which in turn will not allow you to sell your coins at the prices you are interested in. I myself fell into a similar trap several times on such exchanges as hotbit and P2PB2B.

kucoin, bittrex, okex, averaged full of bot orders, I saw that. For the arbitration process, it is only necessary to ensure that the nominal target is in the buy order column on destination exchange, often each coin also has a difference of more than 20%. it is necessary to ascertain whether the destination wallet is under maintenance or not, we also need to log in at both exchanges to confirm.

Using the liquidity-based ranking rather than volume-based ranking. Liquidity help to reduce wash-trading and exaggeration of volume from wash trading.
If you are curious on difference between volume-based and liquidity-based rankings, you just apply two rankings on coinmarketcap.com, then you will be able to choose the better one for your need.
Let's try and choose after in-depth consideration (not only the rankings on coinmarketcap.com).
https://coinmarketcap.com/rankings/exchanges/liquidity/
https://coinmarketcap.com/rankings/exchanges/reported/

From the rankings, narrowing down the list of exchanges, then moving onwards with further investigation on their ages (the older ones are likely better); and their reputation (somewhat reflected by scam accusations in the forum); and their trust/ flag (if they have accounts in the forum). After all, you can make your final decision on which exchanges to use.

The price difference between exchanges is not that relevant to be considered when chosing your exchange (5% for an asset like bitcoin is not too much) And usually the better exchanges have a lower price.

Keep stick with binance, bitstamp, bittrex etc.
Avoid using credit card, because the fees are much higher

the thing about volume that you should look out for and then avoid that exchange is "fake volumes" that the exchange itself is producing out of thin air. for example Yobit where they just increment the volume without any buy or sells happening.
otherwise wash trading is not something that should lead you to avoid an exchange since it happens by traders not the exchange and it happens everywhere.

Bottom line... Avoid all the unpopular exchanges whose daily trade volume is exaggerated on CMC. It's just bots doing wash trading.
One such exchange that does such is Digifinex, avoid it at all costs.

This was one of the topics that was brought on a thread days ago and I thought that would be a good subject to talk about in this section since many beginners are actively viewing topics here, That's normal to look for better prices to buy or sell when you decide to trade some token/coin but I'm going to try and explain why it's not going to work on crypto 95% of the time or more...

Most of the exchanges except a few reputable exchanges have fake volume, It means if you decide to open an account in an exchange which has a lower or higher price for a token/coin comparing to the others there's a good chance that you can't buy or sell at the price that you're seeing on cmc or the exchange itself because it's just bot trading from the exchange itself to show good liquidity which isn't there, So if you try to buy or sell at the price that is being traded at that moment in an exchange your order wouldn't get filled because exchange bots only buy from/sell to themselves and ignore other orders.

You can check whether an exchange has a fake volume yourself, You should just take a look at buy and sell orderbook and have an eye on trade history which shows recent trades of that pair, If an order went through at a certain price and shown on the recent trades but at that moment wasn't on the buy or sell orderbooks it means they have fake volume, In these exchanges you can only buy from the sell orderbook or sell to buy orderbook, Buy and sell orderbook prices on these kinds of exchanges are usually way more different(worse) than the price that you're seeing being traded by bots and shown with shiny color, More importantly it means you will be buying higher or selling cheaper if you count the difference between buy and sell orderbook and the price you thought you would be able to trade at, Set aside the fact that there are issues with many exchanges like withdrawal problems when you need to withdraw and they ask for kyc all of a sudden or freeze your funds for all sorts of reasons.

So based on all that I wouldn't suggest anyone to just look for a better price in an exchange specially when it comes to crypto whether if it's for the purpose of arbitraging or simply just buying cheaper or selling higher and suggest you to go for more reputable exchanges because those nice prices actually don't exist.