What even is there to leverage from smaller exchange since basically you get all the disadvantages with no benefits, the smaller exchange will often time lack liquidity, sometime the price might go offset too compared with the bigger exchange, not enough buyer/iiquidity of a coin means even if the coin is pumping in other exchange the price might still stay the same in the smaller exchange. also the chance of the exchange going bankrupt and you don't know whether your capital gonna be safe or not.
the only way to leverage it is probably through arbitration but thats just it nothing more.
Topic: leverage smaller exchanges (Read 98 times)
I think I read somewhere that you can find better trading opportunities in smaller exchanges...Im not sure if the strategy was about fat fingers..or another strategy..do you guys know ways to leverage smaller exchanges?
Unless you're just going to buy and withdraw immediately, smaller exchanges are a no-go area. It's not about not liking the platform but the fact that they're more likely fo fail than a top tier exchange like say, Binance. Another reason enough to dissuade you away from considering smaller exchanges is the fact that their orderbooks are very thin and do not have enough depth. These means that you can immediately lose money if you're not careful when your orders get filled on those kinds of exchanges. Better to be safe than sorry imo.
That's pretty risky if you trade in smaller exchanges the strategy you might be talking about is by buying cheap from other exchanges and become a market maker who provides liquidity and makes a profit on the spread.
Using smaller exchanges has more risk than biggest exchanges. I don't naively say that biggest exchanges are safer and better for your capital if you put it in your accounts. FTX collapse and bankruptcy is an example that Tier-1 exchange is not safe too.Many exchanges died whatever they are big or small exchanges.
Exchange graveyard.
Smaller exchanges usually charge expensive withdrawal fees on their users too and it is another risk together with smaller trading volume, smaller liquidity pool, and scam exit.
I think I read somewhere that you can find better trading opportunities in smaller exchanges...Im not sure if the strategy was about fat fingers..or another strategy..do you guys know ways to leverage smaller exchanges?
Do you mean the leverage on a futures market? Or are you talking about some arbitrage where in some smaller exchange the price of Bitcoin or other assets is different like cheaper?Because if your concern is only leverage in trading futures, just use popular and high volume exchange that supports futures market.
Fat fingers are mostly a thing of the past. Such a thing is so rare these days as some exchanges have some measures to safeguard the trader but back in the days of exchanges like Etherdelta, it was something to look upon.
If you are thinking arbitrage, then I would advise you to tread carefully. Some of those small exchanges could either be scam or they could be old exchanges that just decided to block withdrawal of some coins indefinitely like HitBTC or Yobit
If you are thinking arbitrage, then I would advise you to tread carefully. Some of those small exchanges could either be scam or they could be old exchanges that just decided to block withdrawal of some coins indefinitely like HitBTC or Yobit
That's pretty risky if you trade in smaller exchanges the strategy you might be talking about is by buying cheap from other exchanges and become a market maker who provides liquidity and makes a profit on the spread.
Or you might be talking about crypto arbitrage the only risk here is pretty small but if you trade in small exchanges or unknown exchanges that is pretty risky. There are many guides out there on how to arbitrage trading.
Or you might be talking about crypto arbitrage the only risk here is pretty small but if you trade in small exchanges or unknown exchanges that is pretty risky. There are many guides out there on how to arbitrage trading.
I think I read somewhere that you can find better trading opportunities in smaller exchanges...Im not sure if the strategy was about fat fingers..or another strategy..do you guys know ways to leverage smaller exchanges?
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