The main characteristics of digital assets are increased volatility and vulnerability to external factors. This industry is fairly young and fragile, it is sensitive to market trends and news background.
Crypto rates today are almost always different from yesterday’s indicators and may fluctuate in some percentages within a few hours. That is why this field is so attractive for risky people who want to generate income from crypto rates changes. However, this factor also makes the market riskier than other financial markets. Similarly, as you may multiply your investment portfolio in a matter of minutes, you may lose everything if you make a mistake in your trading strategy.
To trade consistently and fix profits regularly, traders use strategies. They are divided into short-term methods (like trades in a couple of minutes or within a day) and long-term trades (from a couple of weeks to several months).
Trading takes place on crypto platforms that offer tools and financial instruments that help traders generate income easier. For example, traders can configure stop-loss and take-profit tools to allow the program to leave the position when the asset crypto rates reach this or that level, without the trader’s participation.
There is a trading technique that allows opening positions on a few crypto platforms at the same time, which is called arbitrage trading. Why are cryptocurrency rates different on different crypto platforms? Let’s find the answer.
Key Reasons Why Cryptocurrency Prices are Different on Exchanges
Let’s first list the main factors impacting crypto prices:
- Current trend in the market. Leading crypto assets set the market trend, and when they go down, all other assets follow them. It was when the Bitcoin price collapsed in the spring of 2022, and the whole market followed that drop.
- Competition and demand-supply balance play a key role in the crypto price formation.
- Local regulations on the state level (some countries ban crypto mining or impose restrictions on crypto exchanges).
- News background (even one Tweet can spur the little-known crypto asset to the moon).
- Investor sentiment (there are times when investors are pessimistic about crypto, so they avoid buying assets).
The demand and supply ratio of a certain asset on a certain crypto exchange directly impacts the price of the asset. That may be a local factor, depending on where the exchange is registered. For example, in Azian crypto exchanges, crypto prices are usually higher than on European platforms because demand for crypto is bigger In Azia. But that does not mean that sitting in Ukraine, you can buy BTC or sell at a higger price in an Azian exchange because those platforms only work with registered people who live in the region of the exchange’s location (they provide documents of registration).
How to Pick a Reliable Crypto Exchange?
If you are looking for a credible and convenient crypto platform where you can use all trading tools, pay attention to the following critical characteristics:
- Jurisdiction and compliance. It is recommended to trade only on official and legally functioning exchanges with registration and compliance with all the requirements in this field – anti-money laundering, etc. Otherwise, when facing troubles, you will remain alone with no legal protection.
- Safety. Check out how the platform holds users’ funds. Does the exchange has documents on the successfully passed audit?
- Is there an opportunity for personal account protection using two-factor authentication?
- Liquidity. The higher the indicator of trade volume, the better. That means it is always easy to find a buyer and seller for crypto assets on the platform.
- What trading tools are available?
- How many crypto pairs are supported?
- Is there efficient customer support?
- How does the fee policy look like? Is it transparent?
What is the Most Convenient Officially Working Crypto Exchange?
We recommend trying the WhiteBIT crypto platform – the biggest regulated exchange in Europe, complying with all the regulations and laws in this field. It is officially registered in Estonia and operates in 150 states worldwide, having over 2 million registered clients.
The platform offers 450 traded pairs and conversion of fiat-crypto pairs. The commission on WhiteBIT is fixed at 0,1%, some operations charge a lower fee but never higher. The WBT token holders receive reduced fees for transactions.
The customer support operates 24/7, as well as the platform itself. So if you have any troubles, you may write to the tech support chart at any time.
The exchange provides a high liquidity level and has a reserve fund. It is able to offer large traders a high leverage ratio.
On WhiteBIT, you may practice any trading tool, even the most advanced such as margin, futures, leverage, etc. It also offers passive income options for those who prefer to hold assets long-term – crypto lending and staking.
To get the cryptocurrency current rate, go to the WhiteBIT crypto calculator and pick the asset that interests you. The program will calculate the current price of coins in the equivalent you set for it. For example, if you have euros, it will count the amount you need to spend to buy crypto.
For more information on the features of WhiteBIT, visit its blog.