A lot of time people ask this question, Why is the price of bitcoin different on all the exchanges, why is the price not the same at any particular time? This is a common problem faced by every second person and it confuses them. Today in this article I am going to put light on several factors that contribute to the price management of cryptos on different exchanges.

There are many factors that can affect the price of any crypto on any exchange and some of them are:

• Exchange’s crypto volume
• Trading fees
• Market Size
• No price regulation 

First of all, we need to make this thing clear that there is no tie up between exchanges, all the exchanges are working independently. On most of the exchanges that follow good practices & fair pricing strategies, the major factor that drives the price of crypto is demand and supply. 

Now here, the term supply refers to the supply available at that particular crypto exchange.

Big players such as Binance and Coinbase hold very high shares in terms of volume and are way too ahead, while at the same time small exchanges lack that heavy volume. The volume of crypto is one of the major factors behind different prices at exchanges.

Suppose, at any particular time a big exchange has a heavy volume of BTC around 100,000 and a small exchange has BTC just around 100. If on both of these exchanges people started to buy bitcoin, the exchange having lower volume will see a better price than the exchange having high volume because of low supply.

COMPARING THE VOLUME OF BITCOIN IN THREE DIFFERENT EXCHANGES : WAZIRX, COINDCX & BINANCE

Volume of BTC at WazirX in INR market: 228 BTC

Volume of BTC at CoinDCX in INR market: 13 BTC

Volume of BTC at Binance in USDT market: 24450 BTC

There is a huge difference between the volume of bitcoins at different exchanges at a particular time, this volume is noted at 19:51 on 23rd December 2021.

We all must do our own research before investing in crypto and during my own research, I found that there is also a price difference between the buy price and sell price of any crypto on all exchanges. 

This difference also comes due to the demand and supply of the token, as every time you buy crypto its price goes up, and when a lot of people start to buy the demand increases, and a shortage of supply is faced contributing toward higher price. In most of the exchanges, the difference between the buy price and the selling price is less and it is a normal thing, but there are some exchanges that follow some malpractices and take a profit margin.

The next thing that plays important role in price determination is trading fees & other taxes if any. Almost all the exchanges declare their trading fees in the form of maker & taker fees.

Maker fee is paid by the trader when he adds liquidity to the market and the taker fee is paid when a trader removes liquidity from the market. The concept of maker fee and taker fee is a bit complex because there are a number of cases. 

Generally, the maker and taker fee on good exchanges varies from 0.2% to 0.4%, some exchanges also have some tier features, when your level goes up you pay less fees.

Finally, the no price regulation, we all know that crypto markets are not regulated, and hence the prices differ from exchange to exchange. 

In Indian exchanges, there is close competition but still, you will see huge differences between the price of cryptos and this is due to the above-mentioned factors.

WHY COINSWITCHKUBER HAS A GREAT MARGIN BETWEEN BUYING AND SELLING PRICE?

Indian crypto exchange Coinswitch kuber, I am going to write all my personal views, Coinswitchkuber takes no fees for withdrawal and deposits, also it does not take any maker or taker fee and all this seems very great until you come to know a dark side, coinswitch takes all their fee from your trading, there is a huge difference between buying and selling price of all the cryptocurrencies.

Current buy price of bitcoin on Coinswitch (INR) : 40,48,020

Current sell price of bitcoin on Coinswitch (INR) : 40,34,668

Difference between buy & sell price (INR) : 13,352

This is a huge difference between buy & sell price, and this is only seen on Coinswitchkuber and this seems unethical to me & this is my personal review if you are okay with this then go and trade but always do your own research.