An analyst of the Agoflexcoin cryptocurrency exchange tells: Why the cryptocurrency exchange rate differs on different exchanges
Cryptocurrency arbitrage is possible only because different crypto-currency platforms set different asset prices at the same time. Therefore, the user can buy coins in one place cheaper, and sell them more expensive.
You can purchase cryptocurrency assets on exchange sites and specialized crypto-currency exchanges. The latter independently set the cost taking into account supply and demand.
In addition, the formation of the asset price is influenced by the availability of stocks on the stock exchange. Also important is the volume of transactions, the projected rise or fall in prices, or other factors. To become a successful arbitrageur, you need to know why the cryptocurrency exchange rate differs on different exchanges.
All the existing reasons why platforms set different prices for cryptocurrency assets can be divided into several groups.
The analyst of the cryptocurrency exchange offers to consider them Agoflexcoin.com
⦁ The situation inside the country where the site is registered. The cost is influenced by the political and economic component. Of particular importance is the change in legislation. For example, the legislative prohibition of the circulation of virtual money can completely “knock out” the exchange and lead to a drop in the value of the currency.
⦁ The liquidity of the fiat currency of the country in which the exchange is registered. It is necessary to understand in which monetary unit you can take the received profit. For example, if the platform allows withdrawals only in Zimbabwean dollars, there is hardly an exchanger who wants to exchange them for US dollars or euros.
⦁ Features of profit withdrawal. The price of the crypt and the popularity of the exchange among traders and arbitrageurs depends on the process of withdrawing money from the site. The more difficult and longer it is to withdraw money, the greater the additional costs and less profit from arbitration.
⦁ The presence of speculation. If there are “whales” working on the exchange, they are ways to rock the exchange rate by increasing supply and demand. If the arbitrageur can track this “pitching”, he will also make a profit on the difference in rates at different sites.
⦁ Unforeseen factors. The course may be influenced by external factors that cannot be foreseen in advance with any forecasting. For example, a hacker attack on the site or changes in the blockchain of a particular crypt. Also, the reason may be the sudden issue of a large number of coins, which leads to inflation of virtual money.
Whatever the reasons for the difference in exchange rates on electronic trading platforms on the Internet, they are the ones that allow you to earn through arbitration, said the analyst of the Agoflexcoin cryptocurrency exchange.