Why Bitcoin Prices Differ Across Exchanges & How to Profit via Arbitrage

At a glance: Global Bitcoin price differences exist across exchanges because there is no standard pricing protocol for digital assets. Different transaction fees that crypto exchanges charge investors, fluctuations in trading volumes, and different depths of liquidity affect the various exchange prices.

Have you ever been browsing crypto exchanges and noticed that different exchanges list their Bitcoin at different prices? It can definitely be a little odd to realize that the same token varies in price from 1–5% on certain exchanges. However, once you understand how crypto exchanges work, the reason for this difference becomes apparent. Explore this guide to learn more about crypto price differences between exchanges — and to see how you can use the arbitrage trading strategy to profit from these differences.

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