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> It's not like stocks where you can see actual bid/ask and daily volume numbers. Actually, it's exactly like that. > And since transaction costs and times ma
by jcoffland 9y ago
> It's not like stocks where you can see actual bid/ask and daily volume numbers.
Actually, it's exactly like that.
> And since transaction costs and times make arbitrage impractical, the price is not even the same across exchanges.
Arbitrage across crypto-currencies is happening constantly. As with stocks, bonds, futures, etc. the average person is unable to take advantage. Effective arbitrage requires large sums of money and the ability to execute quickly.
Quick execution often means having a preferential agreement with one or more exchanges. This is true in or out of crypto. Price differences reflect friction and risk.
- rhapsodic 9y ago> Arbitrage across crypto-currencies is happening constantly. Then why doesn't it have the effect of equalizing prices across exchanges, as it does with traditional currencies across traditional currency exchanges? I'm not arguing, I'm just asking. If I don't know what I'm talking about, I'm happy to be enlightened.
- jowsie 9y agoBecause the big players are much bigger in crypto arbitrage than the big players in traditional currency arbitrage, relatively. This combined with the unregulated nature makes abusing your position much easier in crypto.