Why are the prices of cryptocurrencies different between platforms?
Unlike in traditional financial markets, cryptocurrency exchanges have their own prices. This is due to the decentralised nature of cryptocurrencies, whereby not all transactions happen in one single exchange (such as the NASDAQ in the stock market). This means that as an investor, the price you would pay for a certain cryptocurrency may differ (significantly) between different trading platforms. Unlike Finst, some exchanges also include a high mark-up in the spread, which is effectively a cost for you as an investor. This is why you should always pay attention to the execution price of your transaction. At Finst, we make sure you always obtain the best possible execution price through our proprietary smart order execution mechanism, and we do not earn any income through the spread.
Updated on: 16/12/2022