Bitcoin and Ethereum are the two most popular cryptocurrencies today. Bitcoin was created in 2009 as the first decentralized cryptocurrency. Ethereum was created in 2015 and is a decentralized platform that runs smart contracts. Bitcoin and Ethereum are popular because they are both secure and have a large ecosystem of developers and users.
But, one thing people may realize is that the value of both of these cryptocurrencies can vary. It isn’t the same in certain countries or exchanges or even when playing with crypto at Ignition casino. Some have higher rates than others. But, what does this mean?
Why does the value of Bitcoin and Ethereum differ?
Because bitcoin has no official set price, different exchanges will charge different prices to buy these cryptocurrencies, even if they are in the same country. However, it is a highly competitive market, and the price differences between exchanges are usually minor, at least in percentages.
Unlike other money commodities, it is not linked to the US Dollar or any other currency. Since these cryptos are not pegged, there is no way to set a specific value to any cryptocurrency. As such, the supply and demand will vary on market factors such as time, which will cause the price of these cryptocurrencies to vary depending on the exchange you use.
Then you also need to look at how users search for cryptocurrency prices in respective countries. Typically, they will convert the price of the currency according to their local currency. For example, someone from the UK will convert to the Pound compared to another in India who will convert it to the Indian Rupee. There are additional fees and conversion costs that will come into play that will affect the value of the cryptocurrency.
Are any of the Crypto exchanges more accurate than the others?
Without any official sources, how can you be sure that any of the price trackers or exchanges are the most accurate if there are no global standard prices? Well, the truth is that you can’t ever be sure. Most of these exchanges use the transaction history of these cryptocurrencies to determine future and current prices. And since there are multiple exchanges around the world, these values will differ marginally from one to the other.
Does cryptocurrency volume have an effect?
What do we mean by volume here? It’s the number of transactions that take place in every exchange for each cryptocurrency. There are some exchanges that have more transaction volume than others simply because they are more popular.This would mean that those exchanges would have more supply than others. This difference in supply can also cause the prices to differ.
Should you be looking for the highest price when dealing with cryptocurrencies?
Trying to find an exchange or country where the price of Bitcoin and Ethereum is higher is just not practical for a few reasons:
- The prices vary constantly. So one exchange may have a high rate today but a lower rate tomorrow
- You have to factor in the costs of dealing with other countries. There could be additional fees involved which would negate the higher prices you find.