Why the Crypto Exchange in India Displays Different Rates than the International Market?

In order to understand the exchange rate in India, you will need to learn the difference between brokers and free trading platforms. Any broker on the crypto exchange is able to configure and alter their prices by a fine margin. They must specify in their terms and conditions that they maintain high prices for buying and lower prices when selling in order to prevent panicked or rushed trades. When this system is maintained they preserve the liquidity of the exchange platform and hence mitigate risks that could incur. So a broker buys or is sold a cryptocurrency, and then sells the same coin later to another buyer at a higher price. This is the reason why many people do not like trading through brokers or buying their coins from them due to exorbitant pricing and bigger buying selling difference.
An alternative to brokers is the free trading platforms out there open to crypto traders. These trading platforms do not own any coins as their primary function is the help facilitate the trade of coins between buyers and sellers on the platform using a trade engine. The platform accepts the orders placed and matches buyers with sellers accordingly. All orders are made as per the international exchange rates which means that the spread or difference between buying and selling will be less. Most trading platforms come with protection safeguarding exchanges for the buyers and sellers as well.

When trading using a broker or a trading platform, the nature of the market remains decentralized. This means that the exchanges in the market will be priced differently as no authority controls the pricing. These rates vary from country to country according to GDP, demand, normal currency conversion, number of traders using the currency, and more.


The concept of arbitrage is also dominating in the market. It involves buying and selling a coin at the same time to profit off the difference in price. This practice of arbitrage is common between domestic coins and due to the differential liquidity in each local market, using this opportunity is popularised. It is because of this concept that the price of the domestic coin is priced high in the international market. Their demand is high and thus both buying of Indian coins is at a lower price and sold for a higher price in the market, affecting liquidity and exchange rates.

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