If you’ve traded crypto across different platforms, you’ve probably noticed different prices for the same coin. A currency like Ethereum can be ₦500,000 on one crypto exchange and ₦507,000 on another at the same time. This can be frustrating especially when you think you’re not getting the best deal or you’re being cheated. But when it comes to cryptocurrency this is normal because the rates are determined by demand and supply.

Because cryptocurrencies are not controlled by any single person or organisation, their value comes from how many people are buying or selling them. 

You can compare this situation to a lake that has Catfish in it. Let’s say that different people come from all over the world to catch the fish and sell it. Even though it’s the same fish from the same lake, the price of the catfish in Lagos is different from the price of the fish in Benin or the US because the demand and supply of Catfish is different in each place. 

How You Can Benefit from the Price Difference 🌚

Here’s a pro-tip: The awesome thing about having different prices for the same crypto on several exchanges is that you can arbitrage. This means that you can buy a currency like Bitcoin where it’s cheaper, transfer it to your wallet on another exchange where the price is higher and sell it for profit. This is the trading method some people use to make money especially when they don’t want to hear stories that touch with charts.

Too Long, Didn’t Read (TL:DR)

Short story is that the demand and supply of the platform/exchange determines the crypto prices. And the price difference is sometimes a sweet opportunity to make money.