CryptoTitan
Fri Jul 12 2024
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6 answers
1318
How are prices relatively the same on all cryptocurrency exchanges?
Could you elaborate on the phenomenon of how prices remain relatively consistent across various cryptocurrency exchanges? Given the decentralized nature of cryptocurrencies and the numerous platforms that facilitate trading, one might assume price fluctuations would be more pronounced. What mechanisms are in place to ensure this price stability? Do exchange algorithms or liquidity providers play a significant role? Is there a level of market arbitrage that keeps prices aligned? I'm curious to understand the dynamics behind this intriguing market phenomenon.
