Why is there a massive spread?

[Ally28]

I’m looking at bitfinex and the XRP/ USD is currently 1.02, where on Coin Market Cap it’s like 1.18? Sorry if I’ve missed something, but I couldn’t see why? Thanks

[Tonnie]

Yeah, it's because this market is still young and unbalanced...longerterm there will be algorithms and bots in place to balance markets

Look 'arbitrage' on google...

[Ally28]

Hopefully in the future, the value of XRP is so ridiculous, I wouldn’t have to worry about the spread haha

[zenkert]

13 minutes ago, Ally28 said:

I’m looking at bitfinex and the XRP/ USD is currently 1.02, where on Coin Market Cap it’s like 1.18? Sorry if I’ve missed something, but I couldn’t see why? Thanks

That´s the way it is. Did some research a month ago using the prises at coinmarketcap just to get a feel for it.
And the differences amazed me. But in the end the only thing that Really matters is the value in the exchange where you are trading, right?
Unless you want to be a - do not remember the word -  a trader who is moving XRP around between exchanges to get gains.

But that is a REAL PRO game to play, not for the ordinary traders like me.

Edited December 21, 2017 by zenkert

[Ally28]

1 minute ago, zenkert said:

That´s the way it is. Did some research a month ago using the prise at coinmalrket cap just to get a feel for it.
And the differences amazed me. But in the end the only that Really matters is the value in the exchange where you are trading.
Unless you want to be a - do not remember the word - who is moving XRP around between exchanges to get gains.

But that is a REAL PRO game to play, not for the ordinary traders like me.

Thanks mate. I think the word you’re looking for is “day trader” maybe most of the exchanges would have a similar spread, won’t be much in it. 

Just surprised at how big the gap is, compared to the regulars of the stock market. Naughty

[Guest1]

16 minutes ago, Ally28 said:

I’m looking at bitfinex and the XRP/ USD is currently 1.02, where on Coin Market Cap it’s like 1.18? Sorry if I’ve missed something, but I couldn’t see why? Thanks

It is mainly because exchanges based in different countries have different registration requirements.

For example, South Korean exchanges such as Bithumb and Coinone requires you to have a South Korean registered mobile number which can only be obtained by residents of the country. Furthermore, there are restrictions on how much investment can be taken out of local exchange into a foreign exchange.

Therefore the spread occurs because arbitrage can not easily be taken advantage of. For example, you can purchase XRPs at a cheaper price, but you cannot easily send the XRPs over to a Korean exchange to sell it at a higher price due to restrictions as mentioned above.

Edited December 21, 2017 by Streamliner

[woytow]

6 minutes ago, zenkert said:

But that is a REAL PRO game to play, not for the ordinary traders like me.

How do I level up to REAL PRO? Up, up, down, up, right, A, B? Can't remember the cheat code...

[zenkert]

Just now, woytow said:

How do I level up to REAL PRO? Up, up, down, up, right, A, B? Can't remember the cheat code...

Try MOTHERLOAD

[cannylad]

Ive got my own account open on polo $0.99, my Brother has his account open $1:02 ???????

[GreyAndroidGravy]

38 minutes ago, zenkert said:

Try MOTHERLOAD

IDDQD

[GreyAndroidGravy]

1 hour ago, Ally28 said:

I’m looking at bitfinex and the XRP/ USD is currently 1.02, where on Coin Market Cap it’s like 1.18? Sorry if I’ve missed something, but I couldn’t see why? Thanks

CMC shows a rough average of all the exchanges.  So while most of us are around $1.03 or 4, the Koreans (with higher volume btw) are up around $1.30ish.  Someone above stated about the difficulty of arbitrage with the SK exchanges, which is why things haven't leveled themselves out like they tend to do between other exchanges.