How does Binance manage to maintain a lower price than GDAX?

3 answers

• Dec 18, 2021 · 3 years ago
  One of the main reasons why Binance is able to maintain lower prices than GDAX is due to its high trading volume. Binance has a large number of active traders, which creates a more liquid market and allows for tighter bid-ask spreads. This increased liquidity attracts more traders, creating a positive feedback loop that helps keep prices lower on Binance compared to GDAX. Another factor is Binance's competitive fee structure. Binance charges lower trading fees compared to GDAX, which attracts more traders and encourages higher trading volume. The lower fees also allow traders to make smaller trades without incurring significant costs, which can contribute to lower prices overall. Lastly, Binance's focus on listing a wide range of cryptocurrencies also plays a role in maintaining lower prices. By offering a larger selection of coins, Binance attracts a diverse group of traders who may be looking for specific altcoins. This increased demand for various cryptocurrencies can help keep prices lower on Binance compared to GDAX, which may have a more limited selection. Overall, Binance's high trading volume, competitive fee structure, and diverse selection of cryptocurrencies all contribute to its ability to maintain lower prices compared to GDAX.
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• Dec 18, 2021 · 3 years ago
  Binance manages to maintain a lower price than GDAX primarily because of its large user base. With a significant number of active traders, Binance creates a highly liquid market, which leads to tighter spreads and lower prices. Additionally, Binance's fee structure is more competitive, attracting more traders and increasing trading volume. This increased volume further contributes to lower prices on Binance. Furthermore, Binance's focus on listing a wide range of cryptocurrencies attracts a diverse group of traders, which can also help keep prices lower compared to GDAX. In summary, Binance's large user base, competitive fees, and diverse cryptocurrency offerings all contribute to its ability to maintain lower prices compared to GDAX.
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• Dec 18, 2021 · 3 years ago
  Binance is known for its ability to consistently offer lower prices than GDAX due to several factors. Firstly, Binance has a larger user base and higher trading volume, which creates a more liquid market. This liquidity allows for tighter bid-ask spreads, resulting in lower prices. Secondly, Binance has a competitive fee structure, with lower trading fees compared to GDAX. This attracts more traders and encourages higher trading volume, which in turn helps keep prices lower. Lastly, Binance's extensive selection of cryptocurrencies attracts a diverse range of traders, which can contribute to lower prices as demand is spread across a wider range of assets. Overall, Binance's larger user base, competitive fees, and diverse cryptocurrency offerings all contribute to its ability to maintain lower prices compared to GDAX.
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