Guide for traders

Each online trading platform also hosts a different blend of digital coins. We can buy some coins and sell them only on one platform, while some others exist in most of them. Thus, online platforms host not only a different number of coins, but they also have a different "variety" among them.

One key difference between platforms is in the volume of transactions. The platforms with the largest volume of transactions are characterized as "leaders," as they tend to create price trends and the rest of them follow (“Followers”). This alone results in differences in the buying and selling prices of a currency, especially when there are sudden changes.

It is an informal rule, that the smaller the volume of transactions on a platform, the greater is the interval between the selling prices from the purchase prices. In few words, we can buy a currency at a lower price than the one at the other trading platforms, and at the same time we can sell at a higher price than the prevailing one. In these kind of platforms, it is recommended that we conduct market making both on buy and sell, as the chances of achieving high returns are relatively high. It is worth noting that a platform that can be described as a follower to its total transaction volume, may at the same time be a leader for a particular currency.

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