Hey guys! I'm not sure if many have realised, but the Steem price on Binance is significantly higher than on other exchanges. For example, it's currently trading at around $1.36 when other exchanges are trading at around $1.26. So, what price should you go by? The others.

This article was written a few days ago, but I forgot to post!

Some of the prices may be a little off, but the general idea of the article should still hold.

Why Binance's Price is NOT Accurate

Binance recently stopped allowing withdrawals and deposits of Steem, thus no more arbitrage can happen any more between the other exchanges. This means the price of Steem on Binance can be rather wild as there's no other exchanges to offset it, as you can't transfer the Steem from one wallet to another.

Poloniex Just Recently Fixed Their Wallet

The issue I described above also affected Poloniex for a few months, some say even close to a year! However, due to the fact that Steem on Poloniex was technically not usable, the price of Steem on Poloniex was much lower than other exchanges, typically by around 10-15%.

Why Binance's Price is Climbing

In some cases, the price of a certain token could climb astronomically. I recall there was an incidence on Kucoin when BCD deposits and withdrawals were disabled, the price went up almost 5000% in a day!

Why Does This Happen?

Simple law of supply and demand! No new Steem can come onto Binance and Steem can not leave Binance, thus the amount of Steem on Binance is limited to what people had left on the exchange which could be a very small amount. If someone were to have enough BTC, they could theoretically pump up the price of Steem by setting some big buy orders, as there could potentially not be enough Steem to fill them, or not enough sellers to fill them. Since the total supply is so low, a small increase in demand could make the prices jump like crazy! As more FOMO kicks in, the prices could keep shooting up until it reaches a certain point where the original whales feel comfortably selling, thus raking in massive profits while the others are left to hold bags.

My Strategy

I've been selling every time there's a big spike, then selling more if it continues to rise. I am very conservative, so I buy back at a small profit, usually around 1-2%. Over the last 2 months or so, I've made around almost 500 Steem by day trading! I usually spend a few minutes selling buys and sells while playing games or writing Steemit articles, I day trade maybe 2 days a week as most days there's not much opportunity to.

I feel like the price of Steem could continue to rise on Binance, but as soon as deposits and withdrawals are open, the price of Steem on Binance should normalise and follow the other exchanges.