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RE: Question: How Does Coinbase/GDAX Come Up With A USD Price for Litecoin & Ethereum?
I think it's just based on who is selling ltc/btc and who is buying the same. That's why coinbases value could be different than bittrex. People on Coinbase may be willing to buy bitcoin with their Litecoin at a higher price than another exchange, because each exchange is separate. So each exchange really has its own market. Hope that kind of makes sense.
Hey @bitcointycoon thank you for your comment. Now that you say that it's fairly obvious to me ie if I place a buy order and someone else places a sell order the price is where we meet in the middle so the market is actually determining the price. Your right as well lately I've been seeing some potential arbitrage opportunities between marketplaces as buyers and sellers on Bittrex are a completely seperate pool and a completely seperate market than buyers and sellers on GDAX
Yeah, seems like if you had money on the US exchange and money on an Asian exchange you could buy from the cheaper one and sell on the more expensive one. I've thought of that too, but I haven't tried it.