Some Facts To Know Before Investing In Cryptos
If you are one of the many newbies like me, who don't know what's going on in the crypto world, yet don't want to lose out on world-changing technologies, you might find this article interesting.
Cryptocurrencies trade on many different exchanges around the world.
Web sites like CoinMarketCap.com accumulate prices from those exchanges in order to calculate an average price. (This helps us get a rough approximation of how much the market values Bitcoin, Ethereum, Ripple, or NEM. It is a rule of thumb measurement.)
Data shows that Korean investors pay a premium for most currencies. For example, the third biggest exchange, Bithumb, showed an average ETH price of $1,743.55 yesterday. By contrast, the leading exchange for trading ETH showed an average price of $1,157.82. That’s a 51% premium for trading on Korean exchanges!
In sophisticated markets, this kind of calculation is unnecessary because institutional investors squeeze out all arbitrage opportunities.
But crypto markets are young and inefficient. That’s why Korean prices are able to drift away from average Ethereum prices.
CoinMarketCap.com wants to give people the best idea of global prices, so they omitted the outlier data. (Korean exchanges are the outliers.)
Before you plow money into cryptocurrencies, make sure you do your homework beforehand.
Feel free to resteem and upvote
yes......we will do our homework .......to keep me safe from our teachers scold...
yup, the market teachers will punish you really really badly if you don't do your homework!
I guess with time you will get used to the cryptocurrency world and terminologies
When i started out, i was confused and made lots of mistake, but today, those mistakes really shaped my future in trading and it has not only added to my fountain of knowledge, but also to my bank account
that's great. The best is to be able to make real and consistent income through crypto trading. Keep up the great job!