Assets, Ethereum

Why Is Ethereum Price Different on Coinbase?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middle man or counterparty risk.

The project was bootstrapped via an ether presale in August 2014 by fans all around the world. It is developed by the Ethereum Foundation, a Swiss non-profit, with contributions from great minds across the globe.

The price of Ethereum is different on Coinbase than it is on other exchanges because Coinbase is a brokerage firm. This means that when you buy Ethereum on Coinbase, you are actually buying it from Coinbase itself, not from another user on the exchange.

NOTE: WARNING: Ethereum prices can vary significantly across different exchanges. Coinbase is just one example of an exchange where the Ethereum price may differ from other exchanges. Be sure to compare prices across multiple sources before buying or selling Ethereum, and be aware of the risks associated with cryptocurrency trading.

The price that Coinbase charges for Ethereum is based on the current market price of Ethereum, plus a small fee for Coinbase’s service. The fee varies depending on whether you are buying or selling, and can be found here.

Other exchanges work differently. On these exchanges, you are buying Ethereum from another user of the exchange. The price that you pay (or receive) will be slightly different than the current market price, because each user can set their own price.

The difference between the market price and your price is called the “spread”. You can see what prices people are selling Ethereum for on these exchanges here.

The reason that the spread exists is because people are willing to pay different amounts for Ethereum depending on how urgently they need it. If someone needs to buy Ethereum right away and they are willing to pay a higher price to get it immediately, they will set a higher asking price than someone who doesn’t need it right away and is willing to wait for someone to sell it to them at the market price.

The spread can also be affected by things like supply and demand on each exchange. If there are more people trying to buy Ethereum than there are people trying to sell it, the prices will go up until there is equilibrium again.

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