Why does the price of Bitcoin vary on Coinbase when attempting to make a purchase?

3 answers

• Dec 17, 2021 · 3 years ago
  The price of Bitcoin on Coinbase can vary when you attempt to make a purchase due to several factors. One of the main reasons is the concept of supply and demand. The price of Bitcoin is determined by the buyers and sellers on the Coinbase platform. If there are more people buying Bitcoin at a certain price, the price will increase. Conversely, if there are more people selling Bitcoin at a certain price, the price will decrease. This constant buying and selling activity can cause the price to fluctuate when you try to make a purchase.
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• Dec 17, 2021 · 3 years ago
  Another reason for the price variation on Coinbase is the liquidity of the market. Liquidity refers to the ease with which an asset can be bought or sold without causing a significant change in its price. If there is low liquidity in the Bitcoin market on Coinbase, even a small buy order can cause the price to spike. On the other hand, if there is high liquidity, the price may remain stable even with larger buy orders. So, when you attempt to make a purchase, the price can vary depending on the liquidity of the market at that particular moment.
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• Dec 17, 2021 · 3 years ago
  When attempting to make a purchase on Coinbase, it's important to note that the price you see on the platform may not be the exact price at which your purchase will be executed. Coinbase uses a dynamic pricing model that takes into account various factors such as market volatility, order size, and liquidity. This means that the price you see on the Coinbase interface is an estimate and the actual execution price may differ slightly. It's always a good idea to review the final price before confirming your purchase to avoid any surprises.
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