BTC Luno x Binance

[ericguitarman]

Why is Luno BTC price always higher compared to BTC in Binance? Does Luno update prices more slowly compared to Binance? Is Luno not real time?

 

[thesamaritan97]

@ericguitarman Cryptocurrency prices are based on the supply and demand of the market. Since each exchange has its own customers and market, the prices will naturally be different. They don't set the price, the customers trading on the platform does.

 

[ericguitarman]

@thesamaritan97 Ah, so meaning Luno and Binance have different markets? So Luno doesn't refer to Binance prices? Then it probably make sense as for now BTC in Binance is more cheaper than in Luno

 

[rarelozo]

@ericguitarman Yup

It works differently from stock exchanges because for stock exchanges, every stockbroker are trading in the same market (KLSE, NYSE, NASDAQ), while crypto markets such as Binance, Luno, Kucoin, Kraken are different exchanges with different token supply, thus the price difference.

Personally would prefer to trade in Binance because it is much more liquid there with at least 30 times more trading pairs than Luno. I only see Luno as a gateway between Malaysian banks to the crypto world as we can bank transfer our ringgits to luno and then send our cryptos to other platforms that we wished to use

 

[thesamaritan97]

@ericguitarman Luno prices like other exchanges are dependent on the price the customers are trading at. Meanwhile, if you Google the price of bitcoin, they'll mostly linked to other exchanges like binance.

It just means that customers at binance are willing to pay less for btc at the moment.

 

[sanjoe3]

@ericguitarman Haven't tried Binance, so can't compare prices yet. I know Luno charges 2% fee on top of smaller deposit/withdrawal charges (max 0.70).

Having said that, reddit has many customers complaining about terrible service on Binance. Do you have a similar experience?

 

[ericguitarman]

@sanjoe3 I have tried Luno but not Binance yet. I see that Luno have a standard trading (2% fee) or exchange trading (~0.25% fee) which is flexible. Just that the price for BTC/MYR in Luno is higher by 10k if compared to on Binance. Is it just different markets?

 

[sanjoe3]

@ericguitarman 10k difference is way too much. Are M'sian Binance users looking at prices in another country?

 

[ericguitarman]

@sanjoe3 From what I see right now, BTC/USDT in Binance is around RM187705 but BTC/USD in Luno is around RM198000. Is it because of different markets supply and demand?

 

[sanjoe3]

@ericguitarman USDT is not US dollars. I believe this refers to the new US dollar-backed stablecoin USDT. Explains the difference in price.

I may be wrong here. Anyone with more clarification on this?

 

[elissa906]

@sanjoe3 Yes.

I think Luno is also more expensive with the conversion rate. like Btc to Usd to Myr.

 

[chandrika]

@sanjoe3 Yes USDT is not US dollars and yes its the dollar-back stable coin. But 1 USDT = 1 USD always.

So the higher BTC in Ringgit in Luno compared to Binance can be explained in 2 points;

1. It's different exchange with different and supply and demand
2. For Luno, if you sell you BTC and get Ringgit, you need to deduct another set of fees to change your Ringgit to USD (market fluctuation, trading fees).

So in theory it make sense for Luno price to be higher when we compare it against Binance in Ringgit terms.

 

[gemechu]

@ericguitarman Luno does not make the market, there is no such thing as “real time” here. Arbitreageurs trade between exchanges when there are price differences and make money.

Luno also has much lower trading volume and that can cause wider bid ask spread. Lower volume also means it’s easy for a whale to cause slippage.

 

[guestlist]

@ericguitarman Is Luno even Exchanger??

Last time LHDN said they're trying to tax crypto investor so i guess they gonna do it through regulated approved by SC which Luno, Remitano n Tokenize. Is this even possible?

 

[jtra5]

@guestlist LHDN don't need Luno to report your tax, they can see your bank statement.

 

[peytonfl00]

@ericguitarman Why bother with Luno? There are plenty of other platforms for you to buy BTC. Personally I use Remitano and recently Binance P2P.

 

[liborious]

@peytonfl00 do you prefer remitano or binance p2p?

 

[peytonfl00]

@liborious Binance p2p definitely. It has a lot more functionality. Remitano though is more straightforward to use. If you intend to buy other coins then go for binance.

 

[hispoiema777]

@ericguitarman Binance will always be cheaper than Luno and will always be. Can you Buy in Binance and Sell at Luno for a profit? No, the fees will eat you up to net zero profit. Dm me for referal link for discount on Binance , I'm a pro that can answer any questions.

 

[disjardin]

@hispoiema777 How much does Binance charge to transfer RM back to your bank account?