Blockchain Cryptocurrency Question #6619
MCQ Single Best Answer Easy

QThe value of coins, such as litecoin and bitcoin, remains the same across all the exchanges that actively trade them.

ID: #6619 Cryptocurrency 157 views
Question Info
#6619Q ID
EasyDifficulty
CryptocurrencyTopic

Choose the Best Option

Click any option to instantly check if you're correct.

  • A False
  • B True
Correct Answer: Option A

Explanation

False.

The value of coins such as Bitcoin and Litecoin varies across different exchanges that actively trade them. This is because cryptocurrency exchanges operate independently and have different levels of liquidity, trading volumes, and user demand. Therefore, the market price of a particular cryptocurrency may differ between exchanges due to supply and demand dynamics, transaction fees, and other factors. This creates opportunities for traders to arbitrage between exchanges, buying low on one exchange and selling high on another. As a result, it is important to compare prices across different exchanges before buying or selling cryptocurrencies to get the best price possible.

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