Why the crypto price differs around the world

If you look up the price of Bitcoin or any other cryptocurrency – on Google or on an exchange like Luno – you’ll notice it’s not always the same. That’s because there’s no fixed or global price for Bitcoin and other crypto assets.

Unlike most local currencies, crypto generally isn’t tied to anything like gold or a central bank. Its value depends on what people are willing to pay for it, and that amount can vary from one platform to another.

It’s kind of like asking: “Why does a bag of rice cost more in one shop, city, or country than in another?” It all comes down to supply and demand. Since Bitcoin isn’t linked to any fixed value, its price changes based on how many people want to buy or sell it, how much they’re willing to pay, and how much is available.

Our pricing reflects actual market activity on our platform.

Average price estimates

Since there’s no global standard for crypto’s price, the numbers you see on Google, exchanges or price trackers are just estimates. Most are based on recent trades from major exchanges. For example, Google uses data from Coinbase, which is why the price appears in US Dollars.

Currency exchange rates also play a role. People often search for the price of Bitcoin in their local currency, like Malaysian ringgit (MYR). So, if you search “1 BTC to MYR”, Google shows the US Dollar price then converts that to MYR. But, even if you used Coinbase, the price you’d actually pay could still be different due to fees and other factors.

Every exchange has its own supply and demand. That’s why the crypto prices on Luno might not match the one on Google or another exchange because buyers and sellers on each platform set their own prices.

While external sources give you an idea of the global price, the actual price you trade at on Luno is determined by our customers.

For example, if you’re a customer verified in Malaysia, think of Luno's exchange like a specific 'market stall' within the global crypto bazaar. When you place a sell order for 100 XRP at RM 20, you're essentially saying, “I want to sell this much XRP, but only if someone on Luno is willing to buy it at RM 20 or higher.”

This order then sits in our order book, which is a list of all current buy and sell intentions on Luno.

Supply and demand

Exchanges are platforms where people buy and sell crypto assets.

If you have two exchanges (Exchange A and Exchange B) that both support USD and BTC, the price on each will be whatever supply and demand dictates. If more people are selling than they are buying, the price will drop. The same goes for more people buying than selling.

When the global market price goes up, Luno’s prices are influenced by global trends; they are not directly controlled, as our prices are a reflection of the local supply and demand.

Different exchanges may also display different prices because they have different levels of liquidity. Again, this is linked to supply and demand.

Arbitrage

If Bitcoin or other assets sell for different prices on different exchanges, can you make money from the difference?

Let’s say you can sell 1 BTC for RM 100,000 on Luno but on another exchange, 1 BTC only costs RM 95,000. That sounds like an instant RM 5,000 profit, right? Not quite.

This idea is called arbitrage: buying something cheaper in one place and selling it for more somewhere else. It happens with Bitcoin, stocks, and even things like avocados. But it’s not as easy as it sounds.

Just like it costs money to ship avocados from one country to another, it costs time, money and effort to move Bitcoin and money between exchanges. You also have to factor in transfer fees, price changes, and limits.

So yes, arbitrage can happen but it doesn’t always work, and it doesn’t happen everywhere or all the time. In fact, we’ve also seen the reverse: Bitcoin sometimes trades for less in Malaysia than on overseas platforms, depending on market conditions.