Part 2/6:
One crucial aspect to consider when analyzing these price discrepancies is arbitrage. Arbitrage occurs when traders exploit the price differences of the same asset in different markets. This trading strategy typically brings prices into alignment as traders buy low and sell high concurrently in different exchanges.
For instance, if Hive is trading at a higher price on Leo Deex than on Binance, savvy traders can purchase it cheaply from Binance and sell it on Leo Deex, pocketing the difference as profit. However, conducting such operations continuously can be impractical for individual traders due to the rapid changes in the market and transaction costs involved.