Lack of common sense when trading crypto outside major exchanges – how can one explain it?

This is not an advert for Binance, Nexo and Altcoins since I am mostly anti crypto, but I love Solana.

Binance offers like 0.5% spread on all kind of crypto and is like 10 times safer than using a random exchange no one heard about.

I’ve noticed that the majority of exchanges for crypto have insane 4% spread and this is especially true if I want to buy Solana. This has been happening for years and in basic theory of economics makes zero sense. Why would one of the most liquid crypto in the world have a 4% spread when you can easily buy it on Binance for just 0.5% spread? Everyone who doesn’t use a major exchange like Binance literally pays around 8 times higher fees that turn into profits for the smaller exchanges, because those small exchanges buy Solana directly from the major ones and on even lower spreads – this is public knowledge due to Blockchain.

Why millions of people continue to do that? Why pay 141 USD for Solana on Nexo or Altcoins.bg when you can buy it for 138 on Binance? The sell price in Binance is 137.8 and in Nexo and Altcoins.bg it’s so low that it’s hidden, because you need to register to see it :D. They are literally ashamed of how much they scam their own customers with their hidden spread fees. To me this shows a general lack of common sense. I clicked on an ad of Altcoins.bg and it shows 121.33 euro buy and 115.51 euro sell.

You can say that no one is stupid enough to use them, but the fact is this exchange PAYS a lot for ads on Facebook and they are not stupid to place unrealistic prices – they will go bankrupt quite fast if no one uses them