Bitcoin Forum

I've noticed many times a big difference in price between exchanges. Right now one of my ALTS has a 100% difference between kucoin and coinexchange. Any of you trade between exchanges?

what is the point of it? every exchange charge a fee I believe...  ???

Sometimes that is due to illiquid markets and sometimes it is due to somebody buying up a huge amount. In any case that spread won't remain because somebody somewhere will attempt to arb it.

what is the profit of trading between the exchanges? cannot get it.  :'(

It's a good way to miss out.  I don't recommend it.  There is a difference a lot of the time between Cryptopia and Bittrex, but because of the length of time it takes to confirm transactions the prices sometimes catch up.  If you spread your coins among the exchanges it may work out for you though.  I would not try this unless you are an experienced trader, and even then start with small amounts.

Exchanging in some trading site has its own fee. Transaction fee, buying fee and selling fee. You know it does charge our transaction just a little. You might transfer them to other exchange site to minimize the withdrawal fee. This is what I am doing as usual I transfer it to another site to minimize my fee to coins.ph.

The profits would have been close to 100% increase at the time. 

This is called arbitrage trading and it is done all the time.  However, sometimes the trading volume isn't that great so the profits are minimized but there still is profit from doing this.  The key is to execute the trade immediately when you see the huge price difference.  Buy on one and sell on the other immediately.  Depending on exchanges and crypto, sometimes it takes a while for your coins to confirm.  

I did see a huge difference in trade volume. Is there a volume range I should stay away from? Thanks.

yea its called arbitrage you can see difference of prices between differents market so you can quickly change to sell coins to other platform

It's risk to play with arbitrage, if some plateforms have a really different price than all others, that can mean you can't withdraw the coin, so you can consider your platform as "isolated".

That was the case with Mt-gox back in 2013, which had a significative difference of price with all others. It was possible to send your BTC on the exchange, but it was impossible to cash out to your bank  ;D

Another situation which can give a big difference is low volume coins / low market cap coins, and that's normal because if you just buy 100$ worth of a coin like this, sometimes this changes the price to +100%  :P

Yes, there really is such an opportunity, and many earn in this way, but remember that there is a commission, that is, a commission for the withdrawal of funds, this commission will be on both exchanges, but in any case at large volumes it will be palatably profitable

It is possible to try and make some profits by trading this type of scenario which is normally known as arbitrage.
Be wary though of eschanges with low liquidity and large spread gaps between the buy and sell prices which can distort the real situation.

Best way to do this is to already own the tokens and send them to sell on one exchange whilst you have ETH or BTC available to purchase on the other immediately after. This will stop any missed orders due to network congestion etc.

There's a big difference because exchanges have their own markets, so the bigger trading volume the higher the difference between big and small exchanges. And it is a good trading strategy to take advantage of the price of different exchanges. What you are referring is arbitrage, but there's a lot of things to consider before benefiting from this and of course there's a risk of doing this, I found this article helpful so if you are planning to do arbitrage read this first https://steemit.com/cryptocurrency/@scrawl/a-brief-look-at-crypto-arbitrage-trading

There are many choices available to trade your coins but i am using bittrex because there platform is very easy to use. All top coins are available there to trade. Arbitrage is not a best option as sometime you transfer coins from one exchange to other but they not reach to destination due to closure of their wallet and you trapped.

This is called arbitration. use this. You can see the price difference between different markets so you can quickly move to another platform. This is the world of crypto ...

This is a well known method of making money at the crypto world and it is called airbitradge.
Usually people who does it professionaly own verified accounts at most of the exchanges , it allows them to fill orders real fast.

Sometimes making the airbitradge wouldn't be worthy, as the price of the coin you are aiming to do airbitradge on will probably drasticlly changed before your funds will actually arrive at the destination exchange.

In many cases there is a good reason for the price difference. Withdrawals or deposits delayed or stuck for hours, exchange wallet in maintenance, a huge spread between bid and ask price.

Another possibility is when a coin with a huge supply has a Bitcoin trading pair. Then it's probably worth less than the lowest amount, 1 Satoshi. You can buy for 2 sat and sell for 1 sat, or wait in line or move to a different trading pair, like Doge.

arbitration can be dealt with, but this is a high-frequency trade and this should be dealt with by robots and then for this you need to have not small amounts and exchanges to trade at a loss.

Arbitrage trading is only applicable when the market is stable,if your coin has fast transaction confirmations it might work but if doesnt you will only lose a lot of money in the end.Ive been doing these trades since then but it didnt gave me a decent amount  of profits,not a worthy thing to do.

Arbitrage is beneficial only if both exchanges have opened their wallet of that particular coin which you want to transfer from one exchange to other. If one exchange wallet not opened and you send coin from opened wallet exchange but that not reached there due to wallet offline then you have no option.

For this to be worth your time you would need an arbitrage trading bot. And to minimize risk would be ideal to be able to short sell some crypto at one of the exchanges so that you would not need to rely on being able to withdraw a coin fast.

It's called arbitrage,if you are confident about fees problem and transaction speed,feel free to do it.But if you still new,i don't recommend it,because you don't know how it will play out.Arbitrage is an advantage if you know how to manage it,by looking carefully at the price movement and transfer your fund in the right moment to gain profit from it.

The only coin that arbitrage worked that I know of is when Doge was traded on Cryptsy and was a different price in Bittrex exchange.

For the first time I also watched the price difference between some stock exchanges, I thought that you could make money on it, but later rejected this idea. Fees for the deposit of coins and the time that is spent on each transaction brings certain risks.

It's a good way to miss out, because of the length of time it takes to confirm transactions the prices sometimes catch up.

It is risky so i won't recommend everyone to use this. Arbitrage trading is profitable for those people who have much knowledge and confidence but who is new to this market i would suggest no because people who are less experience may lead to loss.

99,99% of the prices differences you may think to see nowadays are due to a reason; either the exchange wallets are shut down, either the network is down, either the low/high price exchange is a total scam that will either steal your money or hold it for weeks, either volatility is insane and makes any arbitrage impossible to execute without risking massive losses

Free lunch days are gone for good my friend

It has become insanely competitive and there is no more money to be made in arbitrage, unless you are an expert in high frequency trading and have millions of dollars to rotate to trade 0,01% profits

There are no more manually tradable arbitrage opportunities; the ship has sailed months / a year ago
All what is left now are insignificant (around 1%) differences between exchanges that are impossible to trade and extremely high risk

You'd better trade pumps or whatevers than this; it's just not worth it anymore