Bitcoin Forum

Is there any forum member here that can share his strategy in arbitrage trading. That is buying low and selling high on an exchange or buying low from one exchange and selling high on another exchange.Is it effective and profitable?

A few months ago it was a very profitable occupation. But now it began to do through automated bots and manually doing this is not profitable as it was before.

Yes, this kind of trading is really profitable but would really depend on how precisely you would able to sell out on an exact time and considering the factors of fee when it comes into different exchangers. Same as being mentioned above where automation or bots do make it non profitable already. Not only that where theres a sudden pump into an other exchange neither they would disable deposits into that site which do really sucks.

about 1 or more year ago there were so many people that make good profits by arbitrage. but nowadays there are so many arbitrage bots that normal people can not make it before them so it is not as profitable as it was before.

Use the bot to arbitrate on various cryptocurrency exchanges. Only in this way can this occupation be profitable, since the market is very sluggish now.

Arbitrage trading is rarely profitable, most the times the fees eat you up or the exchange has blocked withdrawals.

It's really not advisable to do it on some certain exchange,  I could remember a friend of mine whose coin was trapped on another exchange when trying to do an abittrage, watch the exchange you wish to do it carefully

Arbitrage trading sounds good in theory, you can earn profits without the risk of losing but there are many hurdles you need to overcome, you need big capital and I mean a really big capital, you need accounts in many different exchanges and you need to have enough money on each account, you also need to have an account in a bank that is willing to put with you activities and while I'm not an expert on the subject that is really difficult to find.

I'm intermediate in terms in trading, but I'd say buying on one exchange and selling it to another is a loss, why? because exchanges have insanely high withdrawal fees.

Right now it will be hard since we are in a bear market. It will be risky as coins prices suddenly drops within a few minutes.

I already have read some tips on how to be an effective Arbitrage trader in this forum just do a search.

Again be careful current trend of the market is not in favor on this type of strategy.

Arbitrage is buying low from one exchange and selling high on another exchange. Usually done through trading bots. The market is bearish right now so not very effective or profitable.

I ever try it, it is profitable if you can find the hole, but there are things to consider before you try the arbitrage, and arbitrage is absolutely not for beginner, you need to consider the transaction volume and the speed transaction, last time I try arbitrage my coin get stucked, luckily I still can break even

There are 1620 coins and lot of arbitrage opportunities. Arbitrage profit is free money but there are many risks and difficulties with it.
Some of the difficulties are  market liquidity - low volume, trading fees, withdrawal time and fees.
To make arbitrage trading risk free You have to execute 2 trades in the same time in 2 different exchanges and only experienced traders are supposed doing it.  

Arbitrage trading is possible with a high speed bolts that can make transactions simultaneously in just miliseconds. But if you want to do it manually there must be a slippage in the prices and it might end you up in loses.

it is not that easy as seems )
some transactions go way to slow and you get the price slipping away.
during pump some exchanges shut deposit/withdraw to prevent from that)
 

Doing arbitrage with bitcoin is pretty much easier than other cryptos and we have lot of options to buy and sell the bitcoins.No one will reveal their success strategy here,so you need to find it in your own.Coinbase is one of the best place to buy bitcoins and you can sell it on other exchanges to have more profits you can compare the prices on CMC to get clear idea.

Well its like:

binance account:
1 mil $
bitcoins worth 1 mil $

bittrex account:
1 mil $
bitcoins worth 1 mil $

binance bitcoin price is higher than bittrex you sell on binance and immediatly buy on bittrex as much as you can (your arbitrage will affect price and decrise price difference)

binance account:
500 000 $
bitcoins worth 1,5 mil $

bittrex account:
1,5 mil $
bitcoins worth 500 mil $

binance bitcoin price is lower than bittrex you buy on binance and immediatly sell on bittrex as much as you can (your arbitrage will affect price and decrise price difference)

binance account:
1 mil $
bitcoins worth 1 mil $

bittrex account:
1 mil $
bitcoins worth 1 mil $

And you are back where you were with profit. In this strategy you miss transfer cost and transfer time. I dont see a chance to do it with low capital, without bot and without special conditions from exchanges (huge players has low fees what makes them profitable in moment when you will still be unprfitable)

Manual arbitrage is still profitable in some circumstances. For example when price is skyrocking you can search through low volume exchanges (mostly decentralized) and buy coins there, where price was not pumped yet and transfer to big exchanges - with risk of price drop during transfers (i do it with price difference over 30%). Those exchanges are mortly not arbitraged by huge players.

Arbitrage can be done on 1 exchange too. Buy alt for btc sell to eth sell to $ buy btc and circle is complited. But it is impossible to do it without special conditions from exchange and fast trading bots.

Sometimes manual arbitrage can be profitable on small volume new exchanges in simples possible way (buy alt for btc sell to eth sell to $ buy btc and circle is complited) but its just for fun or timekilling stuff rather than big money earning. 50$ daily is great achivement that way

That is the same way I have seeing arbitrage trading too.  Some years back we do see a wide gap between two exchange platforms of some altcoins and bitcoin price but now thing has changed and we are not going to have those opportunities again. Many bots are out there helping arbitrage traders makes little profits.

I have done it and it works but there are some problems with arbitrage trading that makes it sometimes impossible and sometimes extremely hard to make profit from it so my conclusion was to stick to normal traditional trading instead of wasting time on arbitrage.

I have done it manually and with my bot. the problems I am talking about is the fact that others are doing it also so there is a risk involved specially if you are doing it with an altcoin that can get dumped or pumped at any time and you lose a lot of money that way. another problem is that most of the times the reason for the price difference (which you use for arbitrage) is that there is a problem with that coin or with that exchange that has the different price so you can get stuck and lose money. and finally another important problem is that the profit most of the times does not justify the risks. meaning you take a huge risk but earn a tiny profit.

I never try it and i think this is not effective because we should also calculate the fee of withdrawal and how long the transaction will confirmed. And this strategy can be fail if the transaction comfirmed take a few hours and the the price changed.

Arbitrage is nice concept on paper, but making it work with in reality will take a lots of resources and time. Capital is another important tool to use in order to arbitrage successfully.