Bitcoin Forum

Hi

On exchange (A) XMR/BTC - 0.00045. exchange (B) 0.0022. There is a arbitrage opportunity here BUT will the profit be base on the XMR/BTC or the BTC current rate on the two exchanges. Because it seem you have to buy with BTC not XMR.

I hope my question makes sense.

Regards
Andrew

BTC is the base currency in this case. The easier way to know if there is a difference is to look at the USD rate of the market pair of the trading pair in both exchanges. If indeed there is a good difference, then you can go ahead and do arbitrage trading.

Buy XMR using BTC in exchange A at 0.00045, move the XMR to exchange B and sell it off at that high price of 0.0022. Move the Bitcoins back to exchange A and repeat the whole process all over again. Please be very careful with arbitrage trading

- Consider withdrawal fees and trading fees on both platforms as you calculate profits
- Ensure that all withdrawal and Deposit options on both exchanges are working and nothing is under maintenance.

I have encountered this situation before, but I also hastily transferred money to make a transaction and suddenly discovered that it had poor liquidity, and set limits on withdrawals. So it's not always possible to think positively, and it should also be understood that most bots on CEX are fast enough to update prices if there are no unusual incidents, or as I initially thought mentioned about lack of transparency. Anyway, you should check more carefully before intending to act, because good opportunities will soon be discovered and this is no longer common today when the trading volume is getting larger, the price difference between CEX are no longer so large. But I still know about the local CEX situation of some countries where the prices are quite irregular and also not according to the common global price, but usually it is difficult to access.

I think maybe this is rare.  This huge price difference is unlikely to last long.  My advice is that you have to be careful and research the information about these two exchanges, are they a big and guaranteed exchanges or not.  I don't expect one of them to be fraudulent, in the maintenance process or about a problematic system.  Try doing it with a small nominal amount to ensure these 3 things not happend.  And hopefully you really get benefit from this moment.

I don't believe arbitrage still Exist in crypto world because it was before years currently the applications are made very strongly. I even know that in many exchanges the prices still vary but technically either they will not provide you withdrawal access nor they will provide deposit access. If Incase if you try you will get a notification as temporarily suspended.

To me its a waste to time and I still don't believe in this.

Arbitrage are real but when there are even the slight profit involved, there are active bots that uses the exchange API to trade and transact between exchanges tapping the opportunity before a human can manually do. This is how we get nearly the same price in every exchange. There could be manual chances in newer exchanges that don't provide API but we need to be extra careful with newer exchange as they could be scam.
Some causal scam advertisement involves unrealistic arbitrage opportunities that looks mostly real but one of the step is a scam where you lose all your money.

You also have to add withdrawal fee into the calculation as well, which could be $20 or even more depending upon the exchange we are talking and thus completely voids the profits when you trade in small amounts.

Also take a look at the volume for the specific price you aim to execute because in these days if there is slight advantage then bots won't let them to exist for very long.

That's right, if we jump or switch between exchanges, the withdrawal fees are quite large unless we exchange them for coins which provide cheaper transaction fees, or there are other things that can avoid those fees by playing on all exchanges A and B

Arbitration is most often a short-term event because otherwise it was free money for everyone. Most often this is due to the lack of withdrawal of the target coin on one exchange and its unlimited deposit/withdrawal on another. Very rarely does this happen when a coin is listed on different exchanges at different times or insider information affects the price. First, check the possibility of withdrawal on one exchange and the possibility of depositing on another, and then make a decision.

It depends on your transaction from my perspective.

If required you buy (BTC) first, then you will see from two asset (BTC & USD at the time you buy BTC). Unless, you already have (BTC) with a really long time ago then you only see on one side which mean (BTC). Easie way like these.

- I have 100$
- Bought BTC with my 100$ and got 0.001 BTC
- Buying 1 XMR with 0.001 BTC

Your arbitrage should be
- You must sell your 1 XMR with more than 0.001 BTC
- You must sell your BTC with more than 100$
- Then, you can see these is profitable or not.

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Don't forget to calculated first, how much you are spending on service platform like (Trading Fee, Withdraw Fee, etc).

Arbitrage does exist, but it does require one to have a lot of funds to realize a meaningful profit minus the trading fees and withdrawal fees affecting the account due to VIP fee tiers put in by exchanges based on trading volumes.
Arbitrage also need a good working arbitrage bot.

On the point of withdrawals, there here is an example of doge on HitBTC. The price is match lower that. Probably 10 times the market price, if you rush to buy that Doge, you can't withdraw it to sell else where because the withdrawals of doge have been disabled for years.

The crypto space is filled with confusion, we'll never know what's coming next and also what's going until we enter the market. Most time, it's advisable to stay off the market because winning becomes compulsory and a subject for those that are patient and conversant with good strategy. Don't indulge in any crypto related activities you're not acquainted with because this will only attracts huge losses on our ends. I'm going to starve for trends in the market because winnings is always been at the top, always two steps ahead of others.

Apart from the obvious price differences. What many people underestimate are the sometimes enormous transaction costs for buying and selling on the different exchanges. This turns most good arbitrage deals into a losing deal in the end.

But do you the risk there worth the profit that could be seen. I think ones account can be banned on some exchange if caught for being involved in arbitrage. What of if such account have good fund in it? Is it still as save as then?