Bitcoin Forum

Recently, I noticed LakeBTC always have a leading price, while the prices on BTC-e is the lowest, the price gap is about $4 - $9 between both, and sometimes will more.

ie: 1 bitcoin buy and sell is $480.67/$481.21 on LakeBTC, buy and sell is $474.84/$475.09 on BTC-e. (Coindesk BPI, Sep 1, 2014 at 08:49 BST)
That I could buy at $475.09 and sell at $480.67 yielding a $5.58 profit.

On the other hand, the trading fee is probably $4 (fee 0.5% both), but if you have a lower rate, you can get more profits.

Everything is ready, only a single arbitrage bot needed, you know the lag time which induced by human would be the first reason for the strategy to fail. (but sorry, I cant find any suitable bots)

Does anyone interested in it?


edit: Apart from arb, we should have done trading at usual time, isn't it? So the costs of arb only include trading and btc withdrawal fee.
For earn bitcoins, only withdraw USD when the plan completed.

What withdrawal fees do they charge? It's not worth it if the withdrawal fees + the trading fees add up to more than the price difference between exchanges.

did you check your figures on http://bitcoin-analytics.com/#xarbitrage ?

Thank you,

I didn't know that website existed.

yeah, it's 0.41% profit from btceUSD to lakeUSD, this is a profitable arbitrage, thank you!

Yes, you can do it.
But the arbitrage space is small, once there is a balance of price, you are in risk.

There is no room for arb. Because the deposit fee of btc-e is at least 1% and the withdrawal fee of lakebtc is 0.5%. Add trading fees 0.2% of btc-e and 0.5% of lakebtc, the total arb. cost between btc-e and lakebtc is 2.2%!

Therefore, don't do arb. unless the price diff. > 2.2%

No fee on BTC deposits, and BTC withdrawal fee is 0.001 BTC.

Arbitrage is just my hobby, trading is the key to profit, so which the withdrawal cost of fiat currency, shouldn't be included in the cost of arb.
Conclusion is that as long as the profits > 0.7% + BTC0.002, you can do it.

edit: just now, arb from btceUSD to lakeUSD is 1.98% (http://bitcoin-analytics.com/#xarbitrage (http://bitcoin-analytics.com/#xarbitrage))
btw: What is vcxUSD? It can be done arb with any one exchanges!

The key issue is whether there is such a trading bot, I don‘t want to do these things manually  :-\

(I've been looking for the bot for a long time: https://bitcointalk.org/index.php?topic=699558.0)

That is not by any means a realistic arb. plan... fees make it unfeasible... sorry

deposit is free, and withdrawals only need BTC0.001, we will earn bitcoins.



I think you certainly would not withdraw for every trading , we just need to withdraw fiat one time when the plans to complete.

Both accounts should have some fiat and btc, and these are not the cost of arb.



So, we only need to consider the cost fo trading fee and btc withdrawal fee.
OK, it's 0.2% plus 0.1-0.5%.
And now, arb btceUSD to lakeUSD is always 0.8-3% (http://bitcoin-analytics.com/#xarbitrage), why not try?

So you basically move USD in btce to lakebtc and won't withdraw from lakebtc, then it works, in terms of net asset value. Once you consider cashout from lakebtc or cashin to btce, it would not be the case  ::)

Any plans like this instantly fail as other people get involved in them up to the point it becomes totally unprofitable. Another reason why this won't work is the freedom of markets.

Here is the fees structure for Lakebtc: https://www.lakebtc.com/s/fees?locale=en


BTC withdraw fee is 0.1% - 0.5% plus 0.001 BTC!!!
Wire withdraw fee is always 0.5%!!!

Moreover, Lakebtc does not promote you to right fee level automatically base on your trading/withdraw history. You need to actively request it!
As the withdraw fees are huge, Lakebtc is only suitable for arbitrage if you don't withdraw frequently! However, the price of Lakebtc is always the highest, that  means you can only do arbitrage one time if you don't withdraw fiat!

The profits from btceUSD to lakeUSD, which can continue to be used to make money for trading, and not immediately withdraw cash.
So in my opinion, the cash withdrawals fee are not the cost of this arbitrage scheme

I don't intend to tell the plan to public originally, but I need a trading bot, and it is not on the market now :(

interesting, does any body try this plan? I want to know how it feels

This post should be in Discussion Trading.
But if not withdraw, how to work?

edit: I know your mean, its amazing  :(

If you'd like to
decrease USD cash from BTCE and
increase USD cash to LakeBTC account,
It works. It is unrealized profit.

If you consider other transactions to realize profit, it may or not.

In terms of experience, I have bought on btce and sold lakebtc. No problem. That's it.

Well, the buying and selling could be automated without much problem. The deposit and withdrawal is usually the bigger problem. I wrote code to parse the btc-e website for withdrawal, but it won't work anymore, since there is a mail confirmation required now. Might be feasable to automate this too, with some effort.

I write bots in java, maybe we could collaborate somehow.

Don't forget to take slippage into account.
http://www.investopedia.com/terms/s/slippage.asp

Also, trading bots can malfunction, be careful.
http://www.cryptocoinsnews.com/malfunctioning-bitcoin-trader-bot-causes-extremely-high-volume-bitcoin-exchange-btc-e/

Yes I thought so at first. But as OP says no cash withdrawals are considered, so we can ignore this problem.

I think, I'm almost there, then...

https://i.imgur.com/0lfW5YO.png

This is a funds transfer plan, rather than arbitrage plan!
Of course, the arb trading can give you a very very small profit everytime, so for earning decent money that you have to trade a very very large funds.

But how do you guys plan to move USD back to BTC-e from Lakbetc for buying Bitcoin at lower price and than repeat the process?

marked, a program worth considering

I think, I can provide the bot if you organize the rest. Let me know, if you are interested in a collab.

Do not be attracted by BTC-e price, its price is low because it charged a huge amount of deposit and withdrawals fee!

If the bot considers those fees properly, that doesn't really pose a problem. But I have to admit, that calculating the fees is often a problem. Some exchanges give discounts based on traded volume etc., and it's hard for a bot to get good info here. That's why I think every exchange should have an API method, that returns the fee for a potential order.

do you think there is still a arb profit now?

Yeah. Sure. As long as you monitor enough exchanges and enough coin types, there's always some profit somewhere. I've seen most opportunities with coins, I've never heard of before.

i wanted to do BTC-E -> bistampt and it didnt work heh

:o  I remember someone told me that there is no room for arbitrage forever since the exchange fee, until now I learned that less and less fee on exchanges, so bad the guys!

it looks that I missed many money for it, you see, how high the price at LakeBTC these days, why me always hurted  :'(

igl00: it didn't work? You had a bot, checking the prices 24/7 ?

:D money is always here to wait you, never late

This program looks feasible increasingly, if the markets continue as they are now

hi, what happened with your site? I can't open it yesterday and today.

I heard btc-e sometimes delays their deposits by a lot, so not sure exactly if you can pull it off but who knows.

this was several months back though, so maybe they changed in terms of service with getting deposits credit right away.