Bitcoin Forum

I’m curious about this method but I’m not finding a clear explanation, along with tips or strategies that are known to work. My goal is to increase my BTC holdings with minimal risk.

 Others may find this post useful as well. Can someone explain arbitrage? Thanks.

The main consept of arbitrage is to make profit from the price differentials in different markets.
For example.If one asset has a price of around 100 USD in USA,but the same asset has a price of around 120 USD in Japan,you could buy the asset in USA and sell it in Japan.I think that market arbitrage is available only for the big international corporations, who operate in all the big markets(USA,EU,Japan,China).
I don`t think that conducting arbitrage is possible for a person with small savings and the cryptocurrency exchange platform fees can cut most of your profits,if you try to execute market arbitrage.

Arbitrage is teorically easy thanks to price difference between exchanger. But is hard realize due slow FIAT trasaction for charge $ on account.

arbitrage mean buying something from other exchanger and then sell it to another,
logically it is very easy but it's very hard to implement it because a few factors,like :
1.Confirmation Transaction ; every exchanger have their own rule,and try to find a better one.
for example Binance.com,if i remember it correctly they're asking us 30 conf to credit our account which mean it will take a long time to credit it,
while we're waiting our confirmation who knows what will happen with the price,right ?
so,try to learn about their rules and terms.some of them will tell you about their deposit or withdrawal system,
and choose the fastest one.

2.Pump and Dump coin ; you will see a huge difference in price,but when you're buying it and move it to that exchanger the price goes down very fast.
try to avoid this kind of coin because it's only good for a moment and it's not a good coin to do the arbitrage.

and many others

Like what the rest say, try to get your coins that are listed for the least price, which you can find a list of exchanges here: CryptoCompare (https://www.cryptocompare.com/coins/btc/markets/USD)

I visit BitcoinCharts (https://www.cryptocompare.com/coins/btc/markets/USD), but it is currently down now. One tip to take note of is that try not to buy is the difference isn't too much, and do not use exchanges you are unfamiliar with or have bad reviews as the exchange may turn out fraud. There are risks involved, for example scam exchange sites, uncalculated hidden fees (trading, withdrawal or even deposit fees), but these can easily be avoided if you do your research well.

Best of luck to your trading!

in my opinion, arbitrage trading is only work if there is a big different of the price is each exchanges for the same coins and the time to send the coins is not take too long. i don't think that you want to do bitcoin trading arbitrage because if the time to send the transaction is take too long then you can not receive your bitcoin at fast. beside that you need to wait too long and if you decide to do arbitrage, then you might be lose your profit and getting loss. i think its better if you can do with other coins that is not take too long to finish the transaction.

then stay away from arbitrage and also even stay away from trading. because trading in general is a risky thing and arbitrage trading is even riskier and harder than traditional trading when you buy low and sell high!

the thing that I always remind others about arbitrage is that if it is possible, someone else is doing it faster and more efficient than you. and since arbitrage is not like traditional trading, the opportunity is not the same either. for example if price of some altcoin goes up and I dump, there is still room for you to dump too and possible 100 others. but if there is an opportunity to arbitrage, if I do it, then you can't do it because I will be filling the orders and taking the profit.

how about you check how much does cost for fee and then how long received coin in market?

Arbitrage is a good concept and it is as simple as buying low and selling high. Essentially, you have to find something that you can buy somewhere else at a lower price then sell at a targeted at a higher price. Now, in case of Bitcoin or cryptocurrency, just the same thing applies. Though in Bitcoin, it can be difficult for you to do so as what I heard about with other people who tried doing it. You can go to Zimbabwe and sell your Bitcoin there because people in that country are buying Bitcoin at double the rate we pay here.