ARBITRAGE FOR ''BEGINNERS''?

[conex]

As i beginner i meant someone who's been trading for around half a year now (not day-trading).
Are arbitrage tools necessary or do they just make your life easier and which sites offer them?
Arbitrage was never to interesting to me but i've talked with a friend who's making a decent profit out of it (at least that is what he said...)
Thanks for help!

Crypto markets are generally very liquid and there is rarely an arbitrage opportunity.

If there is, then usually it is due to some form of friction between exchanges, whether it's withdrawal issues, deposit issues, wallet maintenance etc. You'll likely see plenty of good arbitrage opportunities on paper on small exchanges, but either they have a lack of liquidity or there is no way of getting money in/out of their exchange, so essentially they're a closed system.

I wouldn't recommend buying arbitrage bots either. The profit margins are low and your coins can easily get stuck at a particular exchange without human intervention in the process.

Thank you for explanation! If i got it right you advised me to stay out of arbitrage (tools, etc..) till i get more knowledge about trading...correct?

[conex]

Arbitrage is a trading style which needs lots of time and experience.

I beg to differ. I think all it needs is luck.
You find a coin being sold cheap on exchange A and bought expensive on exchange B. All you have to do is to buy from A and sell on B and hope that no one fills the buying orders before you.

What about fees? So if i understood correctly:
1. I buy X coin on exchange A
2. Transfer this coin to my wallet (or is it possible to deposit this coin directly to exchange B)
3. Deposit X coin to exchange B and sell it

Thanks for help, i feel a bit ashamed questioning this but better be safe than sorry...

[masulum]

If you want to arbitrate a coin, you should at least think of the following
1. how much percentage of price between exchange 1 and exchange 2,
2. How much time does it take the coins sent to be received by the exchange 2
3. special requirements for sending your assets back from exchange 2 to exchange 1. As the minimum withdrawal, or regarding the KYC that you have fulfilled.
4. total cost you have to spend when sending from exchange 1 to 2 and withdraw it.
5. Can the process benefit you? If from 1000 dollars, you get the remaining profit of 1 dollar, meaning you waste time.
6. Don't just look for how much price, check 24 volume of your target exchange and coin too
7. Think about coin decline or flash dump

[Saint-loup]

As i beginner i meant someone who's been trading for around half a year now (not day-trading).
Are arbitrage tools necessary or do they just make your life easier and which sites offer them?
Arbitrage was never to interesting to me but i've talked with a friend who's making a decent profit out of it (at least that is what he said...)
Thanks for help!

Which exchanges is using your friend? If they have API it should be very small ones, because all big exchanges providing API are monitored by many bots that trade the arbitrages when they see them.

[BitcoinsGreat]

As i beginner i meant someone who's been trading for around half a year now (not day-trading).
Are arbitrage tools necessary or do they just make your life easier and which sites offer them?
Arbitrage was never to interesting to me but i've talked with a friend who's making a decent profit out of it (at least that is what he said...)
Thanks for help!

There are not many opportunities of arbitrage trading. Even if there is an opportunity, you need to be quick to react and should have funds in both the exchanges to quickly buy a coin, transfer to other exchange and then sell it high. As a beginner i think it is difficult to do but once your are experienced and have money distributed among exchanges, you can try your luck whenever you see an Arbitrage trading.