Be aware about arbitrage

[Russlenat]

Lol, I was once into this but learned the hard way later, the fact is there are other things that may delay you from earning with this strategy, buying less on a exchange and selling high on another don't always go smooth, sometimes you will be stuck due to slow withdrawal and before the transaction go through the price would have adjust

That's the risk to consider, it would be acceptable if the price will not dump even if there's a maintenance but if they intentionally do that, then you have no choice but to accept their loses, sometimes we think we found an arbitrage opportunity and we thought they don't know it, but in reality it's just a trap to attract us to buy their coins.

[jrrsparkles]

May I know what's the reason behind?

Kucoin seems to be a legit site, they would not just suspend withdrawal of a token you already own without a valid reason.
The statement you used is "Be aware about arbitrage", this is a general statement when it does not happen in all sites, it's only Kucoin has a problem with this based on what you shared.

Its common that exchanges put the altcoin's wallet under maintenance and temporary block for withdrawal on most of the cases so if they have such coins they can trade it but it is not possible to request for the withdrawal when it is under maintenance.

What he means was what is the reason behind the maintenance. There is always a reason for a maintenance such is bug on code of coin or error in synchronizing the wallet. The exchange should trading if ever they will have an upcoming maintenance about it or atleast give notification to traders.

@OP, Do you check the volume on the order book before you do the arbitrage trading?

For sure exchange will announce about the maintenance on their social media channels or atleast in their website at some place but what I exprienced is they will announce about the maintenance but don't want to mention about how long it will last long with shit coin wallets so it may be even in the maintenance mode forever.

[lumierre]

Cryptocurrency arbitrage is practically indistinguishable from ordinary arbitration. First, you need to decide on the exchanges and analyze their work. On some exchanges, the withdrawal of some coins is not possible. It is better to choose a popular coin for these purposes so that there are no problems.

[tvplus006]

When arbitrating between exchanges tokens on Ethereum now the main thing is not to get to the maximum load of the network. By the time tokens are transferred, the price can change dramatically.

Network load issues are not the deciding factor in arbitrage. The main problem is that you simply will not be allowed to withdraw such a coin, which is sold at a lower price on this exchange. I faced a similar situation when withdrawing the DIA coin from the Kucoin exchange to Binance, when my withdrawal was simply blocked by the exchange.

[aemma]

That is true, there is always a reason for the spread and thus the reason to also understand why there is such a big/small difference in price. In some case scenarios, it could be suspended withdrawal, or suspended deposit maybe due to platform upgrade or exchange maintenance, therefore the reason most times arbitrage hardly works, but when you see a good one and everything falls in place, then it's worth the risk. Another thing is, carrying out the arbitrage with good coins is very important, such that, if in the cause of things the price dumps, then owing to the team's efforts and hard work, it will pump back again later on, or you can still sell at a little loss depending on what you want.

[DamonWilliam]

A few years ago. when I was not yet so experienced in the cryptocurrency world, I sat on one exchange and on this exchange the price of coins was constantly much lower, with the Ethereum price of $ 300, it cost $ 250 there, then I could make enough money on this, but I thought in a completely different way, "It can't be so easy", but now I understand that I missed enough profit, this opportunity was about 3-4 months, then the rates stabilized with the growth of the exchange popularity.

What a fool I was ((