Does anyone knows Bitcoin Arbitrage?

[BTC786]

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

[1713913334]

1713913334

[1713913334]

1713913334

[1713913334]

1713913334

[sherbyspark]

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

Bitcoin Arbitrage is taking advantage of the price different between 2 exchanges. Say if exchange 1 has buy orders for 100$. And Exchange 2 has sell orders for 99$. Then you would buy from E2 and sell at E1. For every bitcoin you will get that 1$ extra, which is arbitrage.

For discussions regarding arbitrage found this thread : https://bitcointalk.org/index.php?topic=528691.0 .

[subSTRATA]

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

Bitcoin Arbitrage is taking advantage of the price different between 2 exchanges. Say if exchange 1 has buy orders for 100$. And Exchange 2 has sell orders for 99$. Then you would buy from E2 and sell at E1. For every bitcoin you will get that 1$ extra, which is arbitrage.

For discussions regarding arbitrage found this thread : https://bitcointalk.org/index.php?topic=528691.0 .

yup. you should also keep in mind that arbitrage in terms of anything; exchanges, bookies, etc, is only very profitable if a large amount of capital is used as the percent variance is very small. in the most ideal cases you would only be seeing 2-3% profit.

[NUFCrichard]

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

Bitcoin Arbitrage is taking advantage of the price different between 2 exchanges. Say if exchange 1 has buy orders for 100$. And Exchange 2 has sell orders for 99$. Then you would buy from E2 and sell at E1. For every bitcoin you will get that 1$ extra, which is arbitrage.

For discussions regarding arbitrage found this thread : https://bitcointalk.org/index.php?topic=528691.0 .

yup. you should also keep in mind that arbitrage in terms of anything; exchanges, bookies, etc, is only very profitable if a large amount of capital is used as the percent variance is very small. in the most ideal cases you would only be seeing 2-3% profit.

If it is 2-3% profitable, it is 2-3% profitable, the amount of capital used is irrelevant.
If people want to trade their 0.5BTC to make 0.0002BTC, that is still guaranteed profit, there is not need to have too much capital.

Often the amounts that can be traded at the ARB price are also very limited, so again, capital wouldn't help.

[subSTRATA]

If it is 2-3% profitable, it is 2-3% profitable, the amount of capital used is irrelevant.
If people want to trade their 0.5BTC to make 0.0002BTC, that is still guaranteed profit, there is not need to have too much capital.

Often the amounts that can be traded at the ARB price are also very limited, so again, capital wouldn't help.

youve got a point, profit is profit; i may have used poor wording here, when i said profit i meant something along the lines of a substantial portion of one's income. also I dont use exchanges very often if at all, so I was not aware the trading limits would restrict arbitrage so much

[pooya87]

does this work?
i mean you have to consider the fees too. which means you have to pay the fees twice, once where you buy and once where you sell.
is the difference between exchangers that high to cover the fee and give you profit?

besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?

[mayflor2]

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

The problem is, any major exchanges have arbitrage servers, so almost immediately when the price changes the servers sell or buy accordingly and they even out very quickly.   It is very hard to make a profit that way these days.

[notlist3d]

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

The problem is, any major exchanges have arbitrage servers, so almost immediately when the price changes the servers sell or buy accordingly and they even out very quickly.   It is very hard to make a profit that way these days.

Also it's worth saying be careful when someone want's BTC to share in profit's of arbitrage.  I know there are a few bots out there and it just is something that is far from a guaranteed profit.

Some do make profit from it and some don't.  I view trying to do a arbitrage as a form of gambling.

[Amph]

does this work?
i mean you have to consider the fees too. which means you have to pay the fees twice, once where you buy and once where you sell.
is the difference between exchangers that high to cover the fee and give you profit?

besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?

my answer is yes, it work, but you need a very good bot, on every exchange, that trade for you, if you do it manually, there are more losses whne moving from one exchange to another, with bot those losses are minimized

[notlist3d]

does this work?
i mean you have to consider the fees too. which means you have to pay the fees twice, once where you buy and once where you sell.
is the difference between exchangers that high to cover the fee and give you profit?

besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?

my answer is yes, it work, but you need a very good bot, on every exchange, that trade for you, if you do it manually, there are more less whne moving from one exchange to another, with bot those losses are minimized

And you make a good point about bots.  At this point most are made by bot's.  They are more accurate and quicker then human.   They are also only as good as the parameters behind them.

One thing to mention is multiple bots are running at same time from different people.  So all these bot's running together could it very hard with so many already in the space.   

[moko666]

Arbitrage trading is you buy at low price from one exchange and sell at high price on other exchange
its risky since you don't know if you will able to complete the trade fastly before price change, only professional traders do this

[jeannemadrigal2]

I agree that there appear to be bots trading these things.  If you don't make or buy a bot you chances of arbitrage are slim.  There is a bot that does arbitrage withing an exchange, when there is an inefficiency between 3 currencies, such as dollar, btc and ltc.  But we are talking about really slim margins here.  IMO you are better off using other methods of trading to make money.  And trading isn't easy so be careful!

[-Boon-]

Just a noob's thought and some advice...

Lets say that exchange A has a buy order for 99Euros and exchange B has Sell orders at 101Euros.
If someone buy from A and then makes it to sell at 101 on B, what would be better to do, having earned the 2 dollars profit?

1) Cash out from exchange B?
2) Exchange the fiat total amount for an altcoin and exchange back to btc?
3) Do nothing and wait for prices to drop below than the previous buy and do afull cycle again?
4) Something else?

[pooya87]

does this work?
i mean you have to consider the fees too. which means you have to pay the fees twice, once where you buy and once where you sell.
is the difference between exchangers that high to cover the fee and give you profit?

besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?

my answer is yes, it work, but you need a very good bot, on every exchange, that trade for you, if you do it manually, there are more losses whne moving from one exchange to another, with bot those losses are minimized

can you give me some links on bots that can do this?

and i read a bit more about Bitcoin Arbitrage, and i think my last question was wrong
besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?
you don't actually cash out, you do the trades and keep both bitcoin and fiat at all exchangers, right?

[Ivanech]

I agree that there appear to be bots trading these things.  If you don't make or buy a bot you chances of arbitrage are slim.  There is a bot that does arbitrage withing an exchange, when there is an inefficiency between 3 currencies, such as dollar, btc and ltc.  But we are talking about really slim margins here.  IMO you are better off using other methods of trading to make money.  And trading isn't easy so be careful!

I suppose there are not many bots, especially for altcoins markets. Just checked live cross-exchange table (http://www.bitcoinfo.ru/trading/ for example) and noticed many altcoin pairs with 5-10-20% arbitrage possibilities.

Some make such trading manually but no signs for the bot activity.

[Habeler876]

To be honest, as a trader, arbitrage isn't really worth the time or effort for me. But it can be done, and it's basically free money. In fact, I believe there is an open source arb bot on github that uses 4 or 5 exchanges to exploit arb opportunities.

[Amph]

does this work?
i mean you have to consider the fees too. which means you have to pay the fees twice, once where you buy and once where you sell.
is the difference between exchangers that high to cover the fee and give you profit?

besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?

my answer is yes, it work, but you need a very good bot, on every exchange, that trade for you, if you do it manually, there are more losses whne moving from one exchange to another, with bot those losses are minimized

can you give me some links on bots that can do this?

and i read a bit more about Bitcoin Arbitrage, and i think my last question was wrong
besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?
you don't actually cash out, you do the trades and keep both bitcoin and fiat at all exchangers, right?

yeah, you could use a platform like this, it is unfineshed http://bitcoinpricelab.com/, but with the right api, your bot can work with all the % variations on every exchange

[Bitdonator]

Its simple, if you see opportunity, you buy altcoin on one exchange at lower
price and sell on other exchange at higher price.

But is really hard to catch profitable arbitrage opportunity, because exchange fees

[temroa]

in short words its buying and selling

[arunka71]

Its simple, if you see opportunity, you buy altcoin on one exchange at lower
price and sell on other exchange at higher price.

But is really hard to catch profitable arbitrage opportunity, because exchange fees

Calculating the fees is not such a big problem. Problem is the time, that the btc transfer takes. So you'd need many coins on many exchanges to catch all the opportunities.