ARBITRAGE WITH CHINA EXCHANGES

[calamar182]

Hello babies

I ve been looking the way to arb with china, the difference normally is 5% between (BTCE cheap exch) and (BTC CHINA high exch)

- I buy on cheap exchange at 230 and the first problem would be the fees. The comisions to deposit and buying btc will eat all the profit?

- Then the problem would be sell the BTC in china, I see that china exchanges has BTC CNY and BTC USD,

If you sell bitcoins in BTC USD there's no arbitrage oportunity (230 same like cheap exchange)
If you sell bitcoins in BTC CNY it's an oportunity because if you convert the CNY to USD you get 240. I don't know why the USD bitcoin price is different in BTCCNY and in BTCUSD

- Then the problem is withdraw CNY, that's not posible because you need chinese account, and if you do it by bank transfer you will have a 15$ fee, to expensive.

Someone tried the arbitrage with china exchanges?

That's the only thing we need to know, real experiences or someone that know it.

[1715146216]

1715146216

[poeEDgar]

Arbing Chinese exchanges is very difficult (particularly from BTCE) -- hence why there is a persistent spread between the exchanges. Removing large amounts of CNY into USD and outside of Chinese banks is difficult. One way to take advantage of this spread is to analyze the range of (BTCCNY/USDCNY)-BTCUSD. When at range lows ($4-6 under spread), buy BTCCNY, transfer out and sell for USD. When at range highs ($4-6 above spread), buy BTCUSD, transfer out and sell for CNY.

But when your accounts become heavily outside of equilibrium (i.e. you cannot buy either BTCCNY or BTCUSD), you are stuck until the spread reverts to the mean and you can transfer out without losing profits.

[Mickeyb]

Why would you do arbitrage with btc-e and Chinese exchanges when you have pretty much all the time the same spread between btc-e and Bitstamp for example. And you are dealing only in BTC and USD.

Anyways there is a reason why btc-e is always a bit lower. To get the money in and out of the btc-e is more expensive then to Bitstamp for example, that's why your profits from doing arbitrage with btc-e will get eaten up.

[poeEDgar]

Why would you do arbitrage with btc-e and Chinese exchanges

Because there is a much larger spread at times. Consider this: at the extremes in August, OKcoin was $6+ below Bitfinex. Right now, Okcoin is $4 above Bitfinex.

Then consider the current $2-3 spread between BTC-E and Bitfinex (which is, at times, larger). It's nothing to sneeze at. The trouble is that most do not have the means to take advantage in the traditional sense of arbitrage.

[Mickeyb]

Why would you do arbitrage with btc-e and Chinese exchanges

Because there is a much larger spread at times. Consider this: at the extremes in August, OKcoin was $6+ below Bitfinex. Right now, Okcoin is $4 above Bitfinex.

Then consider the current $2-3 spread between BTC-E and Bitfinex (which is, at times, larger). It's nothing to sneeze at. The trouble is that most do not have the means to take advantage in the traditional sense of arbitrage.

It's hard mate. There are too many barriers to cross with getting money in and out of the exchanges. If you consider exchange fees and cost of sending money to and from exchanges, these few dollars of possible profit melt down fairly quickly.

Heck, I don't even know how are they funding their accounts in China at the moment. Do bank accounts even have right to be connected to the exchanges by current Chinese laws?

[maokoto]

I once had some bits in a chinese exchange (cannot remember if it was BTC-E). The fees to withdraw were high, plus the exchange got hacked and I lost a bunch of satoshis.

Certainly it is somewhat risky.

[calamar182]

Arbing Chinese exchanges is very difficult (particularly from BTCE) -- hence why there is a persistent spread between the exchanges. Removing large amounts of CNY into USD and outside of Chinese banks is difficult. One way to take advantage of this spread is to analyze the range of (BTCCNY/USDCNY)-BTCUSD. When at range lows ($4-6 under spread), buy BTCCNY, transfer out and sell for USD. When at range highs ($4-6 above spread), buy BTCUSD, transfer out and sell for CNY.

But when your accounts become heavily outside of equilibrium (i.e. you cannot buy either BTCCNY or BTCUSD), you are stuck until the spread reverts to the mean and you can transfer out without losing profits.

Sorry Jesus, Im trying to understand what are you explaining but it's hard.

1- How can I analyze the range? theorically is BTCCNY/BTCUSD, no?

2- When you talk about range talking in USD means that BTCCNY is at 240 USD and BTCUSD is at 230 USD?, then buy BTCUSD and transfer where? you mean withdraw the USD to CNY BANK account and viceversa???

Can I do the same with BTCEUR?

Please can you explain that stuff a little bit more detailed? Thanks Jesus!

[poeEDgar]

Arbing Chinese exchanges is very difficult (particularly from BTCE) -- hence why there is a persistent spread between the exchanges. Removing large amounts of CNY into USD and outside of Chinese banks is difficult. One way to take advantage of this spread is to analyze the range of (BTCCNY/USDCNY)-BTCUSD. When at range lows ($4-6 under spread), buy BTCCNY, transfer out and sell for USD. When at range highs ($4-6 above spread), buy BTCUSD, transfer out and sell for CNY.

But when your accounts become heavily outside of equilibrium (i.e. you cannot buy either BTCCNY or BTCUSD), you are stuck until the spread reverts to the mean and you can transfer out without losing profits.

Sorry Jesus, Im trying to understand what are you explaining but it's hard.

1- How can I analyze the range? theorically is BTCCNY/BTCUSD, no?

2- When you talk about range talking in USD means that BTCCNY is at 240 USD and BTCUSD is at 230 USD?, then buy BTCUSD and transfer where? you mean withdraw the USD to CNY BANK account and viceversa???

Can I do the same with BTCEUR?

Please can you explain that stuff a little bit more detailed? Thanks Jesus!

Jesus?

I think this can best be explained by a chart. On the top section, you can see the spread between OKcoin.cn and Bitstamp. On the below section, you can see the spread between Bitstamp and BTCE.

So to analyze the China-Stamp spread, we convert OKcoin to USD value, then subtract Stamp -- OKCOIN:BTCCNY/USDCNY-BITSTAMP:BTCUSD.

To analyze the Stamp-BTCE spread, we can use BITSTAMP:BTCUSD-BTCE:BTCUSD.

This chart shows ~ 3-4 weeks of price action.



So if we want to exploit these spreads, we need funded accounts on all three exchanges. When a sizable spread develops between two of the exchanges, buy or sell as indicated. When the spread closes again, reverse that buy or sell to repair equilibrium to your accounts (otherwise, eventually, you will end up with all your money on one exchange, with no ability to arb).

In other words, this is not real arbitrage. There is no movement of fiat (USD, CNY). What you are doing is taking advantage of the extremes of spread among the exchanges, by buying when one exchange is "cheap", transferring BTC to an "expensive" exchange and selling. When the spread leaves that extreme and returns to normal, you can buy back on that second exchange and transfer your funds back. Rinse and repeat. It only works if you can keep your accounts somewhat balanced over time.

Does that help?

[calamar182]

Understood!

Ty Jesus

[Pankaj Garg]

HI... iam based in south korea.. there is big difference in BTC price here between china and Korea   or  sometimes with bitstamp and korbit (korean exchange).

I am available for Arbitrage oppurtnity. anyone interested..

pgargbitcoin@gmail.com

[Idrisu]

HI... iam based in south korea.. there is big difference in BTC price here between china and Korea   or  sometimes with bitstamp and korbit (korean exchange).

I am available for Arbitrage oppurtnity. anyone interested..

pgargbitcoin@gmail.com

arbitrage trading is good if you see a wide price difference during pump or dump time. You don't just trade because there is price variations of two to four dollars. Chinese exchangers price is not favourable for day traders as they price difference are very minimal. But others countries like Korean exchangers I think great opportunity exists.

[naidray]

I remember, some people are sharing about their experience on arbitrage trading opportunity when Indian markets were trading some $200 to $300 ahead. One of my friend also had tried with it. As per his experiences, practically arbitrage was not that simple because moving continuously fiat out of Indian market by selling bitcoin for buying bitcoin from international market is not that much easier for him.

The time taken for processing withdrawal from Indian exchange and time taken to recognize a deposit in international market are not that much faster to support catching good price levels. He would have been into profits if he had some big amounts of fiats and bitcoin in both the exchanges.

I like to suggest you to check for feasibilities. Try with small amounts like go for detailed study before trying with big amounts of bitcoins.

[Stedsm]

I remember, some people are sharing about their experience on arbitrage trading opportunity when Indian markets were trading some $200 to $300 ahead. One of my friend also had tried with it. As per his experiences, practically arbitrage was not that simple because moving continuously fiat out of Indian market by selling bitcoin for buying bitcoin from international market is not that much easier for him.

The time taken for processing withdrawal from Indian exchange and time taken to recognize a deposit in international market are not that much faster to support catching good price levels. He would have been into profits if he had some big amounts of fiats and bitcoin in both the exchanges.

I like to suggest you to check for feasibilities. Try with small amounts like go for detailed study before trying with big amounts of bitcoins.

It is just not limited to moving fiat from here to there and getting BTC back, but moving it smartly was the main thing because coming in the eyes of government would let that guy end up in Jail as demonetization took place in India during those days and people were moving their black money in Bitcoins to save it from taxes. Seriously, arbitrage opportunities in exchanges are worthless unless some huge difference is there.

[raven7886]

I have a friend who had bank account in china (hong kong I guess) and he had a bank in new york as well. That boy made some BANK, like really huge amounts, it got lower and lower at time and he is still doing that but that method was making such a huge amount for him.

He was arbitraging the coin out of those places. He made close to 10-15 btc a day once, now its more like 0.1-0.3 tough. I guess the numbers got closer with time.

[ETCethereum]

I think this now china exchanger is still problem about withdraw
if withdraw easy china people can arbitrage to bitfinex, bitfinex from hongkong, and support local bank in china land, so is very easy if in china exchanger normal withdraw, arbitrage to bitfinex

if normal withdraw another china land still problem about deposit and withdraw us yuan

[richmcrich]

I have a friend who had bank account in china (hong kong I guess) and he had a bank in new york as well. That boy made some BANK, like really huge amounts, it got lower and lower at time and he is still doing that but that method was making such a huge amount for him.
He was arbitraging the coin out of those places. He made close to 10-15 btc a day once, now its more like 0.1-0.3 tough. I guess the numbers got closer with time.

No wonder, arbitrage possibilities are just time based. Because markets will get stabilized across countries/exchanges over time. That is the reason if we are quick enough to pick an arbitrate, probably we may have massive profits in quick time, but that kind of opportunities will be damn rare like once a year or two.

[RealPhotoshoper]

Does anyone knows is it possible to do arbitrage trading between Huobi and Poloniex? I read here that Huobi has the highest liquidity, but the text also says it's faking it. I'm not sure should I go for it, because it seems profitable.

Seems like you need some documents to be able to make a full access.
I mean to be able to make withdrawal you need chinese ID card , i know foreign trader can register there too but since there's some regulation about how they limiting foreign trader to prevent money laundering . The price between chinese exchanges and most exchange is really lured people to make arbitrage trading but it was not that easy.

[seven.71]

arbitrage to china market is very risky now, Withdraw can not do this for a while,
I still have some BTC there and that is very difficult is the requirement for verification of data

I suggest not to arbitrage in the market CHINA

[Sled]

If you arbitrage with china exchanges, for sure you will face a lot of volatility to the different prices because we know that chinese people got a lot of money and they are good in business so you can't deal with them even with bitcoin. It is very hard to get a profit because almost of the exchangers of bitcoin are almost the same price so it is better to just stay in one exchanger and trade.

[shinratensei_]

arbitrage to china market is very risky now, Withdraw can not do this for a while,
I still have some BTC there and that is very difficult is the requirement for verification of data

I suggest not to arbitrage in the market CHINA

That's the point, In this time the PBOC decision to restrict the Chinese exchange site will decrease a chance to do arbitrage on the Chinese exchange becomes zero percent. Everyone should provide his ID and Webcam verification.

If you arbitrage with china exchanges, for sure you will face a lot of volatility to the different prices because we know that chinese people got a lot of money and they are good in business so you can't deal with them even with bitcoin. It is very hard to get a profit because almost of the exchangers of bitcoin are almost the same price so it is better to just stay in one exchanger and trade.

It's not about the volatility, but the regulation by the PBOC has prohibited the exchange site.
As you can see the further delay by the People Bank Of China. Do you not consider it as an evidence?