Bitcoin arbitrage

[franky1]

the trick is not
to sell all coin and cry because the time it takes to wire transfer fiat or get confirms when withdrawing the opposing coin to move to the exchange.

the trick is
to split funds up before you start and have funds already in both exchanges.

EG -before you begin-

say you had $12,000 and wanted to concentrate on 2 exchanges and concentrate on the fiat-bitcoin market
using the lowest price exchange get half of it as bitcoin.
($6000 and 10btc)
now put $3000 and 5btc in exchange A and $300 and 0.5btc in exchange B

and now you can begin arbitraging.
if A rises sell some bitcoin in A and (hopefully your already logged into B) buy some bitcoin in B (because the funds are already there)
lets say the bitcoin price was A: $600 and B: rose $615 (2% after fees)
EG before
A: $3000 5btc
B: $3000 5btc

EG after
A: $3612 4btc
B: $2385 6.02btc

now you may notice that my example did not sell all the bitcoins in A nor did it buy all the bitcoins in B. there is a reason.

trick two:
say you did sell all coins in A you then have to wire transfer the fiat to B. this can take a week and you could miss out on opportunities better than 2% after fees during that week. or if you wait for B to rise higher than A to 'buy back' you could be waiting a long time and miss better opportunities where A keeps rising higher.

so by not emptying a reserve your ready to take any opportunity that arises. either A going up again or B going up instead

here is some maths.
by having the funds split up as the 4 reserves. if you wanted 5% combined profit requires a 20% difference in prices to utilise emptying 1 reserve.
dont bet on it/risk waiting for a one time hit.
if you want to wire transfer which can take a week, you could hope that you get 4 opportunities a month and only need to find 4 opportunities of
5% to empty a reserve, transfer, empty a reserve, transfer, empty a reserve, transfer, empty a reserve, transfer, to get the combined 5% profit.
dont bet on it/risk waiting for 4 hits.

instead stick to lower % differences which will occur more often (2% differences happen way more often than ten times a 20% would happen)
meaning by playing with 2% you have better chance of flipping the coins over and over and over without needing wire transfer or wait for a one time large hit.

this is what smart people dont do.
they dont put all their eggs into one basket and sell it all for 5% single hit - due to delays of wire transfer and low chance of a 5% difference
they dont spread their eggs into 4 baskets and sell a whole basket for 20% single hit - due to delays of wire transfer and near zero chance of a 20% difference
this is what smart people do.
they do spread their eggs into 4 baskets and use part of basket for 1-2% multiple hits - knowing 1 hit an hour = 600 opportunities a month.

also using part baskets means smaller amounts. which fill faster as they are small enough to get eaten quickly without appearing as resistance or a whale order.

you will find that having 20btc and waiting for one 5% difference to sell all coins and move the fiat to hope to buy at 5% less. will leave you crying
not just waiting for the 5%, but also that 20btc appears as a resistance delaying the whole 20btc from being gobbled up, and then waiting to wire transfer to buy back the bitcoins elsewhere wont get you the 5% profit.

you will find that having 5btc (4 splits) and waiting for one 20% difference to sell all 5 coins will leave you crying waiting forever for that one chance
you will find having 5btc (4 splits) and waiting for multiple 1-2% difference to sell 1btc at a time will happen often. you are happy and having fun

say you went with 1% using btc at a time. thats 100 hits = just 3 trades a day to get your 5% combined total, easy to do

making 3 trades a day for 1% differences is more achievable then waiting weeks for the odd chance of 5% and waiting longer for the rare chance of 20%

the good thing is because you have reserves that 1% is a minimum. if a lucky day comes along and you see more then a 1% difference.. ofcourse take it.. but just dont waste the whole basket unless its a very high % to keep you on tract of 5% combined once you factor in the delays of replenishing baskets (stupidly) by wasting it all on one hit.

[rinhunter]

Arbitrage is generally do in big amount, and calculated. Because fee in each exchanger that's different. If you don't consider this maybe you can't get profit from this arbitrage. But if in small amounts you still want to try you can use your own way, it never hurt to do.

[mindrust]

You need to be able to cash out without a fee (or near free) to be able to make successful arbitrages. If you can't cash out and re-enter, there is no point.



1) you buy cheap at exchange A >>>>>> 2) you sell high at exchange B >>>>>> 3) you cash out your money on Exc B >>>>>>> 4) you re-enter exch. A


Usually it is the third step that you get fucked.

[coynedterm]

Has anybody tried bitcoin arbitrage between exchanges?
I see many opportunities EUR, USD, CNY to BTC. I already tried it with small money and it worked.

Is it possible to make 5% profit monthly?

honesty i had not tried ever this . but i will say that give me site link i will try to make some profit .
then aftrr trying i will take every information about this site exchange by creating new topic in this forum .

[Mzie]

you have to be carefull with trading fees ,otherwise your profits will be very low

[michellee]

the only problem that maybe we have face it about time transferred from one wallet into another wallet in each market exchange because sometime one transaction can do fast complete confirming but the other time, the transaction getting slow and we can not do anything except waiting the complete confirm of the transaction.

[yayayo]

I have tried it twice and succeeded twice using upholdco's platform to convert my BTC to USD when I feel the price is falling, after it has fallen a lot and I see signs of it rising a bit, I convert my USD back to BTC. this worked good twice, but I wasn't willing to take the risk again cause it's again a gamble based on the price of the BTC, considering these days BTC price is pretty stable and would require a large amount to even benefit from small arbitrages.

What you are doing is not arbitrage, it's speculation-based trading. Arbitrage means exploiting differences in pricing at different marketplaces which occur at the same time. In contrast to speculation-based trading this technique is theoretically without risk. Practically however it is still risky if you can't execute both orders at the same time and the price on one exchange is changing to your disadvantage after you already have executed your first order.

I would not recommend trying Bitcoin arbitrage, because direct arbitrage is impossible due to transaction delays (both Bitcoin and fiat transfer). Even if you permanently keep fiat and Bitcoin at various exchanges to take advantage of arbitrage via distributed balancing of fiat/BTC holdings it's still difficult, because there tend to be systematic differences with some exchanges (BTC-e) being almost always cheaper than others (Bitstamp) in terms of BTC purchase price. In addition, Bitcoin generally tends to appreciate in fiat valuation, so it might be more lucrative to constantly buy Bitcoin than to try arbitrage if you use Bitcoin as your reference of value.

ya.ya.yo!

[Fredomago]

the only problem that maybe we have face it about time transferred from one wallet into another wallet in each market exchange because sometime one transaction can do fast complete confirming but the other time, the transaction getting slow and we can not do anything except waiting the complete confirm of the transaction.

correct doing arbitrage is such a great way to earn especially if you have huge amount of starting capital there's some price diff between exchanges the only matters is the transaction process it takes some time before everything will be settle it can only be a good point if when we bought it when price still low then transfer it when the price start to go up more.

[stadus]

Has anybody tried bitcoin arbitrage between exchanges?
I see many opportunities EUR, USD, CNY to BTC. I already tried it with small money and it worked.

Is it possible to make 5% profit monthly?

I honestly have not tried this one, but I know that arbitrage is something that you do not risk any single penny but it does require you to be active in the price changes, actually I am more interested in sports arbitrage than what you have mentioned.

[888sound]

It is possible make arbitrage and earn 5% per month. Based on my experience from sports betting I switched to Bitcoin arbitrages 2 years ago.

Here is important to understand that true "arbitrage" does not exist. There is always some risk involved. Even if you try to take advantage of arbitrage via distributed balancing of fiat/BTC there is some risk involved.

But when you have good system you will make a profit!!!

[~Bitcoin~]

the only problem that maybe we have face it about time transferred from one wallet into another wallet in each market exchange because sometime one transaction can do fast complete confirming but the other time, the transaction getting slow and we can not do anything except waiting the complete confirm of the transaction.

Actually the one who do arbitrage trading have to store both fiats and bitcoins in each of the trading platform they use to trade in so that there will be no delay between deposit and withdraw however i find arbitrage trading less effective due to different fee structures each exchangers have.

[gandame]

Bitcoin arbitrage i do not try it but in altcoins i experienced it many times and it works to have get big profit in an hour but you need move fast because its not easy to use arbitrage. So i will try bitcoin if the price rise. So that i experience to atbitrage using bitcoin.

[Velkro]

is currently very difficult to do arbitrage. exchange price difference is not too far away. so that the benefits will only be discharged at a cost of inter-exchange shipping fee. it would not be profitable.

It is just risky. Whole arbitrage is risky business, you can earn smth but im not sure risk is worth reward. Anyway, with price spread bigger and bigger more and more people playing this game.
Self adjusting system

[bitbunnny]

Arbitrage trading could be profitable but the key for success is significant difference in prices among different exchangers, low fees and you have to act realy quick. But arbitrage is difficult these days and the profits are not that high.

[rapazev]

Has anybody tried bitcoin arbitrage between exchanges?
I see many opportunities EUR, USD, CNY to BTC. I already tried it with small money and it worked.

Is it possible to make 5% profit monthly?

arbitrage happens 24/7, there are bots running to profit simple by that.
still not that good right now... it's better during pumps and dump and right now the price is pretty stable, no rally's for a long time.

[clickerz]

arbitrage happens 24/7, there are bots running to profit simple by that.
still not that good right now... it's better during pumps and dump and right now the price is pretty stable, no rally's for a long time.

Problem during pump and dumps is  the time it takes during the transfer from exchanges to another. Delay in confirmations causes losses sometimes. I like the first idea that you have a standby funds and coin on its exchanges.

[crazyivan]

I d say not possible. 2% maybe, 5%, I do not think so. There s much more analytical tools now as compared to early crypto days and traders and exchanges adjust much faster now then before. Arbitrage works best when they re wild swings in BTC price. For the last 2 years price adjusts quite modestly, no more $200 daily price changes.

[HI-TEC99]

is currently very difficult to do arbitrage. exchange price difference is not too far away. so that the benefits will only be discharged at a cost of inter-exchange shipping fee. it would not be profitable.

It is just risky. Whole arbitrage is risky business, you can earn smth but im not sure risk is worth reward. Anyway, with price spread bigger and bigger more and more people playing this game.
Self adjusting system

There are traders using bots to arbitrage, but they risk losing money if an exchange (like Bitfinex) gets hacked. They have to use multiple exchanges to arbitrage, and the more exchanges they use the more risk there is that an exchange they are using gets hacked. To make money from arbitrage a trader needs to hold a lot of money on each exchange, and if it gets hacked he could lose it all.

[Xester]

Bitcoin arbitrage i do not try it but in altcoins i experienced it many times and it works to have get big profit in an hour but you need move fast because its not easy to use arbitrage. So i will try bitcoin if the price rise. So that i experience to atbitrage using bitcoin.

Bitcoin should not be done using arbitrage you will just lost many profit as fees are also skyrocket. Bitcoin should be used in long term trading and not in day trading or arbitrage. Bitcoin is very profitable but in my experience bitcoin arbitrage exchanging bitcoin to dollars and dollars to bitcoin daily is not that profitable and very risky. It must be done on a longterm basis and the range between the buying and selling has a wide gap in order for you to earn.

[mace15]

In my opinion I do not recommend bitcoin arbitrage because
it takes time to transfer and it has a delayed in other exchange
to receive your bitcoin. Bitcoin is volatile and you may have a
big loses if you do so. Also it has a fee and really risky thing.