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Author Topic: I'm confused. Is that possible to trade by cryptocurrency arbitrage opportunity?  (Read 1049 times)
balabalabala (OP)
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November 13, 2016, 08:48:32 AM
 #1

I saw a site: fintecher.cc  which visualize arbitrage chance.
I wonder if there is chance coz the market movements and liquidity are too fast to follow.
yakdivine
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November 15, 2016, 11:47:27 AM
 #2

I saw a site: fintecher.cc  which visualize arbitrage chance.
I wonder if there is chance coz the market movements and liquidity are too fast to follow.
you have to understand the inherent risk in arbitrage trading, therefore these are my advice for:Managing risk doesn’t mean being afraid of losing money. The fear of loss can actually work against you and sabotage good trades. When trading it’s important to have a plan and set profit targets ahead of time. Before you pull the trigger on a trade you also want to assess how much you’re willing to lose if the market moves against you. These two elements combined are called risk to reward. Some traders use stop orders as a safety net to get out of a bad trade.
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November 15, 2016, 12:11:32 PM
 #3

I saw a site: fintecher.cc  which visualize arbitrage chance.
I wonder if there is chance coz the market movements and liquidity are too fast to follow.

You rarely have chances to make good money out of arbitrage in cryptos.. but on lower volumes we had some luck  Wink

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November 15, 2016, 01:18:35 PM
 #4

I have done this at a few site market that selling and buying bitcoin.But unfotunately is not really profitable.This is because don have a large amount of bitcoin.I lose with other competitor who have more large amount of margin.
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November 16, 2016, 11:37:01 AM
 #5

I wonder if there is chance coz the market movements and liquidity are too fast to follow.
Arbitrage trading is not for daily profits nor for huge profits, but definitely for sure shot instant profits.
You need not to spend long hours for technical analysis, just watching your two favorite exchanges is more than enough to book some easy profits.
GregH37
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November 16, 2016, 11:44:54 AM
 #6

I have done this at a few site market that selling and buying bitcoin.But unfotunately is not really profitable.This is because don have a large amount of bitcoin.I lose with other competitor who have more large amount of margin.
But I had some profitable experiences with my arbitrage. When CLAM coins were trading around 0.006 btc, I did find gaps in price levels across poloniex and yacuna exchanges. I got arbitrage trading opportunities weekly two or three time some profit levels around 0.001 to 0.003 btc. I believe for the time I did spent, these must be a good profits.
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November 16, 2016, 11:56:59 AM
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I have done this at a few site market that selling and buying bitcoin.But unfotunately is not really profitable.This is because don have a large amount of bitcoin.I lose with other competitor who have more large amount of margin.
But I had some profitable experiences with my arbitrage. When CLAM coins were trading around 0.006 btc, I did find gaps in price levels across poloniex and yacuna exchanges. I got arbitrage trading opportunities weekly two or three time some profit levels around 0.001 to 0.003 btc. I believe for the time I did spent, these must be a good profits.

that is the problem with this kind of arbitrage trading between exchanges using altcoins: the profit is too little.

and when it comes to smaller altcoins the situation gets worse since they have a bigger spread and nobody trades them. and on top of that the orderbooks are too thin which means you can only buy and sell small amounts sometimes even smaller than the minimum allowed trade size!

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November 16, 2016, 01:09:21 PM
 #8

the profit is too little.
You are right. Still, for a non-profession a trader without any technical analysis small profits also matters.

when it comes to smaller altcoins the situation gets worse since they have a bigger spread and nobody trades them.
The big advantage of arbitrage, you can confirm sellers and buyers before you initiate your trades. The chances of getting no bidder is very low as we are not taking big waiting, only confirmation delays usually altcoins have quicker confirmations. 

orderbooks are too thin which means you can only buy and sell small amounts sometimes even smaller than the minimum allowed trade size!
When there is no adequate buyers for your volume, you must avoid that trade.
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November 16, 2016, 06:11:02 PM
 #9

I saw a site: fintecher.cc  which visualize arbitrage chance.
I wonder if there is chance coz the market movements and liquidity are too fast to follow.
High bankroll is required to practice arbitrage trading and also there is lots of risk regarding price volatility between time period require for you to shift funds from one platform to another. You need to have good amount of both crypto and fiat in multiple platforms.

 
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November 17, 2016, 07:51:30 AM
 #10

Right now there is a very big arbitrage trading opportunity.

Indian markets are trading bitcoins around $870 price levels (possibly) due to their recent policies on their currency notes. Bitstamp trades ~$740 and bitfinex's ~$755. So, easy up to $130 profits possible within one to three hours of trading works given that trading one full bitcoins.
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November 17, 2016, 08:04:24 AM
 #11

I saw a site: fintecher.cc  which visualize arbitrage chance.
I wonder if there is chance coz the market movements and liquidity are too fast to follow.

if you can find opportunities on your own then go for it, and never look for them in random online sites which can be misleading, malicious and dangerous to open since they can infect your system with some kind of malicious software to steal your bitcoins.

and those opportunities you find , you should consider prices, fees which are the two most important factors and the size of the orderbook where you want to buy and sell the coins to because you may end up bag holding and this is the most possible scenario in altcoins.

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November 17, 2016, 03:12:31 PM
 #12

Right now there is a very big arbitrage trading opportunity.

Indian markets are trading bitcoins around $870 price levels (possibly) due to their recent policies on their currency notes. Bitstamp trades ~$740 and bitfinex's ~$755. So, easy up to $130 profits possible within one to three hours of trading works given that trading one full bitcoins.

That is correct but before doing arbitrage, calculate first the volume you want to buy and transfer to another exchanges. Subtract some fes, transaction  and withdrawal fees if you can still profit. Good luck.

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November 17, 2016, 03:31:33 PM
 #13

Right now there is a very big arbitrage trading opportunity.

Indian markets are trading bitcoins around $870 price levels (possibly) due to their recent policies on their currency notes. Bitstamp trades ~$740 and bitfinex's ~$755. So, easy up to $130 profits possible within one to three hours of trading works given that trading one full bitcoins.

can you give me some reference for some of the Indian exchange services because apart from local bitcoins i can not find any other place and it is normal for localbitcoins to have such outrageous prices

also are these exchanges you saw accepting USD as deposit or Indian local currency only? if it is the later that is not called arbitrage opportunity.

There is a FOMO brewing...
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November 17, 2016, 03:38:03 PM
 #14

You need to have significant amount of bitcoin and fiat in multiple trading platform and also a bot to automatically buy sell bitcoin over cross trading platform and transfer bitcoin between them automatically without taking much time to grab arbitrage opportunity. For all this you need to be elite trader as well as must hold heavy amount of bitcoin and cash.
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