How to earn at arbitrage

[Nasty23]

Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.

Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?

I will be grateful for the answers.

Arbitrage is just taking advantage of the difference in prices among different exchanges, that is all the issue is that arbitrage needs a accounts in all the important exchanges, you need the be verified to move a lot of money, you need a lot of money, and you need to act fast, arbitrage opportunities only last for a few minutes and as such you will need to be in front of the screen 24/7 to make any profit.

And you need to consider the percentage of commission that the exchange takes for its services. I tried to do this with one coin, but I did not succeed. I lost money

Yes before doing arbitrage you must check all the requirements first of the exchanger so that you know what will happen if you send some coin to the exchanger. Arbitrage is a risky but profitable method in trading in this way we need to be fast or else you will missed the profit or you will be loss.

[1714684504]

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[1714684504]

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[tesspay]

A very good discussion on this topic ensued from a very general question.  One responder got the most important part of the formula - i.e. that you need equal values on each exchange so that you can go long/short simultaneously.  However, you still need a way to "return" funds to the starting point in order to repeat - this is typically done at a loss, which obviously needs to be less than your gain.  Another important consideration is that you will need to hold a certain value of crypto currencies at all times - your investment in those holdings will be subject to market price fluctuations - this is not necessarily bad, but it is a risk you need to be aware of.  In general though I would not recommend doing this without a well thought-through strategy and the ability to take a risk on a portion of your investment.  Lastly, be aware that the exchanges are not as secure as banks.  BTCE is a recent example of this peril.

[Simss]

Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.

Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?

I will be grateful for the answers.

actually doing arbitration also has advantages and disadvantages, the advantage is we can choose a market that has a higher price freely, and also the disadvantage is that if we do arbitration we need a lot of time to wait for confirmation of the transfer of tokens we have, it can make we lose money if the price wastes before our tokens are confirmed.

[Cryptotable - index]

This solution is good enough except on thing - you should have much money If you want to have good profit you should operate with big funds. But you can't have big funds on every exchange and on each crypto currency. And you can lose when you will withdraw all funds at some time. It's risky.

Well yes, you do need to have sufficient funds available, arbitrage is more of a professional strategy than one for beginners. That doesn't make it impossible to do. As for losing when you come to withdraw, that depends whether you got the strategy right in the first place. You need to factor in the trading fees and transactions fees before deciding that there is enough of a price difference to make it worthwhile. If you do all correctly it is one of the least risky trading strategies there is as you are short and long the position simultaneously and therefore perfectly hedged. This means that movements in the overall market will not affect you. As the price comes back together, your profit in one account will outweigh the loss in the other every time. The only risk is in execution error.

Yes, it is really difficult to understand all info about trading wright now, but thank you for this advices. I appreciate it.

[SolidBit]

Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.

Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?

I will be grateful for the answers.

actually doing arbitration also has advantages and disadvantages, the advantage is we can choose a market that has a higher price freely, and also the disadvantage is that if we do arbitration we need a lot of time to wait for confirmation of the transfer of tokens we have, it can make we lose money if the price wastes before our tokens are confirmed.

This case was discussed. There're hint to keep same balance on all exchanges. So, you may trade instantly without actual transfer. Transfer can be made later without time losing.

[CoinCidental]

This case was discussed. There're hint to keep same balance on all exchanges. So, you may trade instantly without actual transfer. Transfer can be made later without time losing.

That's solid advice was was exactly the way I was thinking of doing it, if you plan to arbitrage.

[suncokreten]

The definition of arbitrage is simultaneously trading the same asset at two or more different exchanges. Before starting an arbitrage you need to make sure you have the asset you are trading on both exchanges + a stack of ETH or BTC on both exchanges.

Perfect example:

1. KNC is trading on binance at 0.2, and also trading on Liqui at 0.1 per KNC
2. Sell 1000 KNC on Binance @0.2 for 200
3. Buy 1000 KNC on Liqui @0.1 for 100 ---> You end up with the same ammount of KNC and a PROFIT of 100 (- trading fees)

The difference will never be this big as this is a perfect example, but whenever the profit is higher than fees you pay to make these transactions, you're good to go.

[bohr]

Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.

Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?

I will be grateful for the answers.

Arbitrage is just taking advantage of the difference in prices among different exchanges, that is all the issue is that arbitrage needs a accounts in all the important exchanges, you need the be verified to move a lot of money, you need a lot of money, and you need to act fast, arbitrage opportunities only last for a few minutes and as such you will need to be in front of the screen 24/7 to make any profit.

And you need to consider the percentage of commission that the exchange takes for its services. I tried to do this with one coin, but I did not succeed. I lost money

True, I forgot that factor which is one of the most important ones, besides most arbitrage opportunities leave a very small margin of utility, this is why you will need a huge bankroll to make this work, and I must add that arbitrage in forex is done mostly by bots that run all the time looking for opportunities like those, so I will not be surprised if the same is already happening in bitcoin.

[bitbunnny]

Arbitrage trading could be very profitable but also very risky and I mean that these days atbitrage trading is much harder to performe than before because diffrences in price on exchanger are not that big and you have to put a lot of time and effort but the result might not be that good as you expect.

[bohr]

A very good discussion on this topic ensued from a very general question.  One responder got the most important part of the formula - i.e. that you need equal values on each exchange so that you can go long/short simultaneously.  However, you still need a way to "return" funds to the starting point in order to repeat - this is typically done at a loss, which obviously needs to be less than your gain.  Another important consideration is that you will need to hold a certain value of crypto currencies at all times - your investment in those holdings will be subject to market price fluctuations - this is not necessarily bad, but it is a risk you need to be aware of.  In general though I would not recommend doing this without a well thought-through strategy and the ability to take a risk on a portion of your investment.  Lastly, be aware that the exchanges are not as secure as banks.  BTCE is a recent example of this peril.

This is probably where the strategy begins to fail, the costs of transactions can eat most of your earnings so you need a very big bankroll and that is going to bring attention to yourself and what you are doing, besides if an exchange decides to exit scam you then you are out of luck and then that will mean that you are never going to become profitable with this method.

[alva5763]

Two main problems I see are
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.

[nicster551]

Two main problems I see are
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.

Yes these are the common problems of the trader when they are deciding to arbitrage. Arbitrage is the very risky move in the market on were you can loss anytime that's why it is better to study first if we want to enter arbitrage.

[soham]

Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.

Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?

I will be grateful for the answers.

Arbitrage is an extremely profitable trading method but it is not suitable for bitcoins unless and until you have a huge investment and divided that fund in to many exchanges. I prefer ETH for my arbitraging activities. ETH transactions are usually very fast and can cope up with my expectations. The main issue you will face in arbitraging is the transaction speed between wallets. Since bitcoin transactions are not fast and takes at least 30 minutes to confirm. It makes bitcoin not suitable for arbitraging. So I mainly use ETH/USD pair for arbitraging. The earning potential is huge if your timing is right.

[bitcub]

Some are using Bots to make automatic arbitrage between exchanges. You also need a fast internet connection. You cant earn a huge profit from small amounts. You also need to consider the BTC transfer fee between btc wallets.

[Granxis]

Arbitrage is a very difficult method, because you have to compete with time, you have to make a right decision too quickly. Each stock market can not transfer funds quickly.

[Gotomoon]

Arbitrage is a very difficult method, because you have to compete with time, you have to make a right decision too quickly. Each stock market can not transfer funds quickly.

Arbitrage is profitable also and quite difficult at first. It is profitable in terms once you transfer funds/token it is must a quick transferable so you can have the time to sell it at the high price. The disdavantage is too slow to confirm the transaction when you transfer the funds.

[entrepmind23]

Two main problems I see are
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.

The time taken will not be a problem if you already have a balance of both currency in both exchanges. You need to take care of transfer when the trade is done in both exchanges. If you are doing arbitrage like buying from one exchange and then sell to another because you did not buy that coin in advance then there is a possibility that you will lose if price is already down when the coin is received in another exchange. The best way is to have equal balances in both exchanges and then buy and sell simultaneously. You should also take into account the fees involved in trading and transferring and you can also profit from arbitrage if you have a bigger capital because if you have the minimum amount then your profit would just be eaten up by fees.

[kidsuzudn]

Bitcoin arbitrage is the buying of bitcoins on an exchange where the price is very low and selling it at an exchange where the price is relatively higher. The prices of Bitcoin vary on various exchanges, due to the fact that the markets are not directly linked, and the trading volume, on many exchanges, is low enough that the price does not adjust to the average right away.

[traderethereum]

i will say that it is difficult to earn profit at arbitrage because we need to concern about the time when the transaction was made. not all coins have fast landing at the other wallet and we need to estimate how long the coin will arrived. in my past, i've many experience from arbitrage and i can make some good profit although the risk is when the price is suddenly gets down without mercy.

but what i really need to mention here is sometimes the other wallet get disable to prevent arbitrage so we can not do arbitrage especially if the price is going to go up high.

[sexcoyote]

Arbitrage is very hard for big exchanges to big exchange but if you have local exchange you can earn money by arbitrage.