How to earn at arbitrage

[Zadicar]

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.

you have to have an account at every stock exchange site to make an arbitrage, it would be better if these accounts are confirmed, there must be some money-coin in each account. you have to move quickly when it is possible to arbitrage.

Arbitrage is not for everyone guys. It requires a huge amount of capital. It's not for standard people like us. You need to have a legit account in several exchanges and you need to make them in the highes class so that you don't face withdraw problems and your limit would be high.

Yes it is for the risky traders only who are wanting to make profit because there are many pros and cons if you do arbitrage. You need more practice and money that you can lose after transferring to another exchanges.

If you do make arbitrage trading on altcoins then its possible but on bitcoin then it would really be hard and not totally efficient. Arbitrage trading can really make some easy money if you done it well but there are things to be considered first before you do such thing. This thing do have risk on losing money instead of earning and one of the reasons would be the fee and sudden fluctuation on prices between exchanges thats why precise timings would really be crucial.

[1715000981]

1715000981

[josh75]

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.

how do you find the best arbitrage ?
so you mean have 10 ETH buy ripple with 10 eth, send ripple to the other exchange, sale ripple for ETH and get 11 eth ?
i am searching for great website alert or twitter alert on arbitrage

[PinkCrypto]

I did make some money on arbitrage, but it is coming with significant risks. To mitigate the risk, I found the cheapest token out there, bought it at 0.00000001 BTC, brought it to the other exchange, and sold it for ETH, than brought ETH back to BTC... 6 days and I made my money x4 times... But it was a rare opportunity I found, and also in the market with less than 50 trades across 4 different exchanges, so you can imagine...  Not something I would do daily.

[josh75]

I did make some money on arbitrage, but it is coming with significant risks. To mitigate the risk, I found the cheapest token out there, bought it at 0.00000001 BTC, brought it to the other exchange, and sold it for ETH, than brought ETH back to BTC... 6 days and I made my money x4 times... But it was a rare opportunity I found, and also in the market with less than 50 trades across 4 different exchanges, so you can imagine...  Not something I would do daily.

how did you find the arbitrage opportunity ? is there a website ?

what are the 4 differenct exchange ?

what crypto you do that with ?

thanks

[Qwantoom]

Arbitrage needs a good timing as in you closely monitor every coin that is spiking. I did it but not too often.

[cryptolidus]

There are different arbitrage strategies like CROSS-MARKET arbitrage. (the same instrument is traded
on different exchanges at different prices). The idea is to catch the difference between prices.
STATISTICAL ARBITRAGE - the strategy is aimed at making profit from statistical variations in asset price
correlation. The most common statistical arbitrage is CALENDAR arbitrage. (the profit is acquired from the
price difference of futures with various fulfilment dates).
Arbitrage profit is a NO risk profit but there are many obstacles on the way so this is why Arbitrage trading is only for experienced traders.
First of all, you have to have enough funds which you spread amongst different exchanges .
You have to calculate with different trading and withdrawal fees on different exchanges, market liquidity,
time issue etc. and still  be able to  execute trades at the same time.
This is more realistic to achieve with bots and AI (artificial intelligence) involved.

[agourbet]

I don't know if this thread is active or not but i would like to add my experience about arbitrage in general. Even though the concept of arbitrage is easy to understand you must gain experience in order to do it correctly. I am arbitraging markets for the last 7 years now and i have learned everything i know from a forum for free. Searching on google i came across a website named arbusers.com. It was(and still is) like a paradise of arbitrage talks and information. I learned everything i needed to know about arbitrage from there. Even if the site focus mostly on sport betting arbitrage, you can learn a ton of useful information about how arbitrage works, why it works and how the most successful do it. For the ones that interested to learn more you can try and check it.

[mithun303]

Arbitration is one of the most basic and foremost ways to make money online. But there are advantages as well as disadvantages to this arbitration. Opportunities in arbitration are fleeting and you need to act immediately. The exchange currency needs to be equal.

[Shasha80]

Generating crypto by arbitrage is not as simple as we imagine, not just moving coins from one exchange to another, to get profit from the price
difference between exchanges. But it is more complex than we imagine, because it is very important to calculate withdrawal fees from exchanges.
Do not let the profits that we generate run out cut off by withdrawal fees, our calculations must be precise.

[BitcoinTurk]

First of all, I would like to briefly define the arbitrage and then answer your questions based on my own knowledge and experience. Arbitrage is the process of buying a financial instrument from one place and selling it in another place at the same time if the price of a financial instrument is different in the markets of different countries.
 

- Which problems and disadvantages do you encounter when trading with crypto currency?

 
The biggest problem you can encounter while arbitrage in the crypto money markets will be possible network errors, transfer delays or money transfer. For example, your transfer may not take place due to a transfer error that will occur in your preferred crypto network to make arbitrage, your transfer may be too late due to problems or the service you are using may have temporarily stopped depositing and withdrawing with that cryptocurrency. These are problems that should be considered while arbitrage and which can also be described as problems.
 

- What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?

 
Anyone who knows the answer to this question does not already give it, everyone finds their arbitrage opportunities by making their own research. Although there are websites on the internet that provide this service for a fee or for free, they often disappear immediately because such opportunities are shared. For this question, the best advice I can give you is to choose services with low transaction volume and cryptocurrencies.
 

- How much can you earn on arbitrage?

 
Just like the previous question, it is not possible to give a clear answer to this question because your earnings rate varies depending on the opportunities you will find. It is possible to get as low as 2-3% opportunities in some of your transactions, while you can gain 80-120% in some transactions. If I have to say something precisely and clearly, I would like to say that if you arbitrage really and successfully, you can even exceed the earnings of salaried personnel depending on your capital within a month.

[TheGreatPython]

Opportunities in arbitration are fleeting and you need to act immediately. The exchange currency needs to be equal.

Yes, you need to rush to catch the arbitrage opportunity but not necessarily need to have equal amount of money on exchanges. When there was only fiats times, moving your balances from one exchange to another was a big problem but after the era of stablecoins, now are moving fiats on blockchain hence you can easily catch arbitrage even if you do not maintain big balances on all your exchanges.

Arbitrage is the process of buying a financial instrument from one place and selling it in another place at the same time if the price of a financial instrument is different in the markets of different countries.

That must be most generalized definition of arbitrage trading. But, I do see traders are making use of arbitrage within exchange itself; they do trade like X->Y->Z->X; this is possible when one pair of trading instrument get heavily dumped/pumped. This type of arbitrage must be time saving as well because you do not need to move funds out of exchanges.

[cheezcarls]

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.

Abritraging is a great way to make money in trading if you are experienced enough as a cryptocurrency trader. However, as a newbie, you may not want to jump on arbitraging just yet. You can actually learn about the complete A to Z about arbitraging on NewsCrypto platform by taking up their online courses. Youtube videos are also helpful as well, and other platforms such as TraderCobb, Udemy, etc.

It’s kinda risky as well because transferring your BTCs to another exchange could take several minutes to almost an hour plus transaction fees. Each exchange have different prices of Bitcoin and other altcoins. Anything could happen if there is going to be a sudden dump after your transaction hash is completely validated or reached the number of required confirmations.

[Golftech]

Generating crypto by arbitrage is not as simple as we imagine, not just moving coins from one exchange to another, to get profit from the price
difference between exchanges.

Before, you can do this as there's difference between exchange created by real buy orders and not just by bot. You can generate decent profits by working with price difference between exchange.

But it is more complex than we imagine, because it is very important to calculate withdrawal fees from exchanges.  Do not let the profits that we generate run out cut off by withdrawal fees, our calculations must be precise.

Good point, exchange also have differences between trading fees and exchange withdrawal fees, you need to calculate it to get good generated benefits.

[Reatim]

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.

I think in our time now?there are only few that using arbitrage trading because most of trading platform dont show actual prices (or maybe i am wrong but this is my observation)
and also the volatility of market is not that option to Give is profit in short time.
But wayback when you posted this?yeah i tried few times this arbitrage and yes i made some good profit in my trials but already stopped doing now,instead i focused in Holding or semi long term investing.

[Agraio]

I'm trade use arbitrage technique
average I get profit 1% / day
at some moment can get 200% one day
depend on market and blockchain network
trouble is if your market has been maintenance wallet will stuck until normail again

[Desscount]

indeed it feels very easy if we talk about arbitrage, but it is very risky if the coins that you arbitrage are coins that are slow in the transaction process, such as Bitcoin, Bitcoin Gold, BCH, and BSV, because if you are late then the Dump will take over

[Emitdama]

I see this is a old thread but actually very good topic and I want to put my 2 cents of knowledge here.

Generating crypto by arbitrage is not as simple as we imagine, not just moving coins from one exchange to another, to get profit from the price difference between exchanges. But it is more complex than we imagine, because it is very important to calculate withdrawal fees from exchanges. Do not let the profits that we generate run out cut off by withdrawal fees, our calculations must be precise.

You can easily overcome the problem of withdrawal fees and trading fees by using a bigger bankroll actually and yeah for arbitrage you need to have a big purse and high limits on exchange because trading $10 on arbitrage trades will result in loss overall after all fees reduction.

I agree that it is a bit more complex because the market moves pretty fast and by the time you bought a coin and then deposit it to another crypto exchange and waiting for confirmations might ruin the arbitrage possibility. I used to do this with bitcoins like an year or two ago where I would buy btc from btc-e (unfortunately now closed ) and I would sell it on other platforms with good profit but that soon stopped as the market became very liquid with the popularity bitcoins gained with time and more people jumped into trading.

[wozzek23]

Wich problems and disadvantages do you encounter when trading with crypto currency?

I would say the biggest problem is liquidity because I have seen that there are coins that trade for higher on some exchange while lower on others but you have to keep in mind that the buy/sell orders are enough for you to buy and then quickly sell. If you notice you cannot buy lower than selling price of other exchanges. I dropped arbitrage idea after seeing even all gaps are not suitable for making use of profit making.

I mean, I remember an instance where I purchased a coin and until the time I withdrew and deposited to the higher price exchange the trades vanished and I ended up buying a coin I don't know about and I had to immediately sell it for a cheaper price and so eventually it resulted in loss so make sure when you do arbitrage trading you make sure the trade volumes are big enough and stable enough otherwise you might struggle with trades.

[darewaller]

Not just arbitrage trading but a lot of guys do arbitrage betting as well where they would choose different winners on different sportsbook and make use of the odds discrepancy among odds provider but this is not easy to do in crypto trading actually because you would hardly find a pair of coin which you can play with and if even you find the variance would be hardly 2-5% which would be needed for withdrawal fees and depositing fees of those involved exchanges so either you have a massive amount of bitcoins to do this or you will face problems doing it.

Talking of arbitrage gambling a lot of sportsbook clearly mention that they won't support arbitrage betting and accounts would be locked once they get to know about such practices by their users. If you want to learn more you might want to read this - https://www.sportsbettingdime.com/guides/strategy/avoiding-sportsbook-restrictions-arbitrage-betting.

[Xxmodded]

To earn from arbitrage is simple and easy when you get different price some coin from one exchange to other exchange, you must check first time available to deposit or withdraw from on exchange to other wallet, then you must check how long withdrawing confirmation take time because will give most important way when delay price will be the same with other exchange.