Arbitrage

[Saksham]

So I see a lot of price discrepancies as I look at coins. I was wondering if arbitrage is effective and what coins to look for that offer the best results. For example, I bought a bunch of BTG for $74 and then later sold it when it hit bittrex for more than $300. Also, is this even legal?

Regarding your question if this is legal, it depends on your Country. There are issues in China and Russia. The issue is not that if it is illegal, but that there is no regulations about cryptocoins, so it could be a little strange, but it is not like steeling.

[Kloug]

That's really great news. I think I should open an account in both of those exchanges as the markets are full of volatility now. I have arbitraged smaller cap coins but now the problem is the Eth and btc networks are so clogged up, one would have to wait for the congestion to ease. I tried to arb some PPT yesterday and I am still waiting for some Eth to come to me from an exchange where it has been stuck for more than 24 hour sigh.   Anyway sold some NXT for a small profit and bought some cheaper PPT that got dumped on hitbtc exchange, so that kind of worked out.

yeah, by the time I wrote that, on GDAX the BTC dropped by 2500, and then went up 1300. Crazy, considering these amounts were the price of the bitcoin a few months ago. And it's still 1500eur higher than on Bitfinex.

[wayaneka]

Yes arbitrage is fully legal, this is good trading strategy to make profit,  but before doing it for the better just test small amount first when send any coin/token because any some coin has long time confirmation and this is can be not efisien, Let see ETH network now that overload so in this case not allowed doing arbiratge especially for ERC20 Token.

[googlebtc]

I also do arbitrage transactions of course with the advantages Bitcoin prices that have surged lately have the opportunity to take advantage of arbitration trading where the price of trading distance in my country is quite good. so I do not think it's a problem if you want to trade like that

[Oilacris]

So I see a lot of price discrepancies as I look at coins. I was wondering if arbitrage is effective and what coins to look for that offer the best results. For example, I bought a bunch of BTG for $74 and then later sold it when it hit bittrex for more than $300. Also, is this even legal?

Yes, its legal which this arbitrage trading been have done by some traders which can really give sure profits if its done on perfect timing and fast confirmations but if not then it would really be a risk on losing money instead because of the fees involved but this would depend on the spread because if the spread is too big then it would give the higher chance of profits even on slightest delays.

[droptableguy2]

Arbitrage is a pretty good tactic for daily trading. I also made a lot of profit from this tactic. You can use many ways to increase your bitcoin number through which you are increasing your profits.

[Pursuer]

So I see a lot of price discrepancies as I look at coins. I was wondering if arbitrage is effective and what coins to look for that offer the best results. For example, I bought a bunch of BTG for $74 and then later sold it when it hit bittrex for more than $300. Also, is this even legal?

legal? yes
possible? yes
risky? very!

one of the issues most people forget about Arbitrage trading is the fact that as someone new to it, you should remember than there are always so many others, so much faster than you, who are doing it. many of them are using automation. for example as soon as the price difference occurs, their bot buys it from one place and sells it on the other.
imagine you open the exchange page and look at the prices and try to open your calculator to see if it is profitable, by this time the bot has already made the trades and is now with profit. by the time you make your decision the price may not even be the same any more.

[phreakk]

So I see a lot of price discrepancies as I look at coins. I was wondering if arbitrage is effective and what coins to look for that offer the best results. For example, I bought a bunch of BTG for $74 and then later sold it when it hit bittrex for more than $300. Also, is this even legal?

As others have stated, it's legal and it could be risky, depending on what you're trying to do.

Yesterday, there was an awesome opportunity with SBD/Steem. SBD rose from $2 or $3 to $12.40... That's great on its own already, but what if you add in arbitrage?
Sell SBD for a high price, buy STEEM with the money you obtained, turn it into SBD and you just multiplied your SBD. Did this a couple times yesterday and it turned my 7 SBD into 18 SBD, on top of its growth from $2 to $12.40.

That's the power of arbitrage and the largest risk there is to it, is the failure of exchanges to deliver a good withdrawal/deposit service.

[Nasty23]

So I see a lot of price discrepancies as I look at coins. I was wondering if arbitrage is effective and what coins to look for that offer the best results. For example, I bought a bunch of BTG for $74 and then later sold it when it hit bittrex for more than $300. Also, is this even legal?

legal? yes
possible? yes
risky? very!

one of the issues most people forget about Arbitrage trading is the fact that as someone new to it, you should remember than there are always so many others, so much faster than you, who are doing it. many of them are using automation. for example as soon as the price difference occurs, their bot buys it from one place and sells it on the other.
imagine you open the exchange page and look at the prices and try to open your calculator to see if it is profitable, by this time the bot has already made the trades and is now with profit. by the time you make your decision the price may not even be the same any more.

Yes this is a reason why arbitrage is very risky even it is profitable. We should be analyze first the exchanger that we want to arbitrage because sometimes it is being manipulated by some people to attract other to buy the coins and dump it fast after they earn a profit on it and we should be fast in making a transaction for this method in trading because the more time that we loss the bigger the chances of risking that the price becomes goes down because of that price differences.

[julzcoinbit]

Arbitrage strategy is one of the best strategy when in comes in trading but sometimes you will loss your expected profit because sometimes if you want to transfer the coin from exchange to another exchange to block confirmation are very slow,before you transferred the coin the price already dumped

You're right mate, arbitrage is one of the strategy in trading by the simultaneous buy and sell of the commodities of the currency  in different market. Also, since the value of different coins is unpredictable some this could may lead of lose the value due for panic buying or sellinh the value of altcoins that they have. Somehow, by the.simultaneous it may lead to the system slowing down but it's capable to manage of the system as what happend on previous days.

[babysweetTiger0401]

i tell you mate Arbitrage strategy is good when in social media is hyping their favorite coin and if other exchanges is low at price and then other exchange is much higher price then we can send it to other exchange so it will be more profitable. i did this before but sometimes it's very risky to send coz other exchange block confirmation are very slow

[Kevin77]

Arbitrage strategy is legal to do in every crypto currency exchange.
Arbitrage is good strategy with almost 80% till 90% we close the transaction with profit.
And the only problem is when you send any coin and it need long time to confirm the transaction and during the time, you will stay in loss if the price down.

That last part is what can really be crazy about arbitrage. I have not really done much arbitrage anyway, so I cannot really say how people tend to pull that off. I am sure there are some coins one may have to watch out for on some of the exchanges most especially when they get dumped badly by a big holder on one particular exchange which may not quickly reflect on others. I may actually give it a try one of these days.

There is nothing wrong with arbitrage and no one is definitely going to put you in jail for it. It is just to take advantage of those discrepancies to make some bucks for yourself.

You have to consider however that it is not that easy to do arbitrage trading except the margin between the two coins is pretty wide. If that is the case, you can at least make something good despite the transaction fee removal as well as the time frame of transaction.

[Jedzkie050617]

i tell you mate Arbitrage strategy is good when in social media is hyping their favorite coin and if other exchanges is low at price and then other exchange is much higher price then we can send it to other exchange so it will be more profitable. i did this before but sometimes it's very risky to send coz other exchange block confirmation are very slow

Arbitrage is risk due to the simultaneous transaction of the different account throughout the world that might slowing down the system. Thay grabbing a good opportunity, if the value of bitcoin or a kind of altcoin that is can be suitable as a good profitable during a process in trade or exchage. Somehow, there might several times that you need a perfect timing when you want to trade by monitoring there value in the market.

[dave111223]

So I see a lot of price discrepancies as I look at coins. I was wondering if arbitrage is effective and what coins to look for that offer the best results. For example, I bought a bunch of BTG for $74 and then later sold it when it hit bittrex for more than $300. Also, is this even legal?

Sure, it's legal. You're just taking advantage of inefficient markets, and profiting from a currency price differential.

These days, there isn't much money to be made in manual cross-exchange arbitrage because of the proliferation of arbitrage bots. You can't trade faster than the bots, who have liquidity on multiple exchanges and are constantly re-balancing accounts based on arbitrage opportunity.

The exception is situations like the Bgold launch: a very new, illiquid market where arbitrage bots aren't operating yet. When supply on the exchange is so low (because people need to manually log in, possibly deposit BTG and start listing BTG asks), it can get pumped very fast. That's why it went above $400 the day it launched on Bittrex.

You are wrong, the bots are not everywhere on every coin, i made a lot of easy arbitrages even taking my time, it's possible, it's just that people don't want to bother do it because they are scared of doing too much transfer

[Memenya]

Yes it is legal like everyone said. It is also profitable and many people use robot as helper to make the transaction quicker.
And  suggest to not use bitcoin to arbitrage because long time confirmation.

[beerlover]

I was only able to effectively do this twice. Once with $BTG and once wih $DASH. $BTG was much more profitable, but I made out pretty well wih $DASH as well.

If you can get some pretty good margin, it is definitely a good way to make some good cash. I have done some arbitrage but really it can be crazy. Some I really made some bucks from the huge sellout on one platform which I was lucky to get to know. When someone who holds a lot sells a huge chunk at once, it definitely affects the value at one exchange and if you can take advantage of that, you can make some crazy bucks from it.

Bitcoin would probably be the worst because it is the biggest coin out there. I would try coins that have decent volume but are on smaller exchanges. The bots are more likely to be on the bigger exchanges and have more capital but the smaller exchanges you probably have a small chance still. The few times that I manually tried this the confirmations were enough to screw me over so if you are considering it have funds on both exchanges before otherwise it won't work at all.

LOL. Yeah right! Bitcoin? That is absolutely one coin you may not even want to tamper with when it comes to arbitrage. First and foremost, the time in between transactions, the transaction fee and the volatility. I can imagine how crazily anyone who wants to attempt something like this will end up sweating from the inside of them. Like you said, it is best to watch out for some low volume coins as they are really the ones that can pay off in cases like this.

[bskousen]

I just realized it is getting harder and harder to try and do arbitrage. At this point I am just going to hold. Got rekt a few times.

[EdenDice]

It is not something difficult to do, as long as you can control the fees that you are going to need to pay and how much money is it for selling / buying in all the other exchanges, it's not a bad idea, otherwise, you are going to lose a lot of money.

[yhoga45]

Yes it is legal like everyone said. It is also profitable and many people use robot as helper to make the transaction quicker.
And  suggest to not use bitcoin to arbitrage because long time confirmation.

Did you also use "robot"? If you use robot could you share here please? Sorry if my question is "freak". I'm new on cryptocurrency and I want to learn about trading. Thanks

[BLAST2MARS]

So I see a lot of price discrepancies as I look at coins. I was wondering if arbitrage is effective and what coins to look for that offer the best results. For example, I bought a bunch of BTG for $74 and then later sold it when it hit bittrex for more than $300. Also, is this even legal?

That's tiresome because I was once did that and it was a big mistake. I bought a coin which I saw an arbitrage opportunity but I did not checked the wallet on other exchange and found that it's on maintenance and exchanges do it on purpose.