Buy low and selling high on different exchanges

[DustyRah]

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

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[Stormalong]

There is no catch, people do this all the time. Its how the price gets equalized between exchanges.

https://en.wikipedia.org/wiki/Arbitrage

[flynn]

If you find an unbalanced exchange (regarding the others), that just means the money flows are not working properly.
Or else someone (or some bot for that matter) is picking up that free money.

[Toxic2040]

tx fees, exchange fees and the time it takes to transmit the funds. These can make arbitrage risky.

[uslfd]

I think the most difficult part is to open an account in, for example, a Korean exchange... where BTC is trading high while you're based in the US, for example, where BTC is trading low...

[illinest]

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

Here's the biggest one: GDAX had a 24-hour range of more than $6,000 today. That's more than a third of its price! The arbitrage cycle: Buy BTC on Exchange A, Sell on Exchange B, Withdraw USD to bank, Deposit USD at Exchange A, repeat.

Bank wires take days to process (and some exchanges can't even reliably process them). So while you're locked in USD trying to pick up a few %, you just missed out on a 37% move in 24 hours! That's huge opportunity missed when you could have just held BTC.

So, the biggest problem is the opportunity cost during the time you're waiting on bank transfers. Also, lots of such bank wires will attract unwanted attention from the bank, who might in turn be filing SARs on you to the government.

[dead_m92]

tx fees, exchange fees and the time it takes to transmit the funds. These can make arbitrage risky.

Plus all the risks that you are taking if you want to do arbitrage, a lot of exchanges, like BitHumb is pretty unsafe for making arbitrage because they can freeze your funds, the same applies to bittrex.

People will never understand that the price is always different on the exchanges that doesnt have enough volume, because nobody is buying in there.

But you can still do arbitrage if you are doing it between two good exchanges, not the crappy ones.

[Heartilly]

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

Sounds easy huh? Arbitrage is not that easy as you think espevially in bitcoin price movement.

Then why not try it for yourself and see if that will give you profit. You will soon know what Im trying to say after you did some testing.

[barota]

isthere any good and trust site fore make this profit  between different exchanges?

all site corean sud not safe 

coinone.co.kr i creat account wen i login he say false password .

[Omega Weapon]

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

It is not as simple as you may think, the prices tend to have a difference when it comes to local exchanges, for example every time I see a Korean exchange have way higher prices, but most of the time you need to have a local bank account in that country, also if there is a big price difference that may be the sign of problems in the liquidity of the exchange so arbitrage trading has more risks than what you may think.

[DaMut]

buy low and sell high on different exchanges aka arbitrage is not an easy thing,
it's not about the people that do not know about it but instead it's because a few factors that prevent people to do that.
like this :
on coinmarketcap.com you can see a lot of exchanges that listing 'A' coin,
let say 5 exchanges : 1,2,3,4 and 5.
you can see the difference between one and another in term of price,
but people can not do that because whenever you're doing a trade on '1' you need to verify your account with document,
many people does not want to do it because they do not trust them,on '2' there're no buy order,on '3' no buy orders,on '4' they're doing a shady activity and lastly '5' is the place that you're currently doing the trade and it's the lowest one.

other than orders and account,
some of them hesitated to do it due to network.
just imagine it if you're buying coin 'S' and when you sent it to '1(exchange for example)' and it require 100 confirmation to credit your account,
does that mean you need to wait for a day or even more than that do the trade ?
if you keep doing that,the price may be goes down under your buy order because of it.
and many others that can not be explained in detail.

in conclusion arbitrage is not an easy thing because it require a lot of thing that we need to do,
plus at the same time it has risk when we're doing it

[pooya87]

there is actually a lot of things stopping you from performing a successful arbitrage with bitcoin:
1. this https://blockchain.info/unconfirmed-transactions which is currently at 220,000 unconfirmed transactions! and you will be withdrawing from an exchange and who knows what fee are they going to pay and how long would that even take!

2. sometimes there is a good reason for the price difference. for example, the exchange may have a high fee (trading or deposit or withdrawal or all) so the price lags behind. or for example it is higher because of the deposit methods that it has such as $1000-$2000 higher prices on yobit which has weird deposit methods!
not to mention the matter of trust. some exchanges can not be trusted at all. and some of them are in other countries which you can not even deposit any money there. for example it is at $20k in India but good luck getting any money in there!

[fireblond]

Sending and withdrawing to another exchange costs fees and bitcoins confirmations aren't all that fast.. so by the time your funds arrive the price might have already got corrected on that exchange. What you could do is split your funds between the exchange and do it simultaneously 

[jjacob]

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

In most cases, the difference is not high enough to cover the transaction fees and the hassle of doing the arbitrage transaction. If it is very high, then capital controls will usually be in place. You can sell your Bitcoins for a very high price in Zimbabwe, but there is no way you are getting the money out from there.

[anggun chan]

His sound is very easy, but just imagine if that happens maybe I think it's not easy what like you think now about bitcoin. If you find an unbalanced Exchange it just means money flow doesn't work well. or so much as the person is taking advantage of the free

[barota]

there is actually a lot of things stopping you from performing a successful arbitrage with bitcoin:
1. this https://blockchain.info/unconfirmed-transactions which is currently at 220,000 unconfirmed transactions! and you will be withdrawing from an exchange and who knows what fee are they going to pay and how long would that even take!

2. sometimes there is a good reason for the price difference. for example, the exchange may have a high fee (trading or deposit or withdrawal or all) so the price lags behind. or for example it is higher because of the deposit methods that it has such as $1000-$2000 higher prices on yobit which has weird deposit methods!
not to mention the matter of trust. some exchanges can not be trusted at all. and some of them are in other countries which you can not even deposit any money there. for example it is at $20k in India but good luck getting any money in there!

i agree . profit by buy and sell in different exchanges Not an easy job
If the transaction not  confirmed for a long time and  bitcoin dump hard The investor will lose a lot

[barota]

sell in yobit.io 2000 usd difference !!!!

[bambazamba]

Different native exchanges have particularly different prices . It depends upon the demand of bitcoin in that country . Not all the exhanges works hand in hand . There are always some differences in the value . For example  Indian exchange has a big difference in the value then that of USA , because the demand is particularly high in India.

[shrivelfire]

This is the normal standard of trading: buy low, sell high. However, you need to watch the market carefully to do a better trade.

[Fortify]

I'd say this is quite common, especially when the price of digital currencies has been moving so far lately. The difficulties would be how long it takes to convert into bitcoin and the fees associated with moving bitcoin around - they have grown quite high lately. If you're buying in big enough amounts, then it should be fairly easy to make a profit.