Bitcoin arbitrage

[Blockchain Badger]

Anyone out there use this site for arbitrage? www.bestbitcoindealers.com, it seems like there are huge differences in price across exchanges. Nice that Exmo actually lets you cash out in Dollars as they always seem to have high prices

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[Reez]

The high fees make it very difficult to profit of this.

[Fidemoga]

The high fees make it very difficult to profit of this.

That's the problem. It would be only profitable with higher amounts or you choose altcoins for arbitrage trading with fast and cheap network. You must also look at bids and ask prices, before you transfer your coins to the exchangers.

[btcton]

I would not fully agree with the posters before me. There is definitely a solid chance of obtaining money through arbitrage. The major problem is not the transaction fees; rather, it is the competition and the ability to find profitable pairs of cryptocurrency. Also affecting the profit numbers are the actual trading fees. Most exchanges have fair fees which should definitely be taken into account when planning arbitrages. This also means that the higher the amount of money you can arbitrage with, the better, but you are still limited by the scaling trading fees. There are already bots in place that do this kind of trading and trying to manually trade against those is most likely not going to work out for you. You are likely going to need more than that website. Still, good luck.

[magneto]

Anyone out there use this site for arbitrage? www.bestbitcoindealers.com, it seems like there are huge differences in price across exchanges. Nice that Exmo actually lets you cash out in Dollars as they always seem to have high prices

There are definitely chances that you are able to get a good deal on your buy order and be able to sell your bitcoins straightaway for a much higher price. But these chances are rare, because there should always be someone before you taking advantage of this opportunity, if it is available.

Where i usually look for arbitrage opportunities isn't the link that you provided, but rather coinmarketcap. You can click into any altcoin that you want to arb with, click on markets, and see the price differences between exchanges.

Those opportunities might look good on paper sometimes but it doesn't work in practice. Why? There may be issues with deposits/withdrawals on the site that is causing the arb opportunity to be there in the first place. You may even lose money if you don't research well before you put in money into these arbitrages.

[Altcoins enthusiast]

Anyone out there use this site for arbitrage? www.bestbitcoindealers.com, it seems like there are huge differences in price across exchanges. Nice that Exmo actually lets you cash out in Dollars as they always seem to have high prices

EXMO is really pay high that one can take arbitrage opportunity but my fear is how legit the EXMO is as i am coming across it for the first time. arbitrage opportunities actually are mush available on must of the new exchanges but how trusted there sites is one of the thing we should look for as most exchanges platform or sites that has scam traders are those that offer wide range of differences in pricing of some major coins. I will like  someone to Educate me more about this EXMO sites. thank

[Zadicar]

The high fees make it very difficult to profit of this.

That's the problem. It would be only profitable with higher amounts or you choose altcoins for arbitrage trading with fast and cheap network. You must also look at bids and ask prices, before you transfer your coins to the exchangers.

Fees is really a big factor when doing arbitrage because if the spread is way to big then it would be considerable on doing such trades but if not then doing it would be pointless because fees will eat up profits and comes to worst you would might even have loses. One thing also that do matter is confirmation times which if we do arbitrage we do really need this to execute fast trades to catch up moving prices..

[whirlcoin]

The high fees make it very difficult to profit of this.

That's the problem. It would be only profitable with higher amounts or you choose altcoins for arbitrage trading with fast and cheap network. You must also look at bids and ask prices, before you transfer your coins to the exchangers.

Fees is really a big factor when doing arbitrage because if the spread is way to big then it would be considerable on doing such trades but if not then doing it would be pointless because fees will eat up profits and comes to worst you would might even have loses. One thing also that do matter is confirmation times which if we do arbitrage we do really need this to execute fast trades to catch up moving prices..

Agree with this,the confirmation times is very important while we doing arbitrage trading but now bitcoin needs hours to get confirmed so we will lose the profit at the mean while time(maybe).
But I think arbitrage trading with ethereum is more more profitable than other cryotocurrency because we can get ethereum for cheaper price on coinbase and we can sell it them on any exchanges would give more profits.

[mobnepal]

Exmo offers usd pair but you have to cashout those usd in perfectmomey or similar payment processor with 2% fee and you cant upload those usd back to any other usd paired exchange where you can buy bitcoin at lower price. So basically you will never made any huge profit from arbitrage trading between two such platforms.

Yobit, livecoin all have high price but they also only offer pm like platform for deposit withdrawal with high deposit/cashout fee.

[Zadicar]

The high fees make it very difficult to profit of this.

That's the problem. It would be only profitable with higher amounts or you choose altcoins for arbitrage trading with fast and cheap network. You must also look at bids and ask prices, before you transfer your coins to the exchangers.

Fees is really a big factor when doing arbitrage because if the spread is way to big then it would be considerable on doing such trades but if not then doing it would be pointless because fees will eat up profits and comes to worst you would might even have loses. One thing also that do matter is confirmation times which if we do arbitrage we do really need this to execute fast trades to catch up moving prices..

Agree with this,the confirmation times is very important while we doing arbitrage trading but now bitcoin needs hours to get confirmed so we will lose the profit at the mean while time(maybe).
But I think arbitrage trading with ethereum is more more profitable than other cryotocurrency because we can get ethereum for cheaper price on coinbase and we can sell it them on any exchanges would give more profits.

Its possible on ETH or on other coins since arbitrage is not only applicable on bitcoin alone though. ETH do have much faster confirmations but would still depending on the gas being set and the current situation of the network. All things do matter on arbitrage. Confirmation times+ less fees would be the best recipe for gaining profits within this kind of trading ways.

[CyberKuro]

The high fees make it very difficult to profit of this.

For bitcoin transaction, yes it is. Hence, you need a huge amount of capital to do it.
But, we know it's not easy to transfer bitcoin from an exchange to another without have to pay high fees or have to verify your identity in order to cash out fiat currency.
That's why arbitrage trading may work better if you buy altcoins using bitcoin or vice versa to get a decent profit.

[Blockchain Badger]

Thank's for your replies everyone. Keys seem to be sending the coin quickly and avoiding fees. Bank deposit in Coinbase, Buy Litecoin send to GDAX for free, then send to Exmo, sell for Dollars has been a relatively fruitful endeavor, probably worth the effort of getting validated. I've found Using Ripple inter exchange is cheap and fast so that works well looking for altcoin/bitcoin arbitrage, but other coins can be expensive and slow as I'm sure everyone knows. Like everything their seems to be tradeoffs, its more of a grind than buy and hold but arguably safer as you have a cushion. I'm sure there are glaring opportunities somewhere but those people aren't going to give away the golden goose 

[gopnik]

good luck using Exmo  

Fyi this exchange is a half scam ukrainian company
If you plan to cash out there, they will hold your money for weeks maybe months before you hear from them; just have a look to the dismal reviews and judge for yourself
they may exit scam one day or another too

99,99% of the prices differences you may think to see nowadays are due to a reason; either the exchange wallets are shut down, either the network is down, either the low/high price exchange is a total scam that will either steal your money or hold it for weeks, either volatility is insane and makes any arbitrage impossible to execute without risking massive losses

Free lunch days are gone for good my friend

It has become insanely competitive and there is no more money to be made in this field, unless you are an expert in high frequency trading and have millions of dollars to rotate to trade 0,001% profits

There are no more tradable arbitrage opportunities; the ship has sailed months / a year ago
All what is left now are insignificant (below 1%) differences between exchanges that are impossible to trade and extremely high risk

[Blockchain Badger]

I do disagree a bit. Not an expert, but if you avoid the debit card Coinbase fees and then use Advcash once you get into Dollars on Exmo it made money if you avoided Bitcoin and they never had my money for more than 2 minutes.  My background is conventional FX so a 2% low risk trade is a dream. They have discontinued the debit card now In the last few days though which spoils it as other withdrawal methods are more expensive so I will have to look elsewhere. I agree there probably aren’t millions to be made anymore, but I think you can at least make cashing out less painful by being smart and there are small opportunities.

[magneto]

I do disagree a bit. Not an expert, but if you avoid the debit card Coinbase fees and then use Advcash once you get into Dollars on Exmo it made money if you avoided Bitcoin and they never had my money for more than 2 minutes.  My background is conventional FX so a 2% low risk trade is a dream. They have discontinued the debit card now In the last few days though which spoils it as other withdrawal methods are more expensive so I will have to look elsewhere. I agree there probably aren’t millions to be made anymore, but I think you can at least make cashing out less painful by being smart and there are small opportunities.

Hmm, if you're really interested in arbitrage why not do some bitcoin sports book arbitrage? What you said can definitely work, but the thing is markets are going to move and there are going to be unexpected delays and fees, that would make your entire working capital be stuck at one stage of your arbitrage plan. If it doesn't happen this time, doesn't mean that it won't happen forever.

You're going to have to go high volume, if you're really going to make a profit. Bitcoin withdrawal fees can take up the majority of your profits if the margin is only 2% and you're working with less than 1 BTC.

All i can say is, good luck. Why not try it out and see what happens? If it works, you can share it with all of us your experiences. If it doesn't work, you can warn us what steps to take care of or why it didn't work. Also, have you tried alt coin arbitrage?

[Blockchain Badger]

Thanks Magneto, I have tried it a little yes and accumulating bitcoin rather than fiat. I'm in a position where i can give it a practice run and see, so I might do a sort of research blog on it for the results. Should be fun, I'll let you know how it goes.

[tora]

Arbitrage will not be profitable on small amounts as exchanger fees will eat into any profit. Timescale is also important as price of coins can change on all exchanges before transaction is confirmed,especially with bitcoin and ethereum at the moment.

[magneto]

Thanks Magneto, I have tried it a little yes and accumulating bitcoin rather than fiat. I'm in a position where i can give it a practice run and see, so I might do a sort of research blog on it for the results. Should be fun, I'll let you know how it goes.

No problems.

Also one more thing, you could look at this site for some altcoin arb opportunities: https://cryptocoincharts.info/arbitrage. I look at it when I have some spare time and analyze some of the opportunity it lists. It definitely won't be completely accurate and you'll find many of these arbs be nonexistent, but it's worth a look. Also as i said, take a look at individual coins coinmarketcap and click on markets to see the price differences.

Good luck with your venture, and I'll definitely be interested in seeing if this is really a legit way of earning an income.

Let me know when your blog has started.

[gopnik]

Thanks Magneto, I have tried it a little yes and accumulating bitcoin rather than fiat. I'm in a position where i can give it a practice run and see, so I might do a sort of research blog on it for the results. Should be fun, I'll let you know how it goes.

your strategy is flawed imo

accumulating bitcoins or eth is like keeping your money in venezuelian bolivar
it could be worth nothing later this year and has shown 35% inflation in just 1 month and a half

you get richer in BTC but poorer or stay even in fiat, so what's the point of what you're doing
you should dump btc and base your equity in euro (near zero inflation) at least for now

btw if you look at the charts, bitcoin was just like a massive pump and dump scheme and it looks like it is headed back to where it was earlier in 2016/17 until the next one; if there is any

so i wouldn't bet on it expecially given the massive threat of government crackdown this year

[alyssa85]

The high fees make it very difficult to profit of this.

It's not just the fees that make it difficult. It's hard to move fiat. Fiat doesn't move on the weekends. Then you have some exchanges subject to capital controls (like the Indian exchanges). Then you have local KYC problems (for example the Korean exchanges won't open an account for non-Koreans).

If you want to do arbitrage, it's easier with an alt - say the BTC/ETH pair, or the BTC/LTC pair - because you can move both coins fairly quickly (especially as the mempool has cleared).

Or choose a pair where both coins move and confirm quickly, like ETH/LTC.