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jehst (OP)
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October 24, 2013, 04:43:00 PM
Last edit: October 28, 2013, 02:19:34 AM by jehst |
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是英文寫的，誰能幫我翻譯？
How I Earned Thousands of Dollars Per Month with Arbitrage
The idea is very simple. Buy low and sell high at the same time. It's based on three simple facts. 1) There are several large bitcoin markets spread out across the world. 2) Each market has its own local price for bitcoins. 3) The price of bitcoins in each market is not the same. Arbitrage is the act of buying and selling bitcoins in two different markets at the same moment (or near the same moment) to earn the difference in price.
For example, let's assume that bitcoin is worth 109 USD on Bitstamp in Europe and 612 RMB on BTCChina. I have 20000 RMB and the exchange rate is (6.12 RMB : 1 USD). 109 USD is 667.08 RMB. Clearly, I should buy 32.67 BTC for 612 RMB each and then sell my 32.67 BTC for 109 USD (667.09 RMB). Now I have 21790.89 RMB! Well, it's not as easy as it appears.
Let's look at the process in detail:
First, I need to buy bitcoin on BTCChina. If I use my bank account to deposit money at BTCChina, it will cost about 10 RMB. Next, I use my 19990 RMB to buy bitcoin for 612 RMB per bitcoin. I can buy 32.66 BTC. As we know, sending the 32.66 BTC to Europe is easy and costs almost nothing. Now, I pay .5% in trading fees to sell the 32.66 BTC for 109 USD: 32.66 x .995 x 109 = 3542.14. But now I need to send the money back to China. Withdrawing the money from Bitstamp back to my Chinese bank account will have a .09% fee. 3542.14 x .991 = 3510.26. Finally, I need to convert the money back to RMB. This will usually cost another 1%, so I may only receive 6.05 RMB for each USD instead of 6.12. 3510.26 x 6.05 = 21237.07 RMB. We started with 20000 RMB. Even though we paid 552.93 RMB in fees, we still had a total profit of 1237.07 RMB.
How long did it take? Buying the BTC on BTCChina, sending the BTC to Bitstamp, and selling the BTC on Bitstamp could all be done in one day. We simply need to wait a few days for the international wire transfer from Bitstamp back to my Chinese bank account to finish. When I did arbitrage, I bought on BTCChina and sold in America. The first transfer from America to China took 5 days. After that, the transfers were faster. Sometimes it was as fast as two days. You can repeat this process again and again, making more and more money each time.
Here are some pictures of the process: As you can see, I received many deposits in my bank account from selling BTC directly to buyers. Then I sent international wire transfers back to China to buy more BTC on BTCChina.
Now let's talk about some of the risks and what strategies we can use to minimize those risks. The two main risks are a) sudden changes in the price and b) problems with the exchanges. In its history, bitcoin had several days where it has risen and fallen by large percentages. Sometimes the price can fall in just a few hours. If we hold too many Bitcoins at any given moment we expose ourselves to the risk of significant loss. Your money can be stolen from bitcoin exchanges or the exchange may experience a DDOS attack, causing you to be unable to sell your bitcoins quickly. Again, the value of bitcoins may drop significantly and you will lose money. If your bitcoins are stolen, they will be lost permanently.
RISK MANAGEMENT: In order to address the risk of bitcoins value dropping suddenly while we are holding them, we can hold a maximum of 10-20% of our money in bitcoins at any given time. Don't buy the bitcoins all at one time. Spread your purchases out over the day. You can see in the picture above, I have several canceled orders and several orders made on the same day. This will protect you against sudden changes in price. This will also protect you against problems with exchanges. If Bitstamp has a problem, you will only have 10-20% of your money on the exchange. Even if they are lost, this may be less than the total profit you made. Second, we can minimize the time that we hold bitcoins. It may be risky to hold bitcoin for a week or a day, but not so risky to hold it for an hour or two. After you buy bitcoin on the first exchange exchange, try to sell them on the second exchange quickly.
These days, the price of BTC on BTCChina is high. You can buy from BTC-E and sell on BTCChina. I hope you can earn money with this method. Good luck, friends.
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