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Author Topic: Crypto arbitrage for noobs  (Read 512 times)
clover12 (OP)
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February 16, 2019, 03:27:55 PM
 #1

How do I get started with learning more about this? Any pointers? Roll Eyes Roll Eyes Roll Eyes Tongue
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February 16, 2019, 03:45:13 PM
 #2

Find a coin with price difference on two exchanges then buy fro exchange where the price is low and sell on the price where it is selling high,just simple though.
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February 16, 2019, 03:50:44 PM
 #3

How do I get started with learning more about this? Any pointers? Roll Eyes Roll Eyes Roll Eyes Tongue
There's a lots of fundamentals that you needed to learned regarding to this, commonly it's an opportunity between two exchange where value of certain coins have good differences, you need to start by knowing the coins and exchange that you'll going to used, this is two important factors before you go further.

After recognizing the coins and exchange, you need also to have good fundings, as difference between the price is not that huge, but decent enough to give you profits.
clover12 (OP)
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February 16, 2019, 04:03:56 PM
 #4

So you mean exchanges like Coinbase and Binance?  What other exchanges are there for this that you recommend?

How do you exactly calculate all the fees so you know exactly how much profit you turn?
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February 16, 2019, 04:12:14 PM
 #5

I think you will be faced with many hardships if  you try to implement arbitrage trading in practice. It may look attractive on paper, but in practice, forget it. I mean, you have to find the right pair, you have to be sure you can move funds quickly between exchanges, you have to be sure there are no current withdrawal issues, you have to calculate the fees, and maybe if you are lucky you can earn something. There are bots that can do arbitrage, I haven't tried them so I don't know if they are any better.
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February 16, 2019, 04:42:21 PM
 #6

So you mean exchanges like Coinbase and Binance?  What other exchanges are there for this that you recommend?

How do you exactly calculate all the fees so you know exactly how much profit you turn?
I think there is no recommended site to arbitrage.
Because every exchanges have different price on different coin. So you better have account on many exchange and find out what exchanges best.
Personally, I still not doing arbitrage but I have some exchange account which give me knowledge about different price.
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February 16, 2019, 05:07:16 PM
 #7

You need to find the difference between the prices in several exchanges and convert it to profit. But you have to pay attention that there are a lot of people doing these with bots easily and you should use the time correctly.
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February 16, 2019, 05:11:05 PM
 #8

Getting started from scratch entails understanding the rudiments of arbitrage trading, the risks, common mistakes, the possibilities etc. Read extensively.

Then practice, this can be done through demo trading. I don't know ow of any site specifically for arbitrage, but there should be if you check around.
Then you are ready to go live.
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February 16, 2019, 05:26:12 PM
 #9

First practise and learn everything about regular trading. Arbitrage needs so much more things that needed to be taken into account. It isn't easy at all to do arbitrage.
You have to have funds on multiple exchanges. I advice at least 7-8 different exchanges.
Then you need to have different coins on all these exchanges and funds left to buy coins.
Trading fees are very important in arbitrage, but also transaction fees to shift crypto from 1 exchange to another.

Arbitrage trading is something I would never suggest to someone with none or only basic trading experience.

If you want to get involved in arbitrage I rather suggest you to do it in sports betting. Much easier over there. I love arbitrage myself but I will never apply it in my trading. I exclusively do arbitrage in sport betting. to do it in sport betting there is wonderful software available that practically does everything automatically but thats impossible in crypto

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QuadsPoker
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February 16, 2019, 05:35:08 PM
 #10

Find a coin with price difference on two exchanges then buy fro exchange where the price is low and sell on the price where it is selling high,just simple though.

it isn't that simple at all. buying in an arbitrage is easy but you must already have that coin on the other exchange to sell. So it isn't that easy at all.

In my opinion to do decent arbitrage you require a funds of 20 to 25.000$


Put 2000$ on 10 different exchanges. Use 1000$ to purchase 10 different coins each 100$, then purchase 500$ in BTC and remaining 500 you hold in USDT. As soon as you have done that you can start arbitrage in my opinion.

But to become profitable it even is harder. need to take into account the fee you pay on your buy and sell trades, transaction fee if you need to send crypto from 1 to another account.

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February 16, 2019, 05:37:31 PM
 #11

Before you ask to learn arbitrage maybe search first if it is profitable! I don't thing arbitrage is profitable anymore in Crypto or at least it is not profitable for small traders you might get rekt by fees, any way you can learn it's basics by googling it and try to simulate it without actually execute anything and see how things will play. I recommend you invest your time in something better than arbitrage in Crypto.
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February 16, 2019, 06:57:37 PM
 #12

Find a coin with price difference on two exchanges then buy fro exchange where the price is low and sell on the price where it is selling high,just simple though.

it isn't that simple at all. buying in an arbitrage is easy but you must already have that coin on the other exchange to sell. So it isn't that easy at all.

In my opinion to do decent arbitrage you require a funds of 20 to 25.000$


Put 2000$ on 10 different exchanges. Use 1000$ to purchase 10 different coins each 100$, then purchase 500$ in BTC and remaining 500 you hold in USDT. As soon as you have done that you can start arbitrage in my opinion.

But to become profitable it even is harder. need to take into account the fee you pay on your buy and sell trades, transaction fee if you need to send crypto from 1 to another account.
Basically arbitrage is not holding the coins on different exchange,it is simply buy an coin and move to other exchange and then have to sell so in the waiting time we may lose the value of our coin.
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February 16, 2019, 09:31:28 PM
 #13

I recommend you not to run behind the big ones, look to the others.

Before you ask to learn arbitrage maybe search first if it is profitable! I don't thing arbitrage is profitable anymore in Crypto or at least it is not profitable for small traders you might get rekt by fees, any way you can learn it's basics by googling it and try to simulate it without actually execute anything and see how things will play. I recommend you invest your time in something better than arbitrage in Crypto.
While it is currently possible to find price difference around $50-60 between Bitcoin's prices in some exchanges, why do you think it is not lucrative? Also it is not right to expect a big difference in times of stagnation.
clover12 (OP)
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February 19, 2019, 03:58:20 PM
 #14

Crypto arbitrage sounds like an expensive endeavor.  Undecided
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February 19, 2019, 04:44:01 PM
 #15

I don't think arbitrage is worth attempting, transferring between exchanges can take a long time and any profits you may have had will get eaten up in fees.  The market is relatively efficient so there won't be any major price differences between exchanges anyway.
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February 19, 2019, 06:16:02 PM
 #16

How do I get started with learning more about this? Any pointers? Roll Eyes Roll Eyes Roll Eyes Tongue
Arbitrage trade is more profitable and low risk. But also should investigate before buying any coin or depositing any coin to any exchange. Because sometime exchange disable withdraw or deposit. So should clear about deposit/withdraw . Then sometime some exchange ask kyc for withdrawing fund. It is an another issue that should be clear.

And may be I have seen in cryptopia a service that helps to do arbitrage trading. They show a page where we can see some coin price of different  exchange in one place. So it was a good service. But Now cryptopia have an issue after hacked and now it being maintenance . So don't try to use this exhange at this momen. Good luck.thanks

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February 19, 2019, 06:42:06 PM
 #17

Also some accept fiat deposits / withdrawals and others accept stable coins (and the price is not always the same).
Also you may have to take into account the block times, meaning if you want to move the same Bitcoin from one exchange to another, it means time, which may end up with the target exchange already getting to the same price as the source (and this means that you may have to keep some Bitcoin and fiat/stable coins waiting on multiple exchanges if you want to better profits).
I think that there's a learning curve, you'll need quite some luck until you got everything right.

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February 19, 2019, 07:07:17 PM
 #18

How do I get started with learning more about this? Any pointers? Roll Eyes Roll Eyes Roll Eyes Tongue
For new starters it will be better to learn basics before making any attempt. Arbitrage is like grabbing opportunity when it shows itself in the corner. After finding your edge you can automate your strategy and there are numerous bots which do all all the required job without any stress,time. Just pay and wait for profit in case of combining both bias and bot Wink

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February 19, 2019, 07:08:12 PM
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 #19

How do I get started with learning more about this?
Learning arbitrage trading is easier one but spotting out the real market opportunity of arbitrage is too hard. Arbitrage trading is nothing but making use of price gaps across exchanges. It means some times (very rarely) price of one coin may be trading in gap compared to another exchange. If you are capable of moving coins quicker and capable of catch to those price gaps then you may get some assured profits.

I never encourage people to spend time for spotting price gaps because it will lead to waste their time. Instead of spending time for looking for arbitrage trading, it would be much better to go with some high volume coins along with strong technical analysis as it will guarantee some profits at least on weekly basis.
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February 19, 2019, 07:59:15 PM
 #20

It is actually difficult doing it but easier when you are just thinking about it.  Grin Sorry for my whack explanation but that is how I see it.

First, you will pick two exchange. They have to be legitimate to avoid losing your funds.
Next is picking the right coin to arbitrage. This is the hard part of all. There are so many out there.

You will have to monitor the price of both exchange. Better if you will have like an alarm for every price change.
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