Possibility of arbitrage in Brazil vs World

[Mathrusgrijo]

Hello people who like to make trades and arbitrations, I am from Brazil, and here we have a group called BITCOINBANCO,
in which I have a registration, they have TWO exchanges (NegocieCoins [https://coinmarketcap.com/exchanges/negocie-coins/] and TemBTC (Does not have CMP)).

They have just released a statement that has opened registration for foreigners!

What is cool about this platform is that you can transfer (BRL Brazilian currency) between the two exchanges automatically, without going through the Brazilian banks!

Usually BITCOIN is cheaper at TEMBTC and more expensive at NEGOCIECOINS, what Brazilians are doing is buying cheaper at one and selling at the other.

What most foreigners are doing is selling the most expensive bitcoin in NEGOCIECOINS and buying back cheaper at TEMBTC, so they are accumulating BTC in this arbitrage!

I made a tool in GITHUB to be able to demonstrate the SPREAD that exists between the two, normally the total rates go from 1.5% to the arbitration cycle, however in some moments like now
the spread is over 1.809%!
My GITHUB: https://github.com/MatheusGrijo/ArbitragemNegocieCoinsTemBTC (If you can I can leave in ENGLISH)


Link of the exchanges involved:
https://www.negociecoins.com.br
https://www.tembtc.com.br

I do not work on any of them and I will not be liable for loss or damage that may occur!
I'm just informing the community!

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[odolvlobo]

First, you should always be wary of promotions of exchange arbitrage opportunities because they are frequently promoting scams involving fake exchanges.

I have found that successful exchange arbitrage is not simple. It takes lots of money and research. In order to take advantage of an arbitrage opportunity, you must first determine the issue that causes the price discrepancy, and then be able to get around it. In addition, you must be able to transfer money and assets quickly between exchanges.

[dothebeats]

Have you already factored in the cost of transfers in between the two exchanges and also the fees that they are getting from every successful trades? Arbitraging is not as simple as people put it to be, and you need to factor a lot of things before diving in to this simple yet tedious task of trading. Liquidity at a given time of the day is also important, because if you can't liquidate your BTC no matter how big the spread is or the potential profit is, that's already a waste of time and a possible loss in value.

[Duzter]

Arbitrage Trading is really hard to achieve the best, also it needs trusted people willing to help. To achieve trust in the cryptospace is really hard. The best arbitrage trade in recent years happened with bitcoin by 2017, this happened with India to the western nation. India and the rest of the world had a difference of more than $1000. This massive difference happened with the demonetization of Indian money.

[Chika08]

Arbitrage is not a simple task the liquidity at the exchange. Price gap and many more things are involved. But, at the same time it is not a impossible task.

I have read articles of arbitrage and also tried to set up my bot on an Exchange.

Article on triangular arbitrage: https://medium.com/@BlockchainEng/triangular-arbitrage-with-cryptocurrency-on-binance-exchange-with-python-videos-and-code-real-bc63d0905d05
This article may help you improve your code.

I have set my trail bot on CoinSwitch as they allow us trade on all top exchanges without an account also they do not have any liquidity issue. Price difference can easily found and 45000 coin pairs and no liquidity issue.

How did you set up a trial bot for coinswitch? I am interested to learn how I can benefit from the arbitrage and make use of it better. I havehear slot about it and am fully interested on it

[btc_angela]

First, you should always be wary of promotions of exchange arbitrage opportunities because they are frequently promoting scams involving fake exchanges.

I have found that successful exchange arbitrage is not simple. It takes lots of money and research. In order to take advantage of an arbitrage opportunity, you must first determine the issue that causes the price discrepancy, and then be able to get around it. In addition, you must be able to transfer money and assets quickly between exchanges.

This is the key here for a successful arbitrage trading. But with so many bots around, how can you compete with them? I think arbitrage also boom during the bull run in 2017, but I'm not sure if it is still profitable and how many exchange can you still arbitrage because a lot has been popping out lately that it's really a big risk for traders.

[Bitinity]

There are many aspect to consider when someone is going to do arbitrage trading between exchanges such as withdrawal fees (bitcoin/fiat), trading fees, deposit fees (if any, usually exist for fiat deposit). Someone needs some money to cover that possibles fees as it wont be profitable if the price gap is not big enough. It will not profitable for low bankroll traders as well, imho you need to have big capital to do arbitrage trading in order to make good profit. Also as addressed by above poster, the speed of transaction will affect the process as well because the price may change during the transaction process.