Bitcoin arbitrage, pros and cons, experience and profitability

[Indacoin]

Hey guys, we invite you to test arbitrage on our trading platform. As far as we one of the few services that let people purchase bitcoins & litecoins with a credit card, we have rather more buyers than sellers. Thats why our price is usually higher than on the major exchanges
After you sell cryptocurrency, you can withdraw money to Okpay.
https://indacoin.com/trade

This doesn't make any sense. Most sites that sell bitcoin via a Credit Card actually sell bitcoin and are not actually an exchange. The difference in the exchange rate is profit for the site in exchange for taking the risk of credit card fraud.

Yes & No - we got 2 services
1) an exchanger, where people usually buy bitcoins with a credit card and pay high fees https://indacoin.com/change
2) a trading platform, where people can exchange bitcoins & litecoins with each other https://indacoin.com/trade
And the exchanger is connected with the trading platform. So when our clients buy bitcoins through exchanger, in fact they execute a buy order on our trading platform. And as far as customers who use exchanger don't care much about the price, people who sell bitcoins & litecoins through our trading platform, got good profit

[1714079992]

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[1714079992]

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[1714079992]

1714079992

[crazyivan]

Hey guys, we invite you to test arbitrage on our trading platform. As far as we one of the few services that let people purchase bitcoins & litecoins with a credit card, we have rather more buyers than sellers. Thats why our price is usually higher than on the major exchanges
After you sell cryptocurrency, you can withdraw money to Okpay.
https://indacoin.com/trade

This doesn't make any sense. Most sites that sell bitcoin via a Credit Card actually sell bitcoin and are not actually an exchange. The difference in the exchange rate is profit for the site in exchange for taking the risk of credit card fraud.

Yes & No - we got 2 services
1) an exchanger, where people usually buy bitcoins with a credit card and pay high fees https://indacoin.com/change
2) a trading platform, where people can exchange bitcoins & litecoins with each other https://indacoin.com/trade
And the exchanger is connected with the trading platform. So when our clients buy bitcoins through exchanger, in fact they execute a buy order on our trading platform. And as far as customers who use exchanger don't care much about the price, people who sell bitcoins & litecoins through our trading platform, got good profit

How old is your service and how many clients have you had so far?

[Indacoin]

The company was founded in 2013 - we launched beta a few months ago and now we are fixing bugs of the new site version. We hope to announce it next week - we ve already launched more friendly design, okpay withdrawals and are testing margin trading, that will be also available next week.

[crazyivan]

The company was founded in 2013 - we launched beta a few months ago and now we are fixing bugs of the new site version. We hope to announce it next week - we ve already launched more friendly design, okpay withdrawals and are testing margin trading, that will be also available next week.

Margin trading might be interesting, however you need to have large base of users in order to achieve attractive interest rates.

[crazyivan]

The company was founded in 2013 - we launched beta a few months ago and now we are fixing bugs of the new site version. We hope to announce it next week - we ve already launched more friendly design, okpay withdrawals and are testing margin trading, that will be also available next week.

Margin trading might be interesting, however you need to have large base of users in order to achieve attractive interest rates.

....and it can seriously decrease BTC price as we ve seen during this last BTC crash.

[Xer0]

seems like someone arbitraged the heck out of indacoin

[crazyivan]

$30 spread between Bitstamps and BTCe. OMG.

[Indacoin]

$30 spread between Bitstamps and BTCe. OMG.

hey there - we ve decreased OKpay withdrawal fee to 1% 
https://bitcointalk.org/index.php?topic=746071.0

[cryptofan5]

I think arbitrage is generally profitable if you choose your moment right.

[crazyivan]

I think arbitrage is generally profitable if you choose your moment right.

It s all about the difference in price in liquidity. I really wish I have the time to follow Chinese exchanges, lots of potential there.

[Stars]

Wouldn't it be extremely risky to have large amounts of money in exchanges that could get shut down at any moment such as huobi?

[Minerjoe]

Wouldn't it be extremely risky to have large amounts of money in exchanges that could get shut down at any moment such as huobi?

Sure, ask yourself this question: is it extremely risky having large amount of money into something intangible and unregulated as Bitcoin? It can simply disappear tomorrow and nobody would be able to anything about it.

[hiddensphinx]

This website show all possible BTC/USD  Arbitrage possibilities in real time - http://www.cryptocoincharts.info/#jump-btc-usd

[Edward_Cryptonit]

Efficient arbitrage becomes possible when you are able to maintain sufficient levels of cryptos/FIATs on as many exchanges as possible. Also automation plays an important role, meaning the possibilities to integrate with a given exchange via API.

Last but not the least is the availability of various deposit/withdraw methods for your FIATs and also the time which an exchange requires to process your deposits/withdrawals. It's crucial for moving your funds between exchanges.

Regards
Edward

[itod]

This website show all possible BTC/USD  Arbitrage possibilities in real time - http://www.cryptocoincharts.info/#jump-btc-usd

I can't find what do you mean, where do you read the arbitrage opportunities? Can you give an example?

[chassis]

Hey guys,

I have been involved in Bitcoin arbitrage for several months now and it has been quite profitable. For those of you unaware how this works, arbitrage is the process of taking advantage of BTC price difference between BTC exchanges. In other words, purchasing Bitcoins on the exchange with the lower price, and re-selling those same coins on another exchange and profiting through the difference.

I did some arbitrage on my own  last year when there was a huge spread between Mtgox and Bitstamp Bitcoin prices, in some cases between 5-10%. The main problem was how to move BTC and/or fiat between different exchanges and the fact that in order to reduce the arbitrage risk to a minimum one needs to be able to buy BTC on an exchange with low price while selling the same amount of BTC on another exchange with high price AT THE SAME TIME. Recently, the spread between exchanges is not so wide anymore but there are a lot more exchanges, so there is still a lot of money to be made on this.

Have you ever performed arbitrage on your own, were you successful, what was your biggest problem, please share your experience.

I am interested in this, but can you tell me when is the right time to sell it ?
I just don't know how to decide it!

[cozytrade]

As soon as you find it profitable. It is as simple as that 

can you tell me when is the right time to sell it ?
I just don't know how to decide it!

[Pst291]

I looked into arbitrage a few years ago but found it to be nice as a concept but doing it in reality has so many drawbacks,price change,time of transfer,fees etc

In the end i went a different way and found something profitable to the tune of about 2-2.5% per sat move against altcoin btc pair per trade.I tried telling ppl about it as i was looking to sell it but at that time noone actually beleived it was possible mathematicly so i was stuck with it.Poor me

Arbing just wasnt for me,not in crypto anyways

[oprahwindfury]

I looked into arbitrage a few years ago but found it to be nice as a concept but doing it in reality has so many drawbacks,price change,time of transfer,fees etc

In the end i went a different way and found something profitable to the tune of about 2-2.5% per sat move against altcoin btc pair per trade.I tried telling ppl about it as i was looking to sell it but at that time noone actually beleived it was possible mathematicly so i was stuck with it.Poor me

Arbing just wasnt for me,not in crypto anyways

What do you mean by this exactly? Moving bitcoin to altcoins in order to make a profit essentially?

[joesmoe2012]

Wouldn't it be extremely risky to have large amounts of money in exchanges that could get shut down at any moment such as huobi?

Yes. All of the largest exchanges in the world have historically always stolen coins from customers or been hacked.