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Author Topic: what is the ideal price difference that people use to arbitrage bitcoin?  (Read 200 times)
tygeade
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June 28, 2021, 08:45:19 PM
 #21

as many have commented that bitcoin arbitrage will not be profitable because you will be charged multiple fees, so it cannot cover the transferred capital.
Likewise, with the most profitable altcoin, it may only be 1% to 2%, considering that it depends on the condition of the altcoin trading volume and the spike that is generated in a short period of time. However, if you are doing arbitrage when conditions are hunting for high prices in one particular market, then you experience a delivery jam or wait for several confirmations, it will be very risky.
I don't get how withdrawal fees will hinder arbitrage trading. I will explain how it can be done without actually withdrawing and depositing BTC.

1- Imagine you see BTC being sold at $35k at one exchange. (exchange A)
2- You see people buying BTC at 36k at another exchange. (exchange B)

Now what you need to do is really simple. You will borrow 1 BTC from exchange A at $35k and then you will short sell 1 BTC at exchange B at $36k. Now once both the trades are completed, you just need to deposit 1 BTC back to exchange B which you can do with ease since you have that in exchange A. Did I miss something here guys?

yhiaali3
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June 29, 2021, 06:18:24 AM
 #22

I don't think arbitrage trading strategy is a good idea for Bitcoin, the difference in price between platforms may seem a bit tempting but there is a big problem that prevents arbitrage from happening easily. In this case, to buy 1 BTC, that is, you must pay 35,000$ to eventually get a profit of 300$. Also, don't forget to deposit large amounts that can cause a problem on some platforms and be required to verify KYC and this is what many avoid. Using altcoin arbitrage is much better and more profitable.

NewRanger
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June 30, 2021, 11:14:18 PM
 #23

i have used arbitrage trading strategy myself but for altcoins only and whenever their price had a big difference. but i am curious what percentage is the ideal price different for people who use this strategy for bitcoin trading.

for example looking at Binance the price has been about $300 to $350 below the market price and that is about 0.83% to 1% difference which looks good enough for bitcoin with a highly liquid market to me.
the point i need to saw only buy or sell order amount beside price difference in exchanges. I am just worry if i am start arbitrage but while my token added in exchanges, buy already gone and we loss in transaction fee or even we got losses. Personally this is the main point to view before i am look how much the price difference. For me atleast i should i get 6% to 10% nett after  cut transfer fee and other cost.
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