Bitcoin Forum
May 12, 2024, 02:37:49 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: « 1 [2]  All
  Print  
Author Topic: what is the ideal price difference that people use to arbitrage bitcoin?  (Read 200 times)
tygeade
Legendary
*
Offline Offline

Activity: 2100
Merit: 1058



View Profile
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?

1715481469
Hero Member
*
Offline Offline

Posts: 1715481469

View Profile Personal Message (Offline)

Ignore
1715481469
Reply with quote  #2

1715481469
Report to moderator
1715481469
Hero Member
*
Offline Offline

Posts: 1715481469

View Profile Personal Message (Offline)

Ignore
1715481469
Reply with quote  #2

1715481469
Report to moderator
Bitcoin mining is now a specialized and very risky industry, just like gold mining. Amateur miners are unlikely to make much money, and may even lose money. Bitcoin is much more than just mining, though!
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
yhiaali3
Legendary
*
Online Online

Activity: 1694
Merit: 1866


#SWGT CERTIK Audited


View Profile WWW
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
Sr. Member
****
Offline Offline

Activity: 1568
Merit: 333


Enterapp Pre-Sale Live - bit.ly/3UrMCWI


View Profile WWW
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.

█████████████████████
█████████████████████████
█████████▀▀▀▀▀▀▀█████████
██████▀███████████▀██████
█████▀███▄▄▄▄▄▄▄███▀█████
████████▀▀▀▀▀▀▀▀▀████████
█████████████████████████
█████▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄█████
█████████████████████████
██████▄███████████▄██████
█████████▄▄▄▄▄▄▄█████████
█████████████████████████
█████████████████████
██████████
██
██
██
██
██
██
██

██

██

██

██

██████████
 
CRYPTO WEBNEOBANK
██████████
██
██
██
██
██
██
██

██

██

██

██

██████████
▄▄███████▄▄
▄███████████████▄
▄██████░░░░░░░░░░███▄
▄████▄▄███████▄▄░░░██▄
▄█████████████████░░░██▄
████░░▄▄▄▄▄▄▄▄▄░░░░░░░░██
████░░██████████░░░░░░░██
████░░▀▀▀▀▀▀▀▀▀░░░░░░░░██
▀█████████████████░░░██▀
▀████▀▀███████▀▀░░░██▀
▀██████░░░░░░░░░░███▀
▀███████████████▀
▀▀███████▀▀
Pages: « 1 [2]  All
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!