Arbitage trading

[wtsimis]

I saw an opportunity to make a profit by arbitrage trading. The price difference in some exchanges seems like it could make a profit. I'm just thinking, not sure. does it could really make any difference because if any transaction takes more time then any trader will lose the initial money.
I saw many youtube videos saying that anyone could make money from this type of trading. Need suggestions from professionals.

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[jackg]

Generally arbitrage trading benefits someone with funds in a lot of pairs on a lot of exchanges as you can do immediate buys and sells. This is the main way it works, I've seen divergences between prices of coins like eth last a long time when we're in a bear market but I still wouldn't rely on that.

Also take into account: a lot of exchanges might scam, especially the non major ones. And there's also trading fees to account for that you'll have to beat.

[Jawhead999]

There's a opportunity but wouldn't work 100% since it need a right timing, you also need a huge capital if you want to use this trading type otherwise you will lost since the fees (buy, sell, send) overtake the profit differences.

Not all exchanges are legit and trusted, don't get tricked with interesting price (e.g. paxful, localbitcoins) it's full of scammer. The legit differences only 0-0.5-1%.

[bunglor]

Yeah I see a lot of videos on Youtube and I don't try it myself usually the % difference is not that big let's say 0.5% or 1% but imagine if you have a lot of funds and arbitrage trading is a sure win method. I think you will have a good profit out of it.

[blockman]

I saw an opportunity to make a profit by arbitrage trading. The price difference in some exchanges seems like it could make a profit. I'm just thinking, not sure. does it could really make any difference because if any transaction takes more time then any trader will lose the initial money.
I saw many youtube videos saying that anyone could make money from this type of trading. Need suggestions from professionals.

That's the only concern in arbitrage trading that you might get stuck with your transaction and you'll miss the profit as the price goes up and down so fast.
You can have your test run and see if you'll be able to take advantage and arbitrage from exchange to exchange and if that's effective for you. You can share it here if you want to but if you don't want then that's fine.

[NeuroticFish]

I saw many youtube videos saying that anyone could make money from this type of trading.

Just think a little: if anyone could do that, much more people and companies would do it.
The risk is there: unless you have big funds on all major exchanges, the price difference may be gone until your transaction is confirmed.
Then you have to know the exchanges very well: usually those that stand out with big price difference have issues - either very low volumes, either withdrawals (or even deposits) not working (temporarily or forever/scam). Also most exchanges need KYC and you cannot know how many of them will sell that information and what will be done with that (the more places you submit that info, the higher the chance somebody will misuse it).

[The Cryptovator]

Arbitrage trading is quite complicated for beginners. It's because you have to find an indifferent exchange if you want to arbitrage trading. The main problem is the price will be lower in the worst exchange and you might face problems during the withdrawal of your coins. They might block your account or freeze the fund and many more problems. Also, there is transaction time required so just make sure the chosen exchanges are reputed and the coin is not a shit coin. I just heard about this but did not try myself ever, and I don't have any intention to do so. Because it looks like gambling to me, you don't know what is going to happen after an hour.

[sujonali1819]

Yes, trader can make profit by doing arbitrage trading. And I have did it also some times in past. What generally I did I checked the token price in some exchange and rarely I have being seeing one exchange is 10% higher price than other exchange. So what I did , just withdraw the token to 10% bigger price exchange and exchange them and later withdraw it again. But this is not so easy what I have said. You have to notice many things during making this trade. For example:_

. Choose a reputed exchange
. Make sure you have known about the exchange. better to check with small amount first time.
. Make sure where you deposit the token has withdraw opened for that token
. Make sure the exchange does not ask kyc for the new user
. Make sure the exchange has fast withdrawal system
. Also make sure the exchange has a good volume so that you can sell your coin successfully
. etc

[DarkDays]

Generally arbitrage trading benefits someone with funds in a lot of pairs on a lot of exchanges as you can do immediate buys and sells. This is the main way it works, I've seen divergences between prices of coins like eth last a long time when we're in a bear market but I still wouldn't rely on that.

Also take into account: a lot of exchanges might scam, especially the non major ones. And there's also trading fees to account for that you'll have to beat.

Of course, there are all the bits to consider as pointed out by @jackg but in the light of the market volatility you must be confident that by the time you move your funds across (obviously limited by the networks used) that arbitrage opportunity is still there - something you can't guarantee all the time.

Also using different exchanges you might also not want to cross CEXs with DEXs, perhaps not that relevant to you but something to think about, and lastly make sure that after accounting for fees you're left with some profit otherwise the hassle is not worth it.

[GreatArkansas]

COOLCRYPTOVATOR is right, not advisable for beginners, this is needed experience but it can be practice and make it perfect.
I already heard a lot of good news and good profits for just doing arbitrage trading, but yeah, the risk is still there which is already mentioned above.
Another thing I can add is to make sure to read the TOS (Terms of Services) of every exchange you will use so you will avoid your funds will get trapped.

[Wexnident]

You can make money off of it, yes, but it doesn't mean that you'd always do. It's gonna take you some time to adjust since you'd need to move in that time span where there are still profits to be made. There's a bunch of steps you need to do beforehand that others have already said, plus you actually need luck to actually make the trade a success. I'd honestly suggest on not doing it anymore tbh, I don't think the risk and effort is worth the profit you'd actually make.

[SyndicateLabs]

The first thought of people looking at any one financial product is the price movement and looking to profit from it. But actual experience it's not like words come out of thoughts, it's both a learning process and no one will show you but yourself. But general conceptual knowledge will be suitable for someone but not necessarily good for you, my advice to you in terms of expertise in this area, try to make a lot of money and start your trading experience with a play mentality rather than turning it into a hard-to-reach destination.

[breathlessz]

You can make money off of it, yes, but it doesn't mean that you'd always do. It's gonna take you some time to adjust since you'd need to move in that time span where there are still profits to be made. There's a bunch of steps you need to do beforehand that others have already said, plus you actually need luck to actually make the trade a success. I'd honestly suggest on not doing it anymore tbh, I don't think the risk and effort is worth the profit you'd actually make.

I have never done it, but in my mind, to move from one exchange to another of course we need time, and at that time the market continues to move, in that time span there is also a risk, but maybe for those who are smart, of course they can read state

[peter0425]

There are some traders in the past(In which I met via groups) that made profit from arbitration but this is long back when the difference via exchange is at some point Higher ,
but nowadays i only find Fewer that using this strategy and also those people has Big amount in many exchange in which they can easily Buy or sell when the changes comes .
and also this is mostly for long time traders and not just those newbies here in market.

[jrrsparkles]

I saw an opportunity to make a profit by arbitrage trading. The price difference in some exchanges seems like it could make a profit. I'm just thinking, not sure. does it could really make any difference because if any transaction takes more time then any trader will lose the initial money.
I saw many youtube videos saying that anyone could make money from this type of trading. Need suggestions from professionals.

Most of the time you can't execute your strategy due to the waiting period of your withdrawal on the exchanges and also you need to have big capital to cover the trading fee each time. Arbitrage trading is profitable but the chances of hitting the exchanges at the right time is very minimal.

[pieppiep]

The price differences in some exchanges always tempters to try arbitrage trading, but if you do not have skills and do not know how long the transaction will finish, you will not be able to profit. It's not easy as it says so I do not suggest you try arbitrage trading if you do not learn about trading. You need to know many things before you do arbitrage trading and most of that thing is related to time consumption by sending the coin to the other exchanges. But you can try to send BNB or LTC to test how long the transaction will finish so you can sell at the right time.

[Masplanc]

Arbitage trading you have to be well experienced in trading it's well profitable but I can not advice a novice or a newbie who is a beginner in trading to go into it because it can be difficult for one who does not really understand it's strategies.

[Oshosondy]

Generally arbitrage trading benefits someone with funds in a lot of pairs on a lot of exchanges as you can do immediate buys and sells.

I do not think it is necessary, what is mostly important is the withdrawal fee for stable coins like tether, if such exchange support USDT TRC20, the fee will be low. What I have known about arbitrage trading is that someone need a coin which might be a stable coin with low fee for withdrawal.

Also take into account: a lot of exchanges might scam, especially the non major ones. And there's also trading fees to account for that you'll have to beat.

Trading fee should not be a problem but I do not know how trading fee on some exchanges can be, but for 0.25% and lower fee is still okay enough for arbitrage trading. But what is most important is the amount of money used, low amount of money can be used to make profit for arbitrage trading, high amount is important, starting from like $2500 or more.

I understood you and you are not wrong, there are some exchanges that have a bad means of trading and deduct more than the trading fee, in a way it will not favor buying and selling, arbitrage traders have to be careful because exchanges differs while some are shaddy in a way traders will lose in fee than usual.

[btc78]

The first thought of people looking at any one financial product is the price movement and looking to profit from it.

That is why we are investing because we are looking for profit lol.

But actual experience it's not like words come out of thoughts, it's both a learning process and no one will show you but yourself.

Learning is the weapon of every trader, no knowledge? then don't invest at all.

But general conceptual knowledge will be suitable for someone but not necessarily good for you, my advice to you in terms of expertise in this area, try to make a lot of money and start your trading experience with a play mentality rather than turning it into a hard-to-reach destination.

But Arbitrage is not that easy task to use as trading strategy because the price movement moves lightning speed sometimes so your best enemy here is timing.

[Silberman]

I saw an opportunity to make a profit by arbitrage trading. The price difference in some exchanges seems like it could make a profit. I'm just thinking, not sure. does it could really make any difference because if any transaction takes more time then any trader will lose the initial money.
I saw many youtube videos saying that anyone could make money from this type of trading. Need suggestions from professionals.

Arbitrage trading can be profitable, however there are some problems that you need to solve first, arbitrage trading gives very small profits in each trade so if you want to use this style of trading then you need a huge amount of capital, something the majority of the people do not have, the other issue is that the distortions in the market last a very short time as there are people like you with the same idea and they want to get that money for themselves, so you will need a bot to trade this way in an effective manner.