Arbitrage in crypto

[PercT4b]

Trading in the stock market is a thing, but doing it in the crypto market is almost exclusively for professionals (and many people keep ignoring this) and takes years and years of hard study to make it work properly without liquidating your savings.

But I was wondering if any of you tried arbitrage on the crypto market (I'm choosing this option because it is relatively less risky than normal trading, basically the main effort is to find those pricing errors and "exploit" them without incurring in a front-run).

Do you have any experience with this method, which software/programs do you use and what tutorials do you follow to learn it?



P.S: I see that price differences especially in low cap altcoin and I think I've actually found one example so I'll share a screen, let me know if this could be a valid example and how would you deal with it.

[Zilon]

I learnt Arbitrage trading on binance and has been on it for a while basically I have no software that provides signals so this keeps me close to my monitor almost at all times except I choose not to trade at a certain time. True arbitrage trading is less risky but the profit made is very little and to get the little profit smartness and speed is needed. To me it's the most stressful

[crwth]

It's pretty fun to checkout arbitraging because it's one of the safest ways to trade without risking too much and making sure that you can profit. It's not going to be ideal if you will do it manually. That's why I use a bot. I have experience with Arbitraging using Gunbot. It works intraexchange, so it trades triples within the available pairs or anything. It's still continuously being updated, but its position right now is excellent. It's working, and many trades are coming through making profits.

[el kaka22]

I once used a trading bot that did arbitrage whenever it found one. This became a lot easier whne you consider the fact that arbitrage could be done even in just one exchange. Like we could do btc-eth-ltc trio as arbitrage if we want to, or use usdt there instead. This is why it became easier to find arbitrage opportunities but there are a lot of competitions going around as well. Places like swaps in the smart contract world have bigger chance, because one price in one swap might be different from another, and that results with bigger chances that not many people know.

Some very low level cap tokens could have hundreds of dollars sitting there because people didn't check it, yesterday I made about 8 dollars in profit because I remembered a token and wanted to check and saw a chance. So it is there, but it is very hard to find them and they are not frequent.

[mk4]

As far as I know looking for great arbitrage opportunities is difficult due to a lot of traders using automated software. Your chance is probably just using some shady less-known exchange to arbitrage with, but obviously there are huge risks.

As for the token on your screenshot, yea, that's some really low liquidity token right there. By the time you sell on the other exchange, there's a good chance that the price might have moved upward/downward. Potentially messing up your arb.

[bhadz]

I've done that and it did no good for me, I haven't used any software for doing that before because I don't know that it's possible. Maybe the last time I've done it was 5-6 years ago.
Really early on that and maybe there was really no automated way of doing it. But if it's possible now, that's sure is a great thing to know and take advantage of the market situation but it's with a cost for sure.

[Mahanton]

As far as I know looking for great arbitrage opportunities is difficult due to a lot of traders using automated software. Your chance is probably just using some shady less-known exchange to arbitrage with, but obviously there are huge risks.

As for the token on your screenshot, yea, that's some really low liquidity token right there. By the time you sell on the other exchange, there's a good chance that the price might have moved upward/downward. Potentially messing up your arb.

As for arbitrage then most of the time this would really involved  those less known or unpopular exchange platforms which that one alone would really be putting you in hindrance whether you should deal with it
or would totally skip out.
Arbitrage is profitable but there are several factors to consider before you could really claim to be profitable like fees and the timing you had able to get in and considering those
other terms and conditions in between exchangers which do make things even more hassle.
Its a personal preference though because chances of arbitrage isnt always that can be seen.

[GreatArkansas]

(.....)
Do you have any experience with this method, which software/programs do you use and what tutorials do you follow to learn it?

P.S: I see that price differences especially in low cap altcoin and I think I've actually found one example so I'll share a screen, let me know if this could be a valid example and how would you deal with it.

https://i.postimg.cc/MK4WjdSs/pic.png

Another thing to do is do not indeed rely on platforms like coinmarketcap, there could be some issue displaying prices on different markets.
If you want to make sure, go check the price of it on the exchange you are looking for, so you will be more sure. I believe they are only displayed by API, so there could be any issue from the side of coinmarketcap for displaying sometimes the price.

[noorman0]

Arbitrate only on exchanges you trust or you have traded and withdrawn without problems. I'm just worried that what's shown doesn't match the actual situation.
Significant price differences sometimes occur due to a lack of trading liquidity in one of them. Or it could be that the exchange has a technical problem like recently happened to hitbtc, you can trade doge but can't withdraw it.

[yhiaali3]

I tried arbitrage but manually and not by using a robot so it is somewhat difficult and cumbersome, I used to monitor the price differences through a website, but the problem was that every time I find good price differences between two exchanges they close the withdrawal and deposit, then the plan fails and you will not be able To do anything, this has happened to me a few times.
Lately I've been looking for arbitrage opportunities between central and liquidity exchanges like PancakeSwap, it works fine sometimes but you have to keep an eye on the spreads on Coinmarket constantly.

[tvplus006]

...P.S: I see that price differences especially in low cap altcoin and I think I've actually found one example so I'll share a screen, let me know if this could be a valid example and how would you deal with it.

Each specific case should be considered individually, bearing in mind that a large difference in price may be caused by various factors. These include the fact that there may be very little liquidity on one of the exchanges or the deposit/withdrawal of the coin you are interested in is prohibited.

[OcTradism]

There are sales tax in some projects so if you don't do careful research and only look at price difference and make arbitraging trades, if you are trapped with sales tax, you will get loss by arbitraging after sales tax reduction.

People can do arbitraging between platforms, exchanges or cross chains. It is more useful with not too small or not too big volume. Because with big volume, difference from arbitraging is not significant enough. While if trading volume is too small, you will make big change in price with your buy or sell orders.

[Ararbermas]

Trading in the stock market is a thing, but doing it in the crypto market is almost exclusively for professionals (and many people keep ignoring this) and takes years and years of hard study to make it work properly without liquidating your savings.

at first actually i thought crypto trading is the easier to trade assets than stocks and etc but time goes by i realize that  there's a big difference wherein probably reason mostly traders are on stocks. But yes the patterns and strategies can be used as well on both sides but when it comes crypto its really hard to get the pictures when it comes analysing like seems it will took 2 years for me to understand how i can make good win rate in it. Lol

[suzanne5223]

But I was wondering if any of you tried arbitrage on the crypto market (I'm choosing this option because it is relatively less risky than normal trading, basically the main effort is to find those pricing errors and "exploit" them without incurring in a front-run).

You make a point about Arbitrage to be less risky than normal trading but it also require good knowledge, funds and the use of powerful automated machine.
Without the first 2 or the 3 features I mentioned the risk in arbitrage is still the same as normal trading.

Do you have any experience with this method, which software/programs do you use and what tutorials do you follow to learn it?

Always dyor about any program that's recommended to you.

[Strongkored]

Do you have any experience with this method, which software/programs do you use and what tutorials do you follow to learn it?

I did this some time ago without any bots or software all done manually and it is not easy to find the price difference between exchanges is sometimes very time-wasting and can be said to be lucky if you can find that difference.
Currently if there is a price difference it could be because the exchange is closing deposits or withdrawals, that may cause traders become stuck, imagine if traders do arbitrage on coins with low liquidity they will experience a big loss, so you have to be careful to arbitrage on coins with low liquidity.

[mindrust]

Be careful with those exchanges. Most of them are scammers and when you deposit money; they will ask for a very high withdrawal fee or ask for KYC or will come up with some other crap to keep your money. Sometimes it is not even possible to trade these pairs even though it shows up. "Wallet maintenance"

If that arbitrage was possible, somebody else would have done it already. If the price difference between 2 exchanges is too much, it means one of those exchanges is in trouble.

[Coin_trader]

Most of the time is its just a waste of time and money for transaction fee and withdrawal fee since most the exchange charge flat rate on withdrawal while the volume on the orderbook on the exchange that has an irregular price is always thin with a huge price spread. So in the end you end up breakeven or worst is you just stuck your coin on other exchange while paying the withdrawal fee since you are just breakeven when you market sell your token on  the order book.

Arbitrage trading on same exchange with different trading pair is much more realistic to do than multiple exchange arbitrage.

[ethereumhunter]

If arbitrage trading is about buying in 1 coin and sending it and selling it in the other exchange, I do not think that will be easy because you need to think about how long the coin will arrive in the other exchange to sell it at the right time.

If I see on your image, the price has a gap and that can give you the profit, but you should know about how the fee is time-consuming to send and sell. I prefer not to touch arbitrage trading in crypto as I have failed many times experiment in the past. It needs more calculation than regular trading as you need to find a closer of the coin with a different price and compare it with the other exchange. If you feel lucky, you can try it and see the result.

[Wexnident]

Pretty sure it's too difficult nowadays? Most exchanges have their prices pretty close to each other now and so profits from trying it out would be quite minimal. Plus, even if there were programs that would let you arbitrage, pretty sure a few other people would have also used it, maybe even better ones. Honestly, you might even lose out due to the transaction fees. Yes arbitrage is less risky than other methods of trading, but it's also the most unrewarding out of all of them, and may even, as I said, make you lose out.

[ice18]

I tried Arbitrage before trading from dex/cex to cex and vice versa when there are new token listing the only problem is the transaction time, its a bit difficult to process it manually you will spend a lot of time to withdraw and deposit if you are doing it without using any bot. Second I learn for you to earn good amount in arbitrage trading you need huge funds since most of the price nowadays have very little difference from other exchanges. Most traders today are using bots to make a good profit since its automated and can trade even when you are sleeping, manual is really difficult for now you cant frontrun 100 bots trading simultaneously.