Arbitrage in crypto

[JailHouse]

Hi, anyone currently doing inter exchange arbitrage profitably?

Instead of transferring tokens between exchanges, I was thinking of holding an amount on a few different exchanges.

My question is, what coins should I hold?

When an opportunity is shown by any software, it could be ANY coin.
So how do Arbitragers make a profit when they don't know what coin will show up, and therefore what coin to hold?

Appreciate the insight.

JH

[SquallLeonhart]

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.

When there are so many smart minds working to build something that could do what you are trying to do but very quickly then it will always end up with something bad for the manual trader. I mean imagine the fact that we would end up with robots in real life, don't you think eventually they will do things better than we do? Most things at least.

Well, it is the same logic, smart people are working on making bots find and execute those arbitrage chances in miliseconds, and that is not going to be something humans can do, even if you see it with your own eyes and click, you might be late or maybe you won't be but you have to be right there for it. So that is why arbitrage is done by bots, they are just way too faster compared to people.

[leea-1334]

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.     

I think everyone has tried arbitrage at some point if they ever wanted to call themselves "amateur trader"

I mean, long before I knew even about crypto, or derivatives or leverage or futures, I was just doing normal forex and already everyone who knew how or thought they knew how was trying to do arbie.

Huge funds do not work on small alts though. Not enough volume in orders.

[24Kt]

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.     

I think everyone has tried arbitrage at some point if they ever wanted to call themselves "amateur trader"

I mean, long before I knew even about crypto, or derivatives or leverage or futures, I was just doing normal forex and already everyone who knew how or thought they knew how was trying to do arbie.

Huge funds do not work on small alts though. Not enough volume in orders.

Traders are trying to do arbitrage for the hope that they will get profit of course. But for example in crypto, there are some factors that you need to consider before pushing thru with arbitrage. It is hard to suggest a coin to get involved with because the price volatility is hard to follow in any coin. You need to focus in small number of coins if you want to employ this kind of strategy. Also, quite risky to trade small cap coins. The price movement is usually slow and not advisable if you want quick profit.

[sana54210]

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).

Yeah, it is absolutely risk-free and instant profiting is possible but the catch is you cannot figure out "feasibly" price gaps. That is the biggest challenge of arbitrage trading. It means either the gaps you find, may not enough for paying exchange fees or also not worth for the gas/tx fees needed to move the coins along with paying exchange's withdrawing fee. So, you need to consider and calculate all the costs which are involving before getting start with arbitrage trading.

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

I have tried few time and got small profits; it is kind of once in year opportunity. If you keep looking at different markets and something you might be able to spot such price gaps.

[taufik123]

When there are so many smart minds working to build something that could do what you are trying to do but very quickly then it will always end up with something bad for the manual trader. I mean imagine the fact that we would end up with robots in real life, don't you think eventually they will do things better than we do? Most things at least.

Well, it is the same logic, smart people are working on making bots find and execute those arbitrage chances in miliseconds, and that is not going to be something humans can do, even if you see it with your own eyes and click, you might be late or maybe you won't be but you have to be right there for it. So that is why arbitrage is done by bots, they are just way too faster compared to people.

Most arbitrations are executed by bots, and that will speed up the work of arbitration rather than having to do it manually. All calculations will be carried out by the Bot as well as when the execution time will be carried out. I found a lot of artbitrage bots ranging from free to paid. But very few chances are had if the volatility is too high. before using a bot, you should do some research and use the least amount of capital possible to experiment so you don't get caught up in the arbitrage that is being carried out.

[leea-1334]

I mean, long before I knew even about crypto, or derivatives or leverage or futures, I was just doing normal forex and already everyone who knew how or thought they knew how was trying to do arbie.

Huge funds do not work on small alts though. Not enough volume in orders.

Traders are trying to do arbitrage for the hope that they will get profit of course. But for example in crypto, there are some factors that you need to consider before pushing thru with arbitrage. It is hard to suggest a coin to get involved with because the price volatility is hard to follow in any coin. You need to focus in small number of coins if you want to employ this kind of strategy. Also, quite risky to trade small cap coins. The price movement is usually slow and not advisable if you want quick profit.

Volatility actually makes it easier in arbitrage,,, I would say. If you remember in the past 4 years since 2017 ATH when Bitcoin could be arbitraged in South Korea and in Argentina, volatility was so extreme that exchanges could not keep up. Traders profit the most with systems that are slow to match price in global market.

Volatility is not as big a problem as volume. Small altcoins have so little orders you would wipe out your arbitrage gains with a few hundred dollars.

[topbitcoin]

Arbitrage for me is more complicated. We should know what cause it and we should take our decision faster because other people might be see that chance too. Because usually there are any problem from the market itself like deposit or withdrawal maintenance and if we don't know that, we can easily lose our money. In past when Bittrex and Poloniex still trend, especially when Poloniex listed new coin, usually it get pumped a lot and when i can't arbitrage, i will just buy in first market and then sell it in same market because people will start to buy it too and it can make price getting higher.

[Charles-Tim]

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.

You learned arbitrage trading on Binance? I still do not understand this statement, a single exchange can not be used to trade arbitrage, it requires two or more exchanges. Also that arbitrage traders have bots that can let them know the price of a coin on individual exchanges.

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

Arbitrage is not that risky, but it is still ridky, and for if done wrongly, it will lead to loss, especially during volatile market. For the profit in arbrotage to be more, arbitrage traders prefer to use high amount of money. But the rule states that someone should use the amount he can afford to lose for trading.

[taufik123]

I think not have any bot just many exchange market manipulated buy order and always use bot order on their exchange market, I have been in arbitrage more than two years but only take focusing with polygon and BSC network. Not enough money or profit earn using erc20 network because fees sending and swap coin most higher. I think arbitrage is waiting for when bitcoin and altcoin price pump because have many different price between one exchange with another exchange.

This significant difference can be exploited by Bots. but there will be calculations done by the bot before arbitration, as I said before. If the bitcoin price is unstable as it is today, of course it is very risky and in the bot there are also several settings that need to be done, so the bot is not fully automatic, there are semi-manual settings that must be done to adjust to market conditions.
The use of the ERC20 network is not recommended, because there are many fees that must be paid, the cheapest is the BSC network, polygon and also new networks such as Avax which of course have a cheaper fee.

[sarmrakib]

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.

Its true that crypto is huge platform and i think it is better than stock .Cause we can get a huge returns here within short perid of time .However arbitrage is one of the safest way of trading but it has many risk concern .You need a safe platform to make the trade profitable .You have given a screenshot here we can see the price difference but you also need to research if there are deposit and withdrawal are open on the both platform and also the volume with the real price .If everything fine there on both exchange you can make profit easily .So before doing you have to research everything concern to complete it successfully .I think you always need to active there and update about the concern trading .I think you may earn arbitrage but never forget to research and learn on crypto .

[kentrolla]

It is bit stressful process to be honest, i have tried it and finally gave up as you need to hold funds in multiple exchanges and most of the time the platform where you will get a particular coin at lesser price will have a hefty withdrawal fee while you try to transfer t to other exchange where you can sell it for higher price and the amount of profit which you recieve after going through all the hassle is nothing compared to the efforts you out it to search the arbitrage and maintaining funds in multiple exchanges. There are websites koinknight which offered premium packages for arbitrage but most of the time they are incorrect.

[teosanru]

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.

First of all Arbitraging without any trading tool is almost impossible as well as impractical. You will find such differences in a lot of coins on coinmarketcap but this doesn't depict the right picture, because there are high chances the LTP isn't even between the range of the buy-sell wall on the other exchange because there is zero liquidity of the coin in the second exchange. Which means you need a tool that can track the order books on both exchanges. Then another problem is long withdrawal times in crypto, unlike stocks and forex where arbitrage is done by taking delivery elsewhere, you don't really have this option such options in Cryptos, you have to withdraw the coin and pay for the withdrawals fees as well as wait for a few minutes, and there are high chances that this opportunity will be missed in the meanwhile. You don't have any derivatives based option of arbitrage in cryptos so far.

[Hamphser]

Arbitrage for me is more complicated. We should know what cause it and we should take our decision faster because other people might be see that chance too. Because usually there are any problem from the market itself like deposit or withdrawal maintenance and if we don't know that, we can easily lose our money. In past when Bittrex and Poloniex still trend, especially when Poloniex listed new coin, usually it get pumped a lot and when i can't arbitrage, i will just buy in first market and then sell it in same market because people will start to buy it too and it can make price getting higher.

You would really be needing to be done it faster because price gaps couldnt be sure on when it would last and several factors are needed to be considered first to have an effective arbritrage trading but its true that it is somewhat complicated into those people who might have first try on it.

Chances like these doesnt really come on often thats why searching for opportunities like these are really hard to find one.

[tvplus006]

Hi, anyone currently doing inter exchange arbitrage profitably?

Instead of transferring tokens between exchanges, I was thinking of holding an amount on a few different exchanges....

It will be difficult for you to guess such a coin, which will have a difference in price on several exchanges. At the same time, you should take into account the fact that you will have to wait a long time for such a moment and at the same time your money will actually be frozen.

[pooya87]

Be very careful when you do altcoin arbitrage trading, I have had some pretty bad experiences in this field. Usually when there is a big price gap between exchanges in different altcoins it is a bad sign, most of the times one exchange or both are having some serious problems with that coin and you can't transfer it between exchange to complete your trade and get your profit.
Sometimes the order books can be too thin or even fake and you could fail to finish your trade that way and end up bag holding something you don't want to.

[pressing207]

Be very careful when you do altcoin arbitrage trading, I have had some pretty bad experiences in this field. Usually when there is a big price gap between exchanges in different altcoins it is a bad sign, most of the times one exchange or both are having some serious problems with that coin and you can't transfer it between exchange to complete your trade and get your profit.
Sometimes the order books can be too thin or even fake and you could fail to finish your trade that way and end up bag holding something you don't want to.

Golden words! There are no miracles in the market. Especially realizing that most exchanges have fictitious volumes and prices. It has nothing to do with the real price. And do not forget about the commission... Very often it is inadequately large.

[Lanatsa]

Be very careful when you do altcoin arbitrage trading, I have had some pretty bad experiences in this field. Usually when there is a big price gap between exchanges in different altcoins it is a bad sign, most of the times one exchange or both are having some serious problems with that coin and you can't transfer it between exchange to complete your trade and get your profit.
Sometimes the order books can be too thin or even fake and you could fail to finish your trade that way and end up bag holding something you don't want to.

One of the considerations you should really be minding off first and that one would start if you do able to transfer those coins from one exchange to another because in most cases whenever there are some

arbitrage opportunities on which exchangers do really make out some holding of withdrawals or deposits or even having some maintenance of particulars coin wallet which wouldn't be possible
for you to proceed on. Sounds wise? Not surprising and this is one of the factors that you should really be aware off and if not which same as you said you would really be ending
up on bagholding those coins that you had purchased earlier.

[wtsimis]

I also tried arbitrage trading which is much more complicated, I need to consider many parameters like trading fees, withdrawal fees, and also timeframe. Nowadays, the price difference between two exchanges is reducing. If we calculate the rate of seeing coinmarketcap then it'll a waste of time because the real price of any crypto changes in a very short time. Ex: we see a price of ADA is 1.02$ in CMC of any exchange but whenever I go to that particular exchange the price will increase or decrease like 1.0238 or 1.0189 something like it.
If we have any bot or other algorithm application then it would be a way to make a profit. Many old users or experienced users use triangle arbitrage for making a profit.
I saw many people in the forex market that made a good profit using triangle arbitrage.

Crypto market prices difference can be shown in local markets. Many peoples still doing it. Ex: The price of BTC is like 3700$ in global exchange but the same BTC price in like 37500 or 38000 in many countries local market.
Another example, the official price of one USD is 85 BDT in our country but whenever it comes to USDT, the becomes a minimum of 92 BDT. The price also increases to 95/96 in time of the market crash.
Many country's local exchanges or 3rd party market has higher price than the global price. Anyone with good contacts can make a good profit between them. But keep in mind, this idea is like money laundering in any country. So, DYOR before investing. 

[cheezcarls]

Arbitrage trading is very risky nowadays, especially if we’re talking about altcoins as well as it’s trading and withdraw transaction fees. I am usually using Newscrypto’s arbitrage tool with live prices for me to decide which coin or token is the best to arbitrage trading. However, despite that it saves me time from looking at the other sources in getting me accurate results for abritrage trading a specific cryptocurrency, there are no guarantees or promises that we could get the same result because these prices can change anytime rapidly without warning.