Arbitrage in crypto

[TelolettOm]

Many traders have been successful with this trading type by conducting arbitrage trading. But, I think that if we want to do this arbitrage, we must know and understand more about the pros and cons. Moreover, we can see from the fee difference of deposit or withdrawal, the time of the transaction process, the different or changing price every time in the market. Because sometimes, we may be left behind for only a few minutes because of the delayed withdrawal process, and the price has been dropped.

[Silberman]

Many traders have been successful with this trading type by conducting arbitrage trading. But, I think that if we want to do this arbitrage, we must know and understand more about the pros and cons. Moreover, we can see from the fee difference of deposit or withdrawal, the time of the transaction process, the different or changing price every time in the market. Because sometimes, we may be left behind for only a few minutes because of the delayed withdrawal process, and the price has been dropped.

The cons are rarely considered by many of the newbies that want to try their hands at this style of trading, after all one of the most important cons is how low the profits that you can get really are, after all while in a normal trade even getting something like 1% is kind of easy if you are using a trading style which focuses on the short term, but when it comes to arbitrage trading profits like that would be huge and almost impossible to get, so the fees you will incur are no joke and will eat away most of your profits.

[Hamphser]

Many traders have been successful with this trading type by conducting arbitrage trading. But, I think that if we want to do this arbitrage, we must know and understand more about the pros and cons. Moreover, we can see from the fee difference of deposit or withdrawal, the time of the transaction process, the different or changing price every time in the market. Because sometimes, we may be left behind for only a few minutes because of the delayed withdrawal process, and the price has been dropped.

The cons are rarely considered by many of the newbies that want to try their hands at this style of trading, after all one of the most important cons is how low the profits that you can get really are, after all while in a normal trade even getting something like 1% is kind of easy if you are using a trading style which focuses on the short term, but when it comes to arbitrage trading profits like that would be huge and almost impossible to get, so the fees you will incur are no joke and will eat away most of your profits.

This is why i dont really mind on getting some chances on doing arbitrage since it would be rarely for you to find and if you do find one then most like you would really be ending up on hesitating because you couldnt

be sure if you would able to execute it well since its not an assurance that you've been dealing with right or good exchange most of the time since we know that arbitrage opportunities does usually talks about

less known exchange which there would be always tendency that you would really be having that kind of problem thats what makes you hesitate.

[seleme]

Many traders have been successful with this trading type by conducting arbitrage trading. But, I think that if we want to do this arbitrage, we must know and understand more about the pros and cons. Moreover, we can see from the fee difference of deposit or withdrawal, the time of the transaction process, the different or changing price every time in the market. Because sometimes, we may be left behind for only a few minutes because of the delayed withdrawal process, and the price has been dropped.

The cons are rarely considered by many of the newbies that want to try their hands at this style of trading, after all one of the most important cons is how low the profits that you can get really are, after all while in a normal trade even getting something like 1% is kind of easy if you are using a trading style which focuses on the short term, but when it comes to arbitrage trading profits like that would be huge and almost impossible to get, so the fees you will incur are no joke and will eat away most of your profits.

There are some risks in this type of trading, the more you push your luck the more human errors gonna happen. And I didn't even mention, withdrawal fees, trading commissions, possible delays, etc. The short-term profitability is possible but in the long run, it will turn to wasted time, better to do scalping on medium crypto pairs instead of staring at the screen chasing price difference between two exchanges, in my opinion.
Scalping can make nice profit if you know what you are doing otherwise stay away from both trading activities and stick to regular spot markets.

[passwordnow]

There are some risks in this type of trading, the more you push your luck the more human errors gonna happen. And I didn't even mention, withdrawal fees, trading commissions, possible delays, etc. The short-term profitability is possible but in the long run, it will turn to wasted time, better to do scalping on medium crypto pairs instead of staring at the screen chasing price difference between two exchanges, in my opinion.

I think the biggest problem would be the delays. What if you've been arbitrating the whole time and the exchange got you delayed by having maintenance for that wallet.
That happens for real sometimes within an exchange that unexpectedly comes for some reason. Also, about the withdrawal fees, it might not be an issue since if you're aiming for higher profits but if it's on erc20, there could be some issues within it that you may feel that you should haven't done it because you're not expecting it to be like that.

[TimeTeller]

There are some risks in this type of trading, the more you push your luck the more human errors gonna happen. And I didn't even mention, withdrawal fees, trading commissions, possible delays, etc. The short-term profitability is possible but in the long run, it will turn to wasted time, better to do scalping on medium crypto pairs instead of staring at the screen chasing price difference between two exchanges, in my opinion.

I think the biggest problem would be the delays. What if you've been arbitrating the whole time and the exchange got you delayed by having maintenance for that wallet.
That happens for real sometimes within an exchange that unexpectedly comes for some reason. Also, about the withdrawal fees, it might not be an issue since if you're aiming for higher profits but if it's on erc20, there could be some issues within it that you may feel that you should haven't done it because you're not expecting it to be like that.

The strategy is very important to gain profit from arbitraging. And not many people are that patient enough to engage in this kind of activity.
As there are some unseen circumstances, you are just hoping that you will gain at least a lil bit of profit from this endeavor.
This is why this activity is not for all traders. Some do prefer a less stressful way of earning profits from their coins.
There are also several considerations like the coin itself, your time, your funds, trading platforms fees and reputation and so on.

[Silberman]

Many traders have been successful with this trading type by conducting arbitrage trading. But, I think that if we want to do this arbitrage, we must know and understand more about the pros and cons. Moreover, we can see from the fee difference of deposit or withdrawal, the time of the transaction process, the different or changing price every time in the market. Because sometimes, we may be left behind for only a few minutes because of the delayed withdrawal process, and the price has been dropped.

The cons are rarely considered by many of the newbies that want to try their hands at this style of trading, after all one of the most important cons is how low the profits that you can get really are, after all while in a normal trade even getting something like 1% is kind of easy if you are using a trading style which focuses on the short term, but when it comes to arbitrage trading profits like that would be huge and almost impossible to get, so the fees you will incur are no joke and will eat away most of your profits.

There are some risks in this type of trading, the more you push your luck the more human errors gonna happen. And I didn't even mention, withdrawal fees, trading commissions, possible delays, etc. The short-term profitability is possible but in the long run, it will turn to wasted time, better to do scalping on medium crypto pairs instead of staring at the screen chasing price difference between two exchanges, in my opinion.
Scalping can make nice profit if you know what you are doing otherwise stay away from both trading activities and stick to regular spot markets.

Correct, all of those risks are real, however people think of arbitrage trading as a way to trade and obtain money that has a 100% success rate and for most people that is invaluable, one of the things I have noticed is that people are afraid of being wrong, if they make a prediction about what the market is about to do and open a position in an exchange and then the markets goes on the opposite direction many people have problems digesting this information, it is incredible but many people care more about having a high accuracy rate in the markets than the profits they eventually get, which is why people are so interested in arbitrage trading even if the profits are on the low side.

[Mahanton]

Many traders have been successful with this trading type by conducting arbitrage trading. But, I think that if we want to do this arbitrage, we must know and understand more about the pros and cons. Moreover, we can see from the fee difference of deposit or withdrawal, the time of the transaction process, the different or changing price every time in the market. Because sometimes, we may be left behind for only a few minutes because of the delayed withdrawal process, and the price has been dropped.

The cons are rarely considered by many of the newbies that want to try their hands at this style of trading, after all one of the most important cons is how low the profits that you can get really are, after all while in a normal trade even getting something like 1% is kind of easy if you are using a trading style which focuses on the short term, but when it comes to arbitrage trading profits like that would be huge and almost impossible to get, so the fees you will incur are no joke and will eat away most of your profits.

There are some risks in this type of trading, the more you push your luck the more human errors gonna happen. And I didn't even mention, withdrawal fees, trading commissions, possible delays, etc. The short-term profitability is possible but in the long run, it will turn to wasted time, better to do scalping on medium crypto pairs instead of staring at the screen chasing price difference between two exchanges, in my opinion.
Scalping can make nice profit if you know what you are doing otherwise stay away from both trading activities and stick to regular spot markets.

Correct, all of those risks are real, however people think of arbitrage trading as a way to trade and obtain money that has a 100% success rate and for most people that is invaluable, one of the things I have noticed is that people are afraid of being wrong, if they make a prediction about what the market is about to do and open a position in an exchange and then the markets goes on the opposite direction many people have problems digesting this information, it is incredible but many people care more about having a high accuracy rate in the markets than the profits they eventually get, which is why people are so interested in arbitrage trading even if the profits are on the low side.

High accuracy rate indeed and even myself would definitely be eyeing out with this probability rather than on risking on a trade which is really low on success.
It is indeed true that when it comes to preference and own view then people would really be that focusing on arbitrage if they do have the chance since they
do know that these kind of chances doesnt really come often but generally thinking that arbitrage does have less risk honestly if its done well.

[CaVO32]

Many traders have been successful with this trading type by conducting arbitrage trading. But, I think that if we want to do this arbitrage, we must know and understand more about the pros and cons. Moreover, we can see from the fee difference of deposit or withdrawal, the time of the transaction process, the different or changing price every time in the market. Because sometimes, we may be left behind for only a few minutes because of the delayed withdrawal process, and the price has been dropped.

The cons are rarely considered by many of the newbies that want to try their hands at this style of trading, after all one of the most important cons is how low the profits that you can get really are, after all while in a normal trade even getting something like 1% is kind of easy if you are using a trading style which focuses on the short term, but when it comes to arbitrage trading profits like that would be huge and almost impossible to get, so the fees you will incur are no joke and will eat away most of your profits.

There are some risks in this type of trading, the more you push your luck the more human errors gonna happen. And I didn't even mention, withdrawal fees, trading commissions, possible delays, etc. The short-term profitability is possible but in the long run, it will turn to wasted time, better to do scalping on medium crypto pairs instead of staring at the screen chasing price difference between two exchanges, in my opinion.
Scalping can make nice profit if you know what you are doing otherwise stay away from both trading activities and stick to regular spot markets.

Correct, all of those risks are real, however people think of arbitrage trading as a way to trade and obtain money that has a 100% success rate and for most people that is invaluable, one of the things I have noticed is that people are afraid of being wrong, if they make a prediction about what the market is about to do and open a position in an exchange and then the markets goes on the opposite direction many people have problems digesting this information, it is incredible but many people care more about having a high accuracy rate in the markets than the profits they eventually get, which is why people are so interested in arbitrage trading even if the profits are on the low side.

If traders will go into this activity, they should also do some assessment if it is indeed worth it or not. Because if after deduction of fees, the profit is very minimal, then, ask yourself if this venture is worth continuing or not? Because if there will be price gap between exchanges, it will be eaten mostly by fees and your time. Maybe, instead of arbitraging, just do some profitable activities instead.

[passwordnow]

There are some risks in this type of trading, the more you push your luck the more human errors gonna happen. And I didn't even mention, withdrawal fees, trading commissions, possible delays, etc. The short-term profitability is possible but in the long run, it will turn to wasted time, better to do scalping on medium crypto pairs instead of staring at the screen chasing price difference between two exchanges, in my opinion.

I think the biggest problem would be the delays. What if you've been arbitrating the whole time and the exchange got you delayed by having maintenance for that wallet.
That happens for real sometimes within an exchange that unexpectedly comes for some reason. Also, about the withdrawal fees, it might not be an issue since if you're aiming for higher profits but if it's on erc20, there could be some issues within it that you may feel that you should haven't done it because you're not expecting it to be like that.

The strategy is very important to gain profit from arbitraging. And not many people are that patient enough to engage in this kind of activity.
As there are some unseen circumstances, you are just hoping that you will gain at least a lil bit of profit from this endeavor.
This is why this activity is not for all traders. Some do prefer a less stressful way of earning profits from their coins.
There are also several considerations like the coin itself, your time, your funds, trading platforms fees and reputation and so on.

Those that are into arbitraging, they're both patient and quick. Someone who's going to try these and doesn't have qualities of those, they're just going to lose money as they do it.
As you have said, if it's not for them and they don't have qualities of doing this. Although, many have stopped doing arbitrage for some reasons. Still, they can remain as an investor or do the strategy that's very convenient and profitable to them.

[Natalim]

Mind that arbitrage trading is good and it really works if you are good also. But this never applies to newbies...
I have experienced this before and I have noticed that it needs for you to sit on your computer the whole (if possible) to monitor the price and that you need to check exchanges that offers a higher price. This is not suitable for the part-time traders, we have to spend a lot of time in trading especially for this for the sake of not missing it out. I did this before and I fail for such reasons.

[wajik-tempe]

Arbitrage was so popular back then in 2017 when we could take profits with only less than 2% margin between the exchanges. But it's hard to do right now because the transaction fee is higher and the transaction speed sucks compared to those days.
The blocks of the coin's network getting so much more crowded so the speed of doing the transaction is slower that's what makes the transaction is going slower, moreover right now there are a site like coinmarketcap with recapped the list of all market price so it's easier right now for people to see if their coins is too cheap or too expensive, so the margin between exchanges is no longer happen really often

[Silberman]

If traders will go into this activity, they should also do some assessment if it is indeed worth it or not. Because if after deduction of fees, the profit is very minimal, then, ask yourself if this venture is worth continuing or not? Because if there will be price gap between exchanges, it will be eaten mostly by fees and your time. Maybe, instead of arbitraging, just do some profitable activities instead.

And that is the main problem with arbitrage trading, a huge amount of money is needed for the activity and a the same time the profits are nowhere near spectacular, a regular trader with the same amount of money can produce way bigger profits in a shorter amount of time than what arbitrage trading can generate, and as such this style of trading requires very specific needs and skills, which the majority of the traders do not have at all.

[tvplus006]

Mind that arbitrage trading is good and it really works if you are good also. But this never applies to newbies...
I have experienced this before and I have noticed that it needs for you to sit on your computer the whole (if possible) to monitor the price and that you need to check exchanges that offers a higher price. This is not suitable for the part-time traders, we have to spend a lot of time in trading especially for this for the sake of not missing it out. I did this before and I fail for such reasons.

Currently, it is very difficult, and most often impossible at all, to compete with trading bots created specifically for arbitrage trading. It is thanks to such bots, which instantly equalize the price of a coin on various exchanges, that we fail in manual arbitration.

[carlfebz2]

Mind that arbitrage trading is good and it really works if you are good also. But this never applies to newbies...
I have experienced this before and I have noticed that it needs for you to sit on your computer the whole (if possible) to monitor the price and that you need to check exchanges that offers a higher price. This is not suitable for the part-time traders, we have to spend a lot of time in trading especially for this for the sake of not missing it out. I did this before and I fail for such reasons.

Currently, it is very difficult, and most often impossible at all, to compete with trading bots created specifically for arbitrage trading. It is thanks to such bots, which instantly equalize the price of a coin on various exchanges, that we fail in manual arbitration.

Fact!

This is why seeing arbitrage opportunities is almost impossible nowadays which price gaps could be easily to be patch up and we know that bots that do equalize between buy and sell orders.
This is why its not really possible to make out arbitrage opportunities but if you do then be sure that you are fast because if you arent that fast enough then instead
on making profits then you would surely be losing part of those capital you do have.

[rahmad2nd]

Mind that arbitrage trading is good and it really works if you are good also. But this never applies to newbies...
I have experienced this before and I have noticed that it needs for you to sit on your computer the whole (if possible) to monitor the price and that you need to check exchanges that offers a higher price. This is not suitable for the part-time traders, we have to spend a lot of time in trading especially for this for the sake of not missing it out. I did this before and I fail for such reasons.

Currently, it is very difficult, and most often impossible at all, to compete with trading bots created specifically for arbitrage trading. It is thanks to such bots, which instantly equalize the price of a coin on various exchanges, that we fail in manual arbitration.

Fact!

This is why seeing arbitrage opportunities is almost impossible nowadays which price gaps could be easily to be patch up and we know that bots that do equalize between buy and sell orders.
This is why its not really possible to make out arbitrage opportunities but if you do then be sure that you are fast because if you arent that fast enough then instead
on making profits then you would surely be losing part of those capital you do have.

Look have not real order when try to arbitrage coin from one exchange usually with dapp exchange to cex exachnge, when have deposit running confirmation and least few minutes later for success looks order have gone and I think this happen with bot did it. Beside need faster for arbitrage but have looking for with buy or sell order on destination exchange to arbitrage, looks order use by bot or real human by waiting few minutes still have this buy or sell order? usually bot order on market not exist without one or two minutes and gone later when you try to deposit your arbitrage coins.

[CryptopreneurBrainboss]

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

I haven done this severally and been able to pull it off, I previously was in doubt of this actually been a profitable way of trading until I tried it myself and found it lucrative although it does have its disadvantage as others have highlighted here and I don't have to go through the details again. With my experience, when new listing are announced usually there's a spike as the coins get listed on the new exchange and that's when you can take advantage of this.

With the new exchange listing, you have to make sure some factors are in place like deposit and withdrawal has been enabled before you buy on the exchange unless you will be left hanging and can take advantage of the difference in price. Exchanges know traders do this so they have stopped the immediate withdrawal and deposit on newly listed coin so I haven't done this for quite a long time now.

[telefy]

In our experience, we built an arbitrage app in the past to pull all the pairs btw multiple DEX in ETH and BSC chains but the opportunities we got was turned out to be negative due to gas fees in ETH chain, with BSC chain the opportunities were there but due to slippage or tax(what ever the hell) we dont see much profit there as well. So i would say its more luck when it comes to CEX, there must be an opportunity with real volume and CEX shouldnt disable the Deposit or withdrawal(Usually they do!), in DEX u should calculate gas fees+ slippage tolerance with decent volume then yes arbitrage may work. Rather find potential project and invest!

[Slow death]

in the past for some time I also did arbitrage, but I ended up giving up because the withdrawal rates of certain exchanges were very high withdrawal rates and also because certain altcoins also had problems with withdrawals on exchanges so be careful with altcoins they use for arbitrage because this can create great damage and also be careful with exchange scams, exchange scams are the worst nightmare of this market and unfortunately there are many exchange scams

[LUCKMCFLY]

Years ago you could make decent money by arbitrage trading with various exchanges. Back then they were less market makers and less liquidity.

I had many alerts and took advantage of 0.5-1% spreads on certain alt coins. These days however most bots are pretty high tech that they will beat you too it. You need to have some fast bot that quickly can add an order to the market to arbitrate it with another exchange. This is similar to how when there is a flash crash on one exchange but not others, usually within seconds that gap is filed by arbitrage bots. Not humans.

Crypto trading is getting more and more sophisticated and bots are getting very good at it. Hard to beat them now. Arbitrage may still be profitable in some alts. But if you don't now how to strategize on this trading, you may end up losing rather than earning profits. If the gain is very small, do you think it is worth the effort? This is why some are not going into arbitrage trading anymore. They prefer to just hold their assets.

When it comes to short term trading and investing humans are still way better as they can look at all the nuances of the market and take a more informed decision, while a bot can only look at the parameters that you specified on the code, however when it comes to pure execution there is no comparison, bots are way better than humans, this means that arbitrage trading is specifically geared towards them as in arbitrage trading they only need to look at the price and see if there is a disparity, and if there is then they buy in an exchange and sell in another one.

Bots are indeed superior in terms of execution of commands which it couldnt be possibly be influenced with other external factors which we do know.
Human judgement and decision making could neither be beneficial or not depending on the situation thats why its really hard to make out conclusions that it is really worthless.
Arbitrage opportunities does exist but execution would really be affected by some factors which could neither results a profitable trade or not.

So in conclusion, do you think an arbitration bot is viable? Taking into account the movements of the market, not only for BTC but for any market, do you think it is feasible to use it today? when I know that there are many bots that are for high frequency trading, that this is still in a very hidden way but that I know that it is widely used, I think that these arbitrage bots are usually the backbone for the bots that are high frequency trading. I say this because arbitrage is a way to make profit all the time, but the bot must be updated almost at the speed of light, so it is currently profitable?