Arbitrage as Business

[Hamza2424]

Arbitrage trading is discouraged by many community members, even by the many platforms.

Is it really? Platforms should actually thank arbitrageurs because arbitrageurs make asset prices across exchanges more aligned/accurate, so there wouldn't be huge price discrepancies over multiple exchanges; and simply due to the fact that arbitraging still gives trading volume(hence fees).

What about regulatory limitations, I acknowledge the role of the arbitragers but there are more dark impacts of the arbitragers for themselves and for the overall market compared to their contribution in the market.

Also Aribitrage oppertunities in the current market senrios are really rare.

[rhomelmabini]

Did you know that you could make money in Crypto through arbitrage? I believe arbitrage is a Business!

There are lots of opportunities that could be explored during these moments and as we head to the bull run, let us explore them!

For example, one could buy coins cheaply in China or any other country and sell it at a higher rate to a country where there is high demand for the coin.

For us to enlighten one another, what could be some of these countries that are in high demand of Bitcoin or USDt & how can we leverage on arbitrage opportunities?

Do you think this is an avenue that we can potentially use to earn a living and be financially free?

Yeah it could be a business if you always make a profit out of it, I think arbitrage these days is difficult to get considering CEXs and DEXs has almost has huge transaction fees and almost not have disparity in prices. For ETH and BTC I don't think they are the best example to do an arbitrage, they just have high transaction fee to manage with.

[JunaidAzizi]

First, let me tell you about the arbitrage what is it because the thing you said is just a hallucination or fairy tale? Arbitrage is a method used in a business to buy and sell a good or any other thing and how it works let me explain this also. It works by finding a good that has a lower price buying it and then selling at a high price for the same product which means the product will be the same. Now there are many verities take place some is high quality and some are low quality and the price is different with their quality. Now according to you, we can do arbitrage on coins also like how we all know that the coin present in China has a price and the same coin present in let's say Uk will also have the same price because they both are the same now come to the point how we can do arbitrage in this, as I told you in arbitrage you can buy the same thing at a lower price and then sell it at a high price And in the cryptocurrency, everyone knows the price of every coin.
Tell me if I am wrong and correct me with a good example.

[adaseb]

You can’t arbitrage anymore in 2023, you could in 2015 if you had some decent programming skills but in 2023 you are up against many fast bots and firms which have tons and tons of money and experience compared to you.

Sometimes you might get lucky with some low liquidity coin or on some dex, but you will be working for peanuts pretty much. This is no different than arbitrating on stocks. Same thing. Most professionals do it and there if no arb left for you.

[jaberwock]

It would be a difficult thing to do because you're going to need someone to be in the other country to sell the bitcoin for you and that takes a lot of trust to do especially most of the people that do this have millions to start their business so it's not a waste of their time. I would say that it's a great avenue to make money but the expenses and the effort that you need to pull this off is going to be difficult and isn't this kind of thing been done before and the people that have done it got banned in the exchanges that they're doing their arbitrage trading?

If we are talking about the physical coins or the traditional currencies like Chinese Yuan, then yeah, it may be difficult to arbitrage them. Unlike to digital currencies like crypto, where we can use different crypto exchanges without leaving our seats. It's okay to start doing arbitrage even if you don't have millions in your pocket but of course, the more the capital we have the better. No matter how much capital you have, but if you are not doing it right, not only it can waste your time but it will also be a waste of money.

So, we don't need to rush things but we must take our time studying how it works. Yes arbitrage is not new but I think the one that is highly restricted is the arbitrage betting, in sports. So we might still be safe on doing arbitrage trading using the currencies.

[knowngunman]

Did you know that you could make money in Crypto through arbitrage? I believe arbitrage is a Business!

It's a actually a business but you know arbitrage trading is quite complex and it's not something one can just jump into without doing proper research on the market and besides the profit margins for arbitrage trading are often quite small and you'll need to trade in large quantities to make it worthwhile. It's profitable but the risk involved overwhelm the profit. Just stay off and think of something much better.

It would be a difficult thing to do because you're going to need someone to be in the other country to sell the bitcoin for you and that takes a lot of trust to do especially most of the people that do this have millions to start their business so it's not a waste of their time. I would say that it's a great avenue to make money but the expenses and the effort that you need to pull this off is going to be difficult and isn't this kind of thing been done before and the people that have done it got banned in the exchanges that they're doing their arbitrage trading?

No, I don't think you necessarily need someone in another country before you can do arbitrage trading because you can use two different exchanges/platforms that seem favorable to you. However, it's the most risky way to make profit in the cryptocurrency space in my opinion. It doesn't worth the stress and risk at all when you analyze the potential risk involved in it. Many scam sites are also out there disguising to offer arbitrage services looking for those who will fall victim.

[Sim_card]

Arbitrage trading is not something new and at the same time it is not easy for one to make profit from it because the profit is very slim and it is very risky. I see it similar to gambling because you can't tell if the market will favor your or not. There is no need to look for someone to buy coins from, and sell to at a higher amount in two different countries. This is why there is an exchange and most people prefer buying their coins from exchanges rather than from individual because they still need to send it to their exchange if they are traders. Exchanges currently don't support arbitrage trading anymore.

[deepblue01]

The only way you can enjoy arbitrage trading is between two exchange, if one is illiquid you can find cheaper rate their and bring to larger exchange with volume. However there are some challenges in arbitrage trading such as:
- Withdrawal fees might not be friendly, coins Bitcoin and ethereum are bad for this business right now because the fees are insane.
- Only few altcoins does bring arbitrage opportunities nowadays, bitcoin and ethereum will be quickly bought and altcoins are very tricky especially if you are buying and selling between two exchanges that has less volume, so you have to be careful especially the MEME market.

Yes, I have done that before in 2017 but i don't think it available again today as we speak.

Second i think you will get some profit if you have a low marketcap coin but there is a risk when you want to liquidated all of your coin/token

You can’t arbitrage anymore in 2023, you could in 2015 if you had some decent programming skills but in 2023 you are up against many fast bots and firms which have tons and tons of money and experience compared to you.

I think so. there are many gap between 2015 and 2023.
Crypto still nothing in 2015 and not much infrastructure back then

[Eldestyoung]

Arbitrage as I know is a very profitable business especially in the crypto space and it involved buying crypto at a low price from one crypto exchange and selling higher amount in another crypto exchange.
And is one of the oldest way of making money in the crypto space but recently arbitrage has been very minimum due to the trooping in of more investors.
The various exchanges has come to learn of this arbitrage where by reducing the chances of performing arbitrage in their exchange.