Platform Cross Trading

[iCanNonIc]

Okay hello guys,

i have to say I am really new to bitcoins, i am tracking the charts about 3 or 4 months, and I have got a Question.
Well, lets start with this site: http://bitcoincharts.com/markets/

I am pretty careful about trading, I've never tried. But I thought to start trading.

Can I imagine the complete bitcoin trading like there are a few kind of "marketplaces", where the qutations for the same product are different?


If so, is it possible to just buy the "product" (=bitcoin) from the sellor in one marketplace and just sell it at another with a higher qutation?
So do all wallets just have the same kind of interface for transactioning, and at the right websites/brokers/marketplaces wallet I can transform it to another websites/broker/marketplaces wallet? I have read much (shit) about this and I dont know any comparable example where I can imagine this.

Could you please help me with a little example or just answer the line#6 Question?

Thanks!

[Tammy Chan]

Okay hello guys,

i have to say I am really new to bitcoins, i am tracking the charts about 3 or 4 months, and I have got a Question.
Well, lets start with this site: http://bitcoincharts.com/markets/

I am pretty careful about trading, I've never tried. But I thought to start trading.

Can I imagine the complete bitcoin trading like there are a few kind of "marketplaces", where the qutations for the same product are different?


If so, is it possible to just buy the "product" (=bitcoin) from the sellor in one marketplace and just sell it at another with a higher qutation?
So do all wallets just have the same kind of interface for transactioning, and at the right websites/brokers/marketplaces wallet I can transform it to another websites/broker/marketplaces wallet? I have read much (shit) about this and I dont know any comparable example where I can imagine this.

Could you please help me with a little example or just answer the line#6 Question?

Thanks!

True, there are different places to buy/sell bitcoin, and each has a different price.
But, you need to take the fees into consideration.
For example, after selling bitcoin in exchange 1, you need to withdraw fiat to your bank account with fee and deposit fiat to exchange 2 with another fee.

[OnkelPaul]

It's called arbitrage, you might want to google the term to learn everything about it.
In practice, it sometimes works (and people have made nice amounts of money with it), but there might be factors such as fees or withdrawal/deposit delays which make it unfeasible.

Onkel Paul

[iCanNonIc]

Well okay thanks for the quick reply.
What exactly are the fees, I think you have quite experience.

Are there platforms which take fees for the payout? The wallet? Or each transaction?

I currently am developing software for this issue and have to find serialized interfaces for trading automatically. You may know a software using some already?

[b!z]

Well okay thanks for the quick reply.
What exactly are the fees, I think you have quite experience.

Are there platforms which take fees for the payout? The wallet? Or each transaction?

I currently am developing software for this issue and have to find serialized interfaces for trading automatically. You may know a software using some already?

Yeah, there is a arbitrage bot (don't remember the name) that uses APIs from various exchanges and tries to make a profit.

It's risky though, you should know that

[bitsmichel]

If so, is it possible to just buy the "product" (=bitcoin) from the sellor in one marketplace and just sell it at another with a higher qutation?

yes, this is possible. For example buy at BTC-e and sell at bitstamp. I think this technique is called Arbitage

So do all wallets just have the same kind of interface for transactioning, and at the right websites/brokers/marketplaces wallet I can transform it to another websites/broker/marketplaces wallet? I have read much (shit) about this and I dont know any comparable example where I can imagine this.

yes, basically. In the same way you can use USD in various places, you can use bitcoin (BTC) at various places.

[iCanNonIc]

Okay now I understood the arbitrage. I'm a little leak in researching. Anyway.

I tried to reproduce the possible income (reduced due to fees) and autotrades but the outcome won't be amazingly high, as you predicted.
Here an example comparison, my new little software, would be nice if you are interested to help me with some improving ideas, it shouldn't fail because of technical issues

Link, because Forum/Hoster don't agree
It currently supports about 60 different trading platforms with historical Data from this API of both Exchange/Time and Traded_Volume/Time.

Anyway this should not become an advertising, I'm just looking for improvements, because I want to make this Software as powerful as possible. All I found in the Internet was just a little 6hours delayed website providing expensive arbitrage nuggets.

[Gimmelfarb]

i sometimes do arbitrage between exchanges. not in the technical sense -- i don't sell high on one exchange, withdraw fiat, then send it to another exchange to buy low. but i do take advantage of the gap between exchanges. for example, when BTC-E price is much lower than Stamp, i buy on BTC-E and sell on Stamp or Bitfinex. then, when the gap closes, i move back to BTC-E and wait for the next round.

[DannyElfman]

takes too long to wire fiat out most of the time to do effective arbitrage. bitcoin moves too fast.

[iCanNonIc]

Yes, I guess the outcome would be about 1 - 2 percent. Depending on the speed of the Internet connections.
Are there other strategies, like buy - hold - sell? Best would be some strategy which has much work AND is profitable. A strategy, a computer could do.

What strategy you guys use?