Is it practical to trade profitably on the arbitrage between btc/usd / btc/eur price against usd/eur price?
For example if the USD/EUR exchange rate is 1.22 and the BTC/USD / BTC/EUR exchange rate is 1.266 can you make profit on that?
There have been some very juicy arbitrage opportunities over the past month or so:
But it has been very hard to move funds in and out of the exchanges. Here's an attempt to automate arb that ended up shutting down:
So if you are having to wire transfer the funds you have to work with large amounts to justify the fees. And even if you have a strategy that works on paper, .. it will seem to fail when your order on one exchange goes through, and then you find the connection to the other become disconnected and no response -- giving heart palpitations as you get stuck exposed as volatility has its way with your unbalanced trade.
But at the levels we have right now, the opportunities are definitely enticing.
There might be ways to move the cash around also thanks to TransferWise and CurrencyFair.