Author

Topic: Arbitrage (Read 173 times)

full member
Activity: 434
Merit: 102
Chikuntv
August 24, 2018, 03:14:56 AM
#17
I am not sure with arbitrage trading because I heard that we need to calculate the time for sending and receive the coins to other exchange so we can make a big profit. I am too afraid to do arbitrage trading because it is too risky for me and besides that, I don't know how to know how much time that will need to send and receive the coin.

You can try with a small number of coins. There is the info about block time in coins ANNs

full member
Activity: 784
Merit: 115
August 24, 2018, 01:58:25 AM
#16
I am not sure with arbitrage trading because I heard that we need to calculate the time for sending and receive the coins to other exchange so we can make a big profit. I am too afraid to do arbitrage trading because it is too risky for me and besides that, I don't know how to know how much time that will need to send and receive the coin.
sr. member
Activity: 896
Merit: 253
jr. member
Activity: 129
Merit: 6
Long term HODLer since 2014
August 23, 2018, 11:48:52 PM
#14
In reality, arbitrage is not that simple. One of your limiting factor is how fast you can transfer your coins from one exchange platform to another exchange platform.

Many exchange platforms have daily withdrawals. This means by the time you clear your coin transfer, the arbitrage opportunity is already long gone. You also carry significant delta exposure during the transfer process.
legendary
Activity: 3472
Merit: 10611
August 23, 2018, 11:12:05 PM
#13
there is a lot of disbalance in the market.
Especially I'm interested in lower caps where spreads can be 10-40%

true but making profit is not always possible.
i have tried arbitrage trading for a long period of time in the past 1.5-2 year while developing my own bot for automation. the results are never good enough to justify the risk. and the loss is possible and it can wipe out everything you have made specially when you are arbitrage trading between exchanges.
and the small cap coins are the worst because their orderbooks are too thin, sometimes the volume is not even as big as minimum withdrawal! not to mention that some exchanges have their wallets disabled, maintenance,... which may lead to losses and it is impossible to check most of their wallet status through API or even their website other than making a deposit and seeing what happens.
hero member
Activity: 1274
Merit: 516
August 23, 2018, 07:57:30 PM
#12
There are chances to earn from arbitrage and I agree that there are price difference in some exchanges, but it surely need time to search when you want to do arbitrage and its not that easy, you need to make sure there supply and demand that match your amount, the speed transaction, and the legitimate exchanges, because usually the one that offered higher price is the unpopular exchanges
sr. member
Activity: 1820
Merit: 418
Telegram: @worldofcoinss
August 23, 2018, 05:26:09 PM
#11
there is a lot of disbalance in the market.
Especially I'm interested in lower caps where spreads can be 10-40%
Yes there are disbalances in the crypto market, and if you have analytical skills you can easily spot them. You can even find bots to do that for you. But when you endeavor to take advantage of these price differences, you can face many practical difficulties. For example, you may not be able to quickly withdraw the coins from one exchange to transfer them to the other. Or the withdrawal fees may eat up all your profit margin. Or the wallet status of the exchange may (coincidentally) be in maintenance mode. IMO, before spending any significant sums of money on arbitrage, make sure you have figured out all the practical steps and tiny details.

That there is very good advice. I myself, once experienced some of the unpleasantries you mentioned and its really important one takes all of the little steps into account because these things do matter.
member
Activity: 350
Merit: 10
August 23, 2018, 05:14:22 PM
#10
Arbitrage in cryptocurrency is nothing something you can exploit to make profit because if the opportunity to arb between two exchanges or on a single exchange, the transactions fees will kill your arbitrage profit.
full member
Activity: 434
Merit: 102
Chikuntv
August 23, 2018, 03:26:39 PM
#9
Thanks for the information about Arbitrage.There is so many mobile applications to search Arbitrage opportunities in exchangs

Could you share some names, pls?
full member
Activity: 451
Merit: 100
August 23, 2018, 03:19:47 PM
#8
Thanks for the information about Arbitrage.There is so many mobile applications to search Arbitrage opportunities in exchangs
hero member
Activity: 2996
Merit: 609
August 23, 2018, 01:28:00 PM
#7
Huge price gaps can really happen on this market and arbitrage can really exist but the question is, how you can precisely perform such transaction? It do takes timing and fast confirmation of the entire network plus having no problems with withdrawal and deposits of certain exchangers because these are the factors can really mainly affect your profitability and success.If not then expect on loss a percentage of your capital either on fees or sudden swings on prices.
legendary
Activity: 2156
Merit: 1622
August 23, 2018, 11:12:34 AM
#6
And alwais check how deep market is. It may have 40 % spread but buy orded where you would like to sell with 40% profit is only 50$ worth, next one is on 10% profit with 100$ worth and next one is on 10% loss with 1000$ - and you forget about that and bought for 2000$.

And even if you spot opportunity with deep enought market your price can be eaten while transfering. Huge arbitrage guys can arbitrage without withdrawing or with withdrawing with special conditions given by exchange that you cant dream of. Thats why its impossible with small capital on high volume coins and risky on low volume coins that whales are not interrested to arbitrage on.
newbie
Activity: 46
Merit: 0
August 23, 2018, 09:51:01 AM
#5
40% per trade that's sick for arbitrage
even per month, it's super cool, lol
full member
Activity: 1554
Merit: 101
August 23, 2018, 09:25:54 AM
#4
yes i agree, but some exchange with different price, some have delayed when deposit and withdraw, and some coin still close deposit address problem like that, if lucky you can make maybe 40% profit in once trading.
so even in arbitrage still have risk, be wise.
newbie
Activity: 7
Merit: 0
August 23, 2018, 07:31:26 AM
#3
there is a lot of disbalance in the market.
Especially I'm interested in lower caps where spreads can be 10-40%
Yes there are disbalances in the crypto market, and if you have analytical skills you can easily spot them. You can even find bots to do that for you. But when you endeavor to take advantage of these price differences, you can face many practical difficulties. For example, you may not be able to quickly withdraw the coins from one exchange to transfer them to the other. Or the withdrawal fees may eat up all your profit margin. Or the wallet status of the exchange may (coincidentally) be in maintenance mode. IMO, before spending any significant sums of money on arbitrage, make sure you have figured out all the practical steps and tiny details.

yeah, true, dont go all-in like a complete retard
what about risk management? 2-3% of a capital for a trade is to tight, perhaps
full member
Activity: 434
Merit: 246
August 23, 2018, 05:03:53 AM
#2
there is a lot of disbalance in the market.
Especially I'm interested in lower caps where spreads can be 10-40%
Yes there are disbalances in the crypto market, and if you have analytical skills you can easily spot them. You can even find bots to do that for you. But when you endeavor to take advantage of these price differences, you can face many practical difficulties. For example, you may not be able to quickly withdraw the coins from one exchange to transfer them to the other. Or the withdrawal fees may eat up all your profit margin. Or the wallet status of the exchange may (coincidentally) be in maintenance mode. IMO, before spending any significant sums of money on arbitrage, make sure you have figured out all the practical steps and tiny details.
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