Topic: Arbitrage as Business (Read 262 times)

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.

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

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

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.

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.


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.

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.

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.

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.

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.

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.

You know I was explaining in the OP what Arbitrage is in trading.
Arbitrage as Business, from the answer I can show that this is a business and this strategy is nothing new.
The purpose of trading is the same, there is no difference in finding food. What is different in my opinion in trading is the strategy and how to carry out the strategy. If by telling other people we get benefits, then I don't think it's wrong.

It was just an example that he has said but it's all about trading and arbitrage over exchanges and crypto to crypto trades.

This is what arbitrage is in cryptocurrencies. While you and some have done it and probably can still see some opportunities from it.

There are traders that just gave up on it because of how vast this market is and sometimes networks get clogged so, there is a high chance to miss out the quick good runs from selling/buying at good prices.

I don't find with the opportunity of arbitrage from OP with trading between country but likely arbitrage in cryptocurrency trading is selling coin from one exchange to other exchange have difference price. Usually get arbitrage with DEX to CEX exchange but we must see how much transaction volume in CEX exchange and how ability faster deposit fund confirming before make arbitrage. I don't know kinds of model arbitrage coins with difference country and likely easy for understanding OP could give example about his arbitrage kinds.

Last year I earned much profit with arbitrage and take chance with coins have lower fees transaction such as Solana coin network and BSC Scan coins, purchase from DEX and sell coins on CEX exchange have higher price.

If sharing something(in general) would dilute your potential profit then it's mostly dumb to share depending on the circumstances — this is one of them. Especially if you're trying to arb coins/tokens that aren't being arbed by the bigger players.

Lol,,, come on champ, go easy on the beginner whom has just found his or her gold mine or should I say Arbitrage mine.

Wouldn’t be the best of ideas not to share. Sharing ideas is what the forum is about isn’t it. Although, I get it that it’s up to you on what principles you keep and I understand the fact that, the less crowd as per people offering a service, the more profitable and availability of customers your going to get. Still, you could always share, I know you can.

Still, I think the sort of arbitrage idea raised in OP are more found on some exchanges and some of these exchanges could be nation specific. It doesn’t really mean that a coin is in high demand within a particular nation but, the exchange hype the price.

You could take advantage of this but, you’ve got to be very skeptical because, you could lose too. To regulations and even third parties.

The profits made are used for essential purpose in the system. We have different traders, some might like the idea of not telling anyone about the system because they targets to eat alone and grow other than stressing themselves lecturing people on how the space works. Everyone has the right to talk or remain silence when it comes to strategies used for collecting good profits from the system. We know it's not an easy project to grab golden opportunities of the system but when we see a chance, we should never hesitate because that's the one thing to grab significant profits from and enjoyable to significant outcomes.

agree with you that arbitrage trading is a business, why is it said business, let's take the example,

"you buy coconut on Island A at a price of 1 then you sell the coconut on island B at a price of 1.1 then you are doing a business, so Also when you do arbitrage, you buy coin A at 1 prices in Exchange A and then sell it at a price of 1.5 in Exchange B, it is very clear that you are doing business"

The opportunity to be financially free with arbitration is certainly quite large, it's just that the capital you have to have also has a great role to support your success in carrying out arbitrage tricks, a little of my advice for prospective arbitrage players, always choose crypto currencies that have high liquidity when you run the Arbitrage trick and pay attention to the TOS in the exchange that you use to do the Arbitrage trick.

Taking the risk is not the issue, but I believe the OP needs to learn more about arbitrage trading because what he has presented is not the correct information he requires, even though the OP is correct in certain areas.

China has banned Bitcoin for a long time; although I know he is citing it as an example, I the OP need to know that arbitrage is risky and profitable when you have a lot of capital because the profit is small if you have little capital because almost all exchanges that have listed the coins you want to trade have the same price range, so the profit is small.

I will not tell you about the actions I took to gain profits without risk. You will not tell other people a buying and selling strategy that will be profitable for you without big risks.
This concept is not new and that is what arbitrage is by the definition I found.

I think yes. It's a way of making a living so it's very unlikely anyone would share this strategy with anyone else.

Do you also know that arbitrage is like gambling, i believe you could loose and take a big risk engaging on arbitrage trading, why do you want to make money when the risk is not encouraging to go for, many of the online platforms also do not support this kind of trading, but when you're too eager to take risk in making money, you may go for it at your own personal interest, then get ready to face the outcome as well.

Yes I know but we have to deep research for better opportunity to make profit. If someone give full time to arbitrage then I will also says it is business -- beneficial business


Why we need to take this hard arbitrage example when sample ways are available. No need to leave your country,home for arbitrage business. The easiest way to check the price of any specific token in any place lower then other exchanges and then make arbitrage trading for quick profit without need of researching different country. Usually when any token deposit and withdraw temporarily freeze than we can get opportunity.

Yes.
But don't make it sound easy because the reality of it will disappoint you that it's not easy at all. If this is too easy, many of us were already rich.
But we're not. And that's the reason why there are still stuck with trading on spot or futures and don't do arbitrage because of the opportunity there is hard to find.

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).

Arbitrage trading is discouraged by many community members, even by the many platforms. I won't say taking a risk isn't worth it at all but it still has some exceptions. People prefer copy trading or bot trading above the arbitrage trading. Except for Grid bot trading both arbitrage trading and Copy trading possess high risk and low rewards in my point of view.

exclusive price or such market fluctuations are very rare in high liquidity trading pairs, the coins that possess these fluctuations might have critical liquidity issue and its never wise to take entry in such coins/assets.

Let me check this out! Thanks.

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?

Let's hear from the horse mouth, all you are saying is theory. It would have been better if you share the recipe of the arbitrary trading by example. It will make more sense if you do that and everyone will learn practically and not by the book


Same China that has banned bitcoin for some years now? They should even be the ones to have less rate because if you have a bitcoin to sell in China, you will only have less buyers and you will be stuck with low patronage and might only settle for less buyers and if you are buying, you will only see less volume of bitcoin as buyer and that is even more risky thing to do because if anything goes wrong, you assets will be seize instantly.

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.

Try looking for more information about "Kimchi Premium"^[1], that is the term for the South Korean market which offers higher prices than globally. I don't know whether this phenomenon still applies today, and also whether non-natives can access exchanges that have exclusive prices and then allow you to transfer cryptos in and out.


1. https://corporatefinanceinstitute.com/resources/cryptocurrency/kimchi-premium/

Arbitraging has existed since forever mate.


If I know of a good arbitrage opportunity, I'd do it myself, and not let everyone know about it.


It's much of an avenue like getting a job and starting a business is — it will totally depend on how good you are at it.

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?

I look forward to your messages.

Thanks.