ARBITRAGE: Bitstamp -> CEX.IO - Proof of Concept - page 2.

Victorycoin

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Quote from: gokayc on June 07, 2017, 07:31:31 AM

Quote from: Alice Nuttal on May 24, 2017, 09:30:33 AM

Hi everyone! Wink

I am newbie on bitcointalk.org and hope that I created thread in right place.

I have an idea how to make arbitrage between exchanges and make money without any risk.

But I am trying to undertand where I am wrong.

The idea is simple - buy bitcoin on Bitstamp @$2374.99 and sell on CEX.IO @$2540.00.
Profit is $165.01 per 1 BTC.

Could you dab me where I am wrong? Roll Eyes

If you have big enough amount money then it is worth to wait even 20 days. Otherwise doesn't worth to wait. I know some people doing this all the time but most of them doing this as a company so they can play with big amount money.

Actually it could come easier and more profitable with the availability of some significant fund. You circumvent the fees and time lag by having significant amounts of fiat and crypto at both or all the exchanges you intend working with, then as you buy say 1BTC at the cheaper exchange, you also sell 1BTC at the other exchange with higher price. After several transactions you can now cash out without any pressure.

JJ17

newbie

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Hey guys,

has anybody of you ever used the withdraw to VISA function on CEX.io successfully?

Because the biggest hurdle to arbitrage trading on cex.io as I see it is the setting up the fiat side of the circle, since the normal transfer options like SEPA can take weeks according to multiple post on this forum.

mrBTCman

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Quote from: recklessMe on June 14, 2017, 03:56:59 AM

Quote from: mrBTCman on June 12, 2017, 03:21:10 AM

Quote from: recklessMe on June 09, 2017, 03:59:47 AM

Seems like bitcoin price is at the stage of correction. The rates are little different among the exchanges.
Don’t you think it’s the right time to buy and wait until the price goes up?

Bitcoin price has surpassed $3000. And looks like it is going to follow the trend. I'm guessing the difference in prices among exchanges will continue to grow as well.

Probably you are right. But since it reached that mark there has been no significant upswing. Bitcoin price is kept within $2700-2800 range instead.

However the price gap between bitstamp and cex is within $200 or so. Wink

buwaytress

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Quote from: Alice Nuttal on June 12, 2017, 11:15:58 AM

Quote from: buwaytress on June 12, 2017, 03:29:03 AM

Seems like Bitcoin is refusing to "correct". Gargantuan momentum keeps driving it up - I've noticed volumes on some local exchangers are doubling and some buyers are offering even 5% above polo's ask. I can see a bare 1% profit if I were to buy from these exchanges and sell locally. But without a bankroll the effort's not quite worth it yet.

It feels like the difference in prices offered by Bitstamp and Cex.io is gradually increasing again. Do you really think trading on local exchanges will make higher profit? Are you keeping any particular exchanges in view? Roll Eyes

Yes, local exchanges tend to be quicker when it comes to liquidating your crypto, depending on the country you're in. The problems with the exchanges we're talking about here, as noted by other responses, is simply practical problems such as network confirmation delay and delays in processing withdrawals.

But a local exchanger generally lets you access local banking for instant or near-instant resolutions, so you're less affected by price fluctuations.

Still, as I mentioned, you do need large volumes to be able to float profit.

Supercrypt

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Quote from: sk8LoremIpsom on June 14, 2017, 08:55:09 AM

One thing to consider in doing arbitrage is the block confirmation time. Nowadays, it average about ~40 https://blockchain.info/charts/avg-confirmation-time?timespan=1days minutes to find each block. Given that time span, bitcoin's price has already flactuated like crazy. Another thing good to note, is the minimum confirmation before a certain btc be allowed to withdraw unto the secondary btc exchanger.

The chances for going into massively profitable arbitrage trading is being killed by these types of practical problems. Many traders here has reported about getting struck with some exchanges regulations against KYC and now a days bitcoin confirmation delay must be a very big hurdle to go for profitable arbitrage trading.

I tried few times within my local exchanges even it involves bank transfers, due to some prior experiences I was able to crack some profits. I targeted big gaps, but when I got ready prices got little near in both the exchanges.

sk8LoremIpsom

newbie

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One thing to consider in doing arbitrage is the block confirmation time. Nowadays, it average about ~40 https://blockchain.info/charts/avg-confirmation-time?timespan=1days minutes to find each block. Given that time span, bitcoin's price has already flactuated like crazy. Another thing good to note, is the minimum confirmation before a certain btc be allowed to withdraw unto the secondary btc exchanger.

recklessMe

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Quote from: mrBTCman on June 12, 2017, 03:21:10 AM

Quote from: recklessMe on June 09, 2017, 03:59:47 AM

Seems like bitcoin price is at the stage of correction. The rates are little different among the exchanges.
Don’t you think it’s the right time to buy and wait until the price goes up?

Bitcoin price has surpassed $3000. And looks like it is going to follow the trend. I'm guessing the difference in prices among exchanges will continue to grow as well.

Probably you are right. But since it reached that mark there has been no significant upswing. Bitcoin price is kept within $2700-2800 range instead.

mrBTCman

jr. member

Activity: 80

Merit: 1

Quote from: holtzmann on June 07, 2017, 05:02:40 AM

For me, it is pretty much like short-term investing. You put your money in some asset, keep it and then sell after a short period of time. Does it work like this? Or is it better to sell bitcoins right away? Huh

Actually the principal idea of arbitrage involves making transactions immediately or close to immediately.

Alice Nuttal

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Quote from: buwaytress on June 12, 2017, 03:29:03 AM

Seems like Bitcoin is refusing to "correct". Gargantuan momentum keeps driving it up - I've noticed volumes on some local exchangers are doubling and some buyers are offering even 5% above polo's ask. I can see a bare 1% profit if I were to buy from these exchanges and sell locally. But without a bankroll the effort's not quite worth it yet.

It feels like the difference in prices offered by Bitstamp and Cex.io is gradually increasing again. Do you really think trading on local exchanges will make higher profit? Are you keeping any particular exchanges in view? Roll Eyes

buwaytress

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Seems like Bitcoin is refusing to "correct". Gargantuan momentum keeps driving it up - I've noticed volumes on some local exchangers are doubling and some buyers are offering even 5% above polo's ask. I can see a bare 1% profit if I were to buy from these exchanges and sell locally. But without a bankroll the effort's not quite worth it yet.

mrBTCman

jr. member

Activity: 80

Merit: 1

Quote from: recklessMe on June 09, 2017, 03:59:47 AM

Seems like bitcoin price is at the stage of correction. The rates are little different among the exchanges.
Don’t you think it’s the right time to buy and wait until the price goes up?

Bitcoin price has surpassed $3000. And looks like it is going to follow the trend. I'm guessing the difference in prices among exchanges will continue to grow as well.

ucho1990

member

Activity: 63

Merit: 10

Yes site now doesn'd have ssl but this doesn't need it you don't provide any data only register login and password, email isn't needed jet. If you are scared about lose you pass and login make that login info what you don't use anywhere. Site to propertly work don't need any api key or something. This is arbitrage script what compare pairs from listed exchanges

Alice Nuttal

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Quote from: ucho1990 on June 09, 2017, 04:07:18 AM

If you wanna play on arbitrage try this is free http://trade.btcprojects.website/

Seems like this website is not secure. Moreover it provides little information for unregistered users, so how does it work?

ucho1990

member

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If you wanna play on arbitrage try this is free http://trade.btcprojects.website/

recklessMe

member

Activity: 195

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Seems like bitcoin price is at the stage of correction. The rates are little different among the exchanges.
Don’t you think it’s the right time to buy and wait until the price goes up?

Alice Nuttal

member

Activity: 113

Merit: 10

Quote from: rickadone on June 07, 2017, 11:18:52 AM

But I read some local exchanges are trading in different price levels due to isolated conditions for payment options like they are unable to access other exchanges and hence they are leading or lacking in prices, but over time I did see all the exchange prices are converge to rest of world.

Honestly I am not hearing anybody making use of these price differences still I do see many people keep on spotting such opportunities. Hopefully some people would have got benefits from them but ignoring sharing here ?

Actually the root idea of my post here was to get practical advice and probably see some cases from people, who have tried it. But, again, it’s a kind of business that needs a good strategy. It is obvious that people do not seem eager to reveal details of their successful deals. Undecided

rickadone

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Quote from: BitcoinHodler on June 07, 2017, 08:54:05 AM

Quote from: Alice Nuttal on June 06, 2017, 06:29:21 AM

...
Besides, the difference in rates is around $50 now. Apparently, someone has already followed my advice Grin

prices usually are balanced after a while and it doesn't have to be because of arbitrage really. it can simply be one market reacting to the change later than the others. sometimes (not necessarily this case) the difference is because of timezone differences. some exchanges have more European traders and some US and some Asian, ...

But I read some local exchanges are trading in different price levels due to isolated conditions for payment options like they are unable to access other exchanges and hence they are leading or lacking in prices, but over time I did see all the exchange prices are converge to rest of world.

Honestly I am not hearing anybody making use of these price differences still I do see many people keep on spotting such opportunities. Hopefully some people would have got benefits from them but ignoring sharing here ?

Alice Nuttal

member

Activity: 113

Merit: 10

Quote from: gokayc on June 07, 2017, 07:31:31 AM

If you have big enough amount money then it is worth to wait even 20 days. Otherwise doesn't worth to wait. I know some people doing this all the time but most of them doing this as a company so they can play with big amount money.

I am certainly not prepared to venture large sums of money until I have a good look through the whole process. For a start, it is reasonable to start small and see what it will bring.
I’ve also heard that doing arbitrage on a large scale is quite troublesome in terms of regulation. Not all banks are familiar with the nature of bitcoin transactions that's why they avoid taking risks.

buwaytress

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I'd given this some thought as well a month earlier when prices weren't so high yet the spreads were more or less the same, so the fee percentages didn't matter as much as they do now. I did see some theoretical +ve gains but it would require volume and a full-time dedication... unfortunately not something that is at my disposal right now. Good luck if you do try!

BitcoinHodler

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HODLing is an art, not just a word...

Quote from: Alice Nuttal on June 06, 2017, 06:29:21 AM

...
Besides, the difference in rates is around $50 now. Apparently, someone has already followed my advice Grin

prices usually are balanced after a while and it doesn't have to be because of arbitrage really. it can simply be one market reacting to the change later than the others. sometimes (not necessarily this case) the difference is because of timezone differences. some exchanges have more European traders and some US and some Asian, ...

Topic: ARBITRAGE: Bitstamp -> CEX.IO - Proof of Concept - page 2. (Read 5184 times)