if you are new to arbitrage know this:
if it was possible someone with more experience would have been doing it already! so the difference wouldn't have existed in first place.
now lets look at the orderbooks.
if you sell ~1BTC the price will drop $10
and if you sell ~2BTC the price will drop $25
and with your 20K deposit assumption you get 8.4BTC
and selling that means price will drop $50
apart from withdrawal fee you will be paying trading fees too.
$20,000 * 0.25% = $50 * 2 = $100
i don't know how much the fiat deposit in bitstamp and withdrawal from cex.io will cost
you need at least $20,100 + as much those two fees cost.
now figure out how much the price should be for you to sell!
(20,100+ double fees) / 8.4
Topic: ARBITRAGE: Bitstamp -> CEX.IO - Proof of Concept - page 4. (Read 5163 times)
I have taking a careful look into the arbitrage between the 2 website and concluded theoretically that it will work profitably but it shall require a minimum of 5 btc in order to really tap into the profits.
In practical terms of this business between these websites, the buy order volume at https://cex.io/btc-usd is low compare to the sell order, this will have a negative effect on the arbitrage business because most people only use https://cex.io/btc-usd as a dumping ground for Bitcoin instant profits and this could make the business to get saturated quickly.
In practical terms of this business between these websites, the buy order volume at https://cex.io/btc-usd is low compare to the sell order, this will have a negative effect on the arbitrage business because most people only use https://cex.io/btc-usd as a dumping ground for Bitcoin instant profits and this could make the business to get saturated quickly.
As most of above said it is risky. But it is manageable. I tried it many times and made some profit. Most important at least for me is the time it takes and the fees. And check what is the volume. You can make profit if you look around.
Regards!
I tried bitcoin arbitrage several times. If you are looking for passive income, this is the right opportunity to consider.
The most tedious thing here is to monitor bitcoin prices and pick best-matching exchanges. But you seem to have done a good job already. I would personally decide in favor of cex and bitstamp now.
I totally agree with the previous answers and recommend you to make careful calculations, but at a rough guess it may work.
Probably, I should try it myself.
I tried bitcoin arbitrage several times. If you are looking for passive income, this is the right opportunity to consider.
The most tedious thing here is to monitor bitcoin prices and pick best-matching exchanges. But you seem to have done a good job already. I would personally decide in favor of cex and bitstamp now.
I totally agree with the previous answers and recommend you to make careful calculations, but at a rough guess it may work.
Probably, I should try it myself.
Well, I wouldn’t be so sure about its profitability. 
Easy money never seemed to be a good idea. From my own experience there are always hidden dangers.
Of course, it sounds nice.
But is there anyone, who has practiced arbitrage? Does it really bring money?
Easy money never seemed to be a good idea. From my own experience there are always hidden dangers.
Of course, it sounds nice.
But is there anyone, who has practiced arbitrage? Does it really bring money?
Arbitrage is good if it can cover the exchangers fees and fiat withdrawal fee. Before you go into arbitrage, you need to calculate these: Fees you will pay during your local currency in purchasing bitcoin from the first exchanger, fees you will pay in sending your coins from the first exchanger to second exchanger and fees you will pay when your are withdrawing your capital and profit or loss to your local currency. If this fees are deducted and you are still in profit the it is worthwhile but if it cannot cover the fees then you should have a rethinks.
sounds like it could work, but I have no experience how easy the card withdrawal is.
I would suggest you try it
I would suggest you try it
Thanks for reply.
I am calculating fees now as well.
To wire deposit to Bitstamp is 0.05% and about $30 as bank fee.
It is about 2 days.
Let's assume we have 20K deposit.
Fee is $40 on this stage.
To withdraw on card from CEX.IO you can up to 10K per day with Verified Plus account
https://cex.io/limits-commissions#/direction/withdrawal ($3.80 per transaction)
For fast turnaround you need to have one bank to withdraw money to card (from CEX.IO) and to send wire (to Bitstamp)
I am calculating fees now as well.
To wire deposit to Bitstamp is 0.05% and about $30 as bank fee.
It is about 2 days.
Let's assume we have 20K deposit.
Fee is $40 on this stage.
To withdraw on card from CEX.IO you can up to 10K per day with Verified Plus account
https://cex.io/limits-commissions#/direction/withdrawal ($3.80 per transaction)
For fast turnaround you need to have one bank to withdraw money to card (from CEX.IO) and to send wire (to Bitstamp)
it is always fee and withdraw time.
so compare all fees and then try it with small amount.
But I can tell you the "problem" (see official cex thread):
Wire and also SEPA transfers taking up to 20 days!
So yes you can make profit. But you have to wait 20 days to get your funds.
so compare all fees and then try it with small amount.
But I can tell you the "problem" (see official cex thread):
Wire and also SEPA transfers taking up to 20 days!
So yes you can make profit. But you have to wait 20 days to get your funds.
Hi everyone! 
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?
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?
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