Topic: Arbitrage in crypto - page 4. (Read 863 times)

Indeed, this arbitration activity has become quite popular among traders. We have tricked this several times in order to make a profit, but this must also be taken into account with the withdrawal time between the exchange and the target exchange, then the costs that must also be covered from profits because this kind of selection should not be missed. Fluctuating prices will be very risky and may not be profitable.

Not only doing good but also how to be fast and lucky with arbitrage trading way, some time when got chance to arbitrage several coin got trouble or unlucky with exchange market delay deposit or withdrawing until destination exchange for selling have lower price. Before you try with arbitrage check first have delay deposit or withdrawing on exchange market? you can see on telegram channel group because if have trouble with withdraw and deposit several coin, will be several member complaint there.

If you are doing it just because you think you could make money, then you are going to end up with a loss. There is an art to doing arbitrage and you need to understand the beauty of it. When you try to force yourself to make a profit out of it, then it will lose all the meaning of it, if you can't then just stop and try to keep looking. You may think why would I do arbitrage if I am not going to make a profit, but the reality is that you could just watch and wait for an opportunity for a long time if you can, which is what I am talking about.

The patiently waiting and searching period is the biggest one. Now that we have a million small fake looking swaps, it is even easier to make that arbitrage. You may not trust or even like a token, but there could be a chance to profit there. This is why the profit making part comes second, finding that profit part is the artistic part.

Amazing. what people read. I thought. that I write into the void...Arbitration is initially an incomprehensible word for most people. People are getting smarter little by little.

I was also very curious when I first got to know arbitrage trading, because in my opinion it looks easy. It turned out that after trying several times,
it was quite inconvenient and we had to take into account many things, especially the issue of withdrawal fees. Because each exchange has
a different withdrawal fee. Then sometimes each exchange also has different rules, besides we have to register on many exchanges to be able
to do arbitrage trading, we also need to study the terms and conditions of each exchange. My painful experience when doing arbitrage trading,
when I transferred coins to other exchanges, the price of the coins suddenly dropped before I sold them. Because sometimes the movement of
crypto is quite fast, in the end it's not the profit that I get, but i have to lose for paying the withdrawal fee. Moreover, as you said, the price
difference between exchanges is now not much different. It's no longer effective for now to run arbitrage trading, now it's better to make money
through spot trading or futures trading.

Aaand guess what , when you do it in larger scale you might would have to stop doing that for a while as some exchange has their own policy regarding withdrawal limits.
Less risky but still at some point you could lose a lot , crypto often give us a surprise candlestick , we have witnessed it all , arent we ?

A dump down / pump up to 60 even 90 percent in just few minutes even secs! You would be damned if you are in between lol

Very often, our calculations on the receipt of profits from arbitrage trading are crossed out by the unfair work of the exchange's employees. Thus, by the time your coins are withdrawn or credited, the price is no longer actual for making a deal.

Arbitrage trading must be really tempting and gaining profits from short and quick trades is like a dream for many newbies.
But unfortunately, things are not that easy. If it would have been that easy then everybody would have been doing that.
Even I had tried Arbitrage trading back when I was a newbie in trading but what I learnt from experience makes me never wanna do it again.
It's very common to find out that by the time you transfer your coins to that particular exchange to gain benefit of arbitrage, the price difference gets settled again.
This has lead to paying transaction fees unnecessarily. To gain potential benefits of arbitrage trading you should have accounts on many different exchanges with some amount of money in all of them.
This way you don't miss out on the time it takes to transfer the coins and paying unnecessary fees.
Eventually, I don't think there is more profit in Arbitrage trading these days since most of the exchanges don't really have huge differences in prices.

Arbitrage trading is very risky nowadays, especially if we’re talking about altcoins as well as it’s trading and withdraw transaction fees. I am usually using Newscrypto’s arbitrage tool with live prices for me to decide which coin or token is the best to arbitrage trading. However, despite that it saves me time from looking at the other sources in getting me accurate results for abritrage trading a specific cryptocurrency, there are no guarantees or promises that we could get the same result because these prices can change anytime rapidly without warning.

I also tried arbitrage trading which is much more complicated, I need to consider many parameters like trading fees, withdrawal fees, and also timeframe. Nowadays, the price difference between two exchanges is reducing. If we calculate the rate of seeing coinmarketcap then it'll a waste of time because the real price of any crypto changes in a very short time. Ex: we see a price of ADA is 1.02$ in CMC of any exchange but whenever I go to that particular exchange the price will increase or decrease like 1.0238 or 1.0189 something like it.
If we have any bot or other algorithm application then it would be a way to make a profit. Many old users or experienced users use triangle arbitrage for making a profit.
I saw many people in the forex market that made a good profit using triangle arbitrage.

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Crypto market prices difference can be shown in local markets. Many peoples still doing it. Ex: The price of BTC is like 3700$ in global exchange but the same BTC price in like 37500 or 38000 in many countries local market.
Another example, the official price of one USD is 85 BDT in our country but whenever it comes to USDT, the becomes a minimum of 92 BDT. The price also increases to 95/96 in time of the market crash.
Many country's local exchanges or 3rd party market has higher price than the global price. Anyone with good contacts can make a good profit between them. But keep in mind, this idea is like money laundering in any country. So, DYOR before investing. 

One of the considerations you should really be minding off first and that one would start if you do able to transfer those coins from one exchange to another because in most cases whenever there are some

arbitrage opportunities on which exchangers do really make out some holding of withdrawals or deposits or even having some maintenance of particulars coin wallet which wouldn't be possible
for you to proceed on. Sounds wise? Not surprising and this is one of the factors that you should really be aware off and if not which same as you said you would really be ending
up on bagholding those coins that you had purchased earlier.

Golden words! There are no miracles in the market. Especially realizing that most exchanges have fictitious volumes and prices. It has nothing to do with the real price. And do not forget about the commission... Very often it is inadequately large.

Be very careful when you do altcoin arbitrage trading, I have had some pretty bad experiences in this field. Usually when there is a big price gap between exchanges in different altcoins it is a bad sign, most of the times one exchange or both are having some serious problems with that coin and you can't transfer it between exchange to complete your trade and get your profit.
Sometimes the order books can be too thin or even fake and you could fail to finish your trade that way and end up bag holding something you don't want to.

It will be difficult for you to guess such a coin, which will have a difference in price on several exchanges. At the same time, you should take into account the fact that you will have to wait a long time for such a moment and at the same time your money will actually be frozen.

You would really be needing to be done it faster because price gaps couldnt be sure on when it would last and several factors are needed to be considered first to have an effective arbritrage trading but its true that it is somewhat complicated into those people who might have first try on it.

Chances like these doesnt really come on often thats why searching for opportunities like these are really hard to find one.

First of all Arbitraging without any trading tool is almost impossible as well as impractical. You will find such differences in a lot of coins on coinmarketcap but this doesn't depict the right picture, because there are high chances the LTP isn't even between the range of the buy-sell wall on the other exchange because there is zero liquidity of the coin in the second exchange. Which means you need a tool that can track the order books on both exchanges. Then another problem is long withdrawal times in crypto, unlike stocks and forex where arbitrage is done by taking delivery elsewhere, you don't really have this option such options in Cryptos, you have to withdraw the coin and pay for the withdrawals fees as well as wait for a few minutes, and there are high chances that this opportunity will be missed in the meanwhile. You don't have any derivatives based option of arbitrage in cryptos so far.

It is bit stressful process to be honest, i have tried it and finally gave up as you need to hold funds in multiple exchanges and most of the time the platform where you will get a particular coin at lesser price will have a hefty withdrawal fee while you try to transfer t to other exchange where you can sell it for higher price and the amount of profit which you recieve after going through all the hassle is nothing compared to the efforts you out it to search the arbitrage and maintaining funds in multiple exchanges. There are websites koinknight which offered premium packages for arbitrage but most of the time they are incorrect.

Its true that crypto is huge platform and i think it is better than stock .Cause we can get a huge returns here within short perid of time .However arbitrage is one of the safest way of trading but it has many risk concern .You need a safe platform to make the trade profitable .You have given a screenshot here we can see the price difference but you also need to research if there are deposit and withdrawal are open on the both platform and also the volume with the real price .If everything fine there on both exchange you can make profit easily .So before doing you have to research everything concern to complete it successfully .I think you always need to active there and update about the concern trading .I think you may earn arbitrage but never forget to research and learn on crypto .

This significant difference can be exploited by Bots. but there will be calculations done by the bot before arbitration, as I said before. If the bitcoin price is unstable as it is today, of course it is very risky and in the bot there are also several settings that need to be done, so the bot is not fully automatic, there are semi-manual settings that must be done to adjust to market conditions.
The use of the ERC20 network is not recommended, because there are many fees that must be paid, the cheapest is the BSC network, polygon and also new networks such as Avax which of course have a cheaper fee.

You learned arbitrage trading on Binance? I still do not understand this statement, a single exchange can not be used to trade arbitrage, it requires two or more exchanges. Also that arbitrage traders have bots that can let them know the price of a coin on individual exchanges.

Arbitrage is not that risky, but it is still ridky, and for if done wrongly, it will lead to loss, especially during volatile market. For the profit in arbrotage to be more, arbitrage traders prefer to use high amount of money. But the rule states that someone should use the amount he can afford to lose for trading.