Topic: Arbitrage in crypto - page 5. (Read 949 times)
Arbitrage for me is more complicated. We should know what cause it and we should take our decision faster because other people might be see that chance too. Because usually there are any problem from the market itself like deposit or withdrawal maintenance and if we don't know that, we can easily lose our money. In past when Bittrex and Poloniex still trend, especially when Poloniex listed new coin, usually it get pumped a lot and when i can't arbitrage, i will just buy in first market and then sell it in same market because people will start to buy it too and it can make price getting higher.
I mean, long before I knew even about crypto, or derivatives or leverage or futures, I was just doing normal forex and already everyone who knew how or thought they knew how was trying to do arbie.
Huge funds do not work on small alts though. Not enough volume in orders.
Huge funds do not work on small alts though. Not enough volume in orders.
Traders are trying to do arbitrage for the hope that they will get profit of course. But for example in crypto, there are some factors that you need to consider before pushing thru with arbitrage. It is hard to suggest a coin to get involved with because the price volatility is hard to follow in any coin. You need to focus in small number of coins if you want to employ this kind of strategy. Also, quite risky to trade small cap coins. The price movement is usually slow and not advisable if you want quick profit.
Volatility actually makes it easier in arbitrage,,, I would say. If you remember in the past 4 years since 2017 ATH when Bitcoin could be arbitraged in South Korea and in Argentina, volatility was so extreme that exchanges could not keep up. Traders profit the most with systems that are slow to match price in global market.
Volatility is not as big a problem as volume. Small altcoins have so little orders you would wipe out your arbitrage gains with a few hundred dollars.
When there are so many smart minds working to build something that could do what you are trying to do but very quickly then it will always end up with something bad for the manual trader. I mean imagine the fact that we would end up with robots in real life, don't you think eventually they will do things better than we do? Most things at least.
Well, it is the same logic, smart people are working on making bots find and execute those arbitrage chances in miliseconds, and that is not going to be something humans can do, even if you see it with your own eyes and click, you might be late or maybe you won't be but you have to be right there for it. So that is why arbitrage is done by bots, they are just way too faster compared to people.
Most arbitrations are executed by bots, and that will speed up the work of arbitration rather than having to do it manually. All calculations will be carried out by the Bot as well as when the execution time will be carried out. I found a lot of artbitrage bots ranging from free to paid. But very few chances are had if the volatility is too high. before using a bot, you should do some research and use the least amount of capital possible to experiment so you don't get caught up in the arbitrage that is being carried out. Well, it is the same logic, smart people are working on making bots find and execute those arbitrage chances in miliseconds, and that is not going to be something humans can do, even if you see it with your own eyes and click, you might be late or maybe you won't be but you have to be right there for it. So that is why arbitrage is done by bots, they are just way too faster compared to people.
I was wondering if any of you tried arbitrage on the crypto market (I'm choosing this option because it is relatively less risky than normal trading, basically the main effort is to find those pricing errors and "exploit" them without incurring in a front-run).
Yeah, it is absolutely risk-free and instant profiting is possible but the catch is you cannot figure out "feasibly" price gaps. That is the biggest challenge of arbitrage trading. It means either the gaps you find, may not enough for paying exchange fees or also not worth for the gas/tx fees needed to move the coins along with paying exchange's withdrawing fee. So, you need to consider and calculate all the costs which are involving before getting start with arbitrage trading.Do you have any experience with this method, which software/programs do you use and what tutorials do you follow to learn it?
I have tried few time and got small profits; it is kind of once in year opportunity. If you keep looking at different markets and something you might be able to spot such price gaps. I tried Arbitrage before trading from dex/cex to cex and vice versa when there are new token listing the only problem is the transaction time, its a bit difficult to process it manually you will spend a lot of time to withdraw and deposit if you are doing it without using any bot. Second I learn for you to earn good amount in arbitrage trading you need huge funds since most of the price nowadays have very little difference from other exchanges. Most traders today are using bots to make a good profit since its automated and can trade even when you are sleeping, manual is really difficult for now you cant frontrun 100 bots trading simultaneously.
I think everyone has tried arbitrage at some point if they ever wanted to call themselves "amateur trader"
I mean, long before I knew even about crypto, or derivatives or leverage or futures, I was just doing normal forex and already everyone who knew how or thought they knew how was trying to do arbie.
Huge funds do not work on small alts though. Not enough volume in orders.
Traders are trying to do arbitrage for the hope that they will get profit of course. But for example in crypto, there are some factors that you need to consider before pushing thru with arbitrage. It is hard to suggest a coin to get involved with because the price volatility is hard to follow in any coin. You need to focus in small number of coins if you want to employ this kind of strategy. Also, quite risky to trade small cap coins. The price movement is usually slow and not advisable if you want quick profit.
I tried Arbitrage before trading from dex/cex to cex and vice versa when there are new token listing the only problem is the transaction time, its a bit difficult to process it manually you will spend a lot of time to withdraw and deposit if you are doing it without using any bot. Second I learn for you to earn good amount in arbitrage trading you need huge funds since most of the price nowadays have very little difference from other exchanges. Most traders today are using bots to make a good profit since its automated and can trade even when you are sleeping, manual is really difficult for now you cant frontrun 100 bots trading simultaneously.
I think everyone has tried arbitrage at some point if they ever wanted to call themselves "amateur trader"
I mean, long before I knew even about crypto, or derivatives or leverage or futures, I was just doing normal forex and already everyone who knew how or thought they knew how was trying to do arbie.
Huge funds do not work on small alts though. Not enough volume in orders.
I tried arbitrage but manually and not by using a robot so it is somewhat difficult and cumbersome, I used to monitor the price differences through a website, but the problem was that every time I find good price differences between two exchanges they close the withdrawal and deposit, then the plan fails and you will not be able To do anything, this has happened to me a few times.
Lately I've been looking for arbitrage opportunities between central and liquidity exchanges like PancakeSwap, it works fine sometimes but you have to keep an eye on the spreads on Coinmarket constantly.
When there are so many smart minds working to build something that could do what you are trying to do but very quickly then it will always end up with something bad for the manual trader. I mean imagine the fact that we would end up with robots in real life, don't you think eventually they will do things better than we do? Most things at least.Lately I've been looking for arbitrage opportunities between central and liquidity exchanges like PancakeSwap, it works fine sometimes but you have to keep an eye on the spreads on Coinmarket constantly.
Well, it is the same logic, smart people are working on making bots find and execute those arbitrage chances in miliseconds, and that is not going to be something humans can do, even if you see it with your own eyes and click, you might be late or maybe you won't be but you have to be right there for it. So that is why arbitrage is done by bots, they are just way too faster compared to people.
Hi, anyone currently doing inter exchange arbitrage profitably?
Instead of transferring tokens between exchanges, I was thinking of holding an amount on a few different exchanges.
My question is, what coins should I hold?
When an opportunity is shown by any software, it could be ANY coin.
So how do Arbitragers make a profit when they don't know what coin will show up, and therefore what coin to hold?
Appreciate the insight.
JH
Instead of transferring tokens between exchanges, I was thinking of holding an amount on a few different exchanges.
My question is, what coins should I hold?
When an opportunity is shown by any software, it could be ANY coin.
So how do Arbitragers make a profit when they don't know what coin will show up, and therefore what coin to hold?
Appreciate the insight.
JH
I tried Arbitrage before trading from dex/cex to cex and vice versa when there are new token listing the only problem is the transaction time, its a bit difficult to process it manually you will spend a lot of time to withdraw and deposit if you are doing it without using any bot. Second I learn for you to earn good amount in arbitrage trading you need huge funds since most of the price nowadays have very little difference from other exchanges. Most traders today are using bots to make a good profit since its automated and can trade even when you are sleeping, manual is really difficult for now you cant frontrun 100 bots trading simultaneously.
Pretty sure it's too difficult nowadays? Most exchanges have their prices pretty close to each other now and so profits from trying it out would be quite minimal. Plus, even if there were programs that would let you arbitrage, pretty sure a few other people would have also used it, maybe even better ones. Honestly, you might even lose out due to the transaction fees. Yes arbitrage is less risky than other methods of trading, but it's also the most unrewarding out of all of them, and may even, as I said, make you lose out.
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If arbitrage trading is about buying in 1 coin and sending it and selling it in the other exchange, I do not think that will be easy because you need to think about how long the coin will arrive in the other exchange to sell it at the right time.
If I see on your image, the price has a gap and that can give you the profit, but you should know about how the fee is time-consuming to send and sell. I prefer not to touch arbitrage trading in crypto as I have failed many times experiment in the past. It needs more calculation than regular trading as you need to find a closer of the coin with a different price and compare it with the other exchange. If you feel lucky, you can try it and see the result.
If I see on your image, the price has a gap and that can give you the profit, but you should know about how the fee is time-consuming to send and sell. I prefer not to touch arbitrage trading in crypto as I have failed many times experiment in the past. It needs more calculation than regular trading as you need to find a closer of the coin with a different price and compare it with the other exchange. If you feel lucky, you can try it and see the result.
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Most of the time is its just a waste of time and money for transaction fee and withdrawal fee since most the exchange charge flat rate on withdrawal while the volume on the orderbook on the exchange that has an irregular price is always thin with a huge price spread. So in the end you end up breakeven or worst is you just stuck your coin on other exchange while paying the withdrawal fee since you are just breakeven when you market sell your token on the order book.
Arbitrage trading on same exchange with different trading pair is much more realistic to do than multiple exchange arbitrage.
Arbitrage trading on same exchange with different trading pair is much more realistic to do than multiple exchange arbitrage.
Be careful with those exchanges. Most of them are scammers and when you deposit money; they will ask for a very high withdrawal fee or ask for KYC or will come up with some other crap to keep your money. Sometimes it is not even possible to trade these pairs even though it shows up. "Wallet maintenance"
If that arbitrage was possible, somebody else would have done it already. If the price difference between 2 exchanges is too much, it means one of those exchanges is in trouble.
If that arbitrage was possible, somebody else would have done it already. If the price difference between 2 exchanges is too much, it means one of those exchanges is in trouble.
Do you have any experience with this method, which software/programs do you use and what tutorials do you follow to learn it?
Currently if there is a price difference it could be because the exchange is closing deposits or withdrawals, that may cause traders become stuck, imagine if traders do arbitrage on coins with low liquidity they will experience a big loss, so you have to be careful to arbitrage on coins with low liquidity.
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But I was wondering if any of you tried arbitrage on the crypto market (I'm choosing this option because it is relatively less risky than normal trading, basically the main effort is to find those pricing errors and "exploit" them without incurring in a front-run).
You make a point about Arbitrage to be less risky than normal trading but it also require good knowledge, funds and the use of powerful automated machine.Without the first 2 or the 3 features I mentioned the risk in arbitrage is still the same as normal trading.
Do you have any experience with this method, which software/programs do you use and what tutorials do you follow to learn it?
Always dyor about any program that's recommended to you.Trading in the stock market is a thing, but doing it in the crypto market is almost exclusively for professionals (and many people keep ignoring this) and takes years and years of hard study to make it work properly without liquidating your savings.
at first actually i thought crypto trading is the easier to trade assets than stocks and etc but time goes by i realize that there's a big difference wherein probably reason mostly traders are on stocks. But yes the patterns and strategies can be used as well on both sides but when it comes crypto its really hard to get the pictures when it comes analysing like seems it will took 2 years for me to understand how i can make good win rate in it. Lol 
There are sales tax in some projects so if you don't do careful research and only look at price difference and make arbitraging trades, if you are trapped with sales tax, you will get loss by arbitraging after sales tax reduction.
People can do arbitraging between platforms, exchanges or cross chains. It is more useful with not too small or not too big volume. Because with big volume, difference from arbitraging is not significant enough. While if trading volume is too small, you will make big change in price with your buy or sell orders.
People can do arbitraging between platforms, exchanges or cross chains. It is more useful with not too small or not too big volume. Because with big volume, difference from arbitraging is not significant enough. While if trading volume is too small, you will make big change in price with your buy or sell orders.
...P.S: I see that price differences especially in low cap altcoin and I think I've actually found one example so I'll share a screen, let me know if this could be a valid example and how would you deal with it.
Each specific case should be considered individually, bearing in mind that a large difference in price may be caused by various factors. These include the fact that there may be very little liquidity on one of the exchanges or the deposit/withdrawal of the coin you are interested in is prohibited.
I tried arbitrage but manually and not by using a robot so it is somewhat difficult and cumbersome, I used to monitor the price differences through a website, but the problem was that every time I find good price differences between two exchanges they close the withdrawal and deposit, then the plan fails and you will not be able To do anything, this has happened to me a few times.
Lately I've been looking for arbitrage opportunities between central and liquidity exchanges like PancakeSwap, it works fine sometimes but you have to keep an eye on the spreads on Coinmarket constantly.
Lately I've been looking for arbitrage opportunities between central and liquidity exchanges like PancakeSwap, it works fine sometimes but you have to keep an eye on the spreads on Coinmarket constantly.
Arbitrate only on exchanges you trust or you have traded and withdrawn without problems. I'm just worried that what's shown doesn't match the actual situation.
Significant price differences sometimes occur due to a lack of trading liquidity in one of them. Or it could be that the exchange has a technical problem like recently happened to hitbtc, you can trade doge but can't withdraw it.
Significant price differences sometimes occur due to a lack of trading liquidity in one of them. Or it could be that the exchange has a technical problem like recently happened to hitbtc, you can trade doge but can't withdraw it.
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