Topic: arbitrage problems - page 2. (Read 363 times)

In most cases, when the profit from the arbitration is very large - it means that one of the exchanges has blocked wallets - so the price is a pump. Once in a 1000 times, such arbitration can succeed. But it is a pity to waste time looking for such large profits for 1 transaction. Better to look for arbitrage with a smaller 2-10% profit. Folded percent does wonders. Finding such an opportunity before buying, I advise you to take a few steps to avoid creating unnecessary losses.

-Check whether there are sufficient volumes on 2 exchanges - there are often only a few exaggerated offers, which is not enough for the transaction we have made.
- check whether the portfolios are active on 2 exchanges (by logging in to them or by checking the stock market APIs).
- check FEE (exchanges have different fixed taxes, it may happen that the tax will be very high (eg the HitBTC exchange has a very high fee) that with smaller amounts arbitrage will be unprofitable.
- check whether payments eg in btc are available on the second stock exchange
- (important for arbitrage where we sell for USD / USDT) it is also worth checking whether the exchange on which we want to sell coins is possible to go out of earnings (sometimes all prices of coins and btc are understated, and to withdraw our money we will have to buy coins cheaper than anywhere, and thus we will create a loss)
- do arbitration on coins you know. Each coin has a different transmission time. By sending a coin you do not know, you can be surprised if it turns out that the exchange requires 200 confirmations (the number of confirmations can be checked in the exchange api). What can sometimes last a few days and cause you to lose (it can also be profit, but in most cases it is a loss).
- check whether the network works or does the explorer work (sometimes it happens that there is a problem on the network, and instead of 1 block per minute, 1 out of 20 runs out) or you should not block any block for a few days)
- Determine the approximate transmission time. After the payment order, the stock market must confirm the shipment - which takes a while, depending on the stock exchange - then a certain number of blocks must be issued to confirm our transactions (depending on the coin and the stock exchange) and at the end the second stock exchange has to post our wpete - it sometimes takes a while . Adding all of this, we can approximate the average transaction time a bit. If it goes off too long, it will be better off because the price may fall on the second stock exchange.
- Send test transactions every time. Send the minimum value that the second exchange receives. By this way, we protect ourselves against large losses. We then have the certainty whether the network works, how long the transaction goes with posting. And then we are able to decide whether arbitration is profitable for us.



There is also a second strategy for earning arbitrage (it's not arbitration, but I call it that).
This works in situations where the higher price is on the stock exchange with the highest volume.
You find arbitrage situations, e.g. 10% profit.
On the stock exchange 1 - the XXX coin costs 0.01 btc (stock exchange with low volume)
The stock market 2 - the XXX coin costs 0.011btc (the stock exchange with the highest volume)
You buy on the stock exchange No. 1, e.g. 100 coins.
You do not transfer them to stock exchange no. 2. You are just waiting for the price from exchange no. 1 (small volume) to catch up with the price from exchange no. 2 (large volume). All small stock exchanges match their price to the stock exchange with the largest volume. Sometimes it takes 10 minutes, sometimes an hour. Sometimes more. But in most cases, the price from Stock Exchange # 1 equals the price from Stock Exchange No. 2. And in this case, without sending anything, you are able to earn.

From what I know arbitrage is clearly possible, just:
1. when one exchange has much different price than others (a "too good to be true" scenario) then something is fishy with that one exchange
2. always keep in mind that other do this for years, probably with bots and probably with more funds than you would afford, so you'll have to be happy with quite low margin

So I decided last week and have found it to be a case "works on Paper"
I noticed an exchange with a BCH/USDT 50% higher than coinbase's price for BCH so eyes watering bought some as a test. It was just 50€ to see if it worked. It did not. The problem was the other exchanges BCH wallet was down so i couldn't deposit it in.
Not to be discouraged I have been looking at other arbitrage sites and opportunities and always have the same issue. Basically the wallet of the currency I want to trade in is down This was for EOS BAT and even LTC.

Is arbitrage possible or is it a case of if it seems too good to be true .....