Topic: arbitrage problems (Read 375 times)

It looks like London has fallen movie :v
Maybe you mean the wallet is offline or under maintenance

It is certainly possible but you should know which trading pairs are good for this purpose and which are not

For example, in the past (around 3-4 years ago) I had been actively using arbitrage with BTC:DOGE pair on 4 exchanges. My best result was earning 0.7 BTC with just one iteration (just in case, back then Bitcoin wasn't that expensive), and it all came through manual trading. Not so long ago I was using this technique with Litecoin earning a few percentages on a trade. But that required a specialized trading bot as it is nearly impossible to catch sudden price changes in the "manual" mode (which is basically what today's arbitrage comes down to)

If the currency wallet has fallen, then I'm sure it will rise. You just have to wait a bit

when it comes to doing arbitrage trading it is always a good idea to keep in mind that you are not the only one doing it. it may sound like a silly thing at first but it helps in a lot of scenarios. like knowing that you are in a deadline that is approaching fast and you need to be quick or in your case knowing that if 50% profit was truly possible then at least 2 dozen other traders have been all over it!

another thing that I think is worth mentioning based on your case is to always check that you are actually looking at the same coins on both markets! trust me when I say this that in a lot of cases you think they are the same but you are looking at two different coins. like bitcoin-cash versus bitconnect which both are shown as BCC on some exchanges, or bitcoin-cash which Bitcoin.com sells to people fakely as bitcoin. or the case of USDT versus USD.
if price of bitcoin is 3500 US dollars and USDT value drops to 0.9 dollar instead of 1 dollar then you will see bitcoin value as 3888 USDT and that can be misleading.

That's a good site to spot price differences across exchanges https://coinalyze.net/

I only concern about the time of the transaction because I have a bad experience with the arbitrage trading. You need to know how long the transaction will complete so you can sell your coins in a profit. I don't know about how long BCH can arrive in another wallet because I don't send my BCH to another wallet and I prefer to stay with the exchange no matter what will happen later. I am sure that if in one exchange, the price can increase, the other exchange will follow too but it depends on how many traders will buy and sell the coins.

Price gap across exchanges is happening only due to these types of problems like wallet is not syncing or wallet under maintenance or deposit/withdraw is temporarily disabled. I believe price gap will not occur between exchanges when there will be enough liquidity on both the exchanges.

There is one simple trick to find and make use of arbitrage trading : You must choose 2 different types of exchanges. One must be highly famous one with massive volume and another one must be little known exchange (yet it should be reputed one) then there will be a change to spot of price gaps. Do not look into charts for figuring out the price levels/gaps but look into order book and volumes to make use that you will be getting enough volume for your hassles of moving funds back and forth.

Arbitrage is possible but its not as simple as it look, there are bunch of things that need to be consider, the first one is the buy and sell price and volume, and then you need to make sure the speed transaction is fast, and don't forget to check the exchanges reputation and the last things to do is to check the fee

Your case OP is not new to someone who deals with this kind of business, arbitrage is the most convenient way of earnings inside this market before, especially when you have a huge capital, but those glory days already passed and it's not easy anymore considering those issue that you will encountered
same like with what OP had, also, those bot and site owners manipulations just to attract traders.

You need to study everything before considering this type of trading business.

This is precisely the risk of arbitrage, it's impossible to avoid this unless you want to risk further by exchanging your coins/tokens to other which has faster transaction speed with lower fees like XLM. It's challenging but that's the fact, and I bet only a few people will be able to do this because the price will suddenly go up or down when the opportunity to arbitrage was taken by someone.


That's not really the case, in fact, trading on the old market might be more profitable because you can just sell your coins there before it got listed on the new exchange. But this kind of hype is not present in this bear market, is it?

1 thing that i know make arbitrage really succesfull is when Bigger market open new pair from an altcoin to bitcoin. Like in past, people will start to buy in Bittrex and sell it to Poloniex because new coin listed in there. Both of wallet wouldn't down and we can transfer the coin easily. But now, if there are big different in price between markets, maybe something happen with wallet in one market with high price.

learning from the past
since early 2017 I have done with Yobit
Yoshiit is my first trading place, btw
lol

Consider the time needed for coin arbitrage between exchanges.
lots of coins that take a long time so that the coin falls before the deposit process is complete.

Arbitrage does work. When I had initially learnt arbitrage I was highly frustrated as there are many things involved while you try to perform arbitrage, it is not only the price difference the liquidity at the exchanges also matters a lot. After spending months on this now I can strongly say that arbitrage does work. I found a guy on linked-in who is expert in arbitrage and he has created bots for triangular arbitrage and few more., I just learnt from him and even I have learnt it upto a level that I book a sound profit.

It is the study and the effort that you put into any topic will help you. Its not that the strategy does not work and there are sites where almost all coin of multiple exchanges are available in same dashboard( I explored this recently)

Keep learning you will get trick behind arbitrage.

In addition to that, its really hard to make a profit, if you will do it manually. These days traders usually uses bot to take advantage of every price gap. So it you think you can beat a bot by placing orders then you're wrong. So it's possible but it's hard to make a lot of profit in the end.


LOL. You better stay away from that exchange. Shady and not to be trusted. Members here call them "Yoshit" and I'm sure we all know why.

Whenever you notice huge price gaps like this, there's usually an underlying reason. Usually it means a coin can't be withdrawn from the exchange. It could be due to shady "wallet maintenance" that lasts for weeks, or it could be due to insolvency where the exchange just disables withdrawals.

Since traders couldn't withdraw BCH, they were desperate to sell it for another asset (like USDT or BTC). In other words, arbitrage is impossible. When arbitrage is possible, the price gap among exchanges should be very small because arbitragers can actually close the gap.

That was the first thing I did, formerly I often arbit in Cryptopia to Yobit
lots of wallets that have problems on Yobit
it's ridiculous, when bought coins but after that the wallet is offline

That is the same problems I do find with arbitrage trading.  I went into it in November last year using a software that scan arbitrage opportunities for me across all the exchange and I was happy from beginning especially the first time it scan the first opportunity.  But I find out that the coins was downed in the exchange that I wanted to trade it.  I thought that that is abnormal until later I find out that this is what happens. I placed several trade and i could not find anything much different from my investments and I have to stop arbitrage trading.

Your mistake is one of most common in arbitrages.

Arbitrages are possible and profitable if you know what you are doing:

1. Always check deposit/withdraw status on both coins on both exchanges.
2. Always calculate the exchnage taker/maker trading fees + withdraw fees.
3. Don't mistake USD and USDT. USDT to USD vary a lot in term of arbitrages.

Sometimes for reasons not caused by you, you cannot move in time and this results in loss. Let's call it your bad luck. Also it is not relate just arbitrage, if such a problem was in trade, the profit would still be reduced. Anyway IMO you should investigate exchange you are going to make a exchange in, because most of the time, they explain when and what the problem will be.

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 .....