Topic: Arbitrage trading ? (Read 2224 times)

Another option (instead of depositing USD/Fiat and buying coins) is to use exchanges that allow margin trading so you can short sell bitcoins.

Bitfinex & BTC-E are a good example, though you will have exchange hack risk (keeping money in an exchange sucks).

Anyways, say Bitfinex is 750, btce is 725.

buy the lower, sell the higher... Short (sell) Bitfinex 1 btc @ 750, go long (buy) BTC-E 1 btc @ 725.

When the gap comes near to closing, close both trades. (In Example, both Bitfinex & BTC-E are both priced at $742, close both trades).

Bitfinex trade = (1 btc * 750) - 742 = $-8.00
BTC-E trade = 742 - (1 btc * 725) = $+17.00

$+17.00 - $8.00 = $+9.00

You will lose on one trade, but win more on the other. It doesn't matter if btc rallies/falls $100s of dollars in the mean time, all you care about is the width of the gap between exchanges.

Eventually, one of your accounts will run low on funds (because it continually loses while the other side continually wins)... simply send bitcoin from the winning account to the losing account and balance their funds out... no FIAT involved... This to me seems to be the most straight forward way to arbitrage bitcoin in this day & age, granted it's a totally different concept than the one you have mentioned.

Also, triangular arb is another good idea, but bots have that one on lock, you won't find a single cent in profit from that one, trust me i've tried!!

Why always polo? Bitmex, xbtce all of them are the best place for trade btc with USD pair. Polo is an alt exchange and it's Fiat pair exchange site.
http://coinmarketcap.com/exchanges/volume/24-hour/

These days exchange processes are computerized, such that arbitrage opportunities are quickly filled up, but nevertheless still occur. It then stand to reason that approaching this strategy manually would yield little or no result at all. Suffice to say that use of bot is inevitable for the beauty of this strategy to manifest.

The prices at the two exchanges have to differ for this strategy to work, but if does not necessarily have to be a huge difference for money to be made. That aside, profitability with this strategy is directly linked with the amount of fund that is behind a trade, so even with little differences in market price, the volume of trade stands to bring in the multiplier effect.

how are you trading bitcoin with "USD" on poloniex when they do not have a fiat market? the only thing they have is altcoins and among those they have a USDT which is the same value as USD but it is still an altcoin and if you need fiat you have to withdraw somewhere else to convert it!

best platform in trading bitcoin-usd, i only use poloniex but there are many option you can choose. and kraken can be another option to trading usd and euro and kraken is a good site as far as i know but you can search other site that have a good recommended so you have more option to trading euro.

I believe that Kraken https://www.kraken.com/ is good enough for you if you want to trade in EUR. Merry Christmas!

when you want to do arbitrage trading this way one of the first restrictions that you are going to face is the amount of profit you can earn from your trade. and this method they are talking about if you want to pay extra fees you are cutting your own profit into a very smaller amount and you may even end up losing money.

and besides it is withdrawal from one exchange to another, so you don't control how much fee it has!

Put high fees is can get faster confirmation, because your transaction have more priority to be proccess on the network.
I'm not really familiar with arbitrage, but i still in learn how this can earn profit. I also research pair btc/usd(or fiat), it's movement indeed moving fast, like @Idrisu said, use arbitrage to trade coin -> coin is have more chance to earn profit.

Guys question, what is the best platform for trading bitcoin? and does someone know a place were i can exchange by btc directly to euro? thanks and marry xmass

these opportunities are rare and also small. it is not your everyday incident that you can see a big difference between prices on different exchanges. if you want to make fast trades instead of opening up a position in the orderbook and wait for it to be filled, you need a big difference. and what happens is that usually among different exchanges that accept USD for example the difference is small but if you look at Chinese exchanges for example the difference is bigger but you cant trade there because of the fiat difference.

There are quite a number of exchanges out there and there rates do not respond to changes in market prices with same speed, so arbitrage opportunities can never be ruled out, only that a trader have to be properly equipped and ready to take action all too soon one is spotted, because these days exchanges deploy very powerful computers to check and offset arbitrage opportunities.

A good way to go about it, is by employing a smart bot and by having good enough funds sitting in one's account in as many exchanges as possible. Something worth giving a second thought here, is that leaving huge amounts in exchanges is not in the best interest of any trader.

yes its good if you have balance in each of the market but if we only buy in bitstamp and then we send it to kraken, i think its wise to do this, because that btc amount can not always fast to completed the confirmation even if we use higher fee, because its depend with the blockchain network, its high traffic or not and many thing should be think, so watch out when you want to do arbitrage trading.

Arbitrary trading is best when you are trading it with a robot and not bitcoin with fiat but bitcoin with other altcoin. Arbitrary trader most time loss they capital because of lack of knowledge on how the exchange work. I didn't think currently you can succeed with arbitrary trading using fiat because of timing.

Arbitrage trading is good when you are trading within bitcoin and litecoin or other altcoin. From my observation it take alot of speed for you to be profitable in arbitrage trading but the bank will always slow you down through conversion to fiat currency.

It depends on the situation. If you check that there is a good difference to profit, why not. Upon checking then you can decide to arbitrage or not. You must also do quickly as maybe others are doing so, and you might end up at lower price when you transfer your coins.

So the arbitrage is not advisable right? Because as see they full of fee transaction. Maybe the better we so is stick into one place and wait that the bitcoin price also get high in that exchanger. Yes its better to figure it out because every cent is important.

That is right, you must factor the charges and fees. Remember that when you buy, there is a charges and when you transfer in another exchanges there is another charge, and finally when you sell its another charges. Its better to figure this out,so that you can minimize your losses.

Bitcoin arbitrage trading is tough, because you need to take into account all the fees, which might be a pain to program. Not only that, but the small margin opportunities you have will become negative after fees (ie 10$ more on site X, but site Y charges a 2% fee on purchasing). Maybe focus on arbitrage trading altcoins (made around 0.005BTC from arbing ~0.5BTC total on LTC), or try selling on localbitcoins (usually 20+ dollars over spot), and buy the BTC from an exchange when someone wants to buy.

If I use an arbitrage bot using API, I'll still have to wait to receive my btc on the other exchange no ?

I dont even try arbitrage because some said that its not good to use it he said to me that i can lose my mony using arbitrage. Its that true that posible to lose money using that. I hope i can try this one of this day.

currently difficult to find the margin between exchange rates. each exchange has almost the same price. and when arbitrating course, we must think about the cost of the fee be incurred. it will be difficult for those who only have very little capital.

You could just split your total balance between the two sites and when you buy on one site you also sell on the other, once you have done this you then transfer enough bitcoins over to the other account to make the balance equal again.

Arbitrage is certainly still possible, especially on days/weeks with a lot of volatility.
And you can just avoid most problems regarding being too slow if you use an arbitrage bot, like I've said in my previous post.

For arbitage trading you need to hold both fiat and bitcoin in all the exchangers where you will be trading. And actually with API also you can't just sell bitcoin from one trading platform to another platform. But to automate the process or arbitrage trading there are several trading bots find best and trusted one which can meet your needs.

there are a lot of problems with arbitrage trading and what you say here is only the tip of the iceberg.
the prices are usually at the same levels and even when there is a change, the gap which was created only lasts a very small time so you would need to act super fast or you will miss out and also this gap has to be big enough so it can cover all the fees and be still profitable.

Yes, you'd always have to take confirmations into account, but adding a higher fee (if that's even possible on exchanges) would confirm the transaction faster.

You could also look into buying an arbitrage bot, which would be more efficient in general.

you still waiting for the confirmation and after your balance is show up into other exchange, then you can directly sell your bitcoin. i think its need too long for waiting the confirmation but you can try to fill your curiousity.

Hello everybody,

I'm making some research about how to do bitcoin arbitrage trading.

My main problem is not the time to deposit fiat money, but the time to send bitcoin to the other exchange.
So my question is : how I can sell immediately btc I just bought, to the other exchange who offers a bigger price ?
I have heard about API but I don't exactly if it's instant by using it or not.
For example, I would like to buy to Bitstamp and sell to Kraken.

Thank you !