Best tokens for arbitrage trading? - page 4.

Fundamentals Of

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Quote from: Fundamentals Of on January 31, 2022, 04:05:16 AM

Is arbitrage trading still a thing today?

Not anymore but someone there are newbies that sees it as a method but they don't know that it's no longer a thing today.

Arbitrage trading is likely rare these days. You get to compare the rates of exchanges, locally and internationally and you're lucky enough if you get to see the opportunity with it.

Newbies are probably the ones who think that arbitrage trading is still a thing until now because they haven't experienced how it became an easy source of money back then but eventually fizzled out. Nowadays, with a price difference of only a few cents, it is impractical to get into such trading. The fees itself might even be enough to kill potential profit. And knowing how volatile the crypto market is, the moment the tokens arrive the price might already have moved significantly.

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Quote from: galini on January 30, 2022, 09:48:15 PM

Hello friends
I have heard that there are people who earn income by trading arbitrage. I am very inexperienced at this. Which token or coin do you think would be suitable for arbitrage trading? Thank you.

If you want to try arbitrage you can visit Coinmarketcap, then look for coins that have a fairly large price difference from exchange A to exchange B. Make sure the coin has sufficient volume / liquidity.
I can't give the name of the coin, you have to find it yourself.

Fundamentals Of

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Is arbitrage trading still a thing today? I think it is no longer profitable to get into arbitrage trading these days. The price difference of coins between exchanges is insignificant after you deduct all the fees. So you need to have a really big amount to play with in order to make a decent profit. And since the risk is high, I'd rather not get into it.

Even if you have the money, you better use it for classic trading. Scalping is probably more preferable than arbitrage trading these days. But still very risky.

But to answer your question, choose tokens that have high liquidity.

dansus021

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Quote from: cryptomaniac_xxx on January 31, 2022, 12:14:56 AM

I'm not really sure if arbitrage trading is still profitable though, I mean in 2017 yeah, you can do it, buy from some korean exchange and then go and sell it in US exchange.

But now the game has changes, day traders or arbitrage traders are using bots now, so it's hard to compete with them if you are going to start with it. So if you are inexperience then most likely you are going to lose money in the beginning and now sure how you can sustain this kind of trading strategy as there are competitions, just saying.

1000% aggree with u back in the days all people using centralized exchange to do arbit trade and yes is profitable but now after DeFi coming is not much profitable sniping bot become profitable for quiet some time but recent smart contract become resitance to sniping bot

the difference is so low it would be great if u trade in one place rather than arbit

Jawhead999

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You should understand about arbitrage trading first.

In short arbitrage trading is taking advantages of the price gap between two exchanges, let's say you buy from exchange A for $100/coin and then you sell it on exchange B for $110/coin. It's same coin and you're made profit for $10/coin.

So, you're looking for exchanges sell the cheapest and highest, not the coins nor tokens! Beware of shady exchanges, the legit exchanges only has 0.1-0.5% difference with the other exchanges.

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Quote from: galini on January 30, 2022, 09:48:15 PM

Hello friends
I have heard that there are people who earn income by trading arbitrage. I am very inexperienced at this. Which token or coin do you think would be suitable for arbitrage trading? Thank you.

I have seen projects that tried to do arbitrage but unfortunately as far as I know they all collapsed. There are so many bots these days and they are so fast that arbitrage is actually impossible. If you manage to do arbitration, then only on very small exchanges, with a tiny volume and even less confidence to them.

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Quote from: galini on January 30, 2022, 09:48:15 PM

Hello friends
I have heard that there are people who earn income by trading arbitrage. I am very inexperienced at this. Which token or coin do you think would be suitable for arbitrage trading? Thank you.

I guess the best token are those with high volume. There are tokens with huge discrepancies on their price but the difference is on the trading volume or demand. Yes you got a high price on one market but has only got few volume so youll probably find difficulty to liquidate the tokens you bought on another party. Anyway best way is to locate it on such tracker like coingecko and coinmarketcap.

cryptomaniac_xxx

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Quote from: galini on January 30, 2022, 09:48:15 PM

Hello friends
I have heard that there are people who earn income by trading arbitrage. I am very inexperienced at this. Which token or coin do you think would be suitable for arbitrage trading? Thank you.

I'm not really sure if arbitrage trading is still profitable though, I mean in 2017 yeah, you can do it, buy from some korean exchange and then go and sell it in US exchange.

But now the game has changes, day traders or arbitrage traders are using bots now, so it's hard to compete with them if you are going to start with it. So if you are inexperience then most likely you are going to lose money in the beginning and now sure how you can sustain this kind of trading strategy as there are competitions, just saying.

galini

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Hello friends
I have heard that there are people who earn income by trading arbitrage. I am very inexperienced at this. Which token or coin do you think would be suitable for arbitrage trading? Thank you.

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