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Topic: Bitcoin arbitrage - page 2. (Read 1833 times)

hero member
Activity: 826
Merit: 1000
October 08, 2016, 06:01:36 AM
#22
Arbitrage is generally do in big amount, and calculated. Because fee in each exchanger that's different. If you don't consider this maybe you can't get profit from this arbitrage. But if in small amounts you still want to try you can use your own way, it never hurt to do.
legendary
Activity: 4424
Merit: 4794
October 08, 2016, 05:46:42 AM
#21
the trick is not
to sell all coin and cry because the time it takes to wire transfer fiat or get confirms when withdrawing the opposing coin to move to the exchange.

the trick is
to split funds up before you start and have funds already in both exchanges.

EG -before you begin-

say you had $12,000 and wanted to concentrate on 2 exchanges and concentrate on the fiat-bitcoin market
using the lowest price exchange get half of it as bitcoin.
($6000 and 10btc)
now put $3000 and 5btc in exchange A and $300 and 0.5btc in exchange B

and now you can begin arbitraging.
if A rises sell some bitcoin in A and (hopefully your already logged into B) buy some bitcoin in B (because the funds are already there)
lets say the bitcoin price was A: $600 and B: rose $615 (2% after fees)
EG before
A: $3000 5btc
B: $3000 5btc

EG after
A: $3612 4btc
B: $2385 6.02btc

now you may notice that my example did not sell all the bitcoins in A nor did it buy all the bitcoins in B. there is a reason.

trick two:
say you did sell all coins in A you then have to wire transfer the fiat to B. this can take a week and you could miss out on opportunities better than 2% after fees during that week. or if you wait for B to rise higher than A to 'buy back' you could be waiting a long time and miss better opportunities where A keeps rising higher.

so by not emptying a reserve your ready to take any opportunity that arises. either A going up again or B going up instead

here is some maths.
by having the funds split up as the 4 reserves. if you wanted 5% combined profit requires a 20% difference in prices to utilise emptying 1 reserve.
dont bet on it/risk waiting for a one time hit.
if you want to wire transfer which can take a week, you could hope that you get 4 opportunities a month and only need to find 4 opportunities of
5% to empty a reserve, transfer, empty a reserve, transfer, empty a reserve, transfer, empty a reserve, transfer, to get the combined 5% profit.
dont bet on it/risk waiting for 4 hits.

instead stick to lower % differences which will occur more often (2% differences happen way more often than ten times a 20% would happen)
meaning by playing with 2% you have better chance of flipping the coins over and over and over without needing wire transfer or wait for a one time large hit.

this is what smart people dont do.
they dont put all their eggs into one basket and sell it all for 5% single hit - due to delays of wire transfer and low chance of a 5% difference
they dont spread their eggs into 4 baskets and sell a whole basket for 20% single hit - due to delays of wire transfer and near zero chance of a 20% difference
this is what smart people do.
they do spread their eggs into 4 baskets and use part of basket for 1-2% multiple hits - knowing 1 hit an hour = 600 opportunities a month.

also using part baskets means smaller amounts. which fill faster as they are small enough to get eaten quickly without appearing as resistance or a whale order.

you will find that having 20btc and waiting for one 5% difference to sell all coins and move the fiat to hope to buy at 5% less. will leave you crying
not just waiting for the 5%, but also that 20btc appears as a resistance delaying the whole 20btc from being gobbled up, and then waiting to wire transfer to buy back the bitcoins elsewhere wont get you the 5% profit.

you will find that having 5btc (4 splits) and waiting for one 20% difference to sell all 5 coins will leave you crying waiting forever for that one chance
you will find having 5btc (4 splits) and waiting for multiple 1-2% difference to sell 1btc at a time will happen often. you are happy and having fun

say you went with 1% using btc at a time. thats 100 hits = just 3 trades a day to get your 5% combined total, easy to do

making 3 trades a day for 1% differences is more achievable then waiting weeks for the odd chance of 5% and waiting longer for the rare chance of 20%

the good thing is because you have reserves that 1% is a minimum. if a lucky day comes along and you see more then a 1% difference.. ofcourse take it.. but just dont waste the whole basket unless its a very high % to keep you on tract of 5% combined once you factor in the delays of replenishing baskets (stupidly) by wasting it all on one hit.
hero member
Activity: 3178
Merit: 937
October 08, 2016, 04:55:12 AM
#20
Has anybody tried bitcoin arbitrage between exchanges?
I see many opportunities EUR, USD, CNY to BTC. I already tried it with small money and it worked.

Is it possible to make 5% profit monthly?

I think the profit will be too small and you need big amount of funds

in order to make it work.I haven`t tried this,but it might work with a big investment.
legendary
Activity: 2912
Merit: 1068
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October 08, 2016, 02:37:46 AM
#19
Arbitrage trading could be very profitable. But right now that isn't the case because there are not big differences in BTC prices on various exchangers, and that is the precondition for arbitrage. More or less they are prety equal so I think your chances for profit, even 5% a month are very small.
legendary
Activity: 1946
Merit: 1137
October 08, 2016, 02:34:33 AM
#18
it is all about the "fees" you have to pay. so sometimes even a seemingly big difference between the prices on exchanges is really the same thing and it will be balanced out fast enough if you give it time.

and don't look at some dead exchange service that is showing the bigger difference. they are dead for a reason and that order was created a long time ago and they usually are so small in volume.
legendary
Activity: 2170
Merit: 1427
October 08, 2016, 02:32:57 AM
#17
I have been using BTC-E as a great arbitrage exchange since it was like $10 $15 lower than other exchanges quite often. Right now they seem to catch up quickly, and thus this advantage is gone for me.
hero member
Activity: 1610
Merit: 507
October 08, 2016, 02:30:24 AM
#16
i have this experience but the problem is we are waiting for the confirming of the transaction and when its done, the price its already get down and we can't sell for a good price.
hero member
Activity: 2128
Merit: 520
October 08, 2016, 01:43:30 AM
#15
In doing arbitrage you have to be very fast. I believe there maybe some traders already doing this using their bots. Everything should be synchronized and precise of you want to make money doing this and you should have a large amount to do it with or else it will not be worth it.
thats right being actively online a frequent as you can or use a bot to deal with but in order to profits good amount you needed to have big capital if you are just targeting 5% i guess it can be achieved i personally not doing it since i dont have that capital yet but for me if you can get it in the right timing you will able to achieve.
legendary
Activity: 2898
Merit: 1823
October 08, 2016, 01:21:43 AM
#14
In doing arbitrage you have to be very fast. I believe there maybe some traders already doing this using their bots. Everything should be synchronized and precise of you want to make money doing this and you should have a large amount to do it with or else it will not be worth it.
legendary
Activity: 1120
Merit: 1008
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October 08, 2016, 01:18:52 AM
#13
You may make few profits however you need to have very large amount of bitcoin as well as fiat in different exchangers. The main problem will be to withdraw profit as due to fees you may have to pay what you have earned in fees. For example, selling bitcoin in yobit can be profitable as price is always few % higher than other exchangers however when you try to withdraw fiat they charge atleast 3% to perfectmoney after that you will get just market price for your bitcoin.
legendary
Activity: 3472
Merit: 10611
October 08, 2016, 01:08:28 AM
#12
one thing is for sure, if it was profitable then definitely a lot of traders would have been doing it already. something that you find randomly is what experienced traders already know how to use.
sr. member
Activity: 434
Merit: 250
October 08, 2016, 01:00:26 AM
#11
It's hard to make money with arbitrage...
Put 50/50 in two exchanges

And keep buying/selling in boths based in the prices, one side will grow.
and be careful with fees.
hero member
Activity: 602
Merit: 500
October 08, 2016, 12:54:33 AM
#10
trading profit target only 5%/month is easy
if you trade bitcoin only use strategy averaging every buy not all in
legendary
Activity: 980
Merit: 1000
October 08, 2016, 12:43:02 AM
#9
i had been did this once time and didn't got profit from that because i start it with small amount of btc and my main problem is withdrawal fee and confirmations of transactions is too long to other exchange since that i would never do that again because there no benefit for doing arbitrange for me
newbie
Activity: 7
Merit: 0
October 07, 2016, 01:22:22 PM
#8
anybody else has experience with arbitrage?

hassbot I bought license but did not run it
legendary
Activity: 1792
Merit: 1283
October 07, 2016, 10:56:10 AM
#7
Wouldn't it be profitable if you're using an arbitrage bot for this?
Here's an example:
https://www.haasonline.com/features/

Never used it myself, but I know that this one has been discussed and tested thoroughly
hero member
Activity: 1568
Merit: 544
October 07, 2016, 10:51:14 AM
#6
With some more risk you could pick a chineese exchange to get more profits because they swing more
newbie
Activity: 7
Merit: 0
October 07, 2016, 10:47:00 AM
#5
Yes, prices are quite stable this times

Now, you can see Bitstamp 614, Bfx 619. If you do it with large volume you should make a profit although there are fees
hero member
Activity: 616
Merit: 603
October 07, 2016, 10:40:04 AM
#4
I have tried it twice and succeeded twice using upholdco's platform to convert my BTC to USD when I feel the price is falling, after it has fallen a lot and I see signs of it rising a bit, I convert my USD back to BTC. this worked good twice, but I wasn't willing to take the risk again cause it's again a gamble based on the price of the BTC, considering these days BTC price is pretty stable and would require a large amount to even benefit from small arbitrages.
legendary
Activity: 1526
Merit: 1001
October 07, 2016, 10:37:08 AM
#3
is currently very difficult to do arbitrage. exchange price difference is not too far away. so that the benefits will only be discharged at a cost of inter-exchange shipping fee. it would not be profitable.
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