Buy low and selling high on different exchanges

ArnoldChippy

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Quote from: BitHodler on December 25, 2017, 09:39:43 AM

Quote from: Saftention on December 25, 2017, 04:40:36 AM

korian and Asia exchange sites have massive demand and high price in exchange sites but euro and other have lower than it so all buy in euro exchange and sell in korea

If it was that easy, people would have done it already. Also, by the time you are setting up just one arbitrage trade, the price could have gone up or down a lot already, and depending on how things play out, you'll miss out.

Korean exchanges aren't easily accessible to western traders, and you'll more than likely be forced to verify yourself, and if you're not from Korea, you won't be able to get anything done.

These are the times you as arbitrage trader faces more risk than ever due to the regulations exchanges are subject to. Nowadays the main complaints towards exchanges are the massive amounts of blocked accounts.

It's just not worth the risk and hassle.

It is called business. Nobody do opposite of this thing. Everybody wants profit on hi investment. All the people who bought bitcoin for low price will want the price to grow more and when reach to that level which they want they will sell their bitcoin. Sometimes the situation goes different but mostly the investors make profit against their investment. Time will tell us how much an investor will earn if he buys today.

vanish9

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For all of those who are saying that they could re-sell on korea exchanges, let me tell you that it is not that easy, most of those exchanges are pretty risky, i would never put a single dollar in there, no matter what

BitHodler

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Quote from: Saftention on December 25, 2017, 04:40:36 AM

korian and Asia exchange sites have massive demand and high price in exchange sites but euro and other have lower than it so all buy in euro exchange and sell in korea

If it was that easy, people would have done it already. Also, by the time you are setting up just one arbitrage trade, the price could have gone up or down a lot already, and depending on how things play out, you'll miss out.

Korean exchanges aren't easily accessible to western traders, and you'll more than likely be forced to verify yourself, and if you're not from Korea, you won't be able to get anything done.

These are the times you as arbitrage trader faces more risk than ever due to the regulations exchanges are subject to. Nowadays the main complaints towards exchanges are the massive amounts of blocked accounts.

It's just not worth the risk and hassle.

Wilhelm

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Quote from: DustyRah on December 07, 2017, 04:37:29 PM

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

Ever tried getting money into and out of exchanges?

You cannot sign up with BitFinex due to DDos etc.
You need to transport between exchanges. Doing this in $$$ this will require validation and bank transactions.
Also you will have withdrawl and transaction fees.

Creating a loop is possible if coins allow for it
Example: Exchange A - buy BTC convert to LTC. Move LTC to B and convert to BTC. Move BTC to A and covert to LTC... etc.

kryptqnick

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Quote from: DustyRah on December 07, 2017, 04:37:29 PM

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

I think there's nothing wrong with such an idea, but the truth is that the price is mostly the same (or almost the same) on major exchanges and you'll probably spend more on transferring your funds than win. Take a look at ethereum, for example. The price is VERY different if you look at different trading pairs. eth/krw is $900, whereas eth/usd and eth/btc is a bit more than $700. I think money transfering will make the profit insignificant. And eth is among the most significant one's, whereas usually the price differs less than 10%.

Saftention

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korian and Asia exchange sites have massive demand and high price in exchange sites but euro and other have lower than it so all buy in euro exchange and sell in korea

kaysersoze

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You can easily buy on Poloniex and then sell on Korean exchanges.

This has been working for a while, but you need to pay attention and sell those bitcoins on an exchange that does not ask you for KYC

ihaveaquestion

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What is wrong about doing it? It is called arbitrage, there are some tools all over the internet only to do it in a proper way. Just be careful about in what exchanges are you going to buy and sell, be careful about the verifications and the KYC & AML.

Lowleary

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Quote from: DustyRah on December 07, 2017, 04:37:29 PM

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

this kind of selling / buying make fee high and this big number of unconfirmed transition.

last three days only those holder who play in price using big difference between one site to another "3000$"

poodle63

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Quote from: barota on December 22, 2017, 08:13:48 AM

sell in yobit.io 2000 usd difference !!!!

None will try to sell their bitcoin in the shit exchange site like yobit, There are so many scam accusation to the yobit and it doesn't get any response from the owner of yobit. So many people can't withdraw their token from there. Suggest you the shit exchange to others looks very bad idea.

alyssa85

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Quote from: DustyRah on December 07, 2017, 04:37:29 PM

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

If there is a significant price difference it's because it's hard to move fiat back and forth.

For example the Korean exchanges won't let westerners sign up, so it's impossible to send fiat there. Bitfinex has no dollar bank accounts at all (people have been waiting months to withdraw dollars from them).

You can do arbitrage on the western exchanges, but you need to have planned ahead and become verified on all of them in advance. That takes time because they all have lengthy backlogs.

Fortify

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I'd say this is quite common, especially when the price of digital currencies has been moving so far lately. The difficulties would be how long it takes to convert into bitcoin and the fees associated with moving bitcoin around - they have grown quite high lately. If you're buying in big enough amounts, then it should be fairly easy to make a profit.

shrivelfire

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This is the normal standard of trading: buy low, sell high. However, you need to watch the market carefully to do a better trade.

bambazamba

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Different native exchanges have particularly different prices . It depends upon the demand of bitcoin in that country . Not all the exhanges works hand in hand . There are always some differences in the value . For example Indian exchange has a big difference in the value then that of USA , because the demand is particularly high in India.

barota

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sell in yobit.io 2000 usd difference !!!!

barota

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Quote from: pooya87 on December 08, 2017, 12:16:59 AM

there is actually a lot of things stopping you from performing a successful arbitrage with bitcoin:
1. this https://blockchain.info/unconfirmed-transactions which is currently at 220,000 unconfirmed transactions! and you will be withdrawing from an exchange and who knows what fee are they going to pay and how long would that even take!

2. sometimes there is a good reason for the price difference. for example, the exchange may have a high fee (trading or deposit or withdrawal or all) so the price lags behind. or for example it is higher because of the deposit methods that it has such as $1000-$2000 higher prices on yobit which has weird deposit methods!
not to mention the matter of trust. some exchanges can not be trusted at all. and some of them are in other countries which you can not even deposit any money there. for example it is at $20k in India but good luck getting any money in there!

i agree . profit by buy and sell in different exchanges Not an easy job
If the transaction not confirmed for a long time and bitcoin dump hard The investor will lose a lot

anggun chan

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His sound is very easy, but just imagine if that happens maybe I think it's not easy what like you think now about bitcoin. If you find an unbalanced Exchange it just means money flow doesn't work well. or so much as the person is taking advantage of the free

jjacob

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Quote from: DustyRah on December 07, 2017, 04:37:29 PM

There are significant differences in pricing on various exchanges. What is to stop someone from buying at a low rate on one exchange, sending it across into another exchange and dumping it for a profit?

https://coinmarketcap.com/currencies/bitcoin/#markets

Can someone please explain the catch?

In most cases, the difference is not high enough to cover the transaction fees and the hassle of doing the arbitrage transaction. If it is very high, then capital controls will usually be in place. You can sell your Bitcoins for a very high price in Zimbabwe, but there is no way you are getting the money out from there.

fireblond

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Thrive

Sending and withdrawing to another exchange costs fees and bitcoins confirmations aren't all that fast.. so by the time your funds arrive the price might have already got corrected on that exchange. What you could do is split your funds between the exchange and do it simultaneously Wink

pooya87

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there is actually a lot of things stopping you from performing a successful arbitrage with bitcoin:
1. this https://blockchain.info/unconfirmed-transactions which is currently at 220,000 unconfirmed transactions! and you will be withdrawing from an exchange and who knows what fee are they going to pay and how long would that even take!

2. sometimes there is a good reason for the price difference. for example, the exchange may have a high fee (trading or deposit or withdrawal or all) so the price lags behind. or for example it is higher because of the deposit methods that it has such as $1000-$2000 higher prices on yobit which has weird deposit methods!
not to mention the matter of trust. some exchanges can not be trusted at all. and some of them are in other countries which you can not even deposit any money there. for example it is at $20k in India but good luck getting any money in there!

Topic: Buy low and selling high on different exchanges (Read 546 times)