Author

Topic: Buying bitcoins on BITSTAMP then selling in BTCCHINA (Read 2212 times)

member
Activity: 74
Merit: 10
Market swings wildly these days so it might not work out as planned

We action simultaneous trades to lock in the % spread of arbitrage, this is only possible as a % of our funds continue the "speculative" path and remain in the form of bitcoins as a buffer.

So yes, it works out as planned, or we simply don't do the trade.

A word of warning, this has a different risk profile to speculating on Bitcoins, as Arbitrage has in all honesty not out performed Bitcoins insane increase in value over the past few weeks. But again, this is tailored to the segment of our investors that would rather want to see a steady 5% return per round trip on their Government backed currency (Australian Dollars / US dollars / Chinese Yuan) than speculating on the unpredictable fluctuations in the value of Bitcoins.

To keep our machine churning, we're always struggling to find enough bitcoins to buy at market rate with USD. If you think you can help. PM me.
full member
Activity: 182
Merit: 100
Market swings wildly these days so it might not work out as planned
member
Activity: 74
Merit: 10
It does work, even with lower liquidity currencies such as AUD (I'm an Australian Born Chinese)

I'm currently conducting AUD -> BTC -> CNY arbitrage via our managed fund (http://bitcoinsreserve.com/)

And am looking for partner to conduct USD -> BTC -> CNY.

PM me if you are trading in USD and wish to explore this further. Have all the facilities to make the BTC -> CNY -> USD round trip, without any hard limits. Happy to also do escrow.

Peace.
newbie
Activity: 10
Merit: 0
I haven't really looked into this but off the top of my head this should work:

1. Bitstamp
2. BTCChina
3. China Bank
3. HSBC multiple currency bank account
4. Exchange
5. Huh
6. Profit

Seems like a lot of work but the spread may be worth it.
full member
Activity: 126
Merit: 100
Bitstamp trader
hard to get money in/out of BTCChina unless you have a chinese bank account.
Same problem as with the BTC-E exchange (between Bitstamp and BTC-E there is
always a huge gap...)
newbie
Activity: 27
Merit: 0
What do you think of this idea? Do you think it would give good profit?

Yes, provided of course that:
 - in using the term 'good profit', you are referring to Chinese Remimni (CNY); and
 - you have a bank account within the China Local Market Bank network to withdraw the excess CNY funds to; and
 - that you are content holding the CNY 'profits' within China indefinitely.

If say, you would like to repatriate ex-China, for instance to send to Bitstamp, then you would have to factor cost of doing this (say 25-50%).  If you do not have a local market bank account, you just need to sort out trading license for foreign-owned corporation, easy stuff $250k. Lastly, you might note CNY has official exchange rate but, in practice FX conversion is occur at rate ~10% less favorable.

sr. member
Activity: 350
Merit: 250
What do you think of this idea? Do you think it would give good profit?
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