Topic: Crypto arbitrage for noobs - page 2. (Read 554 times)

Arbitraging does not work well in crypto and therefore it is least used. The price of coins are almost similar in all exchanges and it is very unlikely that we see any big differences in the price of a coin on different exchanges. In few cases, when an exchange disables the withdraw/deposit of a coin for a certain time we may see some difference in price but as soon as the withdraw/deposit enables the prices are again synced to be equal in all exchanges.

Right now Crypto is way too popular for any type of profitable arbitrage opportunies. There are basically thousands of bots that monitor every single pair and every single price and they do arbitrage in seconds.

A few years back, sometime in 2014 or so it was different. If you had a lot of screen time and set alerts you could of easily arbiraged 2-3% here and there and net a good profit at the end of the week.

I remember I didn't even have to hedge, I would just buy on one exchange, withdraw it and it would usually arrive and confirm in a few minutes and would sell on the other exchange.

These days its impossible to find opportunies as such.

You also need to factor the speed of your transactions. Arbitraging Bitcoin might be impossible, on top of that, some exchanges take a very long time before deposit/withdrawal got an approval. I'd rather not do any arbitrage tbh, it's too risky and require a great deal of capital to be succesfull.


What coins that you prefer? Maybe XRP/XLM are two of them.

According to my personal experience, arbitrage is still possible for a noob. Turning like 0.001 BTC into 0.01 BTC in a month or so may be not feasible for those having over 1 BTC of their total crypto holdings but for the noobs quite aware of what a crypto exchange is and eager to collect some more profit it would be of interest. Imho, at least those noobs still collecting  micro earnings from crypto faucets might find it feasible. Nevertheless, it requires time and efforts.

Important thing one has to bear in mind before starting is that arbitrage is risky, be ready to lose the coins involved without regret.

While doing arbitrage I have elaborated some of the key steps in making progress in my arbitrage fun:
-   choose two exchanges to your liking;
-   choose the one which would be the “master” exchange, i.e. used for initial investment and subsequent withdrawals of profit;
-   prepare a list of coins available at two exchanges;
-   check for full names of the coins because the short ones may vary at a particular exchange;
-   check online status of wallets at “master” exchange and highlight those available for withdrawals and deposits;
-   check for price difference among the coins with “green” highlighted wallets;
-   calculate the fees involved, i.e. trading fee at Exchange A, withdrawal fee from Exchange A, Deposit fee at Exchange B (if any), trading fee at Exchange B.
-   find a “back carrier” coin. My requirements to such a coin include: it is on fast blockchain, withdrawal fee is low, the number of confirmations at destination exchange is small, it can be easily sold with profit  or at the price compensated by enough profit from arbitrage to;

Issues to be checked before adding a new coin to your arbitrage list:
-   the wallets must be on the same blockchain and of course “green”;
-   withdrawal fee;
-   number of confirmations required to have your deposit at destination exchange;

Issued to be checked before each transaction:
-   “ask” volume at destination exchange;
-   wallets status: “online” or “offline”

The more coins, the more arbitrage opportunities

Crypto arbitrage is not for noobs, its not even for people who have insane experience in it. It is for bots, there are too many bots around the world that buys and sells in different platforms and sometimes even they are too slow to react considering deposits and withdrawals take time and they are not instant, because of that many people lose money.

Arbitrage is a risky business and takes a lot of time so you would need to be both experienced in it and be very fast with it in order to make it work. You also need to find places that are as instant as possible on deposits and withdrawals so you can actually make money.

I would suggest everyone to stay away from arbitrage as much as you can unless you own a great arbitrage bot and also use two very fast exchanges to trade in between.

How long did it take to learn that?
How much does the Gunbot's bring in profits??
Is there a special limit for the entry amount of bitcoins?

How do you like Bitmex?

There are a lot of guides that could give you and some bots that knows what to do with that. I haven’t tried any of it or if it will be profitable. As of now, I’m doing margin trading and with a bot that automatically trades for me. Gunbot is trading for me automatically in Bitmex.

Yeah moreover there are lots of exchanges, and lots of coins that are on the market, if you use them manually it will certainly take up a lot of your time, and arbitrage profits will also not be great if you don't use large capital, because the price margin will not be much different in each exchange

If you have a huge funds, it's worth it to arbitrage whenever there is a huge market price between exchanges. However, if you just have enough funds, it's better not to arbitrage since the fee will cost you to lose money rather than making profit.

Buy coin in market A, sell in market B. But don't forget to look about fees, spread, buy/sell wall and what most important is what coin that you want to arbitrage can be send between 2 markets.

I am not finding anything wrong as I am capable of figuring out price gaps among my hectic schedules which including my day job and trading along with forum posting too. I mean you do not need to dedicate time only for the reason of arbitrage trading. You may do it with sharp eye-balls and also you might need to check in 2 or more changes for quick spot out.

After the popularity of stablecoins like tether arbitrage trading has become easier compared to old times. Usually price gaps are frequently possible with USD based markets but unfortunately we were unable to move funds quicker in fiats but stablecoins had significantly eased that part in arbitrage trading.

and when you transfer the coin to other exchange, fees and time required to transfer are additional obstacles that also need to be counted to gain more profit.
Having an alarm for price change is quite good idea so you can avoid lose or minimize them.

You don't need to see a large margin, you can take advantage even with a small difference if you have a large amount of capital.
I sometimes did this in the past, I saw a good a big price difference on a certain coin between bittrex and Hitbtc and I immediately took advantage to it.
That gives me a good profit instantly, but this does not happen all the time though.

That is a very simple thing, but the current market situation is not very supportive.
Fee for large transactions between exchanges can reduce profits so that if the difference is small then it will not be profitable.
There must be a large margin to be able to make a profit.

There are some apps that can help you to find the arbitrage difference in different exchanges, but you still need to check by yourself, some pointers that you need to know is check the buy and sell volume, check the speed transaction of the coin and check the exchanges legitimate, you will need to register in many exchanges to try arbitrage

Some most known traps are frozen deposit/withdrawals for specific token/coin. Last year X coin was trading on Hitbtc and suddenly some twitter accounts started to spread news about binance listing which is unlikely. 1 day later X coin was listed on binance and arbitrage opportunity happened with more than 20% profit. Unfortunately Hitbtc decided to freeze coin deposit,withdrawals for unknown reason. In such case loss is unavoidable.

Arbitrage trading might sounds easy but i would tell you this that finding possible opportunities of these kind of trades would really be hard.If you do able to find one then

self-execution would be crucial because price spreads doesnt last for a long period of time.If you successfully made order and make profits then youre good but if you missed the chance

then it will cost you (fees), might not be much but still a decrease.

in order to benefit from two different markets you must to be fast, it is difficult to do it if someone also knows which crypto is different in the market. there are also those who implement traps for traders who arbitrage must be more careful in determining crypto

There are also some bots that can you arbitrage. Apitrade is one of them if I am not wrong. I have never done it before but I think to use a bot will be better. It is too hard to follow the market for routine arbitrages.

A person would have to be mad to try this crypto arbitraging. Profit seems very unlikely.