How multi exchange trading work? | Bitcointalksearch.org

darewaller

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?
Is anyone here doing this? Please share your experiences and advices.

You can and must do it but the liquidity is very poor for such coins. I mean the price of a particular coin might be 600 satoshi on an exchange while 1200 on another but the one with 1200 will have like 0.001 btc worth for sale and the next order gets around 600 itself.

There is nothing wrong though and if you see the price difference between two reputed exchange sites along with nice liquidity go for it !

upsidedown75

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?
Is anyone here doing this? Please share your experiences and advices.

Other than trading between exchanges, you can find similar opportunities within one exchange itself. You need to closely watch some a heavily pumping/dumping altcoins and you can make profits out of them through continuous trading three pairs. You need to trade like coin-x to coin-y and then to coin-z and finally back to coin-x. Here coin-x would be most of the time bitcoins.

Take it complete study on this before trying it, you can check Google for more in-depth knowledge on this.

TheGodFather

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?
Is anyone here doing this? Please share your experiences and advices.

For me, what I am doing is im trading from different currencies, others tend to trade with different sites with the same currency both of them is under the multi exchange trading method. Both of them also works but different ways .. If you are using one cryptocurrency anf that certain cryptocurrency fall, you will lose. In the other hand, if you are trading in only one site, and the site scammed you, you will lose.

LittleBitFunny

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Arbitrage trading isn't very profitable. It can be somewhat profitable but in Forex markets for example any inefficiency, even really slight, is worked out within fractions of a second. On crypto exchanges, fees and complications as well as the "spread" (gap between buying and selling) usually result in any profitable being negligible or non-existent even if the amount of people doing arbitrage is much lower.

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?
Is anyone here doing this? Please share your experiences and advices.

Arbitrage.

That was some of the average traders think to take advantage of the price volatility and make a sure profit. But sometimes the result is not the thing they want. This will take long words to discussed it.

You might want to check some insights here. It was a detailed one and Im sure it will be easy for you to understand.

https://99bitcoins.com/bitcoin-arbitrage/

SONG GEET

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This is called arbitrage trading and if you don't have quite big bankroll you can't make any profit from it. Also you have to trade simultaneously in multiple trading platform which can be pain in the a**. Grin

xIIImaL

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Quote from: erikalui on April 15, 2017, 01:38:58 PM

It's never going to be beneficial to buy from one exchange and sell on the other as you need to bear the exchange fee as well as withdrawal fee and unless you deal with amounts bigger than 2-3 btc, it can be profitable. Initially, buying from international exchanges was cheaper than a local exchange but considering their high fee, I too dropped the idea. You can barely make 4-5% profit which isn't much.

If we go with the transact the money different exchange wallet, first fees will take down you profit rate. Then you need to check the price continuosly and you may get confused and you may get loose the profit by that.
Apart from all of these you check the people before start a trade, Some newbie get the payment and leaving with the bitcoin. I hope you are using trading site with the automated escrow to keep safe your btcs.

~Bitcoin~

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?

Yes you can do this but margin will be really low than you think due to lots of hidden fees you have to pay on moving coins from one platform to another one to sell quickly for profit.

Quote from: Wapinter on April 14, 2017, 08:19:23 AM

Is anyone here doing this? Please share your experiences and advices.

This can't be done manually so you may need few trading bots active in both platform and also lots of bankroll both USD and Bitcoin in both of them.

erikalui

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It's never going to be beneficial to buy from one exchange and sell on the other as you need to bear the exchange fee as well as withdrawal fee and unless you deal with amounts bigger than 2-3 btc, it can be profitable. Initially, buying from international exchanges was cheaper than a local exchange but considering their high fee, I too dropped the idea. You can barely make 4-5% profit which isn't much.

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?
Is anyone here doing this? Please share your experiences and advices.

This is called arbitrage an crypto pairs only when it can be done extra fast. If an exchange has pairs of several cryptos that are interchangable and also has a system to transfer balances withing the exchange fast it can be done efficiently but due to bots using such a system for profit gaps close extra fast.

Idrisu

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?
Is anyone here doing this? Please share your experiences and advices.

Yes you can take prices different advantage on exchangers platform site and make very huge profit. The trade is called arbitrage trading, though the risk is very high compared to others form of trading in bitcoin because some exchangers always notice change in price but have not update price on their own site, then before the exchangers process your purchases and credits your fiat account or wallet you will be on a losing side of trade.

Wapinter

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Quote from: shinratensei_ on April 15, 2017, 05:57:53 AM

Quote from: Wapinter on April 14, 2017, 08:19:23 AM

Is anyone here doing this? Please share your experiences and advices.

In this time none is doing it, caused by the network of bitcoin will make it being impossible to try.
Can you doing an arbitrage trade with some hours just waiting for the confirmation for your transaction?

Yes with bitcoin slow network it may not be possible now.I was considering to do it with Altcoins as I have seen some alts have hugh price on bittrex but low price at different exchange.
I haven't yet tried it myself.

shinratensei_

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Quote from: Wapinter on April 14, 2017, 08:19:23 AM

I see there is a good difference if price of crypto on various exchanges.

They've different demand and volatility.

Quote from: Wapinter on April 14, 2017, 08:19:23 AM

Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?

Don't expect to try arbitrage trade if you do not understand about how the market it works, Sometimes the it will be different from your expectation. The volatility is unpredictable and it may go down more than your speculation.

Quote from: Wapinter on April 14, 2017, 08:19:23 AM

Is anyone here doing this? Please share your experiences and advices.

In this time none is doing it, caused by the network of bitcoin will make it being impossible to try.
Can you doing an arbitrage trade with some hours just waiting for the confirmation for your transaction?

naidray

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Quote from: Wapinter on April 14, 2017, 08:40:44 AM

I think deposit and withdrawal time is different for different currencies.

The time taken for deposit and withdrawal is not same across exchanges. Moreover in one particular exchange itself we cannot be sure when they will be processing unless it is fully automated. (Depositing is fully automated in all exchanges as far as I have come across, but only very few exchanges are processing withdraw automated others still manually checking and processing to prevent scams).

Quote from: Wapinter on April 14, 2017, 08:40:44 AM

Is there any way to find it out?

I believe there is no summarized information available on this, you need to check yourself. I believe it will be easy because you are going to check hardly in two or three your preferred exchanges.

Quote from: Wapinter on April 14, 2017, 08:40:44 AM

What are the best bots available for arbitrage?

I don't think there would be any possibility of going for arbitrage in complete automated way because it involves more than one exchange and coordinating across exchanges is not an easy task imo.

Wapinter

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Quote from: thebatletbet on April 14, 2017, 08:33:30 AM

youre strategy this name arbitrage much people is ready and play youre write strategey
before play you must follow

1 how long deposit and withdraw exchanger x and exchanger Y
2 fee trading and fee withdraw

several people use BOT use arbitrage strategy

Thanks you for enlightening me.I didn't know it is called Arbitrage .
Yes your points seems very important but I think deposit and withdrawal time is different for different currencies.
Is there any way to find it out?
What are the best bots available for arbitrage?

thebatletbet

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youre strategy this name arbitrage much people is ready and play youre write strategey
before play you must follow

1 how long deposit and withdraw exchanger x and exchanger Y
2 fee trading and fee withdraw

several people use BOT use arbitrage strategy

Wapinter

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I see there is a good difference if price of crypto on various exchanges.Is it profitable to buy from exchange X (where price is low) and sell on exchange Y (where price is higher than exchange X)?
Is anyone here doing this? Please share your experiences and advices.

Topic: How multi exchange trading work? (Read 544 times)