Topic: How to earn at arbitrage - page 3. (Read 2131 times)
For arbitrage it is essential to have funds on multiple exchanges due to the transaction times between exchanges. Before your funds arrive at the desired exchange, the arbitrage opportunity is likely to be gone. In addition, as I don't think that a human can act fast enough to earn money on arbitrage nowadays, I think a bot is needed.
Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.
Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?
I will be grateful for the answers.
how much money allocated to arbitrage is the determinant of profit to be earned.I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.
Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?
I will be grateful for the answers.
the odds for arbitrage are now very small but last week I got 0.6 BTC from arbitrage centratech results in cryptopia to binance.
Arbitrage is very difficult these days.. It is much better for people from China and Korea they have acces to all exchanges and can
take advantage of price differences.. other than that it is not profitable in general..
take advantage of price differences.. other than that it is not profitable in general..
Two main problems I see are
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
The first point is not a real problem, you are not understanding arbitrage at all, you are not waiting for an opportunity to appear and then send money to the exchange, you need to have money already on the exchange so the only thing you need to do is to make the trade, arbitrage will be impossible otherwise, this is why arbitrage is only for those that have a huge capital since the earnings tend to be in the range of 1% or 2% of the amount you traded. 1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
To make successful deals on arbitrage, you have to be fast. I haven't tried it but from what I know it is profitable.
Arbitrage trading could be very profitable but also very risky and I mean that these days atbitrage trading is much harder to performe than before because diffrences in price on exchanger are not that big and you have to put a lot of time and effort but the result might not be that good as you expect.
True, you need to be very fast in order to capitalize from the price differences besides if you do not know about the circumstances of the differences then you may lose money, remember when the price of bitcoin went up a lot in some exchanges and that was because withdrawal of fiat were suspended, if you do arbitrage blindly you may end up in such a position. 
Arbitrage is very hard for big exchanges to big exchange but if you have local exchange you can earn money by arbitrage.
i will say that it is difficult to earn profit at arbitrage because we need to concern about the time when the transaction was made. not all coins have fast landing at the other wallet and we need to estimate how long the coin will arrived. in my past, i've many experience from arbitrage and i can make some good profit although the risk is when the price is suddenly gets down without mercy.
but what i really need to mention here is sometimes the other wallet get disable to prevent arbitrage so we can not do arbitrage especially if the price is going to go up high.
but what i really need to mention here is sometimes the other wallet get disable to prevent arbitrage so we can not do arbitrage especially if the price is going to go up high.
Bitcoin arbitrage is the buying of bitcoins on an exchange where the price is very low and selling it at an exchange where the price is relatively higher. The prices of Bitcoin vary on various exchanges, due to the fact that the markets are not directly linked, and the trading volume, on many exchanges, is low enough that the price does not adjust to the average right away.
Two main problems I see are
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
The time taken will not be a problem if you already have a balance of both currency in both exchanges. You need to take care of transfer when the trade is done in both exchanges. If you are doing arbitrage like buying from one exchange and then sell to another because you did not buy that coin in advance then there is a possibility that you will lose if price is already down when the coin is received in another exchange. The best way is to have equal balances in both exchanges and then buy and sell simultaneously. You should also take into account the fees involved in trading and transferring and you can also profit from arbitrage if you have a bigger capital because if you have the minimum amount then your profit would just be eaten up by fees.
Arbitrage is a very difficult method, because you have to compete with time, you have to make a right decision too quickly. Each stock market can not transfer funds quickly.
Arbitrage is profitable also and quite difficult at first. It is profitable in terms once you transfer funds/token it is must a quick transferable so you can have the time to sell it at the high price. The disdavantage is too slow to confirm the transaction when you transfer the funds. 
Arbitrage is a very difficult method, because you have to compete with time, you have to make a right decision too quickly. Each stock market can not transfer funds quickly.
Some are using Bots to make automatic arbitrage between exchanges. You also need a fast internet connection. You cant earn a huge profit from small amounts. You also need to consider the BTC transfer fee between btc wallets.
Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.
Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?
I will be grateful for the answers.
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.
Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?
I will be grateful for the answers.
Arbitrage is an extremely profitable trading method but it is not suitable for bitcoins unless and until you have a huge investment and divided that fund in to many exchanges. I prefer ETH for my arbitraging activities. ETH transactions are usually very fast and can cope up with my expectations. The main issue you will face in arbitraging is the transaction speed between wallets. Since bitcoin transactions are not fast and takes at least 30 minutes to confirm. It makes bitcoin not suitable for arbitraging. So I mainly use ETH/USD pair for arbitraging. The earning potential is huge if your timing is right.
Two main problems I see are
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
Yes these are the common problems of the trader when they are deciding to arbitrage. Arbitrage is the very risky move in the market on were you can loss anytime that's why it is better to study first if we want to enter arbitrage. 1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
Two main problems I see are
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
1) time taken to transfer from one exchange to the other. Prices are continually fluctuating.
2) cost of transfer. With small amount minimum charge will use any profit.
A very good discussion on this topic ensued from a very general question. One responder got the most important part of the formula - i.e. that you need equal values on each exchange so that you can go long/short simultaneously. However, you still need a way to "return" funds to the starting point in order to repeat - this is typically done at a loss, which obviously needs to be less than your gain. Another important consideration is that you will need to hold a certain value of crypto currencies at all times - your investment in those holdings will be subject to market price fluctuations - this is not necessarily bad, but it is a risk you need to be aware of. In general though I would not recommend doing this without a well thought-through strategy and the ability to take a risk on a portion of your investment. Lastly, be aware that the exchanges are not as secure as banks. BTCE is a recent example of this peril.
This is probably where the strategy begins to fail, the costs of transactions can eat most of your earnings so you need a very big bankroll and that is going to bring attention to yourself and what you are doing, besides if an exchange decides to exit scam you then you are out of luck and then that will mean that you are never going to become profitable with this method. 
Arbitrage trading could be very profitable but also very risky and I mean that these days atbitrage trading is much harder to performe than before because diffrences in price on exchanger are not that big and you have to put a lot of time and effort but the result might not be that good as you expect.
Hello, guys!
I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.
Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?
I will be grateful for the answers.
Arbitrage is just taking advantage of the difference in prices among different exchanges, that is all the issue is that arbitrage needs a accounts in all the important exchanges, you need the be verified to move a lot of money, you need a lot of money, and you need to act fast, arbitrage opportunities only last for a few minutes and as such you will need to be in front of the screen 24/7 to make any profit.I am in the crypto industry relatively recently, it is interesting to know / understand how trading of crypto-currencies / tokens on different exchanges operates.
Wich problems and disadvantages do you encounter when trading with crypto currency?
What currency pairs do you use (more convenient and practical in terms of output / input to exchange)?
How much can you earn on arbitrage?
I will be grateful for the answers.
And you need to consider the percentage of commission that the exchange takes for its services. I tried to do this with one coin, but I did not succeed. I lost money
The definition of arbitrage is simultaneously trading the same asset at two or more different exchanges. Before starting an arbitrage you need to make sure you have the asset you are trading on both exchanges + a stack of ETH or BTC on both exchanges.
Perfect example:
1. KNC is trading on binance at 0.2, and also trading on Liqui at 0.1 per KNC
2. Sell 1000 KNC on Binance @0.2 for 200
3. Buy 1000 KNC on Liqui @0.1 for 100 ---> You end up with the same ammount of KNC and a PROFIT of 100 (- trading fees)
The difference will never be this big as this is a perfect example, but whenever the profit is higher than fees you pay to make these transactions, you're good to go.
Perfect example:
1. KNC is trading on binance at 0.2, and also trading on Liqui at 0.1 per KNC
2. Sell 1000 KNC on Binance @0.2 for 200
3. Buy 1000 KNC on Liqui @0.1 for 100 ---> You end up with the same ammount of KNC and a PROFIT of 100 (- trading fees)
The difference will never be this big as this is a perfect example, but whenever the profit is higher than fees you pay to make these transactions, you're good to go.
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