Topic: How to earn at arbitrage - page 4. (Read 2131 times)

That's solid advice was was exactly the way I was thinking of doing it, if you plan to arbitrage.

This case was discussed. There're hint to keep same balance on all exchanges. So, you may trade instantly without actual transfer. Transfer can be made later without time losing.

Yes, it is really difficult to understand all info about trading wright now, but thank you for this advices. I appreciate it.

actually doing arbitration also has advantages and disadvantages, the advantage is we can choose a market that has a higher price freely, and also the disadvantage is that if we do arbitration we need a lot of time to wait for confirmation of the transfer of tokens we have, it can make we lose money if the price wastes before our tokens are confirmed.

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.

Yes before doing arbitrage you must check all the requirements first of the exchanger so that you know what will happen if you send some coin to the exchanger. Arbitrage is a risky but profitable method in trading in this way we need to be fast or else you will missed the profit or you will be loss.

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

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.

First, what is your coin you want to play arbitrage? For example you want to play ETH . Go to coin market cap. Go to "MARKET" section. Look for the exchange site that gives the lowest value of ETH. Register to that exchange site, and buy an ETH.

So you purchased a low priced ETH. Now go to coinmarketcap again. Look for the exchange site that gives the highest ETH price. Send your ETH to that exchange site. Presto you just earn thru Arbitrage.

I listened about the arbitraging in the stock market but found it is not realistic now a days because of speedness of market and on-line operation. If, anybody know about the arbitraging in the cryptocurrency then send the details here. Arbitraging means buying and selling the same assets simultaneously.  Also, i want to know that should we buy the cryptocoin from one country and sell it in another country instantly. If it happen here also we can earn a good and decent amount of profit.

You should try reading the thread before commenting. I already explained the only way to do arbitrage is to be holding enough of each currency in both accounts. Then you can transfer the funds at your leisure after the trade is closed. Anyway if you're trading a fiat pair you can transfer USDT 24/7.

The largest difficult with arbitrage is that the markets can change in the time it takes you to transfer from one exchange to another. Therefore the best way is to ensure that you are already holding the currency you want to profit from arbitrage with. For example, hold both btc and ether on two accounts so you can instantly buy on one and instantly sell on the other.

The real difficulty with trying to do abitrage in the crypto space is that the markets are open 24/7 but you can only move fiat to an exchange 5 days a week in banking hours.

So you have to pre-plan by having your fiat there already, but that is risky given how often the exchanges are hacked.

Well yes, you do need to have sufficient funds available, arbitrage is more of a professional strategy than one for beginners. That doesn't make it impossible to do. As for losing when you come to withdraw, that depends whether you got the strategy right in the first place. You need to factor in the trading fees and transactions fees before deciding that there is enough of a price difference to make it worthwhile. If you do all correctly it is one of the least risky trading strategies there is as you are short and long the position simultaneously and therefore perfectly hedged. This means that movements in the overall market will not affect you. As the price comes back together, your profit in one account will outweigh the loss in the other every time. The only risk is in execution error.

This solution is good enough except on thing - you should have much money If you want to have good profit you should operate with big funds. But you can't have big funds on every exchange and on each crypto currency. And you can lose when you will withdraw all funds at some time. It's risky.

Thank you, guys.
You helped me to understand this questions.
It is really need to think and weigh the advantages and disadvantages.

Thank you very much for your the detailed answer!

To do arbitrage successfully you cannot wait for transactions to get from one exchange to the other. Arbitrage opportunities are only fleeting and you have to act immediately. To do this you need to have equal amounts of each currency on each exchange so you can go long on one and short on the other. Then you can move the funds after you flatten the trade.

actually it is very easy to do the trade for cyptocurrency,
all that you need to do is buy and sell,before doing any trade you need to find your output and input.
you should find the place for you to deposit your cash/fiat/money and then convert it to cryptocurrency.
after that find the place for you to encash your cryptocurrency.
usually,the place for you to deposit your money is the place for you to encash your cryptocurrency.

the advantage doing a trade in cryptocurrency on exchanger is some of them does not require our document to do the trade,
and it's very easy to send your money/cryptos,and you can keep yourself in secret.

the disadvantage doing a trade in cryptocurrency on exchanger is a lot of phising attempt will happen when you try to do it,
and the most important thing is it's irreversible.
whenever you or not you send your cryptos to other wallet,you will never can reverse it back or forever move to that wallet.

arbitrage is not easy as you think,
you need a lot of money at least to do it,and momentum.
a lot of people doing an arbitrage but most of them did not get profit from it but instead loss.
because it's require a confirmation for every transaction and some of them will be delivered after a hour or more than that.
in cryptocurrency in the next 5 minutes the price can change higher or lower.

But it is difficult to transfer money from one exchange to another. You need money for each exchange to trade