Topic: is it practical to move coins among different webs and earn the margins? (Read 175 times)

Yes of course you can move the coin between some website to earn some profit amd its legal so you dont need to worry about it.
But there are some technique that you need to learn before doing arbitrage trading.

Yes,we can earn profits by moving coins from one exchange to others because normally there is huge price difference between exchanges.But it is riskier when we do this kind of strategy with bitcoins because the confirmation time needed is long for bitcoin then other coins so the price may change at the waiting time then you will lose your profits in the form of transaction fee.You can try this strategy with ethereum and there is chance for earning good profits in short time.

First time posting..i am new to this site and new to trading crypto's ... but i am not new to trading.

As i dive into the world of cryptos...one of the main attractions that i see (again..early on in my learning curve) is the insane potential for profits in arbitraging.  Not necessarily as the OP states...by moving coins from exchange to exchange....but rather from coin to coin.  I think there is a TON of potential there.  Maybe you ultimately want ETH...but because none of these markets appear arbitraged...it may be cheaper to go USD to, say, BCH, to ETH...as opposed to directly USD to ETH. 

I come from the world of futures, forex, and equity trading...for the point of this topic, the forex is most applicable....but all of those markets are arbitraged.  buying a euro with your usd will be almost exactly the same as buying that euro with yen that you bought with usd.  I am not used to seeing these instruments trade out of sync with each other.  I can look at a chart of BTC/USD  and a chart of ETH/USD ...they both are doing the same thing...moving pretty in step with each other...lets say they both are up 10% for the day... so in an arbitraged market...a chart of ETH/BTC should be essentially flat, and sideways...because even though each coin is appreciating in value...they are doing so at essentially the same pace...so the ETH/BTC shouldn't be moving all over the place. but it is. 

they are not balanced and i think there is MASSIVE potential to exploit that.  On the down side though, also seems to greatly increases the risk factor.

Am i missing something here?  I have not yet put money on the line in trying this strategy...but i feel like there is something i am not seeing, in regards to arbitraging potential.

This is clearly arbitrage trading. But be aware that there is really a lot of danger in doing it. Since there are a lot of cost is moving crypto from exchange to exchange it could eat up your profits also remember that there is also the cost of buying and selling. So the thing is you need to have a lot of crypto to do this. For example, you want to arbitrage ETH, the best course of action would be having ETH and BTC in both exchange sites. So that when an arbitrage opportunity exists, then you can sell your ETH on the exchange with higher prices and buy using BTC in the site with lower prices. This way you eliminate the risk of the prices equalizing before you receive the ETH you bought on the other site.

Lol, well that is the reason why the price will have to keep increasing for now until we have the lightening network. Arbitraging is not that easy and unless you really have much to move around and pay a high fee for it and make some good profit, then it is not something that should even be delved into, most especially for bitcoin. We cannot stop it and it will always happen as long as the opportunity is there.

If OP is referring to an arbitrage trading, it would only work if the network speed will not end up catching up with him. However, there are some coins that are good for arbitrage though, but it is still a little bit risky. For BTC, you should better just forget it because the fees, transaction speed in between exchanges and all that will frustrate you unless the margin is just so huge that you can afford all that.

I am not the person you are asking, but if I understand correctly, this would vary a lot not by country, but by platform. If you are doing local, direct trading rather than using platforms such as LocalBitcoins or exchanges such as GDAX, then you have a much better chance at successful arbitrage than anything else. To show an example, if you were to deal completely directly with 2 people in different locations with no intermediary, that would mean that there would be absolutely no added fees other than the transaction fees required for the bitcoins to change hands. The problem with this method is that it is much slower and harder to execute than through API-enabled exchanges that allow for automation to happen.

It really isn't worth doing except in very big amounts.

You seem to know a lot more about arbitrage than I do. I was wondering, are there any form of fees along this form of trading? Is it solely dependent on the demand in an area? For example if we have someone in South Africa paying 19k for a single bitcoin, and someone from the US buys one for 16k and sells it over there, won't he run into any legal trouble? Or is that completely ruled out because of the anonymity? Arbitrage seems a little dirty to me.

We are not talking about just cents at all, actually. I just checked and I would like to make a few updates to my previous post. It seems that this can come to be quite profitable at certain times if you employ the correct strategy. It seems to me that many bots that do the crypto arbitraging for you automatically do not take into account a few aspects of trading where you can make money. Right now, I'll keep the details to myself, but another possible way of making arbitrage profitable is to not transact in Bitcoins. This does not necessarily mean that you cannot do arbitrage with bitcoins, but that if you do, you should be transferring value between exchanges using some other form such as ethereum which has way lower fees and much faster transaction speeds. This does mean higher trading fees, however.

What's the point in doing that . The difference might be in cents but if you try to exchange from website to another then you are probably giving double fees and this is where you lose . Why do you even care about penny's! It's better to just hold Cryotocurrencies and you'll simple earn free cents like that.

It is highly risky with BTC as a result of the transaction speed. Unless you are willing to pay a huge amount to be able to get your transaction confirmed quickly and knowing you are still going to be making a lot of profit in this process, then sure, you can go ahead.

Otherwise, you may just want to sit it out a little or maybe try it for some altcoins. I make some pretty good bucks as some alts get dumped by a huge holder on one platform and on the other still trading normally.

What you talking about is possible but I tried with few coins and then came to know that different fees take up the margin and at the end everything is one and the same thing. I mean though we see different volumes driving into different exchangers which puts us with different price tags then also it doesn't mean we can profit always. There has to be huge difference in two exchangers, may be more than 1 USD per X coin to achieve the huge margin. But as we can see there is not much differed and taking the confirmations to transfer the funs also kills the time as well as price might change during that transition period. SO you may wanna try it out only on those coins which really has big difference really.

Why not? It means strategy arbitrage. You can earn the profit between the different price of two or more exchange.
This trick is legal, so you can explore your style of trading more like what you want.

IMO it only becomes feasible when you have a huge amount to toss and trade. When you only have a couple hundred dollars, you're just arbitraging to a loss. Also, you need to be registered and verified on all of these exchanges too. While the idea of profiting on huge price gaps is neat, the preparation and fees associated with it don't make it worthwhile.

Correct ! now it's not profitable anymore. In my own opinion it will be better to swing trade or day trade in one exchange compared to buy in exchange A and sell to exchange B. Since cryptomarket is volatile a trader need only to take advantage of the big fluctuation.

At this current state, it wouldn't be practical. Transaction time, transaction fees and the target price gap would need to be considered altogether. Trading itself is risky enough, why add and even greater risk moving from exchange to exchange.

yes of course why not ? and it is called 'arbitrage'.
but it is not very easy to do because it requires a lot of thing such as confirmation,verification and else.
most people did that a while but stopped doing it because it is no longer profitable(for Bitcoin).
why ? because we need to wait a hours to get our coin from our wallet and something like that.
when we are waiting for it,the price can change at anytime which will cause a huge loss for us.

in my opinion, to do arbitrage trading is too dangerous because we need to calculate the time to send the coin to other exchange. and if we are late then we cannot make a profit and even the worst is we can get a loss. I think you need to search a coin which has fast confirmed and doesn't have much time to delay the transaction so you can make your profit. but I am not sure that we can do arbitrage trading today because I see if the price has a different gap of the price, it will make an adjustment to the other exchange, so our chance to make a profit is small. it is better for us to stick to one exchange or we could split our money into two exchange or more so we can trade the same coin and at the same time.

If you're in Zimbabwe, South Africa, Venezuela, Brazil, then yes arbitrage is a great option to make a great amount of money just from buying in one spot and selling in another. If you're in Europe or north America i t's not going to pay the bills unless you're doing 10MM a month in volume in which case you just do whatever you like.

I think you are referring to arbitrage. The practice of buying and selling from different trading platform and trying to earn profit from the difference of the price.


Exactly, you will also be encountered a lot of KYC/AML verification from the other side of the globe before you can actually do such practice. But with the current high transaction fees, if will not be profitable at all. But if my memory serves me right, there are a lot of traders been doing this last year, because they can quickly moves funds around easily without any issues back then. However, times have changed, trading platform now as also too slow because of the influx of new users and by the time you are able to sell/buy the price of bitcoin has reverse.

I don't think this will be super profitable. I assume you're talking about differences that are often talked about across countries. For example, the price of BTC in South Africa (If I remember correctly) is significantly higher than the prices here. I'm sure you'd run into some issues. I don't think exchanges generally would allow for that. Even if they do, though, you're going to miss out on regular fluctuations of Bitcoin too. Furthermore, you're going to face fees on the transfers. Overall I just don't think it's worth it.

Are there some price differences between different platforms?

There is a coming hard fork this month and it will take place at a certain block, you might not want your money to be on that block when you exchange coins to another platform, cause by doing it constantly there could be a minor chance that you will lose something that you should have. 

P.S Honestly I don't know if the hard fork is going to continue IMHO.

this kind of trading is mane reason to make fee is high as hell.

you only kill bitcoin from inside.

Moving coins from exchange to exchange is not advisable. Many things can happen, especially these days when BTC is very unreliable with the slow confirmations and the high fees.

Ignore the price changes on the chart you are seeing now. I am sure that price will be recovered in soem days. In that aspects you will find the price bumped to 20k USD in the end of this year.
If you panic about buy some altcoins like neo, waves, etc and iota.
You will get the amount you invested returned in some months.

It would also be risky in that if you try to actually move the coins between exchanges as the OP is suggesting he wants to do, one would be vulnerable to the change in price during the confirmation time, which lasts from 30 to 60 minutes. Furthermore, the trade has to be good enough to offset the transaction fees incurred by the movement of the coins. Of course, having a larger pool of bitcoin would certainly help in this regard, but it may put other smaller players out of the play. The Gemini-GDAX gap is an example of something off which you might profit. The gap gets up to $300 wide at some points and you can always try to keep the Bitcoins in them in order to not incur any fees, but it takes quite a bit of money to be able to do this profitably. Even then, you are going to need a script to do this repeatedly for you and you are definitely going to want to make sure that it is completely bug-free, as your entire portfolio would be vulnerable to any failures.

What do you mean? Arbitrage trading? If you have the right amount of BTC and the skill to do it then I dont see why its not lucrative.

Having said that, it would require you to have BTC in more than one exchange for faster trades. Thats very risky.

There are some differences in prices among different platforms. sometimes huge. can you move coins and earn the margins?