Topic: Make profit using different exchanges? (Read 3234 times)

i think the time which will take to get credited in your wallet on exchnage site will be more and more time will take in exchnage proccesss too if u are trading high amount, so i think sloww process and there is risk of burining money tooo, thats my opinion,

Thanks, i know it, my idea works well
And the trading charges between cryptocurrencies are very less! This should not be the disscussion.

But the real question of principle is, do you believe bitcoin is volatile? And please tell me, who creates this trend you talk about? And say is gold volantile? Or do people believe it only that the worth changes?

In my opinion, volatile things can become worthless and they can be overpriced in the same way!
If we look at the gold price for example and someone tells us, gold is cheap today, then i as the question: "Do you believe gold is cheap, or is the the currency expensive which you use to buy gold?"

You understand what i mean?
It is the education of the people (since generations) and the way how the finance industry present her product, called money. Which let us believe that a limited recourse becomes more or less worth! But it is not true!

Next question:
Is it possible that in 50 or 100 years the people say, bitcoin is stable like gold? And they say also, the worth of a dollar has changed against bitcoin. The fiat currency (dollar) is volatile, lets trade it to take a profit!

Remember please, what is the idea behind bitcoin? Is it a investment that you can purchase with your local currency? Or is i a alternative somehow?
And please tell me now, why has the creator of bitcoin not exchanged his coins at the days as the price was higher than 1000 $ ?

Your idea is good but trading charges is also there and bitcoin price is also volatile better to trade along the trend.

Sure, but it's only theoretical. I told about strategies and experience before. It is not possible without!
Also trading fiat is not possible without.
By the way, the trade volume comes from the people who trade a currency, no matter if fiat or crypto...
And also fiat money is volatile, it goes up and down by the time... Look at Russian Ruble, Dollar against Euro and so on...

And a profitable strategy means how you do things to profit from it. All the people here talk about arbitrage. But how they do it? I cant read...
They say mostly, they buy on one market cheap and sell on the other market for a higher price. Yeah this is right, but it is not all...

I say, the best kind of arbitrage is direct, you buy and sell at the same time! This means you need on each exchange some amount on balance. Sending money from A to B needs mostly to much time (after arriving the price difference could be gone...).
And my strategy works very good with less withdrawals. Look here at my picture, i do 10'000 trades and less than 800 withdrawals + deposits.
https://bitcointalksearch.org/topic/m.11207338
 
And further there a more kinds of arbitrage, also direct but inner exchange! For example by using 3 markets or more, called 3 way arbitrage, 4 way arbitrage ans so on.
Lets explain a example in short. I buy some LTC with BTC. The LTC i use to buy DOGE. With the DOGE i buy XPL. And the XPL i sell for more BTC as i used to buy LTC.
But you have to calculate the prices before this steps! It is not possible every time. But i can do this 4 way example on cryptsy inner-exchange!
But also i can execute one or more of this steps on a different exchanges if the prices is more profitable and if i have coins on balance. It doesn't matter where i place my orders as long as i can await that they get filled.
There are so many altcoins and so many exchanges. I find every day a lot of good trades.
And a good trade means, i get 10%. Also i won't promise to much, but also 100%, 300% or much more is sometimes possible.
But 10% is a good rule of thumb as orientation. And even if not possible, with some trades i am lucky with only 3 %.

And then is there a option to do arbitrage with a time delay, and not by buying/selling directly! This you can do if you await that the price reach a level next hours, day or weeks. Or if there is request on the market which you like to use to profit from.

So lets summarize, arbitrage is possible direct or with a time delay. It is possible on the same exchange or different exchanges. And it is also possible by using only 2 or more ways/markets.
And all kinds are possible in combination together somehow.
The big advantage of arbitrage is, it goes mostly fast, you don't hold the altcoins for a long time!!
Only some altcoins maybe which you use as base currency, in the same way like BTC. For example DOGE and LTC are base currencys. And this are good altcoins, not so scammy like others maybe...
 
Finally i say, trading bitcoins against altcoins and altcoins against altcoins, is much more profitable as using fiat to trade bitcoin!
Especially if you know an exchange where you can buy cheap
Also Volume is not all for profitable trades!
Fees are very low for trding with cryptocurrency and withdrawals are fast in most cases!

This is possible, but there is a variation in terms of how much you stand to gain,it should be done through crypto currency (altcoins..etc)as opposed to fiat which is quite slow,the volume of trade should be considered and/or also the speed at which you convert due to price stablization should be considered,you wont stand to make  a huge profit specially after late confirmation and withdrawal fees,so it is a risk altogether and also avoid scam cryptocurrencies

It's not easy to say how much is generally possible. And I use different kinds of trades and strategies, not only arbitrage. And I like the small trading fees which the exchange offer and the withdrawal fee is also not really high in comparison with trading fiat.

I recommend for the beginning to trade with small amounts only, to have less loses if something goes wrong.
I trade bitcoin with altcoins now around 2 years. I started with experimenting, like you. And i have done mistakes at the beginning. I lost coins due to inattention for my side and also due to scammy exchanges. But this is all a process of learning and after two years i have a lot more BTC as in my first days. A lot more! Actually i started trading with only few altcoins wich i have mined (some ANC and DGC).

Over the time i developed strategies to profit from and strategies to keep the coins safe. For some kinds of trades i have as minimum goal for profit, only the double which i have to pay for the fees. This is a small profit of only few %. But enough to do arbitrage. And the reward increases with the volume of coins i move...

And sometimes i have a little luck. For example few weeks ago on c-cex, someone filled a order which i placed someday. It was on the SONG/LTC market and i bought 500 SONG with only 0.0125225 LTC (this is less than 0.00001000 BTC).
The 500 SONG coins i sold on BTC market at a price of 0.00000700 BTC per SONG! This was only one of my highest profits this year

Which exchanges do you use for experimenting and which coins?

Considering the fact that altcoins have less margin most of the times, how much do you generally make? I have been experimenting with it for the last 30 minutes or so

Hi,
like the other users mentioned before, this is called arbitrage.
And i do this kind of trade every day, but not with fiat currency. I don't like Dollar, Euro, Ruble, Yen and so on.
I use the price difference of altcoins between the markets of different cryptocurrency exchanges to generate a profit

What did you do wrong? was it your fees?

i just lost money using this method, not recommended, better to short, you gain more

Yes you can, as you're aware that the method you're talking about is called Arbitrage.

If you ever do think of trying it out, make sure the difference between the exchanges are big enough for a decent profit and as well as trading and withdraw fees.
You don't want to cash out and finding out that you've made a small loss after withdrawal fees.

You can always try this with Altcoins, however if you don't know how to manipulate the market to your liking, you're going to have a hard time pulling a profit. Altcoins are always arbitraged and the difference between exchanges are small if there is a difference.

A lot of the answers here are focusing on Arbitrage...but there is another point to consider.
If you ONLY open 1 account on 1 Exchange, you are severely limiting yourself. This is where an Exchange's Volume comes into play.
An Exchange with HUGE volume is moving much faster than one with a lower Volume.

Comparison shopping is also important. Shop around for where the price is best (either buying or selling).

eh. making profit by doing arbitrage on crypto market is way too hard IMO, the price stabilize too fast.
it was far easier in 2013.. that or I was just lucky.

you can't withdraw fiat from Hitbtc... They froze the withdrawals so it won't work.

I think this will not make any significant profit since every withdraw succession , you need to pay a fee.
And then every exchanger has different fee on it's buy and sell option. Next thing, mostly altcoin move active fluctuation so it's kindda hard.
You need really much effort for doing this. For me I'm better predict it's price using his chart and pray (hope I got huge profit)

This has been my point I've tried to get across at least 3 times in this thread already. All people saying that it doesn't work because of the time it takes to move fiat and/or coins around is too long: You are missing the point. To properly execute an arbitrage you already have the funds waiting at both exchanges. Trade on difference, and keep the books clean. Of course it doesn't work if you're trying to move funds around.

you should understand clearly that the price might actually change it could rise or it could fall just likethe change in dollar rate

That's arbitrage.

You can't make much, due to the time it takes to move fiat around, but you can certainly wire money into the exchange that posts the lowest buy price, buy, then transfer the coins to the exchange with the highest sell price, and sell there. Then you're either stuck waiting days on end for ACH transfers, or paying a bit for domestic or potentially international wire transfers.

So, if you're a small player, trying to profit off of a arbitraging a couple coins once in a while, sure.... so long as you can get the cash to and from the exchanges in question. But unless you're a BIG player and can negotiate different relationships with exchanges than standard, it's going to be a real pain to do this in a high turnover sort of way.

If you're into BTC /USD arbitrage, you did have btc in both the exchanges already, and even fiat, so whenever there's a major difference in the price, you can buy and sell with ease

Well, I have tried the method now with some altcoins that hardly anyone knows. It was the only ones that had potential to get me money. But because no one knows it, the confirmations took days... And within that time the prices crash and rise every now and then.
So it isnt worth doing it, iI have lost a lot of money with that.
But maybe someone knows how to do it and make tons of profit, who knows?

It's almost entirely pointless doing that unless you're constantly moving large sums of money since there are already so many other people doing it that it's only barely profitable.

There's also a significant delay when depositing, and the windows for potential arbitrage can be only seconds-long. You'd probably be better off doing some kind of triangular arbitrage with a bot between pairs existing on the same exchange, but even that's probably already too saturated to the point that it feels like you're fighting against the exchange itself.

Basically, this is arbitrage, buying at a place where the price is high and selling where it is low. I've written an article for btcfeed(now themerkle). Have a look at it.
http://themerkle.com/tutorials/bitcoin-arbitrage-brief-insight/

That is called arbitrage but check their charges for buying and selling.

Wow, I never think of that since I started to do BTCitcoin trade. It's a great idea, how can I don't think about it. Thx for the explanation and the advice sir

Also note that your eyes need to follow those orders before they go quickly. It's not always the speed of the hand, sometimes it requires your eyesight more than what your hand can do. Hand-eye coordination is important in doing this kind of trades.


I suggest you buy coins that has the high volume on an exchange and sell when you think that you've already made a profit. Be warned that this is not an easy way of earning money. It requires speed, timing, skill, and luck.


Yes, risks are always present in any opportunity that involves money, but what are those risks when you can make a profit out of it. If you're not confident on what you're doing, then try to stay away from it before getting burned in the end. There are always risks present in investing and trading, but you have to learn to minimize those risks in order for you to get a nice and sweet profit.

if you find a chance you can earn some profit. once i bought a coin(DTC/BTC) on BTER, named  Datacoin . and i sold it on BTER at the rate of (DTC/CNY). i used same exchange but different currency and i earned %45 profit within 4 days. another example; i bought some XCN on BTER and instantly i moved them Poloniex and sold them with %20 profit. So if you follow the markets as well as enough you can see arbitrage chances. if you find a high volume coin then you can earn much more.

i tried to buy altcoins on 1 exchange and then sell it on another but i never made any profits thats nearly impossible if you dont have bunch of money

This could work for altcoins as well but the risk is higher for altcoins since their prices aren't as stable as the bitcoin's one. Maybe try other methods to earn profit that aren't as risky as this is method is.

that is not a good idea and much risk involve in that kind of trading i also did that kind of trade but i think that is just waste of time, so hard to make decent money from Arbitrage.

Some people make a living out of that, but it's a very slave job, you need to pay attention all day, and be really good at trading, and the most important, having a lot of luck.

Your hands speed is the main point
yes i ever do that once(with altcoin), but the market is so fast, my hand cant follow the trend and i only get double fees.


~iki

This would rarely work since you need to move coins quick between exchanges before the price changes. And since more exchanges require a 3 to 6 confirmations to allow to sell your coins but you can still try it out and see what happens. Good luck !

If it were illegal then the whole Wall Street operation is illegal.

Altcoins are less liquid and it takes a lot of time sometimes to transport your BTC in some of the exchanges anyway.

So you could actually invest all your money in this arbitage-method and always make profit out of it or is there a risk?
By risk I dont mean like the risk investing in a ponzi or lotto, I mean is it somehow illegal etc

this is the never ending money making idea 

The goal is speed. The altcoin option presented above is a very interesting way of getting it done. Definitely interesting.

If the market is like now and there are this "funny" up and dows around 20$ I would say yes and I tried it already. It works. But as others said you also have to move fiat money which is slower than BTC.
And sometimes while you wait you also lose opportunities.

So yes it's possible, it's arbitrage but only whales make money out of it.
 

EDIT: or as olcaytu2005 said you could try with altcoins...

 You don't need to have fiat money to do this arbitrage. You can do that with altcoins. bitcoin and altcoins move faster than fiat money. you dont need to wait for days like fiat money. For example;

(This is not true value, it s just a simple example)

Bter: XEM  62 satoshi
Polo: XEM  80 satoshi

 if you have bitcoin in Bter you can buy XEM and send them Poloniex then you can sell them at that price 80 sat. So you get about %30 profit.

Not practical. The buying and selling will take time and in that much time prices may change and you will be in loss instead of profit.

Yes that's basically the point of arbitrage. Although with 3 or 6 confirmations on most exchanges you would probably have to prefund the separate accounts prior to trading.

Arbitrage.

If you search there are bots for this as well.

Yes. This is called Arbitrage. To do this, you need to have FIAT deposited in the exchange from where you are buying. Else the price will vary when you move the FIAT.

http://en.wikipedia.org/wiki/Arbitrage
This idea is more old than you.

Remember that to make this you need to move fiat, and this means a few days to finish the whole process, so there's the risk of the price falling even more.

Hi

I realized that prices from all exchanges are different, but could you actually make profit from this?
For example:
Price of Hitbtc is 240$/btc, however the price of bitstamp is 220$. So is it somehow possible to buy tons of bitcoins from bitstamp and sell it at hitbtc for a 20$ profit per Bitcoin?

I dont have that much money to invest though, so I didnt try.
Tell me your opinions!