Regarding saving withdrawal fee after arbitrage trading

Polar91

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Quote from: dkali2 on October 24, 2019, 07:29:00 AM

Is there any way to save the withdrawal fee (usually 2 to 6 % ) in a crypto exchange after an arbitrage trading?
I was trying to do arbitrage trading and all profit goes to the exchange transactions and final fiat withdrawal fee.

I advise you to use XRP currency instead rather than looking for exchanges that offer lesser commsion for the withdrawal of your funds from a trading site since they offer cheap transaction fee and process transaction instantly. I haven't seen any exchange that charges huge amount or percentate for XRP. Although it requires more process since you'll need to convert your asset to XRP first, it's worth rather than to pay bigger amount of withdrawal's fee value.

slaman29

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Quote from: ChrisPop on October 24, 2019, 07:42:30 AM

Hey there! You can use USDT when making transactions if you can find arbitrage opportunities against with this pair like BTCUSDT on Bitfinex and Binance. Withdrawal fees from exchange should insignificant if you are doing arbitrage with a decent amount of funds. And the banks usually don't charge more than 15-25 USD per bank transfer so I'm assuming that you are using a small bankroll to perform arbitrage. As a rule arbitraging on high liquidity markets is mostly for the big dogs who have large quantity of asset "inventory" at their disposal.

I guess the issue here is that the guy isn't using a decent amount of funds.

Arbitrage generally means very small amounts being traded (due to lack of volume or order volume on arbitrage opportunities). So even if you find a 0.5% arbitrage, with a 50k satoshi withdrawal fee like on Binance, you need 0.1 BTC volume just to make up for it.

Like you said, arbitrage needs high liquidity, many accounts and big bankrolls. Not for the small fish for sure.

maydna

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Don't use bitcoin as the withdraw but use altcoin. We have many altcoins that have a low withdrawal fee. For example, xrp, waves, trx, etc, neo, xlm, and many more so you can use one of them to withdraw, and after it arrives in your local exchange, you can change it or sell it to your local fiat or back to bitcoin again. That will give you a small fee to pay the withdrawal fee transaction, and you can save the most money you made with your arbitrage trading. But you should pay attention to the time of confirming the transaction for the altcoin.

Inkdatar

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Quote from: nasipadang on October 24, 2019, 10:24:49 PM

It's not just a matter of price comparison, you need to calculate the amount of the fee when doing arbitrage trading. Most arbitrage traders use the usdt and eth pairs because of the lower fees for withdrawals. I have no way to save a lot of fees other than markets with large liquidity.

When doing arbitrage there’s a risk on it that after trade you might get less profit. Calculation is very important so we can have benefit from our funds in trading. Before I do arbitrage I always check and do computation if this is worth it of my money, also I use eth or xrp to have a less fee.

nasipadang

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It's not just a matter of price comparison, you need to calculate the amount of the fee when doing arbitrage trading. Most arbitrage traders use the usdt and eth pairs because of the lower fees for withdrawals. I have no way to save a lot of fees other than markets with large liquidity.

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Quote from: ChrisPop on October 24, 2019, 07:42:30 AM

Hey there! You can use USDT when making transactions if you can find arbitrage opportunities against with this pair like BTCUSDT on Bitfinex and Binance. Withdrawal fees from exchange should insignificant if you are doing arbitrage with a decent amount of funds. And the banks usually don't charge more than 15-25 USD per bank transfer so I'm assuming that you are using a small bankroll to perform arbitrage. As a rule arbitraging on high liquidity markets is mostly for the big dogs who have large quantity of asset "inventory" at their disposal.

Make sense, just compute before you do transaction or make a rough estimate. If you can't have a profit then its better not to proceed with transaction or plan to arbitrage. I do this before and so far, so good. Also when you arbitrage, make sure you can withdraw your token or coins. There are some exchange that withdrawal was suspended on said coins and you will lost more when pump is over.Also take note of transaction speed because when your funds arrive sometimes its dump already.

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Quote from: avikz on October 24, 2019, 12:51:01 PM

Quote from: dkali2 on October 24, 2019, 07:29:00 AM

Is there any way to save the withdrawal fee (usually 2 to 6 % ) in a crypto exchange after an arbitrage trading?
I was trying to do arbitrage trading and all profit goes to the exchange transactions and final fiat withdrawal fee.

What exchange you are using which takes such a high withdrawal fees? Is it a fiat withdrawal fees you are mentioning? Then 2-6% makes sense!

He already said it, he did the arbitrage on livecoin which has high withdrawal.
Actually doing arbitrage is very risky, you should know&understand about other exchange rules before deposited your money, if you don't doing that, your funds would be locked because that exchange requires you to KYC first before can make a withdrawal.

zeze18

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I flashbacked when in 2017, arbitrage is really profitable price of alts between exchange can be have 10% difference.
But right now i think the exchanges is more integrated so the chance to do a profitable arbitrage is small

Vispilio

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Quote from: dkali2 on October 24, 2019, 03:47:43 PM

I came across some companies offering arbitrage service or triangular arbitrage (like Arbitool & Cryptowizard), they are charging like $60 to $100/month,
and people buying their services. It seems like it's a possibility that's why people subscribing to their services.

Triangular arbitrage might work especially if you are doing high volume and get a discount from trading fees within the same exchange,

just bear in mind that most exchanges employ their own bots to do just the same thing, and their bots will be colocated right next to their own matching engines, so they will be faster than you or equivalent to your latency if you also choose to be colocated...

Therefore you need to find creative ways to arbitrage that are not immediately obvious to most competitors, if you want to have an edge in arbitrage trading...

dkali2

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I came across some companies offering arbitrage service or triangular arbitrage (like Arbitool & Cryptowizard), they are charging like $60 to $100/month,
and people buying their services. It seems like it's a possibility that's why people subscribing to their services.

exstasie

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Quote from: dkali2 on October 24, 2019, 07:29:00 AM

Is there any way to save the withdrawal fee (usually 2 to 6 % ) in a crypto exchange after an arbitrage trading?
I was trying to do arbitrage trading and all profit goes to the exchange transactions and final fiat withdrawal fee.

Well that's generally why such price gaps exist, because it's not profitable or possible to arbitrage them effectively. Fiat exchange fees and capital controls get priced in accordingly.

When efficient arbitrage is actually possible, prices among exchanges even out very quickly due to bots, so the margins are too small for people like us to profit from.

I gave up on arbitrage trading many years ago. It's not worth the effort unless you have really effective high frequency algorithms or an edge over the market, like a South Korean banking partner.

Oilacris

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Quote from: dothebeats on October 24, 2019, 01:58:17 PM

Quote from: dkali2 on October 24, 2019, 12:31:19 PM

Other problem is if the coin has less market volume or liquidity then it's very difficult to sell that coin.

I usually just convert to ETH or XRP, transfer to another exchange, buy back BTC then trade, though only some bitcoin exchanges support XRP/ETH withdrawals/deposits AFAIK.

Best option to take when you do make arbitrage and to save up some horrendous fees.Always took to consider on convert

your BTC to other alts and Xrp/Eth is the best candidate for this one due to very minimal tx fee and also I do see that most exchangers
do really support these coins so it wouldn't really be that a major problem.

dothebeats

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Quote from: dkali2 on October 24, 2019, 08:21:34 AM

Ya, you are right. But at livecoin.com, the price of every coin is higher, so USDt price is also higher. When I calculated to exchange $8500 USD to USDt,
its giving me less than $8100 USDt.

Good thing that you have calculated all the ins and outs first before you get directly into trading. That's a ripoff, and that $400 would-be profit would net you a loss just for the transfers in between. Usually, withdrawal fees aren't exactly measured in % of what you are trying to get out of the exchange but rather the fee on the network + the exchange's own commission.

Quote from: dkali2 on October 24, 2019, 12:31:19 PM

Other problem is if the coin has less market volume or liquidity then it's very difficult to sell that coin.

I usually just convert to ETH or XRP, transfer to another exchange, buy back BTC then trade, though only some bitcoin exchanges support XRP/ETH withdrawals/deposits AFAIK.

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Quote from: MURONDI on October 24, 2019, 10:56:43 AM

in my opinion doing arbitrage is less efficient for now, because many people understand and arbitrage so the opportunity to get a price difference is very slim, if you want to arbitrage you should choose a coin that gives a low withdrawal fee.

yes you are right, now there are many smart traders. Before our deposit was confirmed, the buy orders has been taken by other traders, this is very different from 2017. By the way my favorite exchange for playing arbitrage is cryptopia, coinexchange, and novaexchange. But now they are closed Sad

avikz

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Quote from: dkali2 on October 24, 2019, 07:29:00 AM

Is there any way to save the withdrawal fee (usually 2 to 6 % ) in a crypto exchange after an arbitrage trading?
I was trying to do arbitrage trading and all profit goes to the exchange transactions and final fiat withdrawal fee.

What exchange you are using which takes such a high withdrawal fees? Is it a fiat withdrawal fees you are mentioning? Then 2-6% makes sense!

Otherwise if you use established exchanges like Binance, the withdrawal fees should not bother you! If possible, move to exchanges like Binance. That would increase your profitability!

dkali2

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Other problem is if the coin has less market volume or liquidity then it's very difficult to sell that coin.

MURONDI

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in my opinion doing arbitrage is less efficient for now, because many people understand and arbitrage so the opportunity to get a price difference is very slim, if you want to arbitrage you should choose a coin that gives a low withdrawal fee.

dkali2

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Ya, you are right. But at livecoin.com, the price of every coin is higher, so USDt price is also higher. When I calculated to exchange $8500 USD to USDt,
its giving me less than $8100 USDt.

Mahanton

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Quote from: dkali2 on October 24, 2019, 07:58:14 AM

Hi Chris, I was trying to do BTC from Kraken.com to Livecoin.com, like BTC price at Kraken is around $8100 and at livecoin.com it's $8500. It looks like I'm getting
$400 profit. But when I calculated the transactions and withdrawal fee, I get loss. I also tried to change USD to USDt (at livecoin), but still it resulted in loss. I found
there is not much price difference if we observe in various exchanges as BTC/USDt pair.

With those price difference you can really arbitrage and its quite odd for you to still had negative.Even if we do talk about the
default or minimal taker and maker fee then it cant really eat or deduct too much even if livecoin do impose high withdrawal fee (lets say $10 max)
its not enough for you not to make money and also remember that price is always volatile which price can correct up from the time you do make
transaction.

dkali2

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Hi Chris, I was trying to do BTC from Kraken.com to Livecoin.com, like BTC price at Kraken is around $8100 and at livecoin.com it's $8500. It looks like I'm getting
$400 profit. But when I calculated the transactions and withdrawal fee, I get loss. I also tried to change USD to USDt (at livecoin), but still it resulted in loss. I found
there is not much price difference if we observe in various exchanges as BTC/USDt pair.

Topic: Regarding saving withdrawal fee after arbitrage trading (Read 225 times)