I heard best to buy at BTC-E then send to Mtgox
Topic: the difference between exchanges... (Read 567 times)
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I heard best to buy at BTC-E then send to Mtgox
I heard best to buy at BTC-E then send to Mtgox
there must be some type of restriction otherwise everyone would be doing the samething! please advice.
Yes you can do this and I have done it many times myself. If you had a lot of money to put into the system, you could make some easy profits this way. But the problem is that it's difficult to get cash (USD/EUR etc) into the accounts to buy more BTC. That usually takes a lot of time.
It also takes time to transfer the BTC between accounts...sometimes 30 minutes, sometimes 2 hours. If they are being transferred at the wrong time and the price of BTC drops, then you could lose money, or at least not make the profits you wanted.
So there is some risk but it is also easy most of the time.
In addition to the fees, another issue is that you'd want to have large amounts of cash at multiple exchanges. Seeing as how exchanges have been going offline at a pretty frequent rate lately, it would be risky to keep that much money sitting at each exchange.
there must be some type of restriction otherwise everyone would be doing the samething! please advice.
Most of the processes for depositing funds into exchanges have fees associated.
Then most exchanges charge an exchange fee for performing the exchange.
Then you'll pay another exchange fee for performing the exchange again on the other exchange.
Then most of the processes for withdrawing funds from an exchange have fees associated as well.
By the time you've paid all the fees, you may not have as much profit as you thought.
Additionally, Are you sure that you are comparing the "bid" price at one exchange with the "ask" price of the other?
When purchasing bitcoins at an exchange, you'll pay the "ask" price (assuming there is no slippage, otherwise you'll pay a bit more than the "ask" price).
When selling bitcoins at the other exchange, you'll only receive the "bid" price (assuming there is no slippage, otherwise you'll receive a bit less than the "bid" price).
If you are comparing "spot" price (or "current" price), then you may be comparing them backwards.
Transaction fees aside, perhaps.
It doesn't seem like the best way earn money with bitcoin. Just buy low, and wait days, weeks, or months, and you COULD get a far higher return.
But yeah, it would work, just expect to lose up to ~5% in transaction fees, more or less depending on what exchanges your talking about.
It doesn't seem like the best way earn money with bitcoin. Just buy low, and wait days, weeks, or months, and you COULD get a far higher return.
But yeah, it would work, just expect to lose up to ~5% in transaction fees, more or less depending on what exchanges your talking about.
there must be some type of restriction otherwise everyone would be doing the samething! please advice.
Yes, you could.
I see that the going price for one exchange is 145, and the other one is 128. Can I just deposit 128 into one market, convert it to BTC, then send it to the other exchange and cash out for 145... this way, I make 25 dollars easy?
Any advice?
Any advice?
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