Topic: Tough trading question (Read 181 times)
Correct me if i am wrong you bought coins in two different exchanges the coin in the second exchange has higher value in the fisrt exchange but you sold the coin in the first exchange and you didnt transfered the coin to the exchange two?
If I rightly understand, you bought two different coins on different exchange at different prices and sold it respectively...but where is hell you have used arbitrage tech.
To take advantage of arbitrage you need to find a coin, say coin X, with a reasonable difference on different exchanges and then you have to buy that coin X on lower price on exchange 1 and then sell it on higer price on Exchange 2. The difference in price bought and sold is called arbitrage diff and is your profit. But do keep in mind the difference huge enough to cover transaction fees and trading fees of exchanges otherwise you will get nothing in hand.
To take advantage of arbitrage you need to find a coin, say coin X, with a reasonable difference on different exchanges and then you have to buy that coin X on lower price on exchange 1 and then sell it on higer price on Exchange 2. The difference in price bought and sold is called arbitrage diff and is your profit. But do keep in mind the difference huge enough to cover transaction fees and trading fees of exchanges otherwise you will get nothing in hand.
Scenario:
I have coins on two exchanges bought at different prices.
Now i buy a new coin on the one exchange and see it going up on the other.
I sell it on the other for the higher price WITHOUT sending the just-bought one to the other (because i have already coins there from former trading activities)
It doesnt make any difference imo. But how do I arbitrage that afterwards? Sthg is somewhere missing.
I m not dumb but for that i cant find any solution. thanks for your help
I have coins on two exchanges bought at different prices.
Now i buy a new coin on the one exchange and see it going up on the other.
I sell it on the other for the higher price WITHOUT sending the just-bought one to the other (because i have already coins there from former trading activities)
It doesnt make any difference imo. But how do I arbitrage that afterwards? Sthg is somewhere missing.
I m not dumb but for that i cant find any solution. thanks for your help
You don't need to do anything else. You've just exploited market inefficiency and make yourself some money. To expand further, coins and tokens are fungible assets meaning that individual coins of the same currency are completely interchangeable with each other. So it doesn't matter whether you sell coins bought on the exchange with lower price (which you have to transfer to exchange with higher price) or you sell coins you already have on exchange with higher price.
I just think you are looking at the trading fee too, because this is the main challenge I have with arbitrage trading, the trading fees on these exchanges are getting too high and may rob you of your profit
that is arbitrage trading for you. but the problem is that you are not arbitrage trading a solid stock in a market that doesn't fluctuate wildly, you are instead trading an altcoin that can have very wild swings.
this means when you have that alt coin on other exchange you have that altcoin! if the price goes down (which it does a lot) you will lose a lot of money for having that altcoin. and the profit from arbitrage trading won't cover it.
this is why most people prefer withdrawing it to the other exchange and selling the actual coins they bought elsewhere and get the profit instead.
this means when you have that alt coin on other exchange you have that altcoin! if the price goes down (which it does a lot) you will lose a lot of money for having that altcoin. and the profit from arbitrage trading won't cover it.
this is why most people prefer withdrawing it to the other exchange and selling the actual coins they bought elsewhere and get the profit instead.
Arbitrage trading is only possible if there is huge price difference for same coin in two different exchanges. Transferring coin from one exchange to another might take some fee from you which might be over your profit so trying to arbitrage with very low bankroll is just worthless.
Also to make successful arbitrage trading you have to trade same coin in two exchange not the different one.
Also to make successful arbitrage trading you have to trade same coin in two exchange not the different one.
Your whole strategy for doing arbitrage is itself wrong. The first mistake you are doing is that you are buying and selling different coins on different exchanges. It is not arbitrage but simple trading. Arbitrage is done when you take advantage of the same asset but with different prices on different exchanges. So it has to be the same coin on both the exchanges. The second thing is that once you sell the coins on the higher price on the second exchange (assuming you had bought it at lower price)you have to transfer the same amount of coins on that exchange from the first one(this is not necessary but it will not complicate you more). If you still didn't understand then you should probably learn arbitrage from youtube or something.
The thing which I personally fail to understand is: what is the problem if you are selling and buying coins on different exchanges? Why would you send them between the exchanges? The difference, as you have already told us is not big enough even for the commission fee. So I don't see the problem. Except for why would you play between the exchange despite all the fees taken?
I am afraid you have misunderstood.
I bought a coin at a certain price on the first Exchange and sell the same amount (but not the same coin) for the higher Price on the second Exchange.
i have some on no 1 and no 2. So the amount of the coin from the first Exchange is going to be sold for the same amount but higher Price on the second Exchange whithout being transferred over the blockchain first. that s the part where it s gettin confusing.
i have a margin now. what do i do now? i have received btc. do i have to send the btc to no 1? because of the fee that s crazy. so i convert it to doge send it to no 1 and have that margin received on no 2 on Exchange no 1.
or do i have to send the amount i bought the coin (not btc but the other coin) with from no 1 to no2?
if a solution can be found here that would be really easy Money. also take into account that the coin sold on no 2 was maybe bought for a higher Price. so we Need to Balance that out.
hope somebody can follow me and maybe provide me with steps to follow.
I bought a coin at a certain price on the first Exchange and sell the same amount (but not the same coin) for the higher Price on the second Exchange.
i have some on no 1 and no 2. So the amount of the coin from the first Exchange is going to be sold for the same amount but higher Price on the second Exchange whithout being transferred over the blockchain first. that s the part where it s gettin confusing.
i have a margin now. what do i do now? i have received btc. do i have to send the btc to no 1? because of the fee that s crazy. so i convert it to doge send it to no 1 and have that margin received on no 2 on Exchange no 1.
or do i have to send the amount i bought the coin (not btc but the other coin) with from no 1 to no2?
if a solution can be found here that would be really easy Money. also take into account that the coin sold on no 2 was maybe bought for a higher Price. so we Need to Balance that out.
hope somebody can follow me and maybe provide me with steps to follow.
Did you get your money back + small profit from the coin bought on the first exchange? Or did I misunderstand?
Scenario:
I have coins on two exchanges bought at different prices.
Now i buy a new coin on the one exchange and see it going up on the other.
I sell it on the other for the higher price WITHOUT sending the just-bought one to the other (because i have already coins there from former trading activities)
It doesnt make any difference imo. But how do I arbitrage that afterwards? Sthg is somewhere missing.
I m not dumb but for that i cant find any solution. thanks for your help
I have coins on two exchanges bought at different prices.
Now i buy a new coin on the one exchange and see it going up on the other.
I sell it on the other for the higher price WITHOUT sending the just-bought one to the other (because i have already coins there from former trading activities)
It doesnt make any difference imo. But how do I arbitrage that afterwards? Sthg is somewhere missing.
I m not dumb but for that i cant find any solution. thanks for your help
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