I do not recommend arbitrage trading, because the risk is too big. And the practice is always a lot of obstacles, I have already experience
a lot of losses when doing arbitrage trading. As explained in the opening post arbitrage sometimes experiencing sudden market changes,
wallet maintenance, high withdrawal fees, exchanges scams, etc. In arbitrage trading, a large amount of capital is needed, so that the
benefits received are also large and can also cover withdrawal fees.
Topic: What do you think about Arbitrage trading... (Read 668 times)
I think it is unethical to lure people with irrealistic expectations when considering arbitrage and to not warn them about the extreme danger on the long run of trying this. There is no such thing as free lunch in the markets; price differences always have reasons, which mean that 99,9% are untradable because either the exchange is shutdown, nodes are under maintenance, withdrawals are suspended, exchange is a scam, or because the volatility is temporarily extreme and that it is nearly suicidal to even try it
You’d better educate yourself and try your luck with mid-long term trading strategies which have been yielding solid returns until now, rather than trying this near zero profit business only accessible to the most advanced and well funded traders.
Way Back arbitrage is one of the most profitable and safe strategy uses by traders,i remember a friend trying to teach me about this when i was still new here in forum and also when exchange are safer not like now that there are so many fake volumes and scammers.You’d better educate yourself and try your luck with mid-long term trading strategies which have been yielding solid returns until now, rather than trying this near zero profit business only accessible to the most advanced and well funded traders.
But if you are really interesting in this then why not try but remember to only use legit and trusted Exchange for safer trading.
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if you have strong computer and internet?
I can not get it actually. Why a trader needs a very strong computer and internet to do arbitrage trade? what do you mean about? I mean we don't do it with normal PC and internet what we use generally? 
Do we need a miracle speed to do that?
I think it is unethical to lure people with irrealistic expectations when considering arbitrage and to not warn them about the extreme danger on the long run of trying this.
There isn't anything unethical or illegal about it. If you talk about risk, I would say yes it's risky. But then is there any business that doesn't come with its own risk? Bro, they all do. Even life itself has its own risk, much more buying and selling. So, I think one needs to acquire the expertise to be able to profit from arbitration. That's just it, nothing else. It has no morality question on it. 
if you have strong computer and internet?yeah this is one of the best strategy to use in Trading because there is a instant profit because sites has different value so advantage if you will lurk around them.
But if you don't have ?then forget about arbitrage because what you will get is late trade and the coins might drop before selling.
But if you don't have ?then forget about arbitrage because what you will get is late trade and the coins might drop before selling.
Arbitrage Trading Many Risk you've got just said that due to arbitration nobody is in a position to take a position properly. If many don't understand this arbitration then they're more at a loss if they are going to trade I feel Arbitrage Trading is far better at trading daily than it's here to scale back the quantity of loss but Arbitrage trading is more harmful.
In arbitration, it all depends on the speed. To succeed, you need to do everything very quickly.
But this is far from always possible, because a rather large number of exchanges, for example, have a mechanism for manual approval of the withdrawal of funds, which can take from 5 minutes to a day.
This is not really a good idea for new traders, for that long process there are a lot of changes that may happen and it is possible that you'll not be hitting your target price by then. And due to market volatility, the risk is too high in using this one compared to usual trading strategy we use. It is to know that arbitrage is not an effective trading strategy if you are not an expert of doing but somehow we can be an expert if we have never tried and repeatedly doing it. But this is far from always possible, because a rather large number of exchanges, for example, have a mechanism for manual approval of the withdrawal of funds, which can take from 5 minutes to a day.
This is exactly what I’m talking about. Before you invest your money in arbitration, you must learn all the nuances and difficulties that may arise in the way.
Indeed, there is a lot of competition in arbitration, and the one who gets the fastest gets profit.
I'm also like to start arbitrage trading. I have see much people make big profit from arbitrage trading.
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
I don't want to risk my bitcoin to do arbitrage trading in the unknown exchange. I think it's better to stay at binance and search for another chance to make a profit. Yes, if we take a look at the image, that can make us greedy because the gap in the price is too big and we think that we can make a good profit from that. But you need to think that not only you will want to send the bitcoin to that exchange, but the other people also want to do that because they want to make a profit too.
You’d better educate yourself and try your luck with mid-long term trading strategies which have been yielding solid returns until now, rather than trying this near zero profit business only accessible to the most advanced and well funded traders.
I agree with you as I've seen lots of folk got burned because of trying to trade arbitrage between different exchanges. One truth lies about arbitrage trading though, most exchange that do have significant price differences from the conventional ones are the ones with extremely low volume that trading takes quite some time before being executed. And like you said, most of these exchanges do have withdrawal or some technical issues which do trapped in traders and onece you rush in with the hope of cashing out some fortunes, you become trapped also. The bottom lines knowing both the basics and the technicality of any trading options before venturing into it, traders who have quite a good understanding of how arbitrage works are making profits from it.
Arbitrage trading is one of the most profitable types of trading but it's not for everyone. It's very risky and denanding, also time consuming, so it's for the most skilled and experienced traders. You have to be present on exchanges and market all the time and be able to make decisions quickly. Some traders rely on bots but I don't think this is enough, without your full engagement arbitrage trading can't be successful.
Arbitrage trading is a great strategy but also very difficult to implement and because the biding and trading happens so quickly manual arbitrage trading is extremely rare. The profits can be generous but for me its not worth the stress, since this is taking trading to a whole new level.
Well, intra-exchange arbitrage is a whole another beast and usually doesn't last more than 30 seconds, if you have a trading bot that does this you may end up making money but usually it is quite difficult to find one, you are lucky if you can find a decent one once every week, still a good option if you have a good bot, but doing that 40 times a year on %40 profit is still cool, only if you can actually do it.
Moving from usdt to btc to eth to usdt again all around basically is what intra-exchange is, eth has pairs, btc has pairs, usdt has pairs, some coins can be traded for all three of them, so you can do arbitrage, some bots specifically calculates these ranges all the time and try to figure out what would happen if you move between them. However since there is a trading fee and that kills the difference usually, you rarely ever see something like that.
Moving from usdt to btc to eth to usdt again all around basically is what intra-exchange is, eth has pairs, btc has pairs, usdt has pairs, some coins can be traded for all three of them, so you can do arbitrage, some bots specifically calculates these ranges all the time and try to figure out what would happen if you move between them. However since there is a trading fee and that kills the difference usually, you rarely ever see something like that.
That exchange might be a scam however there are times when there is a large premium for BTCUSD on a different exchange and its usually due to the difficult way of getting the money wired into the country or getting it wired out.
A few years back there was a huge premium for the South Korean markets (I think) and after much investigation, it was discovered that it would be very easy to sell the currency in the country but it would be very difficult to actually withdraw the funds to send back to your account to buy back your BTC. Hence why the premium existed for months. So keep in mind if there is a huge premium, there is usually a reason why.
A few years back there was a huge premium for the South Korean markets (I think) and after much investigation, it was discovered that it would be very easy to sell the currency in the country but it would be very difficult to actually withdraw the funds to send back to your account to buy back your BTC. Hence why the premium existed for months. So keep in mind if there is a huge premium, there is usually a reason why.
I'm also like to start arbitrage trading. I have see much people make big profit from arbitrage trading.
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
Its a scam.. That exchange is unknown and there are lots of exchangers out there which is reputable and been trusted for years.
Arbitrage trading is a rare case scenario here on trading world.You can spot out these opportunities but there are lots of factors that
would affect profitability like fees etc.
In most cases that do happen when an arbitrage opportunity on where you cant even deposit on a certain exchange or in short
they do close deposits on the other hand these kind of opportunities doesnt last long.
In arbitration, it all depends on the speed. To succeed, you need to do everything very quickly.
But this is far from always possible, because a rather large number of exchanges, for example, have a mechanism for manual approval of the withdrawal of funds, which can take from 5 minutes to a day.
This is not really a good idea for new traders, for that long process there are a lot of changes that may happen and it is possible that you'll not be hitting your target price by then. And due to market volatility, the risk is too high in using this one compared to usual trading strategy we use. It is to know that arbitrage is not an effective trading strategy if you are not an expert of doing but somehow we can be an expert if we have never tried and repeatedly doing it. But this is far from always possible, because a rather large number of exchanges, for example, have a mechanism for manual approval of the withdrawal of funds, which can take from 5 minutes to a day.
I'm also like to start arbitrage trading. I have see much people make big profit from arbitrage trading.
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
Its a scam.. That exchange is unknown and there are lots of exchangers out there which is reputable and been trusted for years.
Arbitrage trading is a rare case scenario here on trading world.You can spot out these opportunities but there are lots of factors that
would affect profitability like fees etc.
In most cases that do happen when an arbitrage opportunity on where you cant even deposit on a certain exchange or in short
they do close deposits on the other hand these kind of opportunities doesnt last long.
I'm also like to start arbitrage trading. I have see much people make big profit from arbitrage trading.
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
But that's correct, cryptocurrency trading is risk.But, how do I handle greed after see that?
NOTE: I don’t khow bituary trust or scam
In my own understanding, arbitration is like buying at a low price and selling it on another exchange at a high price, But I guess this will only work if the other exchange has a little trading volume and other one has high volume with active users and there comes arbitration to grab the opportunity. I think it is worth it if you have a decent capital, if not you will end up losing on withdrawal fees unless you will use currency like xrp or trx for lesser fees. Don't try to arbitrage on sh*tcoin exchanges they have huge withdrawal fees and your funds might be trap there for a long time.
Yes that is what arbitrage trading is. It requires having a good amount of capital to make a decent profit from it. You should first know the withdrawal fee on the exchange you will buy the asset you want to trade because if the fees are ridiculously high there is a chance that you might lose on arbitrage trading. You also need to have a quick judgment and quick hands to see the price of other assets in every exchange because it change too fast and you might lose if you are moving slowly. I've lost on arbitrage trading before because of the slow internet connection and it sucks because I bought a large amount of asset that time and I lose too much capital. In my own understanding, arbitration is like buying at a low price and selling it on another exchange at a high price, But I guess this will only work if the other exchange has a little trading volume and other one has high volume with active users and there comes arbitration to grab the opportunity. I think it is worth it if you have a decent capital, if not you will end up losing on withdrawal fees unless you will use currency like xrp or trx for lesser fees. Don't try to arbitrage on sh*tcoin exchanges they have huge withdrawal fees and your funds might be trap there for a long time.
And most of all, they are also using bot to attract traders to send funds to their exchange, arbitrage trading works if you are good paying attentions with certain movements of coins that you are targeting. Traders uses different sites to search and learn from how to anticipate sorted projects to use for this type of trading strategy. If you are good in analyzing even in a small form of profits you'll be able to materialized this system.
In my own understanding, arbitration is like buying at a low price and selling it on another exchange at a high price, But I guess this will only work if the other exchange has a little trading volume and other one has high volume with active users and there comes arbitration to grab the opportunity. I think it is worth it if you have a decent capital, if not you will end up losing on withdrawal fees unless you will use currency like xrp or trx for lesser fees. Don't try to arbitrage on sh*tcoin exchanges they have huge withdrawal fees and your funds might be trap there for a long time.
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