Topic: What do you think about Arbitrage trading... - page 3. (Read 668 times)

There's nothing wrong with it. If you're able to make a profit from it, then congratulations. You should be doing research into whatever new methods of trading you're interested in trying anyways, and that should be enough to help you step past the misinformation that's present almost everywhere on the web. If anything or anyone is promising you extremely easy money, then it's very likely to be a scam or there are string attached as said in the OP.

Short-term trading can also be just as profitable as mid- or long-term trading, but most beginners typically don't do well with extremely short-term trading strategies because there's way more factors in play and more opportunities for even small mistakes to grow into big ones if you're not careful.

Arbitrage trading is real and its not exists all the time to everyone that is why it is still not profitable to most of the traders who are trying it.When you see an opportunity then just grab it but don't expect it to happen all that time that is why we can't say anyone as arbitrage trader,its just a strategy to make some profits.

Honesty, I am a fan of Arbitrage trade. And I have done it previously many times. Sometimes it gave me some huge profit even 2X. But sometime I have been facing some problems. So I want to suggest you guys to do before start the trade.

1. Check the exchange legit or fake.
2. Be sure about kyc because some exchanges asking kyc before withdrawal.
3. Be sure the site supports kyc from your country or not.
4. Don’t so quick, keep cool and works.
 

Profit in commerce is based on a correct reading of data, forecasting of variables and seizure of opportunities. Arbitrage is highly dependent on seizing opportunities, so if you know what to do, you reduce the risk of losing money.

If we go back to the year 2017, the price differences between many of the platforms are around $ 2000, and therefore the arbitrage was a quick profit basketball, but you must assess the risks in choosing the platforms and how to buy/sell.

In other words, the problem is not with the method, but with the person who uses it and the risks it takes.

Traders should have to take the risk and find ways to become profitable. Trying using an arbitrage strategy is a way to find if that certainly works in the market or having at worse. If it works for them, then why we should have to stop. Trading is all about the most and effective way of trading, many suffered failure because they are doing it wrong while the others succeed because they find it right.

We don't want to fool people that is why giving them an option other than arbitrage will help them guided and find that is best for them. There is no harm in trying but one thing we should have to put in our mind, in every mistake may have a possible negative result and that would be losing. We should have to prepared for it.

I like arbitrage with exchange market have bigger volume and look not far different between sell and buy order, some time we got arbitrage with some exchange market look far away between buy and sell order then is not profitable to arbitrage from one exchange with other exchange market.

But the fact is that almost all exchanges with high liquidity are filled with bots. Maybe between them only a difference of 2-3 seconds.
Lately developers have built increasingly better trading APIs so that to use arbitrage techniques they have almost no chance of being applied.

thanks for info, i was thinking to try this 

For most of the people it's a gambling game with unset rules where anything can happen for better or worse.
Very few people succeed on trading, and they plan each move wisely. The downside of it is that they sleep and awake thinking about graphs.

In fact, you can arbitrage without withdrawing.

1- arbitrage inside single exchange between different pairs (f.e buy btc with usd, sell btc to eth, sell eth to usd). If spread is higher than 3x fee than you can make litle profit in 1 second (mostly during BTC pump/dump). I did that manually on small exchange but for short term because i was "kicked from job" by trading bot later on that someone turned on. Potential profit was too small to beat for it with other person and his bot. Big exchanges are overtaken by whales and their super latency bots and vip10 low fees.

2-arbitrage between 2 exchanges without withdrawing - f.e you have 100$ and 100$ worth btc on both exchanges. If price of BTC is better on one exchange you dump BTC on 1 exchange and in the same time (as fast as possible) buy on another exchange with funds that you have there (without withdrawals, you have funds on both exchanges). If things change you do the oposit. It's perfect if you hodl a coin for long term and want extra (but small) profit with low risk. Just put btc or usd on other exchange and arbitrage.

Withdrawals are not mandatory to arbitrage.

To OP. Arbitrage is not about doing 30% in one trade because of strange unreasonable price difference (most likely locked withdrawals). Its about doing 0.1% multiple times daily in trades that should take less than a fragment of a second to reduce exposure to currency risk to minimum.

I think arbitrage trading will not as easy as people say because we need to learn more than the usual trading. The difficulty will be different than conventional trading because we need to analyze deeper to find the right time to enter the market. Although we already learn about arbitrage trading, it doesn't mean we can succeed in making a profit because we also need the experience to know the pattern that will always happen in the market.

But if someone wants to try using arbitrage trading, he needs to determine the amount of the money to be used for trading, and don't break the limit if he cannot get the right sign. People tend to try arbitrage trading because of the big profit that we can make, but it is not easy, and it needs time to learn the arbitrage trading.

arbitrage trading is just a trading strategy like any other strategy if anybody is spreading misinformation about this method, it is not specific to arbitrage. misinformation has been a serious issue forever specially when it comes to trading and when money is involved. good news is that i have seen this only from trading bot advertisers and they are already shady on their own.
people have to educate themselves about the market in general and all the trading strategies they plan to use before jumping in.

quite the opposite. Arbitrage trading is the worst strategy for making profit. it is highly risky and it requires an extremely low latency. on top of that you would be relying on the exchange(s) you use to be 100% reliable which they never are.

Arbitrage best way how to get profit except trading because we know how much profit got after arbitrage coin from one exchange market have lower price and selling on the exchange market have higher price, but some time get delay sending with many exchange look difficult and not give faster way.

I tried doing arbitrage trading sometime back and like most reason you put up in the OP it's a strategy that is most times disappointing and unsustainable with blocked deposits and withdraws due to "wallet Maintenance" being the main problem.

It's also very hard to carry out arbitrage trading because of the high volatility of crypto markets

It depends but if you can push through then making out money is easy with arbitrage but we know that these kind of opportunities are rare thats why when someone do able to spot out such event then they
dont mind much as long they can able to buy and sell it asap.Of course it do really need some consideration on what exchangers you are dealing with and this would be some sort of gamble.
Its just a matter of choice though if you do jump or risk in or not.

I don't think there is anything to lure people about arbitrage trading. People who are trading in crypto market, mostly aware about the risks. So if anyone wants to benefit from the price difference in the market, what's wrong in that? Anything risky, usually comes with a higher return if you succeed. It's true that arbitrage trading in super volatile market like crypto is very risky, but what's wrong if anyone can master that risk to make money out of it?

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.