Topic: What do you think about Arbitrage trading... (Read 670 times)

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.

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.

But if you are really interesting in this then why not try but remember to only use legit and trusted Exchange for safer trading.

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?

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.

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.

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 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.

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.

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.

It is better for me to do leveraged trading than to arbitrage trading, like what you said it is only rarely to see a opportunity while doing arbitrage trading. There are many scam exchanges so we should be careful on putting our money because there is a high chance that we cannot get it back. There are people who make money in arbitrage trading but does people are highly trained where they master the risks management and they know and aware to all trading factors that can affect their trades.

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.

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

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.

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.

Or use a trading bot that facilitates arbitrage...

PS there is BTW also intra-exchange arbitrage, besides the inter-exchange arbitrage you are talking about...

I agree and disagree at the same time here. Nothing is free or comes into our pocket without efforts. But, unlike you mentioned, I have completed many successful arbitrage trading across exchanges hence I cannot agree trying arbitrage trading is suicidal. In my view it has less risky and instant profits but spotting them is too hard. We need to spend more time on multiple exchanges and need to trade in quick manner to catch the price differences.

The reasons you have mentioned are practical as I have seen only due to "non-trade-able" conditions the price differences are appearing which means there is no actual arbitrage opportunity lies there. But, with few low volume trading pairs, we may spot out price differences but this needs lots of patience and dedications.

Mid to long term strategies are cup of tea for most traders still calling arbitrage opportunities as near zero profit business is inappropriate. I am sure about spotting an arbitrage trading monthly once and its profit level varies based on volume yet I believe it worth to risk.

Did you make a typo and meant to say "Arbitrage is legal" instead of "not legal" because its not illegal. And most exchanges actually want you to arbitrage because it provides a tighter spread and adds liquidity to the market and more volume for the exchanges.

This is actually why exchanges in general charge you a lower fee or pay you a fee to be a market maker instead of a taker, because they want the added liquidity to make sure there are no crazy spikes on their exchanges.

So you are allowed to do this, however without a large capital across many exchanges and programming experience its very difficult if not impossible to do manually.

There were times when arbitrage trading used to give profits. Yes, you heard it right. I personally made profits from arbitrage trade but the last arbritrage trade I performed was is the year 2018. After that, I can't see any huge price fluctuations in between the (reputed) exchanges. Also withdrawal fees are skyrocketing which would never make you earn even a few bucks in buying from one exchange & selling on another exchange.

There are a number of scammers which are using arbitrage as their keyword. One of the worst scam I recently went through was bituary exchange. They almost have bitcoin price difference by $500-$600 & when bitcoins are traded at $6500 on binance, they literally buy bitcoins for $7000. There is no way to make profits such way and the only thing we would have is "HUGE LOSS".

Arbitrage is not legal. It just way of trading where the trader takes the advantage of the spread available in different exchanges. This difference in price can also be coz of the buy and sell volume available at that exchange.

It is not that arbitrage is very hard to do. There are very rare opputunity to get the difference but, there are bots designed that detect the differences. If you have problem with any exchange for deposit and withdrawal then you can exclude that for arbitrage as arbitrage is done in very small time window. 

You need to think or calculate the time consuming to send the amount if you don't have balance in two exchanges. For example, you buy bitcoin at $6,500 in A exchange, and in B exchange, the price is $6,550, but you never know how long the bitcoin will arrive in the B exchange. Besides that, you need to think about the fee in both exchanges because you buy in A exchange and sell in B exchange.

It's difficult to do arbitrage trading, but if you want to try, just be careful and make sure you know that is right for you.

These days the only people who can do arbitrage are those with large capital and bots which do the arbitrage for them. Basically on exchanges they are called market makers and hence why many derivative platforms pay a maker fees to ensure that there is liquidity both ways.

There was actually a great opportunity the day that BTC crashed to $3200 last month. On Bitmex there was a $400-$500 price difference. Since I had BTC on a spot exchange and Bitmex, I went LONG on bitmex at a $400 discount and sold on the spot exchange, then 2-3 days later I closed the trade. I was almost 7% or so profit for almost no risk. Well there was risk if you overleveraged yourself and got liquidated. So this is proof that arbitrage works, however the above exchange is extremely rare. In most days you can't normally arbitrage like that.

I have always been trading within the crypto market but haven't done arbitrage trading and have little idea about it However one of my friends remembered many losses and lost enough money. Later he closed it. I feel arbitrage trading is far better than ordinary trading. Here you'll earn a little amount of profit if not an excessive amount of But in arbitrage trading the losses from gains are very high and there are many risks.

I strongly agree to avoid arbitrage trading, because the risk is enormous. Especially for newbies, don't do it arbitrage trading if you do not
want to end up with a loss. It is true that everyone has the right to do what they think they can bring in profit. But if it has a very high risk,
it should be avoided in my opinion. Because there are still many other ways that are safer and can bring big profits.

If you know what arbitrage is and how sensitive it can be you wouldn't be basically lured into it because you would know how hard to do it before you do it.

For example, there was a guy who got API from all the local exchanges in our nation, there was 5 websites and all of them had their own independent exchange anyway so one can be 20k while other is 10k, not realistic of course but technically speaking it can be, since they are all independent.

So, he calculated each of their costs, from withdrawing to trading and withdrawing back again, he basically made a "bot" or a signal or whatever you want to call it, that calculates about 3%+ difference in the prices, and would tell you if you should do it or not, if you had a decent amount of money, you could try it, but at the same time the gap could have closed until you did it.

I would like to inform you a little about my arbitrage trading and my experiences. Yes, arbitrage allows you to make very good money when it is done in a knowledgeable and correct way, but it can cause you to do serious damage with your slightest mistake. In addition, in cases where you are not at fault, some problems may occur depending on the service you are using and therefore you may suffer. One of the most important factors to consider when making arbitrage will be the supply and demand ratio that occurs in both services that have a difference. If there is a balanced supply and demand between the two services, then our first condition is met. The second factor to pay attention to is that the deposit and withdrawal options of the option to be traded should be active and smooth in both services. If this has been achieved without any problems, there is one last detail to be done. It is to control the network structure used by the cryptocurrency to be traded. In the absence of density and problems in the network structure being used, if the same network structure is used in both services, the last factor will be confirmed and all approvals for arbitrage will be completed. After all these checks, it is still useful to be cautious because artificial intelligence products developed with some special software can prevent such opportunities. In short, arbitrage seems simple, but it is a gain method to be very careful about. If I think that it is very difficult to make money with this method today, I would recommend not using it unless there is a serious opportunity for earning.

That's correct because knowing the risk involved in every crypto trading and investment is very indispensable but people not well informed about the consequences of crypto trading are who make the OP to think arbitrage trading is a scam scheme and i believe the OP is also among the people who are not well informed due to his understanding about arbitrage trading.
Knowledge is power and it better to have knowledge about crypto trsding and investment before diving into it.

knowing the risks before you trade arbitrarily is a very good thing to know about it. I have seen several people try to do that, but the fact is that one of the exchanges does not allow the withdrawal or exchange of the token. Well, that is the risk of arbitration, and other risks, you could be late selling it. however, arbit is not recommended, because it has a greater risk. if you want to do that make sure the exchange is reliable and not in trouble.

Arbitrage doesn't always happen when you are dealing with bad exchanges or stuff like that, it usually happens between local exchanges that not everyone knows of. Just to give an example, lets say there is X nation and they have X dollars they use in that nation, there is also Y nation and Y dollars they use, there is also USD which is american dollars.

In x nation 1 dollar is 2 xdollars, in y nation 1 dollar is 3 ydollars, which means when bitcoin is 1 dollars it should be 2 xdollars and 3 ydollars. What happens is that price suddenly becomes 1.8 xdollars somewhere and 3.2 ydollars somewhere else. Now, if you are a person with bank account in both of those nations, and you have enough money to transfer from one to another and lose profit, you can actually arbitrage.

Now that there are rarely significant differences in exchanges, it is now difficult to arbitrage because when there are price differences in exchanges most of them now occur because they are making repairs or experiencing problems. In contrast to a few years ago that was still profitable.

Arbitrage trading actually wasn't an unethical technique to lure into any form of bad expectation or exercise for is a form of trading where traders are able to profit from the market price momentum but it requires some level of knowledge about crypto trading and equipment before a trader can be a profitable arbitrage trade.

Keeping huge fund on an exchange site is not advisable and every crypto trader most not use an exchange site he didnt trust but exchange site that integrated SAFU are still good option.
Meanwhile, i agree with the part of people to educate themselve but arbitrage is still good for an educated trader.

It's true that arbitrage trading requires more attention and most especially time because you need to actively monitor the price of each asset in and out on different exchanges to make a profit from it. Arbitrage trading also need a bigger capital due to the fees you will spend on exchanges.

What ever way during give us much profit and most faster why not to try and arbitrage become real way and we know how much profit we can earn with buy coin lower price on some exchange market and the sell with exchange market have higher price, just few minute we got how much profit earn.

It seems to me that arbitrage trading requires a lot of attention and effort for a trader.  In essence, this is a trade that involves the sale and purchase of the same asset in different markets, where the price is significantly different.  It seems to me that due to volatility, arbitrage trading is developing very poorly in the cryptocurrency market and interest in this direction of trade can quickly be trusted, but since there are a fairly large number of cryptocurrency exchanges, the field of activity for the trader who are involved in arbitrage trading is almost unlimited today  day.

Arbitration is something I like among Crypto trading in general, actually arbitrators will be more profitable for those who have large capital, why?  Yes, because if the small capital will be lost, because the arbitrators must pay attention to the cost of sending their coins from one exchange to another.  As we know the difference in price from the exchange of A and B has a very small difference.

This is what I know about arbitration, my brother is an active arbitrator because he has a bot like below.  He collects large exchanges in this bot, solely to see the difference in the price of coins in each exchange.

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.