Trading of a coin in one exchange to another due to price difference refer to arbitrage ? - Trading - CryptoTalk.Org Jump to content
Babubu609

Trading of a coin in one exchange to another due to price difference refer to arbitrage ?

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I am so doubtful to what real the meaning of arbitrage is. I am stick to this because their are also many colleagues of mine that are yet to know the meaning of arbitrage. I search to learn about what the arbitrage is and the result was to the definition. Is the exchange of price difference between one exchange to another to earn profit. For example you can see a coin like eth in kucoin at rate of 250$ and go back to another exchange and find the price to be 255$ this price interval of is refer to as arbitrage trading.

 

I could like to know more about the arbitrage trading friends I need your cooperation and also are interested in it too. Thank you all for your feedbacks.

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Right this is what we called Arbitrage trading trade between exchange in the same coin like you mention on your post,i never do this kind of trade,but i see in many review that it's risky ,you need to do it very fast and dont be late too transfer your coin to another exchange ,and you have to do it's when the blockchain of your coin is not to late to not wast a time and return to your first price

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I think that this slight difference between currencies is due to the fact that the platforms may contain a smaller amount of this currency and the demand is greater than the other platform, but the question here is, can we take advantage of this difference and achieve profit from it?

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Arbitrage can be done as your title explains. You can sent coins you bought at one exchange to another one, and sell them for a higher price, if there is such opportunity.

Also it refers to trades in the same exchange between different pairs. This is more rare though, as bots quickly pick differences and fill the gap in minutes or even seconds. Still it can happen if no bot is trading the selected pair.

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Arbitrage is the price differences of same coin in two exchanges . It is also a trading type which can be used to earn money . But for that we need to find such coins and it is very hard. After we find one , we need to buy at one and sell at another.

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17 hours ago, Kapil Koirala said:

Arbitrage is the price differences of same coin in two exchanges .

Taking advantage of the price difference in a way that traders profit is what known as arbitrage but in forex and crypto trading. 

 

18 hours ago, Kapil Koirala said:

It is also a trading type which can be used to earn money

But you need huge capital for this. $2000 will be good. It is not risky much but still risky. 

18 hours ago, Kapil Koirala said:

But for that we need to find such coins and it is very hard. After we find one , we need to buy at one and sell at another.

It is not easy to find the coins, but there are bots that can help you find the coins easily. I am not saying you should use bots to trade but to know the price difference in your analyses. 

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On 5/21/2020 at 1:13 PM, Babubu609 said:

 

I could like to know more about the arbitrage trading friends I need your cooperation and also are interested in it too. Thank you all for your feedbacks

Yeah. Arbitrage trading is taking opportunity between the slight difference in price of cryptocurrency between exchanges to make profit. It is not so common because it's not so simple as it requires speedy transactions before the gap is closed. I don't do arbitrage for it comes with risks, sometimes you might lose up your currency to transaction fees.

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This is effective if you have fine 2 different exchange one has low value and the other one have bigger value. In this case the arbitrage trade makes you earn by availing different exchange rate. But this is risky because from time to time we don't know the movement of the coin in the market the worst case here in this method is when the two exchange drops the price range of a coin and ending you will earn nothing. And maybe little amount will be deducted due to price change.

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On 5/25/2020 at 2:10 PM, Jaysen0104 said:

This is effective if you have fine 2 different exchange one has low value and the other one have bigger value.

This is mot practically at all, arbitrage trader make use of note than two exchanges so that they can achieve good profit while trading those way. 

On 5/25/2020 at 2:10 PM, Jaysen0104 said:

But this is risky because from time to time we don't know the movement of the coin in the market the worst case here in this method is when the two exchange drops the price range of a coin and ending you will earn nothing. And maybe little amount will be deducted due to price change.

It happens this way very well, it is also risky and must be done while you also taking look of converting to stable coins when price of the coin is dropping. It is not easy to trade this way but still the risk is less. 

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So many experts says arbitrage trading also profitable but need to find the exchange and coin, which coin prices different is high but in my way I don't think its profitable, because when we use this strategy we pay one exchange to another exchange transaction fees and buying and selling fees, means we earn some profit but at the time we pay fees also so arbitrage risky strategy.

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24 minutes ago, Honny143 said:

So many experts says arbitrage trading also profitable but need to find the exchange and coin, which coin prices different is high but in my way I don't think its profitable, because when we use this strategy we pay one exchange to another exchange transaction fees and buying and selling fees, means we earn some profit but at the time we pay fees also so arbitrage risky strategy.

The price difference LA of cryptocurrencies on different exchanges makes arbitrage profitable, some professional tragedy make use of bots to tell them the process differences of many exchanges at ones and this helps. I have seen this price difference very well, even with yobit and another exchange i am using but before convert in to dollar and also the fee for withdrawals will reduce the profit. So, traders use huge amount of capital for arbitrage so they can profit. 

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that is arbitrage trading, but i wouldn't recommend you try it, you need to take into accounts multiple things not just the price difference like fees and transaction times

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This method of trading is called arbitrage, and this already exists where there are often differences in the price between one exchange and another, but this method has become largely ineffective because the transfer fees from one exchange to another are large and sometimes need some time and from whom the price changes at this time. In addition, most exchanges freeze the coin wallet when there is a significant difference in prices.

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Arbitrage is the first concept that I used to work on on the Yobit platform in the first joining of this platform where I was waiting for the bitcoin price to rise a lot and the Ethereum drop and I buy Ethereum to get a large amount of it in short, the exchange of one pair is an Arbitrage


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Arbitrary trading is not easy task for tradors because I find some scam exchanges as well in crypto market. So if a user without any clear information done deposit on any scam exchanges then no chance to withdraw our funds from it. So try to not used new and bad repu based exchange for arbitrary trading purpose. 

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That's arbitrage trading it refers to the buying of one coin from an exchange where it's rate is low and selling it in an exchange where it's rate is a little bit high in hope of making profits but we should be aware that there are many scam exchanges that seems good for this strategy but they aren't real stay away from them.

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2 hours ago, George10 said:

That's arbitrage trading it refers to the buying of one coin from an exchange where it's rate is low and selling it in an exchange where it's rate is a little bit high in hope of making profits but we should be aware that there are many scam exchanges that seems good for this strategy but they aren't real stay away from them.

To me arbitrage is full of risk even if the price luckily have a huge difference there are coins that bear the same name but different logo and contract address when we mistakenly made transaction we loss all the funds we have by looking for profit.

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3 hours ago, Ndayebo8 said:

To me arbitrage is full of risk even if the price luckily have a huge difference there are coins that bear the same name but different logo and contract address when we mistakenly made transaction we loss all the funds we have by looking for profit.

If you do it very well, it is not that risky, even it is the less risky short term trading, only what you need is how to do it and the best exchange you need for it and you need huge amount of money to start. 

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10 hours ago, George10 said:

That's arbitrage trading it refers to the buying of one coin from an exchange where it's rate is low and selling it in an exchange where it's rate is a little bit high in hope of making profits but we should be aware that there are many scam exchanges that seems good for this strategy but they aren't real stay away from them.

Normally, you have to make use of reputed exchanges, if the exchange is not reputed, it should not be used at all. And also, bots are needed, the kind of bots that can tell the different prices of the exchanges chosen. 

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20 hours ago, Yomose said:

it is not that risky, even it is the less risky short term trading

I made this kind of trade before although I made some of my transactions successful and somes was bunch of mistakes and complexity were I misunderstood the contract address and the the worst thing I didn't observation early that the coin has different logo but same name. And withdrawal for one exchange to make the trade is unavailable and my money hooked there.

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1 hour ago, Ndayebo8 said:

I made this kind of trade before although I made some of my transactions successful and somes was bunch of mistakes and complexity were I misunderstood the contract address and the the worst thing I didn't observation early that the coin has different logo but same name. And withdrawal for one exchange to make the trade is unavailable and my money hooked there.

That is a very huge mistake, there are some exchanges that can trap someone too when using shitcoins for arbitrage, full experience is needed, and also too suppose not to only look at the name, the name abbreviation is what that matters most, no coin have the same name abbreviation as others. 

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27 minutes ago, Yomose said:

That is a very huge mistake, there are some exchanges that can trap someone too when using shitcoins for arbitrage, full experience is needed, and also too suppose not to only look at the name, the name abbreviation is what that matters most, no coin have the same name abbreviation as others. 

That was very bad of it an it is very to difficult as it is so complicated to get understood  there are some coin having same abbreviation but the logo differs and this make it risk and complicated.

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you explained arbitrage trading in a good manner. it is just a way of selling the coin from exchange in which we hold thr coin and selling those coins to anaother exchange so that we get a good price and good profit

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On 6/9/2020 at 11:04 AM, Shahud said:

you explained arbitrage trading in a good manner. it is just a way of selling the coin from exchange in which we hold thr coin and selling those coins to anaother exchange so that we get a good price and good profit

Yes that is the right definition of arbitrage trade. I made it easy for beginners to get what I mean from my definition and know about arbitrage trade.

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My friend, this is arbitrage trading and its very profitable but you will need to have large amount to earn good profit. The best way to do this its trading bitcoins from localbitcoins to yobit, only 5 trades for $1000 and you earn a profit of $100+ per day. Just be careful to transfer your funds at the right address.

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Time is the ultimate weapon!

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