arbitrage Arbitrage trading is not as hard as you think

[dineroexitosoporinternet 9]

Arbitrage also has the advantage of reducing risk because you are only transferring and selling more expensively, on the other hand, in trading if you buy or sell wrong, you start to lose money, but the profit may be less compared to trading but it is safer. ,
But Dreamer please make an example of the exchanges that you use to arbitrate, because I made the attempt and it did not come out well due to a problem in wallet compatibility or they were in maintenance, or they had low volume, and you are right the xrp is good idea because it transfers fast. Thank you very much for the post I have been investigating about this and download some android applications for arbitration, but the data that they give in the app has those details when you go to make the transfer have problems in the wallets, there is an app that tells you which wallet has Problem so that you do not arbitrage, but then there is also the problem of the compatibility of the wallets that are of the same protocol, but in conclusion it is a good strategy if done well.

[dineroexitosoporinternet 9]

6 hours ago, Calvinpriva said:

Many coins like XRP, BCH, LTC, BTC, DASH, TRON. It takes less than 5 minutes to transfer BCH, LTC from bitcoin.com wallet to any other wallet. It takes less than 5 minutes to transfer BTC, BCH, LTC, DASH, TRON and DOGE from Faucetpay wallet to any other wallet. It takes less than 5 minutes to transfer BTC from Localbitcoins to Yobit! But it takes less than 1 minute to transfer XRP from many wallets to any wallet. 

Thanks for saying the pairs, could you please give an example of in which exchange you have bought the currency cheap and in which you have sold it more expensive, and which pair, to see if I can do the experiment, and do you have a platform that alerts you when there is a price difference or you do it manually you go into the exchange and see the price difference, good morning blessings and thank you

[Calvinpriva 17296]

44 minutes ago, Whited35 said:

@Calvinpriva It should not be done in the pressure situation. You have to be calm and free to make trading strategies. Myself, I do not recommend to do arbitrage of Bitcoin at all. If you have at least $1000 capital, you might look around to find the best performing altcoins. 

@Whited35 Yes brother, pressure situation will fail you at all. $1000 is a good amount because by make 5-7 trades i will earn good amount from altcoins. 

[Cryptic 0]

I think it is the safest trading technique, but must always check the different exchange from time to time since crypto is highly volatile its price could change quickly over a period of time, so you couldn't miss any profit. Also since the assets is crypto then yeah you should have quickly sell it or simultaneously to the time you bought it because you might miss an opportunity to profit.

[dineroexitosoporinternet 9]

On 10/3/2020 at 11:30 AM, Calvinpriva said:

Every trading method is hard, but arbitrage is not hard and risk like other trading methods. Just watch the prices now if you can, choose 5 pairs in popular altcoins, and then set a stopwatch from 10 minutes (transaction time from one exchange to another, though it take less than 10 mns) then after 10 minutes see how much the prices have changed! You just need to find a good pair in the market, i'm trading arbitrage for 3 years now and those 10 minutes for transaction they've never change the price for any pair and cause loss. Let say i have $1000 capital, and one trade takes 7 minutes and gives me a profit of $30. if my target is 10 trades, i will just add one more trade to cove small changes to reach my target profit and in less than 5 hours i would made $300 profit. I think the most reason why a lot of people avoid arbitrage it's because it requires large capital, that's the truth. But arbitrage is not risk as margin trading, leverage and options! You trade with $30 to earn $100, that's why many people loss their money. But in arbitrage you trade with $1000 to earn $50 but it's less risk! If you made only 10 more trades (10 minutes each) you earn $500 easily! 

 

@Tunuu

Yep, it may be true depending on the pair that he trade. But what if he made 10 trades? He earn $1000 profit, right?

Good morning everyone, I agree with you, @calvinpriva  but since you choose the pair with the exchange, because the prices are always very similar, you have an alarm that tells you that I change the price or you go exchange by exchange seeing the price or you already have identified exchanges The same thing has happened to you frequently. thanks .

[Calvinpriva 17296]

3 hours ago, Dorjoy12 said:

@Calvinpriva  i think you should be careful about transaction more than me as  you are a arbitrage trader now 🥴 🤣.. But ofcourse i will be enough careful to Transfer  my crypto.. You may dont know that whenever i withdrawal my earnings from yobit then i checked the address two time like note privet key..                

@Dorjoy12 Checking my address twice before i make any transaction is the first thing that i do every time when i want to transfer my coins 😂 otherwise bad things may happen.

 

3 hours ago, pacific said:

You need to compare the price difference in two pairs, and probably go with the suitable one, relative to the price in other exchange. Since, if you are a good trader, there's no particular risk in arbitrage and is considered a relatively safer trading strategy.

@pacific Of course, arbitrage is a good trading method and very easy, i don't know why many people sees it like the hardest or the most risk trading method while you can lose unexpected amount in leverage trading! You just need to practice how to read the markets so that you can choose a good pair and you'll earn good profit from arbitrage.

 

2 hours ago, dineroexitosoporinternet said:

Thanks for saying the pairs, could you please give an example of in which exchange you have bought the currency cheap and in which you have sold it more expensive, and which pair, to see if I can do the experiment, and do you have a platform that alerts you when there is a price difference or you do it manually you go into the exchange and see the price difference, good morning blessings and thank you

@dineroexitosoporinternet Nop! I always check price and compare manually, that is really the hardest part but if you will be calm and do it right, it will be your lucky day!

[Dorjoy12 8962]

9 hours ago, Calvinpriva said:

Checking my address twice before i make any transaction is the first thing that i do every time when i want to transfer my coins 😂 otherwise bad things may happen.

 

@Calvinpriva without any doubt its good strategy my friend as we dont want to lose our hard earned money.. You know one crypto trader sent his eth funds to wrong address which amount was might be 20 million usd eth.. Whenever we copy and paste our address then we must need to be careful about it to avoid such mistake. It would be better more if we use the QR code for find out address..               

[Whited35 15285]

16 hours ago, Calvinpriva said:

@Whited35 Yes brother, pressure situation will fail you at all. $1000 is a good amount because by make 5-7 trades i will earn good amount from altcoins. 

TWT and BNB can be another options for arbitrage tradings. Make  sure to put them in your check list so that you will be considering them to make the trading decisions in future. I have not tried XRP as for arbitrage yet but I might decide to do for it too. 

[lolok 60]

Arbitrage is something I do often and usually it works well.
I do it especially between several pairs of the same exchange because between exchanges nowadays with the costs and congestions of the blockchain it becomes more difficult to take advantage of a price difference between 2 exchanges.
Ideally you should use a bot that scans an exchange to find a price differential of a crypto on several pairs.

[Whited35 15285]

2 hours ago, Mosharraf said:

I agree with you @Whited35,It is okay to take any pressure while trading, because if we take too much pressure we will lose our intelligence, so we will not be successful in trading, we must be calm and tactful while trading, but it is not okay to arbitrate with bitcoin,  If you have more capital then you can find and trade good Altcoin

@Mosharraf Thanks for your opinion. I also do not recommend to go for arbitrage with BTC to everyone but in case of me, it is working sometime. A large capital is needed to do arbitrage of BTC you can do it between Binance and Yobit if you are okay. 

[mattsett 120]

Arbitration is not that difficult but you have to be very agile, buy in one exchange and send to another quickly before you miss the price difference

[lolok 60]

There is an arbitrage technique which is few used in crypto arbitrage by non-professional traders but which can sometimes be interesting.
It is about buying a crypto on an exchange and short this same crypto in derivatives if the price on the exchange is much lower than its derivatives. At a moment the combination of them gives an overall gain.
There is another advantage is that on the exchange no custody fees and sometimes short trade in derivatives (without deadline date) gives overnight credits on some platforms so it is a form of global passive income without exposure to price fluctuations of this crypto.
And the daily income can be used to increase the arbitrage to do a yield farming more and more.
But be aware to have a big security margin in derivatives because the loss may be infinite with short trading.

[Abdalrazig 1865]

Thank you for the great information you have provided, I was always wondering about arbitrage trading, now I can say I may try it someday, from your explanation, it seems very profitable for me but needs a good capital to start with.

[lolok 60]

2 hours ago, Whited35 said:

@Mosharraf Thanks for your opinion. I also do not recommend to go for arbitrage with BTC to everyone but in case of me, it is working sometime. A large capital is needed to do arbitrage of BTC you can do it between Binance and Yobit if you are okay. 

I agree with you.
Sometimes it works with BTC.
The fee on the blochkchain BTC is expensive then more often it is necessary to have a very large BTC amount so that the costs are negligible and do not prevent arbitrage.

[majeron 88]

Crypto Money Arbitrage, if the price of the crypto money traded in different markets is different, it is obtained from the low-priced market and sold in the high-priced market simultaneously. In other words, it is a method of gaining exchange rate difference between exchanges. In crypto-values, we can say that arbitrage is the process of benefiting from the price difference and making a profit by selling a crypto money you bought from the X stock exchange on the Y stock market.
 

[Raqeebzy 6456]

Nice explanation @Calvinpriva. Arbitrage trading is underrated forms of trading to make huge profit in a short time but it sure requires huge practical to be effective and there is need to be very cautious. The type of exchanges to use, one must be certified and convinced in the reputations and also the others sometimes might be frustrating when orders are not met quickly, so the exchanges involved in arbitrage must possess a decent volume too.

[Calvinpriva 17296]

Thank you @Raqeebzy. You are right, arbitrage trading is very good but we need to be cautious because when we miss the targeted price because of transaction delay or any other reason it will be a loss. We should check exchanges that are fast in transactions for good arbitrage trading.

[lolok 60]

There is almost an infinite number of arbitrage possibilities to be done.
And there is one that can be used with Yobit's InvestBox to generate 44% annual interest with low risk.
Put ETH in InvestBox which is at 0.1% daily interest which makes 44% annual.
The trick is to short the ETH on CFD account, usually short at low cost and sometimes even overnight credits.
This allows to make 44% annual interest because it does not matter the direction of ETH.
But there are downsides if ETH rises more than 44% you are limited to 44% profit and if ETH rises high there is a risk of margin call.
However I would say 44% for someone who wants extra income is fine and for the CFD short just put a high stoploss and exit InvestBox if the stoploss is hit.
44% interest of ETH then if ETH is in a uptrend more then 44% of interest in dollar and less if in a downtrend.
Interest in dollar is between 0% and 44% if the ETH goes down, 44% if stable and between 44% and the infinite if goes up.

Edited October 6, 2020 by lolok

[Whited35 15285]

9 hours ago, lolok said:

The fee on the blochkchain BTC is expensive then more often it is necessary to have a very large BTC amount so that the costs are negligible and do not prevent arbitrage.

@lolok Yes, suppose you have $5000 worth of BTC and profits is appeared to be $200 through arbitrage and at that condition, I do not think you will mind to pay $10-$20 for fee on the exchange. Still a huge sum of profits will be in your pocket 😉

[DollarDuck 106]

8 hours ago, YuryRa said:

High risk is why most traders avoid it. This is much more risky than day trading. Even if successful, the profit is so small that it is not worth wasting time and nerves. You have to repeat the same transaction many times to achieve an acceptable profit, and each transaction can be a big threat to your capital, because the exchange rate is constantly changing on different exchange platforms. If you have enough experience and feel comfortable, you can try, but I do not recommend it to others.

Absolutely. Through years I have been trying to use such trick but never succeeded. You cannot move your poor money through exchanges quickly enough to beat prof traders who have account on several exchanges. If you manage to have free usdt on Binance Polo and Yobit for example you can try. If you are planning to move your funds - well you can try, may be... but I would surely make a bet against such a try.   

[Anarchy09 138]

On 03.10.2020 at 05:03, Calvinpriva said:

Let's discuss arbitrage trading. A lot of people think arbitrage trading is one of the hardest trading methods because it has a small profit and maybe you must learn too much so that you can earn a good profit from arbitrage. I'm trading arbitrage since 2018 so i have a good experience with it and I dare to say that arbitrage trading is easy and profitable, though it requires at least some good capital to earn a profit.

 

Arbitrage trading is not hard because you just need to look the price of a coin (any) from one exchange and then compare it with another exchange, if that coin will have a good price difference you'll just have to buy it from the first exchange at a lower price and sell it to other exchange at a higher price and take your profit. So it's not hard!

 

Follow these steps and you will love arbitrage:

 

1. Choose a pair

Before starting arbitrage the first thing is to choose a coin that you will trade. There are two ways in choosing coins/pairs for arbitrage and it depends on your skills. You can only choose LTC maybe, and compare it in other exchanges then you trade it. But you can choose LTC, and you can choose a good coin to buy LTC as well so that you can earn a high profit. Example: Maybe you can buy 10 LTC in binance via USD and sell them to yobit and earn a profit of $15. But you can buy LTC via RUR and sell them to earn a profit of $19, so there is also a price difference of the coin that you will use to buy your trading coin, in that example with USD we can earn $15 profit but in RUR we can earn $19 but we trade the same coin LTC.

 

2. Choose an exchange.

There are a lot of exchanges that have pricing differences for a good profit in trading arbitrage. But the most important thing that you need to check is the fees, transaction time, rules (maybe they require KYC and it's hard), and transaction limits for those exchanges that you chose. A lot of people fail to earn profit in arbitrage because they just compare a coin price from different exchanges but they do not compare other important things.

 

3. Make a quick transfer.

Cryptocurrency prices are always changing at different times, and at any time. So we should make a quick transfer when we already find a good pair and a good exchange so that we can not miss any profit when prices will change. And that is why i said we should not review only the price difference for a coin from exchanges, but we should also review exchanges with quick transactions, Yobit and Binance are my best!

 

4. Repeat the process.

For a good profit in arbitrage, you just need to repeat the process for trading your pair even 5x or 10. Example: You earn $10 profit to trade XRP at $100. That means if you will repeat 5x trades you will earn a profit of $50 and if you will repeat 10x you will earn a profit of $100 which is 100% of your trading capital. This is possible and it's real!

 

5. Consider the risk (Trade with a plan)

There is always a risk in trading, though in trading arbitrage i know only two risks that can give me a loss. The first risk is when you will need too much profit and make more than 10, you will not know where to stop because each 10 minutes trade gives you $5 profit maybe. 10 trade is enough so that you can control your self, there is a risk to transfer your coins in a wrong address when you will over trade per day! Instead of trading 50x, just trade 10x and increase the amount of trading every day and your profit will keep increasing. Another risk is when you chose good pairs and unfortunately, you chose a bad exchange! You earn a profit of $10 but the withdrawal fee is $8, it's a craze. So you must be careful in choosing a good pair and a good exchange for a better profit. Always prepare a good plan because those two risks can eat all your capital and profit!

 

If you will follow those steps, you will never say arbitrage is hard or has a low profit. By the way, it takes less than 5 hours to complete 10 trades from Yobit to Binance in many pairs! 

 

Good luck.

Hi. Thank you for the information, it was very nice and interesting to read your story. Please tell me what Bank you have at the moment, which is in your turnover? And which exchanges do you use for successful arbitrage, only binance and yobit?

[Raqeebzy 6456]

8 hours ago, Whited35 said:

@lolok Yes, suppose you have $5000 worth of BTC and profits is appeared to be $200 through arbitrage and at that condition, I do not think you will mind to pay $10-$20 for fee on the exchange. Still a huge sum of profits will be in your pocket 😉

Fees is never a problem in arbitrage trading in my opinion. Except one is dealing with small investment and arbitrage trading isn't possible or effective with small capital. That's one of the many advantages of being a big fish or whale, the profit will be too minimal to be noticed.

 

2 hours ago, aliap1997 said:

 

In my opinion arbitrage trading is much safer than compared to other trading strategies like day trading and buying dips and hold. For Arbitrage, you don't need to have large trading investment, you can start with a less initial investment, all you need is to find a good exchange, and a good pair of related cryptos you're willing to buy. You need to compare the price difference in two pairs, and probably go with the suitable one, relative to the price in other exchange

You might as well end up paying transaction fees with all your profits. I disagree, arbitrage trading isn't for shrimps.

[Rosarvx 965]

is not hard and risk like other trading method, and I usually find opportunities in this way and automated applications it becomes a difficult task

[Madikam 90]

I tried crypto arbitrage and even bought a scanner that shows the price difference for the same asset on different exchanges. But, unfortunately, nothing happened. I just lost money on this. I'm not saying that it's impossible, I'm just saying that it's not as easy as it seems

[Albany1209 210]

        Arbitrage in the world of cryptocurrencies refers to the negotiations that a person makes about a currency or another asset in various places of purchase - sale, this is generated in profits by the prices that they may have in the different markets and the volume of transactions that are handled at that time.