arbitrage Arbitrage trading is not as hard as you think

[Calvinpriva 17296]

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.

[Babubu609 0]

@Calvinpriva Nice topic... To my understanding about arbitrage trade one need to be focused and should be vigilant because during arbitrage the price of cryptocurrencies flunctuates. Therefore it is a risk if you don't check the market before putting your funds instead of buying at low the price might change and increases in such a way you need to hold for a while sometimes you totally loose if the market volume is very low. But the advantage of arbitrage trading is that the earnings in arbitrary trade is higher than the loss if you have the full guide.

[Calvinpriva 17296]

1 hour ago, Babubu609 said:

@Calvinpriva Nice topic... To my understanding about arbitrage trade one need to be focused and should be vigilant because during arbitrage the price of cryptocurrencies flunctuates. Therefore it is a risk if you don't check the market before putting your funds instead of buying at low the price might change and increases in such a way you need to hold for a while sometimes you totally loose if the market volume is very low. But the advantage of arbitrage trading is that the earnings in arbitrary trade is higher than the loss if you have the full guide.

@Babubu609 Absolutely. There is a big risk when you will buy any coins with out checking the market first. If you are good in reading the market to buy a good coin, you will earn a very good profit.

[Brushless4500KV 4214]

It is both hard and dangerous. In fact hardness is not the matter. The high risk involved is why most traders avoid it. It is by far riskier than day trading. Even if you succeed, the profit is so tiny that is not worth the time and stress. You have to repeat the same transaction lots of times to reach an acceptable profit and each transaction can be a big threat for your capital because the rate of exchange is constantly changing across different exchange platforms. If you have enough experience and feel comfortable with it, you can try it but I don't recommend it to others.

[Tunuu 2235]

Thank you mate for explaining this. I am a day trader and i do not trading arbitrage because you must have much money to earn much profit. My friend is an arbitrage trading and he trade $5000 to earn $100. 

[Calvinpriva 17296]

3 hours ago, Brushless4500KV said:

It is both hard and dangerous. In fact hardness is not the matter. The high risk involved is why most traders avoid it. It is by far riskier than day trading. Even if you succeed, the profit is so tiny that is not worth the time and stress. You have to repeat the same transaction lots of times to reach an acceptable profit and each transaction can be a big threat for your capital because the rate of exchange is constantly changing across different exchange platforms. If you have enough experience and feel comfortable with it, you can try it but I don't recommend it to others.

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?

Edited October 3, 2020 by Calvinpriva

[Tunuu 2235]

On 10/3/2020 at 7:30 PM, 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?

For sure mate. If he will do many trades he will earn high profit. Thanks for explain

[dr4ch3 18]

On 10/3/2020 at 6:30 PM, 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?

Thank you, interesting topic. But can you give me example, which altcoin that only take 10 minutes for transaction. I usually only use btc, and it takes like forever.

Edited October 4, 2020 by dr4ch3

[Calvinpriva 17296]

10 hours ago, dr4ch3 said:

Thank you, interesting topic. But can you give me example, which altcoin that only take 10 minutes for transaction. I usually only use btc, and it takes like forever.

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. 

[Whited35 15285]

@Calvinpriva Arbitrage trading does make the sense if we have have large capital and there is a high price volatility no matter it can even be top ranked cryptocurrencies.From my experience, HitBTC, Binance,KuCoin, and Yobit are the best for arbitrage trading.  We have to be aware first, it has an extreme risks of loosing the amounts because some exchanges have the manual transaction processing method and they might took even more time to process the transaction. Sometime highly congested network also create unwanted delay in processing the withdraw so that we may miss the chances of catching real time market momentum to grab more benefits. 

Before proceeding arbitrage trade, traders have to take care of the following things:-

• If you do not have more capital to invest but still trying to choose arbitrage, choose the coins like LTC, XRP, XLM, an Wave which have the lowest transaction fee on the most of the exchange sites and transactions will be processed quickly. 
• Try to check the state of market for chosen coin i.e. overbought or oversold
• Look at the intended price strength and flow of orders because some exchange may trick you with the robot generated fake volumes.  

[Albertbsk 7]

10 hours ago, Neldadiaz245 said:

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!

Without a doubt choosing the exchange and making fast transfers is the most difficult in my point of view, in my case I can say that Britrex, Binance and Yobit are the ones that have the fast transfer.

[Honny143 13612]

1 hour 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. 

Well thanks @Calvinpriva to give the detail which coin have low transaction fees and quickly confirmed, this info really useful in arbitrage trading,

but I think when we do arbitrarge trading in bitcoin then we need high amount, because yobit to localbitcoin transfer fees around 140 k so its not affordable for small traders, so I think altcoins better for arbitrarge trading.

[Calvinpriva 17296]

2 hours ago, Whited35 said:

@Calvinpriva Arbitrage trading does make the sense if we have have large capital and there is a high price volatility no matter it can even be top ranked cryptocurrencies.From my experience, HitBTC, Binance,KuCoin, and Yobit are the best for arbitrage trading.  We have to be aware first, it has an extreme risks of loosing the amounts because some exchanges have the manual transaction processing method and they might took even more time to process the transaction. Sometime highly congested network also create unwanted delay in processing the withdraw so that we may miss the chances of catching real time market momentum to grab more benefits. 

Before proceeding arbitrage trade, traders have to take care of the following things:-

• If you do not have more capital to invest but still trying to choose arbitrage, choose the coins like LTC, XRP, XLM, an Wave which have the lowest transaction fee on the most of the exchange sites and transactions will be processed quickly. 
• Try to check the state of market for chosen coin i.e. overbought or oversold
• Look at the intended price strength and flow of orders because some exchange may trick you with the robot generated fake volumes.  

Well explained, brother @Whited35 we must be careful because it's true if there will be a delay or exchanges which have manual transactions it may be a risk because you can miss the targeted price. That's why you must trade on good exchanges like those you mentioned! LTC, XRP is my best because they really fast in transactions, sometimes i earn really good profit buying LTC from Binance using RUR and i sell in Yobit. And of course, there are many exchanges with fake volumes which can attract you to open trades on them, so we must be careful about this.

 

1 hour ago, Honny143 said:

Well thanks @Calvinpriva to give the detail which coin have low transaction fees and quickly confirmed, this info really useful in arbitrage trading,

but I think when we do arbitrarge trading in bitcoin then we need high amount, because yobit to localbitcoin transfer fees around 140 k so its not affordable for small traders, so I think altcoins better for arbitrarge trading.

You're welcome dear friend @Honny143 of course, trading arbitrage by using bitcoin needs a large amount. So it's good to trade with altcoins and perhaps later you can grow your capital then you can trade with bitcoin as well.

[Whited35 15285]

48 minutes ago, Calvinpriva said:

Well explained, brother @Whited35 we must be careful because it's true if there will be a delay or exchanges which have manual transactions it may be a risk because you can miss the targeted price. That's why you must trade on good exchanges like those you mentioned! LTC, XRP

@Calvinpriva Yobit is the best at that point. It processes transactions extremely faster and delay depends only on the blockchain networks. I have selected top ranked exchange for arbitrage. You may get surprised, sometime I make profits even from BTC's arbitrage between the exchange sites. 

[Mzizo 24]

It's both complicated and hazardous. Hardness, in fact, is not the matter. The high risk involved is why it is avoided by most traders. It is more dangerous than day trading, by far. The benefit is so minimal that it is not worth the time and stress, even though you succeed. In order to make an appropriate profit, you have to replicate the same transaction several times and each transaction can be a major threat to your capital because the exchange rate is constantly changing across various exchange platforms.

[Dorjoy12 8962]

@Calvinpriva  without any doubt your topic About arbitrage trading is really good...but to do arbitrage trading you must need to have enough amount of crypto as i know arbitrage trading profit depend on capital only.. Not only capital but when we going to do arbitrage trading we need to be careful about transaction too as we sent OUR capital to wrong address then everything will be vanish...you encourage me to do arbitrage trading  but i dont have enough amount 😁                    

[Oxygen99 1930]

4 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. 

You are right my friend and that is why i also like making use of xrp to accomplish a transaction because it is fast and have low transaction fees in yobit exchanger which i think will be good for everyone to use, the transaction fees is currently 0.5 xrp and i believe it is fair enough.

[Calvinpriva 17296]

49 minutes ago, Whited35 said:

@Calvinpriva Yobit is the best at that point. It processes transactions extremely faster and delay depends only on the blockchain networks. I have selected top ranked exchange for arbitrage. You may get surprised, sometime I make profits even from BTC's arbitrage between the exchange sites. 

@Whited35I completely agree with you! Yobit has very fast transactions, and low fees except in BTC. 

 

It's really surprising if you can earn profit from BTC in arbitrage! I really hate to trade BTC in arbitrage 😒 because it needs a high amount and it has a small difference in price between exchanges.

[Whited35 15285]

1 minute ago, Calvinpriva said:

@Whited35I completely agree with you! Yobit has very fast transactions, and low fees except in BTC. 

 

It's really surprising if you can earn profit from BTC in arbitrage! I really hate to trade BTC in arbitrage 😒 because it needs a high amount and it has a small difference in price between exchanges.

@Calvinpriva It needs more capital and high price volatility otherwise arbitrage does not work for BTC. You can purchase BTC from p2p platform and arbitrage them on reputed CEX. It does make the sense to acquire more profits if it works according to your plans. 

[Calvinpriva 17296]

5 minutes ago, Whited35 said:

You can purchase BTC from p2p platform and arbitrage them on reputed CEX.

@Whited35 I've done this a few times but for now, I've stopped. There are few things am still learning (they really need attention) but I'll get back to work soon.

 

37 minutes ago, Dorjoy12 said:

without any doubt your topic About arbitrage trading is really good...but to do arbitrage trading you must need to have enough amount of crypto as i know arbitrage trading profit depend on capital only.. Not only capital but when we going to do arbitrage trading we need to be careful about transaction too as we sent OUR capital to wrong address then everything will be vanish...you encourage me to do arbitrage trading  but i dont have enough amount 😁               

Dear friend @Dorjoy12 arbitrage is really good if you have large capital and if you are good at choosing the best coins and exchanges, but you will cry if you transfer your money in the wrong address 😂

 

38 minutes ago, Oxygen99 said:

You are right my friend and that is why i also like making use of xrp to accomplish a transaction because it is fast and have low transaction fees in yobit exchanger which i think will be good for everyone to use, the transaction fees is currently 0.5 xrp and i believe it is fair enough.

Yes friend @Oxygen99 XRP is a very good coin because it has a very small fee and it's very fast in transactions.

[duncun007 3577]

29 minutes ago, Calvinpriva said:

@Whited35I completely agree with you! Yobit has very fast transactions, and low fees except in BTC. 

 

It's really surprising if you can earn profit from BTC in arbitrage! I really hate to trade BTC in arbitrage 😒 because it needs a high amount and it has a small difference in price between exchanges.

yea bitcoin isnt good for arbitrage, but the sad thing lately most of the coins on yobit are lower than other exchanges but when you want to arbitrage the wallets are offline, i hope they solve this issue.

[pacific 2268]

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. Since, if you are a good trader, there's no particular risk in arbitrage and is considered a relatively safer trading strategy.

[Dorjoy12 8962]

19 minutes ago, Calvinpriva said:

Dear friend @Dorjoy12 arbitrage is really good if you have large capital and if you are good at choosing the best coins and exchanges, but you will cry if you transfer your money in the wrong address 😂

 

@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..                

[Oxygen99 1930]

1 hour ago, Dorjoy12 said:

@Calvinpriva  without any doubt your topic About arbitrage trading is really good...but to do arbitrage trading you must need to have enough amount of crypto as i know arbitrage trading profit depend on capital only.. Not only capital but when we going to do arbitrage trading we need to be careful about transaction too as we sent OUR capital to wrong address then everything will be vanish...you encourage me to do arbitrage trading  but i dont have enough amount 😁                    

You are right my friend about this issue we need huge capital for do arbitrage trading because big investment brings bigger profit and we need to make use of top exchangers to avoid losing funds to scammers because today we have a lot of imposter website.

 

28 minutes ago, duncun007 said:

yea bitcoin isnt good for arbitrage

I agree with you on this my friend and the best coins that i think will be good for arbitrage trading are the likes of litecoin, ethereum and xrp because they fluctuate a lot in the Cryptocurrency marketplace which will give traders oppotunity to make some profit.

[Whited35 15285]

32 minutes ago, Calvinpriva said:

@Whited35 I've done this a few times but for now, I've stopped. There are few things am still learning (they really need attention) but I'll get back to work soon.

@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.