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"Arbitrage" Trading CRYPTO

Anything related to bitcoin, crypto, blockchain

GetShitDone

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Hi guys,

Has anyone here had experience of buying LOW on one exchange and selling HIGH on another exchange?

There's hundreds of exchanges where the crypto prices differ.

I currently have an account on an Indian Exchange and an Australian Exchange where the price difference has been anywhere from 10%-25% where the Indian exchange has been higher.

Asian exchanges tend to be more expensive for BTC as opposed to Western Exchanges.

This presents an Arbitrage opportunity of buying low and selling high.

Has anyone had experience or is interested in this?
 
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GetShitDone

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It's possible, if you're doing a fairly large amount otherwise the cost of transfer and time may not be worth it.

I hear you.

Example below (The literal price differences of the 2 exchanges that I'm on as I write this):

Exchange A is $24,500 per BTC.

Exchange B is 25,600 per BTC.

That's a $1,100 profit which should cover Exchange Fees (1%-1.5%), Network Transfer Fee, etc.

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In order to fix the transfer time issue (of the time of sending a BTC from one exchange's wallet to another exchange wallet), you could also already have BTC and Fiat readily available in both exchanges.

Once you see an Arbitrage Opportunity, you leverage the readily available BTC and Fiat to perform the Arbitrage Transaction. And "re-balance" everything after you've secured your profits with the Arbitrage Transaction being complete.
 

GetShitDone

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Yep, that's the right way to look at it. But you have to act fast, as the arb opps disappear quickly.

Makes sense. Requires quick thinking and focused analysis.

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With that said, I've come across "Arbitrage Bots" that will monitor multiple exchanges and multiple cryptocurrencies at the same time to spot Arbitrage Opportunities in real time.

Top 6 Bitcoin Arbitrage Bots

Additionally, someone has even created a Spreadsheet for Crypto Arbitrage.

A Super Simple Cryptocurrency Arbitrage Spreadsheet for Finding Mismatched Prices

Definitely some interesting ways of managing and monitoring Crypto Arbitrage!
 

scottmsul

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In order to fix the transfer time issue (of the time of sending a BTC from one exchange's wallet to another exchange wallet), you could also already have BTC and Fiat readily available in both exchanges.

I believe prices on more trusted exchanges are consistently higher than prices on less trusted exchanges, which means the arbitrage will most often be unidirectional. Therefore you'll have to shift liquidity constantly for it to work. The problem is moving liquidity in and out of exchanges can take days or weeks to process. I'm not saying it can't work, just that the time to move liquidity might be the bottleneck and something to factor in.
 

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