Wait a second. Do you mean to tell me that Exchange B has a shitcoin at a lower price than Exchange A, I can sell my shitcoin at Exchange A, send the ETH to Exchange B, buy more of that shitcoin at Exchange B for the same amount of ETH, and then send that shitcoin back to Exchange A? And I could do this indefinitely as long as the price difference lasts?
This seems too good to be true.
Bump
Fees eat up a good chunk of the profit and the transfer time for eth could mean that the price difference is gone or isnt profitable anymore
Yes except that's mostly for whales, friends of exchange owners, and their bots.
You know how you have to sometimes wait for up to 6 or more confirmations to get a deposit credited? The others only have to wait for 1.
Only works if the spread is wide enough and you have $10,000 or more to use for arbitrage. Exchange fees and transfer speed also affect profitability.
Not worth it, bot are doing this all day
BUY BCD RIGHT NOW
Lol
wtf
yeah until the price shifts while your transfer is still confirming leaving you down 20% lol
also consider that pajeet and jackie chan meme exchanges can manipulate their prices down to create arbs on purpose to trap a naive newfag, just to jew them out of their coin through failed id verification and theft
>buy shitcoin because arbitrage opportunity is big
>quick teansfer to x exchange
>x exchange: wallet in maintenance
Congrats, you're fucked now.
Most too good to be true arbitrage opportunities are created because there is some technical difficulty on the wallet.
People who shill those opportunities just want you to buy their stuck bags
This coin doesn't have a working network, you can't transfer them, therefore you're essentially buying tokens that only exist on that exchange.
It works if you have a good trading pair and a strategy. Calculate your trading fees, most of the time you need a profit of >0,5% to cover up the fees.
Example: XRP is on a bullrun, therefore high volatility which makes it possible to arbitrage trade. Your exchanges are bitfinex (you can short there) and binance. When the price on binance is a few percent higher because of FOMO you do the following:
buy XRP on bitfinex, also open a short for the same amount, now you have no net position in XRP.
then XRP -> binance, sell for ETH
ETH-> bitfinex, buy XRP
repeat until there is no profit to be made.
You will soon figure out how to adapt this strategy to other scenarios if you try a bit.
I more than doubled my BTC stack in last august/september by arbitraging between bitfinex and the chink exchange viabtc, where chink whales used to market buy BCH for a higher price. (now shut down)
Opportunity to exploit is variable the fixed cost aspect is withdrawal fees and basically processing time
that's why you have fiat in one and ETH in the other, brainlet
you execute instantly
Explain
You make the deposit in GDAX for $800 (assume that's the cheaper exchange)
You make a deposit in another exchange for 1 ETH (assume this one is more expensive)
you put in a market order for a $800 limit buy to get an ETH on GDAX so you don't get cucked by the fee
you wait for the order to get taken, switch tab and market sell for $850, paying 0.15% fee, make $48.72 profit
Wtf
This looks so simple yet so good
ls there any catch l'm missing? Something that could go wrong?
human error
human speed
Not having the stars aligned for your arbitrage gimmick
I hate being so retarded
what could go wrong is you deposit on the exchange that is more expensive, but by the time the dollar deposit actually goes into your account the price is EXACTLY the same
so you need to probably keep some ETH and dollars on both and just wait for a long-ass time for them to diverge to do it
I just made 50 bucks doing exactly that yesterday. Yes it is easy if you move fast, because you're not the only one that will do it.
transaction speed also