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BTC arbitrage is very risky due to transaction times, volatility, and volume. And it's often not worth it depending on your region due to potentially high fees
by ilitirit 9y ago
BTC arbitrage is very risky due to transaction times, volatility, and volume. And it's often not worth it depending on your region due to potentially high fees. It's not something I would recommend to people who have never done it before.
As an experiement, go on to a site like CoinMarketCap. Click on BTC->Markets. Sort by price. It looks like a ton of arbitrage opportunities, right? Well... now try to take advantage of it.
- valuearb 9y agoThe OP claims their system isn’t affected by transfer times. Read it and tell us what you think.
- makomk 9y agoOf course it's affected by transfer times, it just takes some thought to understand why. Ultimately, in order for this to close out the position for a profit, the prices have to converge for long enough, and in order for that to happen reliably someone has to do arbitrage the slow way by transferring money. While you're waiting for that to happen, you're paying interest on the short position and exposed to the risk of a price increase causing a margin call that liquidates your short at a loss. The amount of profit you can make is also limited by the time it takes for the prices to converge.
- disiplus 9y agoit does not work like that, it requires you to have "money" or the ability to short/long at all exchanges and then u simply buy/sell locally.