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> for some very small coins it can takes ages to transfer Why do you need to transfer between exchange? Writing an arbitraging bot is in my bucket list of pro
by 1_player 9y ago
> for some very small coins it can takes ages to transfer
Why do you need to transfer between exchange?
Writing an arbitraging bot is in my bucket list of projects I'll one day work on, and to avoid trasfer times, which are ridiculous with some cryptocurrencies, the plan is to keep a balance of both sides on both exchanges.
Example: if you're arbitraging ETH/USD between exchanges A and B, you have an ETH balance on A, and a USD balance on B, and you concurrently buy/sell on both.
Then you have the problem of managing dozens of balances across as many exchanges, which is left as an exercise for the reader :)
- fedecaccia 9y agoThat's the point, you can't have so many balances in so many exchanges, because, in that case, each return is going to be very small. Just to take profit on an ETH USD arbitrage, you have to have 25% of your capital in ETH and 25% USD in exchange A, and 25% ETH and 25% USD in exchange B. So, when you take advantage of the opportunity to buy ETH at low price on exchange A and to sell on exchange B, you are only earning an arbitrage profit on a 25% of your capital. And that profit become less and less if you divide your capital into more coins and more exchanges.