Post
Topic
Board Trading Discussion
Re: What are the problems you experience while performing arbitraj?
by
Kemarit
on 19/02/2017, 09:29:17 UTC
Yes the question is clear. Arbitrage techniques are applied in bitcoin trade. Do you have any problems when you try Arbitrage?
Are there things that negatively affect you? Are there any things that make you harm?

arbitrage is riskier than regular trading where you buy low and sell high. and it doesn't matter what i do, what matters is what you can and can't do.
in arbitrage trading you need to act fast in some cases and you need to be running fast bots with minimum latency in order to be able to do it successfully and make any profit.
and for that you also need a big spread among price in different exchanges and that is usually rare.

I agree on you. The buying and selling is fast and its easy to automate with bot,
However, the difficulty is transferring non-bitcoin to and from other exchanges.
Imagine if you buy bitcoins in US and sell somewhere else, let say China or India
Getting this converted and transferred back to the US will incurred transfer fees.
In the end, even a 1% or 10% price difference might not be worth running the
arbitrage cycle because its hard to deal with exchanges in other countries.