Hi,
I've found some really poor altcoins with an incredible market cap that I'd like to short sell on exchanges like Digifinex and Coinsbit. Is this possible?
Thanks!
Lower rank altcoins that are worth short selling usually don't have short option or margin on exchanges so that's not possible, and even if that was possible it's not suggested to do that because when one altcoin has a low liquidity and volume it's easy to pump that coin too and altcoins that have margin trading and short trading enabled tend to pump to short squeeze the traders as well and you don't want to be on the other side when these shitcoin pump because they have extremely low volume and very easy to push their price up to 2-3x in just a couple of hours.
Do you mean arbitrage trading? it's possible and it's been done by many traders if the spread from the other exchange is quite high and you can see the potential profit. But, there's also a chance that you might be rekt if done it slowly and wrongly.
Well arbitrage is still profitable if you have experience,because all you need to do is watch each exchange and transfer your funds from each other that has High in value.
Well, I hate to be the bearer of bad news but arbitrage trading is not working on crypto market 98% of the times because of a few factors that make it impossible, in theory arbitrage trading should work in crypto because the difference of the prices between exchanges is quite high but when you test it out yourself you will be facing many problems and that tells you it's not as easy as it looks, one of the problems is fake volume and fake orderbooks and bot trading, trading bots of these exchange only sell to or buy from themselves and will disregard your order if you want to get the best price(be the market maker) so you have to pick an order from orderbook and sell to or buy from that which means you will be buying and selling in worse prices that it shows on their exchange or on coinmarketcap.