Is it possible to earn from differences in prices in exchanges ?

[awesomewebsites]

Suppose Ripple is INR 30 on one exchange and INR 32 on another one.

I buy 1000 ripples worth INR 30000 from exchange 1 and transfer it to exchange 2 wallet. Then I sell it for INR 32000 . Profit of INR 2000 from which one has to pay transfer fee and exchange fee. Is this doable ?

 

[ProgressiveWeb]

Suppose Ripple is INR 30 on one exchange and INR 32 on another one.

I buy 1000 ripples worth INR 30000 from exchange 1 and transfer it to exchange 2 wallet. Then I sell it for INR 32000 . Profit of INR 2000 from which one has to pay transfer fee and exchange fee. Is this doable ?

The short answer is yes. The longer answer is with volatility and fees, you will barely make anything and could even lose on some transactions. Crypto arbitrage looks easy but is not

 

[MisterF]

A lot of work for little gain, I'd suggest.
Unless one exchange is really out on price I doubt there'd be enough margin.

 

[ProgressiveWeb]

A lot of work for little gain, I'd suggest.
Unless one exchange is really out on price I doubt there'd be enough margin.

The Korean exchanges had differences of like 15-25% in some cases. Was crazy. But with the volatility and fees even that wasn't profitable.

The flow was something like this: deposit USD on CEX, buy ETH, transfer to Binance, Buy x alt coin, transfer to Bithumb, sell at a profit, transfer everything back the way it came. Way too complicated, too much risk, volatility can smash you: AKA not worth it.

 

[keique]

Possible but very hard to keep track

 

[LiquidLeads]

Most of the times the fees will eat the margin in that case

 

[JB2302]

I have done this before.
But I don't recommend it.because sometime
some exchange hold money and you might end up with coins that you don't want to buy.
A uexpected delay in transfer can take all the profit.
Big exchange have correct price, small one gave price difference from big one.

 

[PinguSpy]

Arbitrage.

You need bot for that.

 

[danno]

I gave it a try for a few days and it is exactly as previous posters have said - too much effort for too little profit. Transfer and transaction fees really eat into any profit you do make, plus its easy to lose out if prices change quickly.

 

[Grimasaur]

If you dont have a good bot or knowlenge to make it dont even try it, you are competing with people that know their things on high speed trading but anyway until there is coins that can be transferred easy and fast with low fees or or without fees between exchanges then it it w will become harder
Also you gave to take in mind that the price you see isnt an unlimited amount you have to check the orderbook for example someone sells 100 ripple at 30 and someone on another exchange buys 10 ripple at 35 so you cant sell more than 10 ripple

 

[Deleted member 938565]

Definitely possible, heard of people doing arbitrage, think you'd need to use software to do it fast enough though

 

[saketanand]

you must need to be aware of the fees of those exchanges. And it is not going to give you profit of 2K Inr.

 

[HumbleFox]

I feel like this is self explanatory? People have been making money on differing exchange rates since people realized there were more than one form of payment.

 

[waterworks]

Also done this. Much easier said than done. To be fast enough to take advantage, you need a well designed bot to make trades much faster than you could do manually.

 

[spydr622]

You would have to rely entirely on bots, and so much is gonna be spent on network transactions, withdrawal fees, and buy/sell fees. It would actually take less effort and cause way less headaches to just stick with one market and day trade. With enough money into it day trading can be extremely profitable, and you run less risk than playing all the markets at once.

 

[daemons01]

Have to get past transaction costs and latency issues, trickier than it sounds.

 

[theSituation]

Currency trading is basically gambling.

 

[DanielAmmering]

I would guess that with extreme volatility and transaction delays only an arbitrage bot can give you some kind of edge... Will think about it more

 

[Cardissuer12]

This is arbitrage (Risk free profit)
It appear for sometime and vanish very fast because everyone start taking advantage of it which leads to changes in price.