BTC Arbitrage Trading

sleepingbear said:

I did two kinds of arbitrage

Spread Trading and Triangular Arbitrage


Spread Trading (Single Pair Trading)
Example

Code:

Buy BTC/USD 420.09
Sell BTC/USD 419.43

You only need those two Variables: 
1. Buy BTC for 1 cent more then Sell (419.44)
2. Sell BTC back to USD for 1 cent less than buy (420.08)

Every Bitcoin you buy or sell gives you in this example 0,50 cents back. Sounds like less but it's also possible to do this on other Pairs

Triangular Arbitrage (Trading three Pairs)
Example

Code:

You find 3 Pairs which have a difference.
1. Buy Doge with BTC
2. You Sell Doge for XRP
3. You Sell XRP for BTC

This is the holy grail of Arbitrage since, if you are able to do this you can get mad money out of it and it's litterally impossible that all Crypto Currencies are without difference. 

Here is however more than one Point that is an issue, 
1. If you buy a currency that is not traded daily your trade will standing still, which gives you more risk (Arbitrage should be done in seconds at most)
2. If heard of a friend of mine who made an bot and didnt impliment tracking the market right he lost a good amount of money 
3. Learn what Risk Management is (Never go full in on a trade)

Most important, always lay your trading strategy out so you an keep money aside from the broker, i learnt that the hardway after cryptsy freezed all accounts and i missed the weeks where you can cash them out.

If you have more Questions ask or add me on skype.

Click to expand...

sleepingbear said:

I did two kinds of arbitrage

Spread Trading and Triangular Arbitrage


Spread Trading (Single Pair Trading)
Example

Code:

Buy BTC/USD 420.09
Sell BTC/USD 419.43

You only need those two Variables: 
1. Buy BTC for 1 cent more then Sell (419.44)
2. Sell BTC back to USD for 1 cent less than buy (420.08)

Every Bitcoin you buy or sell gives you in this example 0,50 cents back. Sounds like less but it's also possible to do this on other Pairs

Triangular Arbitrage (Trading three Pairs)
Example

Code:

You find 3 Pairs which have a difference.
1. Buy Doge with BTC
2. You Sell Doge for XRP
3. You Sell XRP for BTC

This is the holy grail of Arbitrage since, if you are able to do this you can get mad money out of it and it's litterally impossible that all Crypto Currencies are without difference. 

Here is however more than one Point that is an issue, 
1. If you buy a currency that is not traded daily your trade will standing still, which gives you more risk (Arbitrage should be done in seconds at most)
2. If heard of a friend of mine who made an bot and didnt impliment tracking the market right he lost a good amount of money 
3. Learn what Risk Management is (Never go full in on a trade)

Most important, always lay your trading strategy out so you an keep money aside from the broker, i learnt that the hardway after cryptsy freezed all accounts and i missed the weeks where you can cash them out.

If you have more Questions ask or add me on skype.

Click to expand...