"Risk free" method

frenk11 · Jul 29, 2019

Hello guys ,
Recently come through a way of making money from the difference in price of exchanges , is called "crypto arbitrage " . As far as i understood if done in the correct way can be profitable . It works in this way :
1- buy a crypto on a exchange when the price is low
2- sell to another where is high
3-cash out the profit

I'd like to know if someone here is doing it , and what kind of return is getting taking out the fees and commissions.

EmpyreanSword · Jul 29, 2019

I am sure there are people who do this, but I wouldn't call it exactly risk free.

frenk11 · Jul 29, 2019

EmpyreanSword said:
I am sure there are people who do this, but I wouldn't call it exactly risk free.

compared to other methods the risk is considerably lower i guess

vodkacola · Jul 29, 2019

Yeah, this is possible. You just have to take into account the transfer fees and delays of your purchased crypto, as well as the fees from both exchanges you are arbitraging. Prices fluctuate rapidly on cryptos, so you gotta be fast. Some big money crypto people are doing this with automated systems.

frenk11 · Jul 29, 2019

vodkacola said:
Yeah, this is possible. You just have to take into account the transfer fees and delays of your purchased crypto, as well as the fees from both exchanges you are arbitraging. Prices fluctuate rapidly on cryptos, so you gotta be fast. Some big money crypto people are doing this with automated systems.

thanks for the reply ! do you know any automated system that you can use ?

Universe Cola · Jul 29, 2019

its still risk

vodkacola · Jul 29, 2019

frenk11 said:
thanks for the reply ! do you know any automated system that you can use ?

I don't think anyone would give away a program that essentially prints money for them. Each new user would be direct competition for the programmer and cut their profits. If you want a system that actually works you'll have to duct tape together your own tradebot using the exchange APIs.

thecryptodude · Jul 29, 2019

frenk11 said:
Hello guys ,
Recently come through a way of making money from the difference in price of exchanges , is called "crypto arbitrage " . As far as i understood if done in the correct way can be profitable . It works in this way :
1- buy a crypto on a exchange when the price is low
2- sell to another where is high
3-cash out the profit

I'd like to know if someone here is doing it , and what kind of return is getting taking out the fees and commissions.

it took few minutes or few hours to transfer from one wallet to another. and the transaction fees. you think its free and can be transfer in miliseconds?
its involved risk, a lot

Technabyte · Jul 30, 2019

Arbitraging is quite low risk but its not easy to do in Crypto. Firstly, its difficult to find arbitrage opportunities because professional traders and trading bots will be taking advantage of this and they will be able to do it quicker than us. Secondly, it takes a while to transfer coins from one exchange to another and by the time your coin arrives, the buy/sell order might be gone. I personally tried this and never had any profit from it.

mikey29 · Jul 30, 2019

Never made a profit.

By the time it arrived I loss money due to transfer fees

I was doing major exchanges.

You can make money on from smaller to big exchanges.

But a high risk getting scammed

frenk11 · Jul 31, 2019

MasterA1 said:
Arbitraging is quite low risk but its not easy to do in Crypto. Firstly, its difficult to find arbitrage opportunities because professional traders and trading bots will be taking advantage of this and they will be able to do it quicker than us. Secondly, it takes a while to transfer coins from one exchange to another and by the time your coin arrives, the buy/sell order might be gone. I personally tried this and never had any profit from it.

for some days i have been looking at tokenspread website and saw a couple of good opportunities with 5% 8% spread but idk if is legit or no , i am confused as well

CryptoKujira · Jul 31, 2019

Fragmaster · Jul 31, 2019

Hey guys. I made tons of money with arbitrage. It was worthwhile during the crypto bubble in 2017. I will explain why was it profitable back then, and not so much today.

First of all, we need to define atomic and non-atomic arbitrage, pros and cons of both methods.

Arbitrage consists of two trading operations and one or more fund transfer operations.

If sequence of arbitrage is trade->transfer->trade , this is non-atomic arbitrage, and is susceptible to transfer speed. Transfers between exchanges are really long, and anything lasting more than few seconds is putting you at risk.

If sequence of arbitrage is trade->trade->transfer, this is atomic arbitrage. Naturally, you need to have funds and specific coins ready on multiple places at once, perform trades at once, and then rebalance your funds. Transfer itself is outside of arbitrage opportunity, and this is the only professional way of doing it. You need to create your own software, connect to particular exchange APIs, and detect favorable trading opportunity.

Now, you might ask why the bubble matters? In bear market your coins might lose value overtime much faster than you would gain arbitraging. Frequency of opportunities also is much lower today. However it's still possible to earn smaller amounts, but if you account for risks such as exchange hacks, exchange closures, scams, overall risky trend etc... It's just not much better than being shitcoin "investor" .

If you have any questions, post them here.

frenk11 · Jul 31, 2019

Fragmaster said:
Hey guys. I made tons of money with arbitrage. It was worthwhile during the crypto bubble in 2017. I will explain why was it profitable back then, and not so much today.

First of all, we need to define atomic and non-atomic arbitrage, pros and cons of both methods.

Arbitrage consists of two trading operations and one or more fund transfer operations.

If sequence of arbitrage is trade->transfer->trade , this is non-atomic arbitrage, and is susceptible to transfer speed. Transfers between exchanges are really long, and anything lasting more than few seconds is putting you at risk.

If sequence of arbitrage is trade->trade->transfer, this is atomic arbitrage. Naturally, you need to have funds and specific coins ready on multiple places at once, perform trades at once, and then rebalance your funds. Transfer itself is outside of arbitrage opportunity, and this is the only professional way of doing it. You need to create your own software, connect to particular exchange APIs, and detect favorable trading opportunity.

Now, you might ask why the bubble matters? In bear market your coins might lose value overtime much faster than you would gain arbitraging. Frequency of opportunities also is much lower today. However it's still possible to earn smaller amounts, but if you account for risks such as exchange hacks, exchange closures, scams, overall risky trend etc... It's just not much better than being shitcoin "investor" .

If you have any questions, post them here.

thanks a lot for the time you took to write all this , this is all that i was asking . anyway is there any better way to make some money apart shitcoins ?

Fragmaster · Jul 31, 2019

frenk11 said:
thanks a lot for the time you took to write all this , this is all that i was asking . anyway is there any better way to make some money apart shitcoins ?

Yes. Working in the crypto industry. Join telegram, know a lot, be active in communities, become community manager. Average salary for community managers is between 500-2000 USD. If you are a dev, you can make even more.

Purush · Jul 31, 2019

It's easy to say. Every beginners dream this one.

Technabyte · Jul 31, 2019

frenk11 said:
for some days i have been looking at tokenspread website and saw a couple of good opportunities with 5% 8% spread but idk if is legit or no , i am confused as well

Did you go on the exchange to see if the sell/buy orders were there or not? The only concern I would have is the transfer times of the coin. If the coin takes too long to transfer, the sell/buy order may be taken by someone else.

Srinivasan Perumal · Jul 31, 2019

frenk11 said:
Hello guys ,
Recently come through a way of making money from the difference in price of exchanges , is called "crypto arbitrage " . As far as i understood if done in the correct way can be profitable . It works in this way :
1- buy a crypto on a exchange when the price is low
2- sell to another where is high
3-cash out the profit

I'd like to know if someone here is doing it , and what kind of return is getting taking out the fees and commissions.

Investment always comes with less or more risk. so, it can't be risk-free but it will give you a good return at the right time.

frenk11 · Aug 1, 2019

MasterA1 said:
Did you go on the exchange to see if the sell/buy orders were there or not? The only concern I would have is the transfer times of the coin. If the coin takes too long to transfer, the sell/buy order may be taken by someone else.

yes the buysell orders are right , that is my concern as well , some of the exchanges are not familiar to me , mostly their transfer time is yet not known . Anyway some of the arbitrage opportunities took place in well known exchanges like bitstamp and cex.io

frenk11 · Aug 1, 2019

Srinivasan Perumal said:
Investment always comes with less or more risk. so, it can't be risk-free but it will give you a good return at the right time.

i understand that there is no such thing like 0% risk but in my opinion is considerably lower than other methods of trading or holding.

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