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Safest Way to earn on Bitcoin Mania - BTC-E.com to Mtgox.com Arbitrage

Discussion in 'CryptoCurrency' started by Minarik1987, Apr 21, 2013.

  1. Minarik1987

    Minarik1987 Junior Member

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    For those who want to earn in bitcoin mania but are afraid on its volatility. Here is my method on cashing on bitcoin.


    Go btc-e.com and mtgox.com, you can see the big difference in bitcoin prices. But the big problem is how to do the loop. Here is my easy method.

    Using okpay. i sent btc to gox (incurring a 0.01 btc charge), then sell at gox, incurring another fee, then okpay withdrawal from gox, then okpay deposit to btc-e (okpay charging 0.5%, than btc-e charges another 2%). overall i end up losing around 5% in fees at the moment, and making 2-5% in profit. there must be a cheaper way :/

    If I have big investment I could earn thousands per day. Take action and earn your share. Good Luck
     
  2. Nigel Farage

    Nigel Farage BANNED BANNED

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    I bet you if you automate that, they will give you the boot on the 5th cycle.
     
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  3. Minarik1987

    Minarik1987 Junior Member

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    I don't so, they even don't know about it that you are doing arbitrage all are legal in every steps. you deposit money to btc-e.com buy bitcoins- then withdraw bitcoins- go to mtgox deposit bitcoins, sell bitcoins, withdraw usd via okpay - then deposit usd in btc-e.com using okpay then buy bitcoins again the loops goes on.
     
  4. Furious George

    Furious George Supreme Member Premium Member

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    What happens when it drops 6 percent?
    Which is does almost every second... they take a weighted average, true market value of bitcoin is not the real time current value.

    I like the idea, but it just wouldn't work.
     
  5. ReALeST

    ReALeST Power Member

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    How many btc u sell per day?
     
  6. Minarik1987

    Minarik1987 Junior Member

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    There is a risk but very less compared to buying bitcoins at mtgox hoping it to rise. Using this method, if the prices increases you will earn even more, if remain stable you still earn. if the prices decreases by 6% you will not earn but you will not lose either.
     
  7. Minarik1987

    Minarik1987 Junior Member

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    I only started last week with only 19.6 usd with btc-e.com. I bought litecoin first while the price decreases and sell if the price increases even at .2-.3 usd. you can see it rises and lower several times per day. The method I shared above I only tried it the other day. BTW, I have 2. + bitcoins now.
     
  8. mahnazkut

    mahnazkut Junior Member

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    Occupation:
    Adsense, bitcoin. Travel SEO
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    I am buying bitcoins from btc-e and selling them on ebay, newbies who would not bother to open account on exchanges willing to pay higher on ebay,
    made about $2000 profit last month.
     
  9. twentyseventy

    twentyseventy Newbie

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    I actually thought of doing this the other day... How long do your Gox to OKPay transfers take? I've been waiting about 6 hours for mine to go through...
     
  10. VintageAude

    VintageAude BANNED BANNED

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    you haven't been scammed thru paypal chargeback?
     
  11. harrysown

    harrysown Registered Member

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    Thats really good question. I did saw yesterday 1 bitcoin selling on ebay for around $150 and that was when price was $124. But how u choose your buyers since anyone can just chargeback as its digital and also its not allowed to sell on ebay.
     
  12. wexzone

    wexzone Regular Member

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    be careful, because you are in violation of paypal's policies, and it's very easy for them to scam you.
     
  13. wexzone

    wexzone Regular Member

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    not yet, but it will happen. Why? because he is in violation of paypal's TOS. They will automatically side with buyer on bitcoin.

    The only way to do it with a bit of security is get them to send a gift to you, meanwhile, you get them to email you photo ID with a contract saying they agree to gift you the money. The email must be from the email they use on the paypal account.

    So, when they try and do an unauthorized charge thing through Paypal, you can send paypal the email they sent you and say "nope, they agreed beforehand to send me the money"

    BUT, as soon as you mention "bitcoin" to paypal, they will reverse the transaction and close the seller's account.
     
  14. wexzone

    wexzone Regular Member

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    the OP has a decent method, here. I was selling on some forums using paypal with a 10% markup, and I could pocket 7% of that.

    But, I have seen some big spreads between btc-e and mtgox. Like $20 spreads on a price around $130.
     
  15. teal777

    teal777 Newbie

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    People have even automated it with trading bots, but lately the spread has not been large enough to justify the transfer costs. Also, you have lack of exposure risk while you transfer which a lot of people who are invested in bitcoins don't want to take...
     
  16. jsmash

    jsmash Registered Member

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    I was going to test this strategy and upon some research found that http://blockchain.info/ might be the fastest transfer wallet. Supposedly they can have up to 1000 nodes connected doing transfers.

    Anyone have experience with them?