Hello...
What have you been up to? hope my post have been educational and fun at the same time...
Lets talk about having or signing up to multiple bitcoin exchanges and arbitrage trading.
I do hear a lot of chatter about high fees and low fees , high rates/lower rates, convenient or takes too long to get transfers in and out.... and because of that dont sign up to XYZ platform....You ether can see an opportunity or you can see it as a crazy site to buy from and worry about their fees... Which did you see?
Remember in one of my post, Do your research, dont just listen and follow blindly...
I do encourage you to sign up to 2-3 bitcoin exchanges, why? so you are ready when the opportunity arises to make an arbitrage trade. Just like yesterday Coin spot( https://www.coinspot.com.au?affiliate=87VYN here is my link ) was about AUD 1500 higher then the actual value of bitcoin.
What to do then?
You compare all the exchanges you have choose the lowest one, buy bitcoin from that platform and send it over to the highest one and sell there.. make quick$ enough for a dinner for a week at home or a date eating out or pay off a bill. By the way Sell does not mean you have to sell in to cash, you can always opt to sell to buy another coin to grow your portfolio (which would be another topic we can cover next time). https://blockcoin.com.au here is a website to compare all the coin exchanges in Australia.
What to do then?
You compare all the exchanges you have choose the lowest one, buy bitcoin from that platform and send it over to the highest one and sell there.. make quick$ enough for a dinner for a week at home or a date eating out or pay off a bill. By the way Sell does not mean you have to sell in to cash, you can always opt to sell to buy another coin to grow your portfolio (which would be another topic we can cover next time). https://blockcoin.com.au here is a website to compare all the coin exchanges in Australia.
What do I have to consider making an arbitrage trade?
Transfer fees, Buy and Sell fees, which would reduce the over all profit (different platforms charge different amounts).. Also Time it takes to make the transfer. If the market has too much transactions going on, your transaction could get clogged which means it will take more time to make the trade (10-20min sometimes longer). By now you do know how fast the rates change in minutes sometimes seconds..
Can this be done with bitcoin only?
Arbitrage trading can be done with any coins on the market as long as both wallets accepts receiving and sending of the coins.. note to your self, each coin transfer time is different so maybe the other coins might be more profitable to use this strategy if the opportunity arises.
Arbitrage trading can be done with any coins on the market as long as both wallets accepts receiving and sending of the coins.. note to your self, each coin transfer time is different so maybe the other coins might be more profitable to use this strategy if the opportunity arises.
When should arbitrage trading strategy be used?
When the price difference is 10% and above..
When the price difference is 10% and above..
Any other common question I have missed? do add more question in the comment section so that we can learn together.
Thank you and have a great one!
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