This is third article from my series (links to other two in the bottom). This method if timed right almost guarantees success but of course few things can always go wrong.
ARBITRAGE
Heard of it? No i dont mean the movie (its pretty good, watch it!) but method. Buy asset on one place cheaper and sell on the other more expensive.
In this case we snipe for crypto thats cheap on one place and more expensive on the other. Believe me these things happen often.
Exchanges
For starters register to Bittrex (usualy this one will have the ighest price) + Binance + HitBTC + Cryptopia.
These exchanges are +/- secure so deposit some BTC into them for the time when action is needed and hold some ALTs that you believe may have pumps as usual 1 exchange drives the pump and others are for arbitage.
Take your time, register there now as they dont need any ID verification and deposit some BTC even low number.
Types of Arbitrage
There are 2 types, buying at one and sending to another (risky, works just for fast coins) or having funds on both exchanges and selling and re-buying at cheaper one as long as you can.
Having funds in both works best as you dont care of network being stuck and such but you need to be lucky to have right coins. So for example if you will see an opportunity with STEEM you should hold some BTC and STEEM on all exchanges that you trust that have this pair.
Today was great example, you could buy DASH at BitFinex and HitBTC @ 0.081-83 BTC and sell on Bittrex on 0.086.
Same today you could sell BTG (Bitcoin GOld) on Binance for 0.067 and re-buy at HitBTC](http://fuk.io/hitbtc) at 0.045 BTC. FREE MONEY if you are in right time and right place.
Cryptopia Arbitrage
Cryptopia is an exchange trying to get its momentum, they even have bot that shows you how to arbitrage their coins for free.
Risks
Often during pump exchanges have closed or spammed wallets or network of coins is saturated and you wont be able to send between exchanges. Always try first on small amount or use the method of keeping funds on both places. Remember the more exchanges you have the more likely you will have opportunity but also the more exchanges you have the bigger chance is that one will go down and steal your money.
Pairs of Exchanges to use
You need to watch out but here are base ideas that most often happen.
- Bittrex with Binance or Cryptopia
- Binance with HitBTC or Coss
- Cryptopia with CoinExchange or BitFinex
Other Parts of this Series
https://steemit.com/bitcoin/@kingscrown/the-easiest-way-to-make-money-on-crypto-here-it-is-part-1
https://steemit.com/bitcoin/@kingscrown/the-easiest-way-to-make-money-on-crypto-here-it-is-part-2
Follow, Resteem and VOTE UP @kingscrown creator of http://fuk.io blog for 0day cryptocurrency news and tips! |
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The earliest way to get rich and not just make money with crypto is to buy BTC and hold for year or two.
thats in part 1 or so.
yes sir
I followed you support me i upvote u
How much did you make from arbitrage?
Nice post..
bcak me vote and Comments...
And Follow me plzzzz....
This is the key and the maker of 70% of those who have wealth from crypto now
Or trade in new ICOs, you'll see something in few months ...
I just don't have the nerves to trade.
So for every "businessman" who has some extra cash we'll be happy to do the laundry for a measly 13% fee :)
Just buy a few bitcoins and relax a few years to reap your investments back.
All eyes on bitcoin investment now
Every member should earn supperb support me i upvote u
nice
i partially agree.
for me, hold and get extra when you can, like last week end on BCH
Yes thats the easiest way, but many people are not patient mostly when they are new in this field.
To gain financially freedom is always risky but I think it's great to invest in growing Altcoins and hold them for 2 years. Electroneum (ETN) is a great coin to invest in, I believe it's going to take off in early 2018.
Thats it ...
Not electroneum. EOS!
Agree KacieBusiness
visit www.electroneumworldwide.com for blogs on Electroneum and news updates
If only we knew that in 2012.
Crypto will be high then 10k$ in coming time
Stock market is safer but no guarantees either way. Invest at your own risk!
Stock market will have a 40-70% correction soon.
70% is extremely doubtful. That is great depression levels
If you factor out the $15 trillion printed since 2008 globally (into GDP) you get to great depression examples real fast. Problems delayed to the backs of pensioners. Soon near you.
It does seem eminent but when ?? Cause i have been hearing it for the last four years!!
It has been delayed 10 years through printing. Can be delayed another 10 but inflation will start to hurt and it will be met with higher interest rates. This will eventually hit a hard wall. I don't have a clue when but I am certain it is UNSUSTAINABLE.
Dead On. 70% is not out of the question, but would expect 50% to be more likely. Really will depend on the reason the markets start their correction.
Okay nice comme
1,000's of new Cryptos .... each with a predetermined float .... what could go wrong ?
All true, but the current valuations are a little nerve-wracking. The markets seem due for a correction or a period of price stagnation. Yet, we may never get the pain that we deserve. It think the bankers have figured out how to rig this thing in a sustainable way.
Well, until such time as the reckoning comes. In any case, I'm saving a chunk of cash and looking for buying opportunities disguised as bad news.
Own some silver, it will jump drastically as the markets free fall and it will allow you to have more buying power for those opportunities.
I have a crapton of silver. I wish the price would break out of it's range so I could buy or sell. And dealers have their premiums too high, too.
I have a great working relationship with a local dealer and get silver rounds at a great price. Naturally it's above "spot" but that only makes sense as that is a bulk price. Also find it at garage & estate sales for under spot all the time. Another way to pick it up cheap is to be the "dealer" and run ads for buying silver. I pay under spot and get large amounts this way.
Think I just found a blog post topic...lol
Good Idea ! Another good way to make money would be be to short sell with ETF's !!
Hard to time, though.
You will see profit taking and sell offs of securities, but i dont believe drastic drops are in the future. The tax plan is causing current red in the market. Time will tell though lol
I think you're right. Different factors are muting any movement toward a correction or even major slowdown. Muting but not preventing.
When everyone is waiting for correction, it never happens. There is too much money sitting on sidelines waiting for correction. I do not believe you can see more than 10% correction in stock market in near future unless something drastic happens.
Been in the markets since a teenager and trust me when all the talking heads are saying it can't happen because "insert any BS they are spouting" that is exactly when it happens.
Plus there is more political and social tensions now then any point in recent history. There are landmines all over the place and anyone of them can set off a chain of events that will trigger a market crash.
Biggest problem is that if something happens the Central Banks won't have a solution. Until the current QE has been undone (rates normalized and balance sheets of central banks brought back down) they have no bullets left in their chamber to fight off any sort of financial collapse or economic downturn (which would then cause a collapse as P/E's are at insane levels assuming lots of growth).
Add in the massive debt loads of the governments of the world due to the last downturn and the increasing tax burdens the people must face to cover all this spending and corporate bailouts...yes shit will hit the fan.
Pull up a 5-year chart of the S&P and look at what happened mid 2015 to early 2016. That is what corrections look like these days.
Yeah, but you can loose your money too ;)
I have bitcoin but having say that I am so sad didn't knew to how to run it out or how things are possible to get points on it.
Agreed, by far the most easy ;-)
Visit CoinCheckup.com | SteemIT - Daily Technical Analysis
yea
Check, lets hope so
nice
Invest in BTC and have around $50 worth of coins for say top 5 alt coins! Hold and Wait :)
If you want something that feels good you can buy $500 worth of heroin.
This comment has received a 4.08 % upvote from @sneaky-ninja thanks to: @jmehta.
The korean exchanges are juciy for arbitrage. Sometimes as much as 20-25%. I know not everyone can register, but sometimes there is a huge difference on exchanges like Korbit. Profits to be had!!
Great post and one well worth looking into and learning from. I'm not so new to crypto's but the I am to the trading aspect of them. I would imagine for newbies this would also introduce them to the ins and outs of actually using the exchanges and learning of different one's! Nice and enjoyed!
@kingscrown it does take a little work but you are right there is money to be made.
I Made profits with arbitrage before a bit stressful and risky at the same time, specially when transferring bitcoin back and forth because of confirmation time.
For me it's more easy to make profit by running market maker bot.
Investors are now turning to cryptocurrencies like bitcoin as it offers increadible returns on investments. Bitcoin is fast approaching 600% gain since it low end in 2015. What broad based S&P 500 would take decades to return crypto currency like bitcoin attains it in 2 years. In reality, bitcoin's market cap has touched a $110 billion, the largerst when compared to many established Dow Jones Industrial average component .
I think that posting on STEEM is a great way to earn crypto
Great video. I agree that sticking with the coin that has the most experienced developers is the safest strategy.
There's a major caveat emptor associated with arbitrage particularly in crypto assets...watch the trade volume especially the 24hr trade volumes closely! An 'opportunity' for arbitrage might appear on an Exchange, say cryptopia, with a lower entry price while another Exchange, say Yobit, has a lucrative exit price. As enticing as it may seem, if you don't consider the trade volumes on the coin, particularly for the Exchange you intend to sell the coin on, you may get stuck in a bad price.
How do I mean? Follow me closely, say u get a good bargain for XRP on Bittrex @3200 sats and you see that Yobit is selling XRP @3800 sats, that looks like an easy way to run off with 600 sats on arbitrage, right? Wrong! Because a closer look may reveal that XRP on Yobit had a 24hr trade volume less than $3000 implying that though statistics may show sales @3800 sats, actually getting someone to buy at that price may take forever, if at all.
So, as a matter of due diligence, always make sure you check trade volumes, among other factors, before engaging in arbitrage...or you may find yourself stuck in a coin for a long period of time, lol #JustMyTwoSats though :)
Sage advice, volume is very key
Yeah, volume is one place where noobs easily miss it...I know it took me a while to figure that out
It is easy for you people to Make. Money in crypto currency, but we out here, nahhhh. Nice one though.
@kingscrown : I've been trying all kinds of permutataions and combinations, when it comes to converting to alts and buying back btc, buying from an exchange and selling at another (usually the transaction fee doesn't help cut a profit).
and in the nd I realised that if I had just not touched the money I had put in BTC 4 months ago that would've given me the biggest gains. :)
I'm guessing timing is a crucial factor if you want to trade, if you can't time it well, then the best thing to do is just buy btc when it has a pullback and then store it in a paper wallet (or hardware wallet) for a year or so, then check again to see multifold growth (plus all those free coins you would've got from the forks in between) .. :)
sage advice... well at least true for the last couple of months, who knows what the future will bring.
This will get people more frustrated than make them money. The differences in price between exchanges is minuscule and the fees associated with first buying and selling the currency and then sending that crypto between currencies can outweigh any price difference. Furthermore, you have to be quick for this to even work out.
Take for example one of my favourite coins at the moment Stellar Lumens. On the two highest volume exchanges of this coin( Poloneix and Bittrex) there is a $0.0002 difference between the coins. This doesn't even cover the buy and sell fees you'd incur.
The EASIEST way to make money is just to invest in cryptocurrencies at this point. They're all going up over time. No need to get greedy and cause yourself harm just to make .01% through arbitrage.
👍 🎲 You could try randomly allocating and diversifying against different crypto. Or you could strategically asset allocate based on your own criteria and conviction of risk and future growth. I've written an article about it here - "Build Your Own Crypto Currency Decision Matrix" -
https://steemit.com/cryptocurrency/@edendekker/build-your-own-crypto-currency-decision-matrix
That makes loads of sense and as of yet this has been the way for me. Like many have stated "if I'd have just started with btc all the way when boarding I'd be much better off now." I still think learning and recognizing this as an opportunity adds to ones tool box for that Oh, look at that moment but yes I agree that one is better off to buy and hold for the future.
I think experience is always the best teacher. I only came into this scene 4 months ago but when you're investing your own hard earned money you learn quickly. I always keep an eye on the total market cap of cryptocurrencies. Expect it to reach $250bill by the end of the year and maybe (if we're lucky) 1 trillion end of 2018. If this happens then no matter what coins you're holding you'll see profit. The next step is to know which coins will see most of that rise. The first place to look would be Bitcoin, but don't underestimate smaller Altcoins too. Just ride the wave and enjoy the excitement :)
I have used this tactic some what, I bought Eos in the ICO and sold on the market for profit's and then bought back in on dips.
Real risky. Especially is a coin is pumping. You have to have faith in the exchanges that it will transfer our coin fast. Time is the killer here
This was a really good post and very informative. It's basically like regular foreign currency trading, just way more volatile. What I would like to know is how you trade BTC in Zimbabwe lol
get a Zimbabwean friend
Do you find it difficult dealing with some of the trading pairs that most exchanges operate? I often have to convert to BTC or ETH to manage some go from alt to alt, which hurts the ability to arbitrage.
Suggestions on this?
Thanks for sharing the exchange pairs i think that is the most important part of article. cheers :)
many exchangers are slow, very slow..
Everything that looks easy is not easy. It is really necessary to spend a lot of time on the computer for the arbitration process.
Quadriga CX in Canada tends to have higher values on Bitcoin and a few other coins. Would it work for an American to use a Canadian exchange? If so, this could potentially be a good way to see some profits.
Its more difficult with BTC, since its slow but I know some that have done it in other countries when gaps were huge and made a tidy profit
No way, the easiest way to make money in crypto is by blogging on Steemit!
Yes thats true, but people who have alot of money and not time to blog here think always about an easier way.
You kind of went through it fast, but is there a better explanation on how the method works? You have money on both and need to be set up to have the right combination?
@kingscrown Thanks for educating us, crypto has taking over, anyone that fail to invest in crypto will regret it later. @theheralds
takes money to make money doesn't it.
having coins on both exchanges would be nice.
HAVING COINS at all would be nicer.
Spot on!
Getting FIAT (if i had some to spare) into crypto is the first tricky / difficult step, since I'm not interested in 'verification' processes that require me to give my privacy away to some unknown organisation.
Hopefully these steps will be taken away from 'big brother' soon.
Crypto-zombies will walk the planet soon :-)
The advantage of Steemit is that you do NOT put fiat INTO crypto...you only take it out.
Yea I thought that also.
But I looked at accounts earning most of rewards on some posts and......
a rep of 25, zero post or comments, yet chock full of SP
So either SP was transferred or bought with cash on an exchange was my conclusion
The "taking out" is a loooooongg ways off :-)
Earning at 0.001 / post / comment takes a VERY long time to accumulate!
Only whales seem to actually earn here (by up voting each other it appears)
which is sad for the platform, to the point I wonder if platform will last very long before basic concept is 'stolen' and implemented better by someone else.
50% stats re minnows leaving is not a good stat, but VERY understandable IMHO
"whales" are doing OK, is the mindset issue whales seem to have from comments I've read
I don't see a problem.
I started with zero.
I've never 'invested' a dime.
other than my time.
I've taken OUT quite a good chunk of change.
it just takes time and effort.
if folks quit and go somewhere else.
GOOD FOR THEM.
more for me.
Fair enough
I'm not sure if the system has changed since starting 12-18 mths ago.
Maybe that is the difference?
Maybe it is because of more users on system?
I gather from your comment a "fixed" amount is distributed each week?
Still trying to figure game rules & details :-)
I'm still new, trying one day at a time
Knowing what to write about is interesting part for me ATM
Thanks for votes :-)
You don't have to build sp with your own posts exclusively you can make 5 cents to a dollar or more commenting on whale posts. Maybe not King's Crown but some these whales upvotes on comments are huge. It's easier to invest but you don't have to.
Arbitrage need indeed big heart to do it.
If anyone follow me....
I will also follow him/her.. me...
You can also arbitrage pretty easily by buying or selling Bitcoin on Localbitcoin.com Right now here in Indonesia the spread between buying and selling is 84,535,285.21 IDR / BTC to 77,121,000.00 IDR / BTC
love a spot of arbitrage.. great stuff! hope it helps those first time traders.
I invested in crypto and day trade. If I just put my initial amount into BTC I would have more than i have now 😂
that is true for many
Very good idea, thank you @kingscrown Can you suggest me about two or three cryptocurrency other than Bitcoin which will be more promising in future.
Etherum, Litecoin, and Monero are my 3 favorites that I believe will nearly double in value in the next 6-12 months.
Thank you, what about dogecoin?
Please i wanna ask, can one lose money trading crypto-currency on bittrex ?
Nope, it's impossible, you can only gain money. Everyone gains money, it's magic.
Arbitrage is an okay way to make money, but often you get your profits cut into heavily with fees. Seems to be mostly whales that do this stuff.
Plz follow mee
Some folks make it big with arbitrage...I have recently seen an article about a guy who built a small fortune by buying cheap stuff in supermarkets and reselling on Amazon :D
you can ReTweet too:
Why transfer the coins from exchange to exchange, if you see a arbitrage possibility, buy the coin and wait until the gap is closed and sell!
a bird in the hand... plus, what if the gap closes on the low side?
All things could happen of course, I mean, this could also happen when in the time we buy the coin and transfer it to the other exchange. We cant win all the times, but it is a good bet in my opinion!
Thank you for posting lots of content and effort in all the posts you do on steemit 👌🏼look forward to the next post .......
Good way but not too easy. All exchanges want to prevent arbitrage. Their main excuse is '' THIS WALLET UNDER MAINTENANCE'' :)
We should buy more BTC for ourselves and just wait for it rising price which is expected in coming year.
Nice post @kingscrown
POWR was in huge arbitrage position yesterday as it was already on binance and people put in a 2btc order as it got listed on bittrex:P love yo articles king!
This one gets pretty risky and I do believe you need a rather large amount of funds in order to beat the fees associated from the exchanges. Things move rather quickly now however with bots trading etc and then pure news trading which we have seen over the last two days. I love these though look forward to more parts!
Thats what I don't get they have fees so it would have to be a really large amount to make anything...
Plz follow me....
Typo in "arbitage!"
In regards to the post...
If you have time... yes, definitively. I have done it some years ago when crypto was still new... but now I confess there is more potential... just because there are more people, and pumps/dumps have more variability.
Newbies traders will appreciate... this post =)
Cheers
I think of doing this all the time but in the end I'm too scared to hold enough funds on exchanges for it to be worth my time. Great post though
Pull the trigger
Might shoot my self in the foot
yep really good method to make money ;)
Thanks for sharing
If anyone follow me....
I will also follow him/her..
Good tips!
Follow me for for free & Top Accurate crypto currency signals..
The smartest way to get rich on cryptocurrency. Do not look in to invested money and day to day trading rates,just keep your coins in secure place like hardware wallets and sleep for 5 years and come back and check the rates.
the current market is due for correction, but once it gets corrected we will again see BTC touch upto 8000usd mark by this december end.
Clear and concise post stemmed from a good movie reference. Hard to beat that! Thanks for the for post.