![]() However, it still doesn’t amount to much unless you put large amounts of money at risk.Īnother thing to take into account is that it can take up to 7 days for fiat deposits to appear on an exchange due to how slow the traditional banking system is.ĭuring that time, the spread can change drastically and eliminate any chance for arbitrage. Keep in mind that the bigger the spread (the difference in price between buy and sell orders), the more profitable the arbitrage. Once you get to deal with such large amounts you can reduce your trading and withdrawal fees by using OTC (Over The Counter) services. In the case above, the main thing that’s eating away at my profits is the withdrawal fee from CEX. All of this suggests that making a profit through Bitcoin arbitrage is quite a difficult task. As you can see, my “real world” profit comes to about a $10K loss, while I’ll need over $1.1M in capital. If you want to clone this calculator for yourself, feel free to make a copy using this link. I’ve taken the liberty to create some sort of Bitcoin arbitrage calculator using a Google spreadsheet to show you how hard it can be to actually generate a profit. Now that you know what you will face in a real-life Bitcoin arbitrage trade, let’s take an example that includes all of the different variants and fees involved. There weren’t many buyers on the exchange).Ĥ. An interesting example is what happened during the last days of Mt.Gox where the price of Bitcoin was extremely low, since traders didn’t trust the exchange to allow them to withdraw their funds (i.e.
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