How to arbitrage bitcoin
Want to know how to arbitrage bitcoin. Find out here!
1. Find opportunities within an exchange or between exchanges.
2. Make a decision whether to buy bitcoin or not.
3. When making a decision, estimate the amount of fees— the transfer, transaction, wallet, and network fees.
4. Also, you need to be aware of the risks including market volatility, transfer and transaction time.
5. Lastly, you need to estimate the amount of taxes.
Simple Bitcoin Arbitrage Sample
Here’s a simple example of how to arbitrage bitcoin:
Consider that bitcoin is trading at $10,000 on exchange A and $10,200 on Exchange B.
To successfully arbitrage bitcoin, you will need to buy bitcoin on Exchange A and sell it on Exchange B so you can earn a profit of $200 for every bitcoin.
Now, the trader will continue to exploit this difference until some exchange market or specialist forces adjust the prices between the 2 exchanges to remove the opportunity.