Arbusers

Arbitrage betting is not always about slapping down a bet on sports. In fact, there are other ways you can wager, too. Sometimes, arbitrage betting can directly involve making money out of buying and selling currencies, specifically cryptocurrencies. Make no mistake about it, Bitcoin arbitrage betting is considerably riskier and trickier than betting on sports, but it is a topic worth exploring if investing in cryptocurrencies interests you. In this guide, we will look at the ins and outs of this topic.

Arbitrage Bettng Applied to Bitcoin
First and foremost, it is essential to understand that there are two types of Bitcoin arbitrage betting options for you out there. As men<oned, you can wager on sports with BTC. Betting on sports with Bitcoin is not any different from conventional arbitrage sports betting with FIAT currencies.
However, the second type of Bitcoin arbitrage betting involves trading Bitcoin - buying and selling it to make a profit. This is considered a form of gambling, as you are taking a risk on something that may or may not occur. This is the focus of this guide. Let us explain this clearly and look at an example in the next section.

What Is Bitcoin Arbitrage Betting?
In a sense, Bitcoin trading with arbitrage is the buying of Bitcoins at an exchange for one price and selling them at another for a higher price. You must be sure that you have got a decent number of exchanges to choose from for this to occur. Each exchange will have its own prices, which you may be able to take advantage of. As Bitcoin is volatile, and a liLle volatility can shake up the market prices, there may be times when it is profitable to buy and sell Bitcoins for different rates. Buying BTC cheap and selling it for a higher value depends on whether you can find value in the market.
Below, you will find a classic example of how this can work:
Let us imagine that Exchange A is selling 1 BTC for $11,561. Over at Exchange B, 1 BTC is being sold for $11,645. This means that there is an $87 swing in the sale of a single Bitcoin. If you were to purchase one Bitcoin for $11,561 at Exchange A and sell it at Exchange B for $11,645, you would make (in theory) a profit of $87. That does not sound like an immense profit, but if you were to purchase 100 BTC and sell them at the same prices using those exchanges, you would make a lot more in profit. Naturally, as with all forms of arbitrage be*ng, the more you are prepared to put in and risk, the greater the reward.
You must be sure that there is value in the market prices, and to do this, you can use a simple equa<on, like so:
- Purchase Price of BTC x Number of Bitcoins Bought = Total Expense
- Sale Price of BTC x Number of Bitcoins Sold = Total Revenue
- Total Revenue - Total Expense = Total Profit
Going back to our example above, let us imagine that we bought 3 BTC. This equa<on will look like this...
- $11,561 x 3 (BTC) = $34,683
- $11,645 x3 (BTC) = $34,935
- $34,935 - $34,683 = $252 profit

Does Arbitrage Betting with Bitcoin Work?
While all forms of arbitrage betting have their pros and cons, there are considerably more risks attached to Bitcoin arbitrage betting. One of the biggest problems is that the value of Bitcoin rises
and falls regularly. This means that you must move your FIAT currency and cryptocurrencies quickly to ensure that you can buy and sell them at the rates found at the exchanges. If there is a lengthy delay in transac<on <mes, you may end up buying and selling at less favourable rates.
Markets and exchanges tend to correct arbitrage opportuni<es quickly. If Exchange B notices that there is a window for bettors to engage in BTC arbitrage betting, they will do all they can to correct those rates, often before you can move funds. You can sometimes alleviate this by only opting to use the fastest exchanges. If you are on the ball when it comes to moving money, there are definitely Bitcoin arbitrage options open to you, though.

The Risks Associated with Bitcoin Arbing Online
Of course, there are risks associated with Bitcoin arbing, too. Fees tend to be a problem. Your exchange (or exchanges) can hit you with fees for trading. Your banks may issue a transaction charge for moving FIAT currency around, and the Bitcoin platform itself is not devoid of fees. There is a danger that if there is not much value in the market, too many fees can diminish any profit you make.
The market is also volatile. As such, you must pay attention to efficiency when Bitcoin arbitrage betting. If there is a big swing in BTC value, you could end up making a lot less than you envisioned at the start. Moreover, there is always a risk that if this swing occurs alongside a range of fees, then you could even end up with negative equity. Cryptocurrency exchanges are frequently targeted by hackers, too. Financial crashes, major dips in the value of Bitcoin also have the potential to ruin your Bitcoin arbitrage betting options.
While arbitrage betting on sports with Bitcoins has fewer risks, any profit accumulated tends to be a lot lower than if you try to buy and flip BTC via exchanges. This form of arbitrage betting requires you to have a great understanding of Bitcoins (and cryptocurrencies in general) before you begin. If you know what you are doing, though, there is undoubtedly an array of Bitcoin arbing options open to you.

Do you have any experience doing this reliably?
One of the issues is that with spot, you cannot be short - so if you buy on one exchange, you don't have a good way to sell on another exchange.
With futures it's possible - but you will also have to exit your position later, so take double the fees (and spread) into account.

This is not to say that what you're suggesting is impossible - only that most niches are already filled by the big trading firms, and I don't expect to find free money there.

Edit: after posting, I realized that your strategy buys a BTC on one exchange, then transfers it (a matter of minutes, at least + fees), and only then sells it. That's a very bad idea IMO, the price volatility is much higher than the expected profits.

This is indeed possible and i have done it for some time with many coins not only bitcoin. There are many problems that arise but it is profitable. Some problems are:
- The pump and dumps. Someone pumps a coin in some exchange and it shows up as an arb to you. They dump it in a few minutes later while your coins in other exchange are waiting for withdrawal.
- Some exchanges deposit and withdrawals dont work properly.
- The gratest problem is liquidity. You have a very limited liquidity with the premium price and someone may get it faster than you. So foget doing it with 100 BTC as mentioned.
- Another problem are the bots exchanges themselves use to arb. Or big firms like Alameda research.
- You have no chance against bots manually.
If you try this manually you are in a very unprofitable venture but you can get a lot of crypto experience. You can see it as an introduction to crypto markets. And you can make some small bucks in the way.

Thanks Wolfie, good to know.

Hello everyone,

my experience in cryptocurrency arbitrage starts at 2017 where it was the golden year of arbitrage. Manual arbs of 10% where very common that time at reputable exchanges. But manual arbs in 2021 aren't profitable anymore. There are 2 ways to capture arbs in today crypto market. The first one is via trading bot and the second one is by some extraordinary event in a specific exchange. For example, the exchange1 is doing an upgrade of Ethereum wallets. This means that it will not be possible to deposit/withdraw Ethereum from exchange1, so the ETH price will be different with the other exchanges. A hack or a temporarily disable on withdraws will have the same impact on exchange1 prices compared with the other exchanges. Most of the time if you see an arb between exchanges it is because of some extraordinary event or the one of the exchanges is not very safe. I have seen websites that display arbitrage opportunities between a very good exchange and a scam one. Most of the time these websites are being created by the scam exchanges in order to lure arbers to make big deposits. Then you will be stuck with your money inside their "exchange" and you will need to tell them goodbye forever. Arbitrage still exists in crypto markets, most of it is in some extreme market condition or in some shit coin with very low market cap. These are my 2 cents about arbitrage in these markets. Right now there are much more profitable strategies that you can use in order to make money in crypto markets a few of them are NFT flipping and IDO or IEO participation.

makarid wrote: ↑

Tue Nov 16, 2021 4:16 pm

Hello everyone,

second one is by some extraordinary event in a specific exchange. For example, the exchange1 is doing an upgrade of Ethereum wallets. This means that it will not be possible to deposit/withdraw Ethereum from exchange1, so the ETH price will be different with the other exchanges. A hack or a temporarily disable on withdraws will have the same impact on exchange1 prices compared with the other exchanges.

This is a very good strategy but it requires a lot of knowledge that i doubt the average Arb guy has.
Same for the investments in IDO and IEO. But the guys who have a technical background and put a lot of effort can make it for sure.
NFT flipping is a jungle fren. Better stay with the shit coins investment.

Wolfie wrote: ↑

Wed Nov 17, 2021 10:50 am

makarid wrote: ↑

Tue Nov 16, 2021 4:16 pm

Hello everyone,

second one is by some extraordinary event in a specific exchange. For example, the exchange1 is doing an upgrade of Ethereum wallets. This means that it will not be possible to deposit/withdraw Ethereum from exchange1, so the ETH price will be different with the other exchanges. A hack or a temporarily disable on withdraws will have the same impact on exchange1 prices compared with the other exchanges.

This is a very good strategy but it requires a lot of knowledge that i doubt the average Arb guy has.
Same for the investments in IDO and IEO. But the guys who have a technical background and put a lot of effort can make it for sure.
NFT flipping is a jungle fren. Better stay with the shit coins investment.

From my experience Wolfie the whole thing about IDO and IEO it is a matter of quantity. Someone can make money easily in the bull market by just participate in EVERY one of them. Some will go to the moon some will fail but in the average you will make money. You buy IDO (if you are lucky) and you sell it the day that it will be listed in a reputable centralized exchange.

makarid wrote: ↑

Wed Nov 17, 2021 3:26 pm

From my experience Wolfie the whole thing about IDO and IEO it is a matter of quantity. Someone can make money easily in the bull market by just participate in EVERY one of them. Some will go to the moon some will fail but in the average you will make money. You buy IDO (if you are lucky) and you sell it the day that it will be listed in a reputable centralized exchange.

Yes this is the case statistically, till now. But something is different this days. Everyone is making a coin. It may be wolfie coin or makarid coin tomorrow. The number of coins that go to the moon in comparison to those that just dump is becoming smaller and smaller. So i dont know if the statistics will be the same in the coming year. I am more about selecting than going in all projects in.

Wolfie wrote: ↑

Thu Nov 18, 2021 9:42 am

makarid wrote: ↑

Wed Nov 17, 2021 3:26 pm

From my experience Wolfie the whole thing about IDO and IEO it is a matter of quantity. Someone can make money easily in the bull market by just participate in EVERY one of them. Some will go to the moon some will fail but in the average you will make money. You buy IDO (if you are lucky) and you sell it the day that it will be listed in a reputable centralized exchange.

Yes this is the case statistically, till now. But something is different this days. Everyone is making a coin. It may be wolfie coin or makarid coin tomorrow. The number of coins that go to the moon in comparison to those that just dump is becoming smaller and smaller. So i dont know if the statistics will be the same in the coming year. I am more about selecting than going in all projects in.

Totally understandable, i think both approaches can be profitable. I hope the quality approach to be more profitable but history so far has saw us that quality doesn't matter in the bull market. They are buying SHIBA and DOGE for Gods sake. Unbelievable.

makarid wrote: ↑

Thu Nov 18, 2021 10:37 am

Totally understandable, i think both approaches can be profitable. I hope the quality approach to be more profitable but history so far has saw us that quality doesn't matter in the bull market. They are buying SHIBA and DOGE for Gods sake. Unbelievable.

The situation changes so fast in this field. What works today does not work tomorrow. I think we should discuss investment in crypto space more in the forum but no price predictions. That is foolish. The primary problem is that our brains as Arb guys are trained to take profit with each operation. Even with value bet the time window is monthly. But in crypto a longer term view is needed.

Wolfie wrote: ↑

Thu Nov 18, 2021 11:03 am

The situation changes so fast in this field. What works today does not work tomorrow. I think we should discuss investment in crypto space more in the forum but no price predictions. That is foolish. The primary problem is that our brains as Arb guys are trained to take profit with each operation. Even with value bet the time window is monthly. But in crypto a longer term view is needed.

Trust me, arb brains are very well suited for a number of operations. It is patience that makes the difference. As the boss said, it is the man in the mirror you have to fight with.