Arbitrage is a trading method where one buys a coin from any exchange that has the lowest price of the currency in the market and selling the coin in an exchange with a much higher value. The main reason for this price difference among different exchanges is because the prices of a coin are dependent on the last trade. As there are a different number of people on different exchanges with different preferences thus the prices vary too.
For example, if the price of BTC is $4000 in exchange A and $4500 in exchange B. An investor can buy 10 BTC from exchange A which gives them a value of $40000 total. Now they selling these 10 BTC on exchange B. An investor gets a total value of $45000. This is a profit of $45000-$40000= $5000.
In financial investing, arbitrage refers to the simultaneous buying and selling of the same asset or security on different exchanges to profit from price differentials on these exchanges.
For example, if the price of an asset is trading at $100 on exchange A and at $98 on exchange B, an investor can purchase the asset for $98 on exchange B and then immediately sell it for $100 on exchange A to generate an effectively risk-free profit of $2. This is the concept of arbitrage trading.
In Brazil, bitcoins are subsumed under the general class of "intangible goods" but without any proper identity. Intangible property that is worth money. In Brazil, cryptocurrencies are similar to shares. But being intangible goods they are not subjected to import tax or other customs duties.
Another example is Colombia, which is ranked 7th in terms of Bitcoin trade. In the past years, Colombia has witnessed a growth rate of bitcoin trade which makes it a very fertile ground for Bitcoin arbitrage.
There are a number of good platforms in Malaysia like Luno where investors can easily buy and sell Bitcoins and earn profit through arbitrage.
Best countries for bitcoin arbitrage
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Best exchanges for Bitcoin Arbitrage
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Crypto Bank account
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Documentaries, videos and podcasts
- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
- BitcoinBitcoin is a cryptocurrency and a digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009.
- International e-commerce paymentsEcommerce, also known as electronic commerce or internet commerce, refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.