Bitcoin Arbitrage

Bitcoin Arbitrage

Bitcoin Arbitrage is the financial act of using different platforms for buying Bitcoin cheaper and sell it in a higher price

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Edits on 18 Jun, 2019
Will Suter
Will Suter approved a suggestion from Golden's AI on 18 Jun, 2019
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In Brazil, bitcoinsbitcoins 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.

Edits on 17 Jun, 2019
Carla Faraguna"removed material lacking source citation "
Carla Faraguna edited on 17 Jun, 2019
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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.

...

Bitcoin arbitrage is usually not a suggested investment strategy. It's a high risk type of investment. Infrastructure is developing continuously but it's not ready yet for easy exchanges. For trading with bitcoin and for gaining significant profit a big amount of investment is needed.

The cost of currencies can differ in different countries. These value differences give possibility to people to use it to their advantages in case of Bitcoin too. Basically, Bitcoin is bought in a smaller exchange rate and sold in a higher exchange rate right after.

The best countries for Bitcoin Arbitrage are usually the developing countries as they have the smallest prices.

Edits on 5 Jun, 2019
Will Suter
Will Suter approved a suggestion from Golden's AI on 5 Jun, 2019
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In BrazilBrazil, 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.

Edits on 4 Jun, 2019
Carla Faraguna"Removed some opinion"
Carla Faraguna edited on 4 Jun, 2019
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The cost of currencies can differ widely in different countries. These value differences give possibility to people to use it to their advantages in case of Bitcoin too. Basically, Bitcoin is bought in a smaller exchange rate and sold in a higher exchange rate right after.

...

For exampleIn Brazil provides a really good market for bitcoin arbitrage. So far, 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.

...

Arguably the second most developed country in Southeast Asia after Singapore is Malaysia that is a growing ground for bitcoin arbitragers. There are a number of good platforms in Malaysia like Luno where investors can easily buy and sell Bitcoins and earn profit through arbitrage.

...

All in all since Bitcoin exists just like in case of foreign exchange companies playing with the exchange rates for profit is common. However, it's a risky investment strategy. The infrastructure is not ready for fast exchanges and that can eat up the whole profit and cause loss real quick as exchange rates are continuously changing and websites are not always working. Moreover, in case of bitcoin arbitrage additional fees might appear in every website.

There are a number of good platforms in Malaysia like Luno where investors can easily buy and sell Bitcoins and earn profit through arbitrage.

Edits on 4 Jun, 2019
Will Suter
Will Suter approved a suggestion from Golden's AI on 4 Jun, 2019
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Another example is ColombiaColombia, 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.

Will Suter
Will Suter approved a suggestion from Golden's AI on 4 Jun, 2019
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Arguably the second most developed country in Southeast Asia after Singapore is MalaysiaMalaysia that is a growing ground for bitcoin arbitragers. There are a number of good platforms in Malaysia like Luno where investors can easily buy and sell Bitcoins and earn profit through arbitrage.

Will Suter
Will Suter approved a suggestion from Golden's AI on 4 Jun, 2019
Edits made to:
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The cost of currencies can differ widely in different countries. These value differences give possibility to people to use it to their advantages in case of Bitcoin too. Basically, Bitcoin is bought in a smaller exchange rateexchange rate and sold in a higher exchange rate right after.

Will Suter
Will Suter approved a suggestion from Golden's AI on 4 Jun, 2019
Edits made to:
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Article

Arguably the second most developed country in Southeast Asia after Singapore is Malaysia that is a growing ground for bitcoin arbitragers. There are a number of good platforms in Malaysia like LunoLuno where investors can easily buy and sell Bitcoins and earn profit through arbitrage.

Carla Faraguna
Carla Faraguna edited on 3 Jun, 2019
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Arbitrage is a trading method where weone buybuys 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. WeAn investor can buy 10 BTC from exchange A which gives usthem a value of $40000 total. Now wethey selling these 10 BTC on exchange B. WeAn getinvestor gets a total value of $45000. This is a profit of $45000-$40000= $5000.

Edits on 3 Jun, 2019
Neil Ambikar
Neil Ambikar edited on 3 Jun, 2019
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Topic thumbnail

Bitcoin Arbitrage

Bitcoin Arbitrage is the financial act of using different platforms for buying Bitcoin cheaper and sell it in a higher price

Article

Arbitrage is a trading method where we buy 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. We can buy 10 BTC from exchange A which gives us a value of $40000 total. Now we selling these 10 BTC on exchange B. We get 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.

Bitcoin arbitrage is usually not a suggested investment strategy. It's a high risk type of investment. Infrastructure is developing continuously but it's not ready yet for easy exchanges. For trading with bitcoin and for gaining significant profit a big amount of investment is needed.

The cost of currencies can differ widely in different countries. These value differences give possibility to people to use it to their advantages in case of Bitcoin too. Basically, Bitcoin is bought in a smaller exchange rate and sold in a higher exchange rate right after.

The best countries for Bitcoin Arbitrage are usually the developing countries as they have the smallest prices.

For example Brazil provides a really good market for bitcoin arbitrage. So far 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.

Arguably the second most developed country in Southeast Asia after Singapore is Malaysia that is a growing ground for bitcoin arbitragers. There are a number of good platforms in Malaysia like Luno where investors can easily buy and sell Bitcoins and earn profit through arbitrage.

...

All in all since Bitcoin exists just like in case of foreign exchange companies playing with the exchange rates for profit is common. However, it's a risky investment strategy. The infrastructure is not ready for fast exchanges and that can eat up the whole profit and cause loss real quick as exchange rates are continuously changing and websites are not always working. Moreover, in case of bitcoin arbitrage additional fees might appear in every website.

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Neil Ambikar

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Best countries for bitcoin arbitrage

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May 14, 2019

Best exchanges for Bitcoin Arbitrage

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Web

May 6, 2019

Crypto Bank account

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January 31, 2019

Documentaries, videos and podcasts

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B2B Pay

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Edits on 31 May, 2019
Neil Ambikar"Initial topic creation"
Neil Ambikar created this topic on 31 May, 2019
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 Bitcoin Arbitrage

Bitcoin Arbitrage is the financial act of using different platforms for buying Bitcoin cheaper and sell it in a higher price

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