How to make money through Arbitrage? 
Is Bitcoin Arbitrage Legal?
Introduction To Crypto Currency Arbitrage
Continuing the series of articles on Abitrage
#The Idea behind Crypto Currency Arbitrage

Continuing the series of articles on Abitrage

Exploring a few unconventional methods of earning profits with cryptocurrencies…

Has it ever crossed your mind, “I wonder if I can buy that coin on this exchange for less, then transfer it to that exchange and sell it for more?”. If you have ever had that thought then Congratulations, you discovered Arbitrage!

Arbitrage is a chain of transactions whose purpose is to make a profit on the difference in crypto prices on different exchanges. In other words, we buy for less in one place then sell for more in another place. The main thing is not to confuse yourself with all the movement of funds.

The most common reason for the difference in price is a lack of liquidity on one exchange vs another. Let’s see how this plays out in real life.

Sam has a large amount of an Alt-Coin called WTC that he has to sell immediately. Sam does all his trading on Exchange A so he put all his WTC coins for sale at “Market” price and hits the “Sell” button. This initiates a price dump on Exchange A due to the low volume / low demand of Alt-Coin WTC.

Alternatively, Sam may list his WTC at a specific price which creates a “Sell-Wall”. The sight of a sell-wall tends to cause panic with many traders who then react by dumping their WTC below the price of the sell-wall price. This proceeds to cause a chain reaction of panic selling resulting in a significant price dump on Exchange A and only on Exchange A.

This is the perfect example of a great opportunity for an Arbitrage move! As traders on Exchange A notice the dump was an isolated incident, they “buy the dip” all the way back up to the correct price.

* If you have any questions related to arbitrage, please contact the administrator. * We need your help to combat scammers who have been hurting users and stealing their valuable assets. Let us act together!

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