<h1>Arbitrage Example</h1>

<ol>
<li>Buy 100 XCOIN for 100 EUR (1EUR/XCOIN) on Exchange A</li>
<li>Send 100 XCOIN to exchange B minus transaction fee of 1 XCOIN</li>
<li>Wait for X confirmations before Exchange B will let you trade to your 99 XCOIN</li>
<li>Sell 99 XCOIN at 1.1 EUR/XCOIN for 108.9 EUR</li>
<li>Repeat</li>
</ol>

<h1>Risks and Fees</h1>

<ol>
<li>There are sometimes fees for purchasing coins</li>
<li>Transaction fees exist on many blockchains.</li>
<li>Confirmation times can take several minutes to several hours.  During this time the price can drop below the price you bought it at, causing a loss.</li>
<li>There are fees for selling and converting coins to Fiat.</li>
</ol>

<p>These opportunities exist because price is set by the market.  Each exchange is its own market with different people selling different amounts of coins for different prices.</p>

CC BY-SA 4.0
2018-06-09T01:19:05.530Z
Thank you. I would think my previous examples take care of 1, 2, and 4. So I would think 3 is the reason.
171124
CC BY-SA 4.0
2018-06-08T23:07:40.157Z
2018-06-10T02:09:12.677Z
2018-06-10T02:09:12.677Z
JBaczuk
<p>arbitrage is possible but have not a very good profit margin in this case (caused by tradingfees, networkfees, etc). furthermore you must consider the fast price fluctuation of btc cryptocurrency-markets.</p>

CC BY-SA 4.0
2018-06-08T11:21:15.240Z
2018-06-08T11:21:15.240Z
anion
<p>Suppose I have BTC at HitBtc and Poloniex. The prices and fees are:</p>

<ul>
<li><p><strong>HitBtc:</strong> price is 8460, <a href="https://hitbtc.com/fees-and-limits" rel="nofollow noreferrer">fees</a> are ~0.1%.</p></li>
<li><p><strong>Poloniex:</strong> price is 8385, <a href="https://poloniex.com/fees" rel="nofollow noreferrer">fees</a> are ~0.2%.</p></li>
</ul>

<p>The price difference is 0.9%. I can sell BTC at HitBtc by 8460 and then use this money to buy BTC at Poloniex by 8385 to make money after fees.</p>

<p>Is there an arbitrage opportunity here?</p>

CC BY-SA 4.0
2018-06-08T02:31:10.893Z
Sounds right, why not?
JBaczuk
CC BY-SA 4.0
2018-06-08T21:59:16.157Z
Then why such opportunities exist?
171124
<trading><arbitrage>
Bitcoin arbitrage
171124
# Bitcoin arbitrage

(Asked by: username_0 on 2018-06-07)

Suppose I have BTC at HitBtc and Poloniex. The prices and fees are:

* **HitBtc:** price is 8460, [fees](https://hitbtc.com/fees-and-limits) are ~0.1%.
* **Poloniex:** price is 8385, [fees](https://poloniex.com/fees) are ~0.2%.

The price difference is 0.9%. I can sell BTC at HitBtc by 8460 and then use this money to buy BTC at Poloniex by 8385 to make money after fees.

Is there an arbitrage opportunity here?

**Tags:** trading, arbitrage

> **Comments:**
> **username_1**: Sounds right, why not?  
> **username_0**: Then why such opportunities exist?  

---

## 2 answers

### Answer by username_1 on 2018-06-08. Score: 0 | Accepted answer

# Arbitrage Example

1. Buy 100 XCOIN for 100 EUR (1EUR/XCOIN) on Exchange A
2. Send 100 XCOIN to exchange B minus transaction fee of 1 XCOIN
3. Wait for X confirmations before Exchange B will let you trade to your 99 XCOIN
4. Sell 99 XCOIN at 1.1 EUR/XCOIN for 108.9 EUR
5. Repeat

# Risks and Fees

1. There are sometimes fees for purchasing coins
2. Transaction fees exist on many blockchains.
3. Confirmation times can take several minutes to several hours. During this time the price can drop below the price you bought it at, causing a loss.
4. There are fees for selling and converting coins to Fiat.

These opportunities exist because price is set by the market. Each exchange is its own market with different people selling different amounts of coins for different prices.

> **Comments:**
> **username_0**: Thank you. I would think my previous examples take care of 1, 2, and 4. So I would think 3 is the reason.  

---

### Answer by username_2 on 2018-06-08. Score: 0

arbitrage is possible but have not a very good profit margin in this case (caused by tradingfees, networkfees, etc). furthermore you must consider the fast price fluctuation of btc cryptocurrency-markets.


---

