Jul 25, · In South Africa, you can do bitcoin arbitrage by buying on 24crypto.de and selling on 24crypto.de or 24crypto.de The trick is to buy using your credit card/cheque card on Coindirect where credit card purchases are cheaper than other payment methods and sell at Luno where bitcoin is sold at the local premium. Dec 22, · How to do arbitrage trading in bitcoin south africa December 14, Bonuses are generally paid as a deposit match, or sometimes once astroneer trading platform Singapore a set number of trades have been settled, for a set amount Bitcoin arbitrage trading is a way to make money trading bitcoin with less risk than speculative bitcoin trading or. The official website of South African Bitcoin Arbitrage. H aving some reserve Bitcoin is very useful as working capital for the arbitrage trade. Because your withdrawal transaction from the Foreign Cryptocurrency exchange takes a while to confirm, the fluctuation in the price of Bitcoin during that time could reduce your profit.
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Free money right?! If you have enough bitcoin and money available to do this properly, and there is enough liquidity on the exchanges, you can do it all day long, taking R for free in each trade, while still keeping the same amount of bitcoin, but you needs to consider the fees….
When you want to buy bitcoin, why pay more than you need to? Look at the prices on the different exchanges and platforms you are registered and simply buy from the cheapest. If you are selling, you would sell on the most expensive, so that you get the most money possible for your bitcoin. In order to do arbitrage trading, you need to have accounts at more than one bitcoin exchange to also take advantage of both the high and low prices. The bigger the difference in price between the exchanges, the more profit you can make.
The more exchanges you are a member of, the better you can exploit the price differences between them. You will need to have some funds in either fiat currency like Rand, or bitcoin, but even better would be to have funds available in both currencies.
In this case you literally need money to make money! If you have bitcoin and Rand, you can deposit the Rand into the exchange with the cheapest bitcoin price, and deposit the bitcoin into the exchange with the most expensive bitcoin price. To keep things simple, you could buy and sell the same amount at the same time. If the difference in price between exchanges is small, you might lose money doing arbitrage trading, once the fees for your trade come off!
It is best to know what your fees are going to be beforehand, so that you can factor that into your calculations. Paying that on both exchanges means there needs to be a price difference of at least R for you to make any profit at all.
In South Africa Luno has a fee structure where you dont pay any fees if you are the one who makes the trade, so you can avoid the R90 fee to buy a bitcoin for R if that is the price on the exchange, by making a trade for R, and waiting for someone to take your price. This will make the buyer of your bitcoin pay the R90, and you dont pay anything.
The problem with this method is that bots and other traders might see your bid and change their price to go in front of yours.
Get around this by changing your price again so that you go ahead of their price by R1. As long as you are below the R by the time you have sold your bitcoin, even if its piece by piece, you will still come out of it paying less fees. This can be a slow process, and sometimes it can be extremely quick you never know who is trying to buy or sell at the same time as you are.
The best times for bitcoin arbitrage is in times of high bitcoin price volatility. When the price is moving up or down quickly, often the exchanges have big differences in the prices on the order books and this is when you can usually make the most profit from bitcoin arbitrage trading. I will show you an example I just did…. A R difference is cool, but that could be eaten away by trading fees…. I would still make a profit of R The order book was very thin on Luno at that time though, and that price is only available for a small amount of the bitcoin I had to sell.
If someone bought that bitcoin at that price, my profit would be R This might not sound like a lot of money, but doing this all day long, on multiple exchanges, can add up to hundreds or thousands per day. In this case, because the buy order book was so thin on Luno , I decided to put in my own sell order at R The bitcoin was bought over about half an hour in small chunks by various buyers, and I had to change the price a couple of times to beat the bots.
Get your free guide! Arbitrage Opportunity. Last updated: e. Frequently Asked Questions. I don't have capital, what now? Why should I keep my Arbitrage profits in Bitcoin and not sell for Rands?
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