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XRP Arbitrage


thebigrisky1
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Anyone arbitraging between exchanges. I see a few 5-10 cent exchange differences here and there.  I have about 10k I want to send from one exchange to another and cash out to my bank account. If I can do it a few times a month I ca make a few grand.  Any thoughts on two exchanges that might work?

 

 

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Not worth doing:

1. The whalles are way ahead of you
2. The arbs only last for a short while (see 1. above)
3. The arbs only last when they difference is so small that closing the arb costs more than transaction costs.
4. you really need more like a 100K to make any attempt worthwhile (then you are likely to get lots of questions from your banks(s).
 

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On 2/8/2018 at 2:10 AM, thebigrisky1 said:

Anyone arbitraging between exchanges. I see a few 5-10 cent exchange differences here and there.  I have about 10k I want to send from one exchange to another and cash out to my bank account. If I can do it a few times a month I ca make a few grand.  Any thoughts on two exchanges that might work?

 

 

cons:

myriad of withdrawal issues possible (in fact, guaranteed)

tx problems (yes, even xrp) 

spread ( price you see quoted on exc B is the last trade, spread is so large, you are not getting that price in any reasonable time)

mistakes, as in human error (  you'll send assets to someplace else by mistake, you'll try to arb in exc that quote price of asset but won't allow deposit or withdrawal, you'll make the greedy choice of including exc X to your arbing patterns, while exc X is registered in Republic of Samoa)

bots, good lord so many bots ( there is a place in the world where one can learn how to write automations in less than 30 mins, with fancy algos)

taxes (must include in profit margin, unless Maltese)

Korean regulations 

great uncertainty in dealing face-to-face for large volume transactions

tx time ( you may find yourself moving in something different than XRP, or that other fast coin that shall not be named here )

security (activity involves large stacks of value being kept available at all times)

 

pros:

if done right and consistently, it is glorious. 

 

Now let me assume a few things:

You seem to want to approach it simple, buy lower at A send to B sell, withdraw. If you are lucky to be of nationality that has access to proper local exchanges that deal with premium prices, than it can be done. You only need to consider taxes (if any), banking (limits and rules) and occasional hiccups in transfers. Definitely doable, but accessible to only a minority of people. 

Fancy ways are accessible to more people, but they are a lot riskier and harder to execute.

If I may assume one more thing, I think you are slightly underestimating arbitrage. That activity, if it can be done consistently, is beyond any analysis, tradings, value estimations, hopes, investments and speculations, simply is not in the same frame of reference. With that said, you won't get an explicit answer to your question that has any value. Keep looking.

Good luck in your endevours

 

Edit: and if you make it, you'll do your part in fixing those prices, therefore contributing to more accessible (price-wise) XRP which is just good for everyone. :D

 

Edited by De_Graaf
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