How to trade Bitcoin (arbitrage way, buy low sell high)
Here is a simple tutorial and couple advices for trading USD/BTC and BTC/USD.
You always have to act fast if you want to use the price gaps between the bitcoin exchanges. There are price differences pretty often, just you need to keep watching and find them. And when you see an arbitrage opportunity, grab it as fast you can.
Here is what we got at the moment:
Deposit fee at Coinbase: 1.9%
Transaction fee at Coinbase: 0.2%
Transaction fee at Finmar 0.1%
Withdrawal fee at Finmar: $1
- Exchange rate difference (472–437): $35
- Total spent on fees: $10
- Profit: $25
The calculations are for 1 BTC.
If you trade 5 BTC, the profit multiplies by x5.
If you trade 20 BTC the profit multiplies by x20, etc.